Make sure you track how successful you are in transforming and growing your people over time. How will you know that you have developed your people the way you want and the way they aspire to be by the end of the year?
So, how do you know the right skills are going to the right people? This is a bit more than: are they doing their job? It is about: what do they need to learn to do their job better.
The performance management system needs to be robust enough to answer that question with confidence and rigour.
Many performance management systems do miss the point though, and in this case, doing it rigorously is counter-productive. This is a realm for those who refuse to think.