I strongly believe you will get exactly the behavior you incentivize for. I used to apply this mostly to sales people -- if their bonus depends on new business, you will get a large number of soon-to-be-unhappy customers.
It works more generally though ... if management sets a metric, people will try to game it. On the flip side, you can't just have abstract 'quality' or 'customer satisfaction' because it is hard to know if you are really improving. I've never seen this solved once your scale gets past the small-group-of-people-with-a-shared-dream.