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Tony wants to create a feedback form for team members to evaluate each other anonymously. However, he is concerned about the potential negative impact on salary increases. The host advises Tony to be transparent about the potential consequences of the feedback. Honesty is crucial in maintaining trust within the team. Instead of focusing on evaluations, the host suggests shifting the focus to coaching and improvement. He recommends setting team norms for feedback and starting with a safer exercise like feedforward, providing suggestions for future improvement rather than evaluating the past.