Navigating performance management and talent development can be daunting for organizations aiming to cultivate their workforce effectively. One prominent tool in this pursuit is the nine-box model, a strategic framework that offers a structured approach to assess and develop employees based on their performance and potential. The nine-box model is a versatile tool for making informed decisions about talent allocation, development opportunities, and leadership pipelines. This starter’s guide aims to demystify the nine-box model, providing insights into its significance, application across various organizational contexts, and practical steps for implementation.
The nine-box model, the performance vs potential matrix, is a talent management tool to map an organization’s employees onto a 3×3 matrix consisting of performance on the x-axis and potential on the y-axis and to chart a developmental path for them.
The nine-box model is a simple yet effective tool for HRs and managers to determine their employees’ current position on the performance vs. potential matrix and on whom to focus their developmental efforts. As a diagnostic tool for employee development, the nine-box model significantly contributions to high-potential identification, leadership development and succession planning processes.
Mercer | Mettl’s 9-box Model
The concepts of performance and potential, their interdependence or lack thereof, have often been debated intently in HR. The performance vs. potential matrix or the nine-box model simplifies this problem, enabling recognition of the symbiosis between the two and how this relationship can benefit employees and organizations.
In the nine-boxes categorized along the x and the y-axis in the performance vs potential matrix, the top-right box is the most valuable position. It indicates both high performance and high potential. Conversely, the bottommost square indicates both low performance and low potential. While ‘performance’ is the level of success employees achieve in their current roles, ‘potential’ is employees’ caliber to assume more complex roles in the future.
First, one must accurately plot employees on the performance vs. potential grid to use it well. Both potential and performance are individual metrics and need to be determined separately. Often, organizations need help to measure performance and potential. One of the best ways to gauge an employee’s performance level is by conducting 360-degree feedback. The best way to identify potential is through an assessment and development center.
A nine-box model aims to gain a holistic understanding of how the workforce is placed regarding current performance and future potential. It helps organizations create talent pools that can be approached with the most appropriate development interventions. The purpose of a nine-box is also to aid organizations in planning better for their prospects. The nine-box model plays a vital role in identifying and developing high-potential employees, succession planning and leadership development.
Every box in the nine-box talent model has an aspirational career goal attached to it. If an employee is a performer, their next jump should be to that of the high performer box. If an employee is a current star, the organization needs to find a way to develop their potential while benefiting from their performance, enabling the individual to contribute more consistently and substantially. The nine-box model aims to develop employees from every quadrant and help them achieve their career objectives.
An organization’s current employees are their biggest asset. One must find their true potential and develop it to benefit the organization. It is a win-win for both the organization and the employees. Organizations can measure employee potential through assessments and simulations in an assessment and development centre. After which, the results can be plotted on the nine-box performance potential matrix. Each box can have a corresponding development plan to prepare high-potential employees for future roles.
“Succession planning is a systematic process of building a strong leadership pipeline for the organization to maintain momentum when faced with the loss of talent owing to attrition or other factors.” – Succession Planning: How To Identify Your Next In Line With A HiPo Toolkit.
Employees with a consistently notable track record of performance and high-potential ratings, i.e., consistent stars on the nine-box model, can be groomed for C-level positions and future vertical heads. It helps employees become vested in the organization’s future, ensuring long-standing associations and lowering attrition rates.
A nine-box succession planning or a nine-box leadership model can succeed when an organization has identified the critical competencies required to take up a senior leadership role. Once the competencies are clearly defined, every competency can ultimately be accorded to a list of developmental activities and broader learning paths to build expertise.
Suppose an organization finds more than a sizable number of employees in the bottom left square of the nine-box grid model. In that case, the organization must reconsider its screening methods and re-evaluate its recruitment and interview processes.
The real value of the nine-box model is its ability to inform organizations about how to better plan for their future and who can play an exceptional role in it. It’s a great platform to get a snapshot of the workforce to make better decisions for the organization’s future. Organizations can be better equipped to help employees in their career paths, assuring employee loyalty. The nine-box model facilitates a certain level of transparency and dialogue among different stakeholders.
