9 Box Grid: Potential & Pitfalls of this Performance Assessment Tool

The 9 box grid is a widely used performance assessment tool that helps companies identify future leaders and employees with high potential, often as part of succession planning. It is typically used alongside data from performance reviews or other talent assessments. While it is an industry standard, it's important to understand both its benefits and limitations.

What is a 9 Box Grid?

The 9 box grid evaluates a company’s talent pool based on two axes: potential (vertical) and performance (horizontal). Employees are plotted on this grid, with the top right representing high performers with high potential, and the bottom left representing low performers with low potential. Not all employees will be superstars; some may be steady contributors, while others may not be a good fit.

The grid is commonly used in succession planning to assess current talent and identify potential leaders. Those in the upper right quadrant are seen as high-potential candidates for succession, while those in the lower left may need to be reassigned or removed.

How to Create a 9 Box Grid

Creating a 9 box grid involves assessing each employee’s performance and potential, then plotting them accordingly.

Assessing Performance

Performance is typically rated as low, moderate, or high:

• ​Low performance: Employee does not meet job requirements or individual targets.
• ​Moderate performance: Employee partially meets job requirements and targets.
• ​High performance: Employee fully meets job requirements and targets.

This assessment relies on clear job descriptions and may also consider personal goals, teamwork, and 360-degree feedback. With only three categories, managers may be inclined to rate more employees as moderate.

Assessing Potential

Potential is also rated as low, moderate, or high:

• ​Low potential: Employee is at full capacity and not expected to improve, either due to maximum capability or lack of motivation.
• ​Moderate potential: Employee can further develop within their current role, either in performance or expertise.
• ​High potential: Employee is eligible for promotion, either immediately or within two to three years.

Potential reflects an employee’s upward trajectory, not just current performance. For example, a low or moderate performer with high potential may benefit from development and goal setting.

Putting It All Together

After assessing both performance and potential, employees are plotted on the 9 box grid. This talent matrix provides managers and HR with a clear overview of where each employee stands. Any performance evaluation technique can be used to inform these assessments.

What the 9 Box Grid Quadrants Mean

The grid allows employers to quickly see the distribution of their workforce. For example, if most employees are in the bottom row, growth is limited. If many are in the top right, they may seek opportunities elsewhere if their career goals aren’t met.

Quadrant meanings include:

• ​Diamond in the Rough: High potential, low performance. Employees could excel but are facing challenges.
• ​High Potential: Good performers who could advance to the next level.
• ​Superstars: High performers and big-picture thinkers.
• ​On the Fence: Moderate potential, low performance. Need development or coaching.
• ​Solid Players: Moderate potential and performance. Could take on more responsibility with training.
• ​High Performers: High performance, moderate potential. Consistently perform well but may need strategic goals.
• ​Bad Hires: Low potential and performance. May need reassignment or termination.
• ​Backups: Low potential, moderate performance. Good at their job but may have reached their career peak.
• ​Workhorses: High performance, low potential. Excellent at their job but not interested in expanding skills.

Employers can use these quadrants to determine appropriate action steps, such as coaching, training, or clarifying job requirements.

Using the 9 Box Talent Matrix for Succession Planning

The 9 box talent matrix helps employers identify top performers and assess bench strength for succession planning. It encourages consideration of both performance and potential, providing a more comprehensive view than performance reviews alone. For example, a "diamond in the rough" may have high potential but low current performance, which would not be apparent from performance reviews alone.

Managers can use the matrix to make informed promotion decisions by considering a range of metrics and attributes.

Common Pitfalls of the 9 Box Grid

While useful, the 9 box grid has several pitfalls:

• ​Subjectivity: Placement on the grid is influenced by the manager’s judgment, especially regarding potential, which can vary between managers.
• ​Doesn’t Evaluate Aptitude: High performers with high potential may not have the necessary skills to manage others, such as stress management or delegation.
• ​Lack of Transparency: Employees may feel demotivated if they learn they are classified as having low potential, similar to being labeled as "not cool" in school.
• ​No Gray Areas: Not all employees fit neatly into one of nine boxes. Additional discussion is needed before making promotion or termination decisions. Some employees may be overlooked for improvement if they fall in the lower left.

The 9 box matrix should be one part of the decision-making process, not the sole determinant. It is important to follow through with action plans based on the assessments.

Arcoro’s Performance Management and Succession Planning solutions offer a variety of talent management tools, including the 9 box talent matrix, to help companies review performance and identify future leaders. These tools provide regular feedback, monitor goals, and aggregate data to identify competencies and create development plans.