Performance evaluations work as a feedback loop using both objective and subjective measures. Using incentive-based compensation increases the need for quality measures. Reducing costs can simply shift increasing costs elsewhere in an organization. The Balanced Scorecard is a tool to balance value-creating activities toward shareholder value while ensuring strategy implementation and project management. Venture capitalists prefer teams with second-class ideas but strong execution abilities over teams with first-class ideas but weaker execution skills. For startups and small companies, having cash is critical for survival but they must avoid wasting the cash when they have it by planning an exit strategy such as a trade sale, IPO, or acquisition.