The nine-box model is fairly simple to emulate for your organization. However, there are a few common pitfalls one must consider:
Creating a nine-box grid involves evaluating performance and potential and bringing the two dimensions together.
The first step is to evaluate performance, which entails categorizing employees into three groups: low, moderate, and high. During performance appraisals, employees are assessed based on this performance scale. Different organizations may use various methods to evaluate performance. For instance, one suggested approach is determining low performance when an employee fails to meet job requirements and individual targets. Moderate performance is assigned when an employee partially meets job requirements and individual targets, while high performance is given when an employee fully meets job requirements and individual targets. This approach is advantageous as it utilizes objective job requirements defined in the organization’s job structure as performance criteria. However, some organizations may have less defined job structures and rely more on personal targets, which makes assessing individual target achievement more critical.
Moving on to the second step, evaluating potential is crucial in the nine-box grid. It involves considering an employee’s potential for further development. During talent reviews, potential is often categorized into three groups: low potential, moderate potential, and high potential. Low potential refers to employees already working at their full potential and are not expected to improve further, either due to reaching maximum capacity or needing more motivation. Moderate potential employees can further develop within their current role, both in performance and expertise.
On the other hand, high-potential employees exceed expectations in their current positions and are ready to take on more complex roles and responsibilities. When communicating potential evaluations, it is essential to base them on objective data. It fosters a growth mindset among employees and encourages them to associate extra effort with performance improvements. However, due to the sensitive nature of potential evaluations, some companies choose not to disclose potential scores to employees. Similarly, caution should be exercised when informing employees about eligibility for promotion, as there may not be any available job openings.
The final step in creating a nine-box grid is combining performance and potential. It plots the evaluated performance and potential on a 3×3 grid, resulting in the nine-box grid. The brilliance of this grid lies in its flexibility, as organizations can utilize different talent management techniques for each box. By considering both performance and potential, organizations can effectively recognize and nurture talent in their workforce.
Talent risk: Underperformers, also known as talent risks or icebergs, score low on performance and potential on the nine-box grid. It is more effective for talent management efforts to focus on employees with more significant potential for growth and contribution. This approach ensures high work quality across the team and avoids situations where other team members must compensate for underperformers. Identifying personal roadblocks that may hinder performance and development is essential. Additionally, organizations should review their talent acquisition and selection processes if underperformers are a recurring issue.
Inconsistent players and performers: The next category on the nine-box grid consists of two groups: the inconsistent players and the performers. The performers are those who do a satisfactory job but may have little potential for growth. Instead of investing in their training, creating a performance improvement plan is recommended to help them identify areas for improvement and allow them to work on them. However, inconsistent players can excel but need to improve. Understanding the reasons behind their average performance, such as poor onboarding or unclear expectations, is essential. Peer coaching or mentorship programs can be implemented as interventions. The action plan involves creating a performance improvement plan with clear expectations and regular check-ins to evaluate progress.
Rough diamond and high performer: In the bottom right and top left corners of the nine-box grid, we find individuals who excel in only one aspect. High performers score high in performance but have low growth potential. These employees should be valued and cared for in the organization due to their strong work ethic and consistent performance. The action plan for such professionals involves ensuring their motivation and engagement, analyzing how their work may change, and providing nominal salary raises without promoting them beyond their potential. On the other hand, rough diamonds, also known as untapped talent, score high in potential but low in performance. These individuals, such as management trainees from prestigious universities, are eager to learn but may still need to gain experience. Monitoring their performance and continuously expecting rapid growth and improvement is crucial. The action plan for untapped talent includes giving them time to develop while tracking their performance, setting clear expectations for their current role, and communicating belief in their potential while emphasizing the need for improvement.
