Potential vs Performance

Potential vs performance is a concept used in employee development to differentiate between the oft confusing concepts of performance and potential. While performance refers to consistent results an employee exhibits in their current role, potential predicts the likelihood of future success. Potential vs performance is best understood by plotting your workforce on a 9-box model.

In the performance vs. potential matrix, performance is on the x-axis and performance on the y-axis. The top-right box is the most valuable position and indicates both high performance and high-potential. Conversely, the bottom most square indicates both low performance and low potential. Often viewed as potential vs performance, there is a symbiotic relationship between the two concepts, leveraging which can benefit employees and organizations.