Direct model predictive control (MPC) with reference tracking, also referred to as finite control set MPC (FCS-MPC), has gained significant attention in recent years, mainly from the academic community. Thanks to its applicability to a wide range of power electronic systems, it is considered a promising control method for such systems. However, to simplify the design, researchers frequently make choices that-often unknowingly-reduce the system performance. In this article, we discuss and analyze the factors that affect the closed-loop performance of FCS-MPC. Based on these findings, design guidelines are provided that help to maximize the system performance. To highlight the performance benefits, two case studies will be considered: the first one consists of a two-level converter and an induction machine, whereas the second one adds an LC filter between the converter and the machine.