Future star, key player, current star: The following three segments on the nine-box grid make up the core of the workforce and can move into advanced roles. The first segment, future stars, also known as high potentials or emerging contributors, have high potential but average performance, often due to their limited time in the role. The priority is to move them to the top-right corner of the grid by providing similar approaches and action steps as reliable team players. Key players, on the other hand, are consistent performers with the potential to grow further in their current roles. The main priority is to bring them to the right side of the grid where they score high on performance, following similar steps as high potentials. The action steps for both segments include setting clear expectations, allowing time for development, providing recognition and regular check-ins, offering job rotation or enlargement opportunities, facilitating peer coaching or professional coaching, and providing training and learning opportunities. The fundamental strategy for current stars or strong contributors already making significant contributions is to keep them engaged and ensure their long-term suitability for the job. Action steps include regular check-ins and appreciation, allowing them to stay in their current role if desired, providing growth opportunities, leveraging job rotation and challenging assignments, and finding mentors and training opportunities to support their ambitions and development.
Consistent star: Consistent stars, also known as exceptional talent, are the top-performing employees who can take on new roles. They are considered as A-players and are highly valuable to the organization. They also play a crucial role in succession management. The action plan for these exceptional talents includes challenging assignments, such as critical internal projects or opportunities in start-ups or spin-off companies. Regular check-ins can ensure their current role’s satisfaction and identify any signs of dissatisfaction early on. It is essential to praise and appreciate their contributions to the company. Providing mentorship with senior members of the organization and creating networking opportunities with other top performers and senior leadership can help build their professional network. Lastly, rewarding and ensuring they receive competitive compensation is crucial, as they contribute significantly to the organization’s success.
It is vital to identify potential alongside performance when planning for an organization’s future success. It is crucial to establish a shared organization’s performance and potential and implement a standardized evaluation process. Once the definition is standardized, selecting the appropriate tools to measure each metric becomes essential. It is recommended to identify the critical competencies for the organization’s future success and design assessment when assessing potential. A combination of assessments, simulations, and 360-degree feedback can provide insights into performance and potential. Other assessments can also be used to evaluate competencies such as cognitive abilities, logical reasoning, and interpersonal communication. Whether it is the first step towards employee development or building a leadership pipeline, the goals should align with the organization’s overall vision.
For many organizations, ‘potential’ is a vague term. While the standard practice is to have potential on the y-axis, the nine-box model is simple and flexible enough to be customized to the organizational requirements. Some organizations characterize potential by learning agility or change management. One can personalize it to suit the organization.
The nine-box performance model’s beauty is in its versatility of incorporating a metric that the organization holds in high regard.
Once all the information is there, one can place the talent on the nine-box model.
Some organizations assign a numerical value and get each employee’s total score, corresponding to a box on the nine-box rating model. This method can differ from organization to organization or even department to department.
After plotting each employee on the nine-box model, it becomes clear where every employee need help. It would be best to design a clear development plan for each employee based on their position on the nine-box grid model.
For example, suppose someone has already achieved a high level of performance in their current role. In that case, you can help them build leadership abilities and teach strategic thinking to develop that individual for a managerial role. For someone on the brink of better performance, provide that individual with peer mentoring opportunities to improve their current performance. For employees in the top correct box, please allow them to rotate jobs and develop a more holistic understanding of the organization so that they can eventually take up senior leadership roles.
Implementing the nine-box grid in talent management offers several advantages, one of which is simplifying talent investment decisions. For example, an employee screening company suggests allocating the total talent management and development budget based on an individual’s position in the nine-box talent matrix. Therefore, if one had a budget of Rs 10,000, one would distribute it among the different talent categories, as depicted in the diagram above. Underperformers in the bottom left corner would receive the most minor investment, while exceptional talent in the top right corner would receive the most resources. This approach aligns with resource allocation and strategic considerations, as businesses aim to invest in resources that yield the highest return and create a significant competitive advantage. Investing in underperformers would divert resources from high-performing individuals. It is essential to acknowledge that not everyone is equal, as individuals may vary in their fit with an organization’s culture and suitability for specific roles.
Organizations also use the nine-box grid for succession planning. In this context, succession planning should prioritize the stars, the high-performing individuals with the most potential. These stars are the ones who will shape the future of the organization. The nine-box grid serves as a tool for identifying leadership talent. Subsequently, potential leaders can be developed for more senior positions through leadership development, coaching, mentoring, regular feedback, and 360-degree feedback. The stars play a crucial role in the succession matrix, which maps critical roles and assesses the suitability of top employees for these positions. When these roles become vacant, it signifies that talent is ready to enter these newly opened positions.
