Channel partners are often asked to undertake a portfolio of tasks that vary in the degree to which they can be measured. For instance, sales tasks can be readily measured by sales records, while customer service tasks are only crudely measured by satisfaction scores, and tasks such as building goodwill are virtually impossible to measure. John will summarize the theoretical analyses of this problem to highlight the available guidelines for practice. Data from a cell phone service provider are used to illustrate the nature of these problems and the effects of incentives based on measured outputs.