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.

This word is part of a larger series on High Potential Identification

High potential identification is the process by which organizations identify their top-of-the-line employees who have the caliber or potential to take up more challenging roles in the future with the right training initiatives. The process of high potential identification contributes to leadership development and building a succession pipeline in an organization. High potential identification is an important organizational development strategy that helps you identify, develop, and retain your high potential employees.

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