Talent Management Grid

9 box Grid

When assessing employee performance or considering the value of an

individual for an organization, HR needs to assess two dimensions: an
employee’s current contribution and future potential.
The assessment of an employee’s current contribution calibrates the
performance of their teams to ensure appropriate recognition and reward.

On the other hand, assessing future potential helps identify individuals with
high performers with the potential to grow into future leadership roles,
called succession planning.

Improving employee performance and identifying team members for future

leadership roles enables organizations to increase job satisfaction and
improve retention rates.

One of the most commonly used models for assessing employee

performance is the 9-box grid. The 9-box grid is a simple, free exercise that
groups employee performance into quadrants and ensures consistent
treatment of employees across different performance groupings.

The 9 box grid provides a framework to assess employee performance and

enables succession planning. The exercise’s grid maps employees against
two axes: Current Performance and future potential.

The vertical (y) axis indicates growth potential, referring to an individual’s

potential to grow into leadership roles. The horizontal axis represents an
employees’ current performance, identifying whether they are below,
meeting or exceeding performance expectations. The 9 boxes in the grid
result from the relationship between their ‘potential’ and ‘performance’
Box 1: Low performance / Low potential. Within the nine-box grid
model, this is the box for the so-called underperformers. In their work and
performance, they do not meet the requirements set by the organisation,
meaning they are not suitable for their current position. There is a
termination risk for the employment contract, as organisations want to
employ as few under performers as possible. It is possible that the
employee is in a role that is completely wrong for them and is
overwhelmed by their responsibilities. In such cases, it is a good idea to
look at the employee’s current position together and look at what role
would better suit them. If there is a vacancy that matches them, it is always
a good idea to give that a try. If there is no other option, then letting them
go will be the best option. An outplacement procedure can be offered by the
organisation.
Box 2: Average performance / Low potential. This is the box for solid
performers who meet all quality requirements set by the organisation.
However, they do not really excel in any of their tasks. Such employees can
be assigned to different positions of a similar level. It is important that
sufficient attention is paid to them, and that they are supervised and
monitored on their jobs. Only then will their performance grow and
improve. In the long term, that improved performance might lead to a
promotion.
Box 3: Low performance / Average potential. Inconsistent performers
can be found in box 3 of the 9 box grid. That means they are a risk factor; a
company can’t rely on them to perform well consistently. Their results are
often unsatisfactory. If it’s a new employee in a new job, then it’s logical
that their performance is not up to standard at first. But it is expected that
they will grow to become a stable and good performer in the short term. If
that does not happen and the employee continues to perform badly, it
should be investigated why this is, and how their performance can be
improved. It is not a matter of talent development. A possible solution is
reassigning the employee in question to a lower position. If that does not
help, then it is time to let them go.
Box 4: High performance / Low potential. Within the 9 box grid model,
this box contains the professional experts; specialists who perform
excellently, making them valuable to the organisation. However, their
talent development is low, and they are unlikely to be promoted to a
position with more responsibilities. Often these are older, experienced
employees who are no longer interested in developing their talents, as they
will be retiring in a few years anyway.
Box 5: Average performance/Average potential This is the box for the
basic professionals; the quality of their work is fine, and they are open to
developing their talents. This is a favourite for most organisations, because
the company has a lot of options for employees like that. There are plenty
of opportunities to have them grow into more demanding roles with more
responsibility.
Box 6: Low performance / High potential Box 6 is home to potential top
performers. These are often employees who are just starting out, new to
the company with little or no experience, but with proper training. It makes
sense that their performance is not yet up to the standards of the business,
as they do not have enough experience yet. Their talent development is
high, and they are open to participating in any kind of training programme.
It is a good idea to set goals together with these employees and regularly
assess their performance based on those goals. After a period of about
three months, there should be noticeable progression in their work
performance.
Box 7: High performance / Average potential. Good performers can be
found here. They perform at the top of their field and there are decent
opportunities to develop their talents further. They are eligible for more
demanding roles. In many cases, they set the right example within the
organisation, making them very valuable.
Box 8: Average performance / High potential This is the box of the rising
stars; the ultimate talents within the organisation. In addition to
performing well, they have high talent potential, meaning there is plenty of
opportunity for them to rise through the ranks or develop further in their
current position. It is important for an organisation to cherish and retain
many such talents because they are the driving force behind the success of
the business.
Box 9: High performance / High potential These are the top talents who
do not just perform at the top of their game, but who are equally able to get
even more out of their talents. They are usually in positions with a lot of
responsibility and will quickly rise to middle management.
How to create 9 -Box Grid Model

Step 1: Assess Employee Performance

During the first step, the performance level of each employee included is
ranked as low, moderate, or high. Performance can be appraised in a
variety of ways, and organizations often use the infrastructure and systems
they have in place to evaluate employee performance. The exact criteria for
each category of performance may vary depending on the needs of the
organization, but it is important that each employee is categorized into one
of these three groups. Regarding Performance data can be collected from
senior, from interviews, focus group,360-degree appraisal and may other
ways available to organization for keeping track of performance record of
employee.

Step 2: Assess Employee Potential

Next, the potential of each employee is assessed as either low, moderate, or
high. Potential is defined by how much the employee is expected to grow,
their willingness to learn, and their ability to apply their knowledge to on-
the-job behaviors. Though many organizations will be familiar with
assessing employee performance, employee potential is often a new
concept. The two categories can be distinguished by thinking of
performance as past behavior and potential as expected future behavior.
About the potential of employee information can be collected from
Assessment Centre, Roll Playing, Case Study, Psychological games etc.

Step 3: Merge Performance and Potential into a 3×3 Grid

Once all employees have been scored as low, moderate, or high on both
performance and potential, they are then organized into one of nine
categories in the 9-box grid

The Benefits of Using the 9-Box Grid

1. Identify valuable talent

The 9-box grid allows you to spot high performers within the organization
who have great potential to become future leaders. It helps strategize and
direct your resources intelligently to engage and develop the future leaders
of your organization. Additionally, when internal promotions come up, the
9-box grid gives an idea of the suitable candidates to consider for these
opportunities.
2. Highlight development opportunities
While looking for high potential leaders in the 9-box grid, the weaker players
– who aren’t currently suited for their current job or lack specific skillsets,
are also highlighted in the process. These insights enable HR and managers
to investigate these employees further and provide the best support to reach
their next career goal and develop these team members into better
performers.

3. Increases transparency
The 9-box grid approach requires open and honest communication within
the leadership team to evaluate the performance and potential of every
employee. These discussions help clarify leaders’ expectations of the
employees for contributing to the organizational goals.

Limitations of the 9-Box Grid

1. Distinguishing between performance & potential

Distinguishing between performance and potential can be difficult,
especially without a clear definition or understanding of both concepts.

Organizations usually have a well-defined method for evaluating

performance; however, evaluating potential is still less familiar for many,
resulting in individuals being rated inaccurately on potential. Without
clearly defined processes for identifying team members with high potential,
unconscious biases may also impact employee ratings.

2. Employee reactions
If you decide to be transparent and honest with your employees and share
performance information, it may lead to discouragement and lower
employee morale. Low-ranking employees may react negatively to being
labelled a “low performer” or “low potential.

Sharing this information with employees can also create a hierarchy among
succession candidates, disrupting teamwork and relationships in the
organization.

3. Labels employees
The 9-box grid confines your employees to a specific label, affecting how
management sees them. For instance, describing an employee as a low
performer with low potential on the grid might change how management
treats and sees that employee from that point on.