For individuals in the top right quadrant (consistent stars) with high performance and high potential, it is essential to create personalized development plans to build upon existing strengths and acquire new skills. It can be achieved through targeted learning opportunities and challenging assignments. Additionally, enrolling these individuals in advanced leadership training programs and providing mentorship with experienced leaders can accelerate their professional growth. Regarding succession planning, “stars” should be acknowledged and prioritized for potential leadership roles, with clear career paths and smooth transitions into critical positions. Recognizing their achievements through robust recognition programs and offering competitive compensation, promotions, and special projects further incentivizes and rewards their exceptional contributions.
Organizations should recognize areas for improvement and develop tailored training programs to enhance skills. Encouraging participation in specialized workshops or courses can help individuals elevate their expertise. Additionally, offering cross-functional training opportunities and exploring rotations within the organization can broaden their skill set and deepen their understanding of different functions.
Organizations should implement performance improvement plans that have clear objectives and timelines to address performance challenges. These plans should include specific actions and milestones, with regular follow-ups to track progress. Additionally, providing additional support through coaching or mentoring can help individuals overcome performance obstacles. Identifying and offering specific training programs to enhance their skills and bridge gaps is also crucial for their improvement.
To foster skill development, organizations should encourage individuals with high potential to participate in initiatives that align with their growth trajectory. Providing mentorship can help guide them towards roles that align with their potential. Additionally, it facilitates cross-functional exposure, encourages participation in projects that align with their potential, broadens their understanding of different business areas, and further enhances their skills.
To promote improvement and growth, organizations should foster a culture of continuous feedback. It involves providing ongoing coaching and support to individuals, helping them reach their full potential.
To optimize current performance, organizations should prioritize skill enhancement programs. Additionally, it is essential to foster discussions about alternative career paths and explore roles that align with individuals’ capabilities.
Organizations should create performance improvement plans that have a future-focused approach to unlock potential and improve performance. These plans should integrate skill development initiatives with performance milestones. Additionally, offering mentorship can guide and support individuals in overcoming performance challenges and tapping into their untapped potential.
To address both performance and potential, organizations should establish structured improvement plans. These plans should identify specific areas for development and set realistic milestones to track progress.
Organizations should implement comprehensive improvement plans with specific objectives to drive focused performance improvement. Additional support, coaching, and training can help address underlying performance challenges. Discussing alternative career paths within the organization and exploring opportunities for lateral moves or transitions to roles that align with individuals’ strengths is also essential. Constructive feedback should be given on performance and potential, with clear expectations and goals for improvement.
While the nine-box grid is commonly used for talent and performance management, it is not without its critics. Its main drawback lies in its association with traditional performance management, which involves a subjective annual rating by a manager. Many companies have moved away from this approach and now prefer continuous feedback, allowing for more opportunities to improve performance and more data points for accurate assessment. Incorporating as many objective data points as possible when measuring performance is recommended. This can be achieved with Mercer | Mettl’s 360-degree feedback assessment.
Transparency is also crucial. By clearly communicating talent management practices, organizations can achieve their goals. However, it’s important to note that this transparency may lead to a system where employees are ranked against each other, and those at the bottom of the ranking are terminated. It’s important to understand that the nine-box grid’s purpose is to nurture and develop talent, ultimately building a sustainable competitive advantage. When used this way, the nine-box grid can be valuable in talent management and succession planning.
The effectiveness of an evaluation grid relies on a shared understanding. This understanding recognizes that performance management is a complex, time-consuming, incremental, and fundamentally human process. Developing high performers involves multiple factors and cannot be reduced to a simple grid or performance analysis formula. For instance, Mercer | Mettl’s assessment tools transcend the traditional nine-box model by incorporating 360 feedback and data-driven insights. These tools provide additional perspectives from peers, capture performance trends, and ensure evaluations are based on comprehensive data.
The nine-box mode is a highly effective talent management tool that imparts structure to organization and succession planning. The nine-box rating model can be used to diagnose developmental needs. It can significantly benefit both the employee and the organization if used correctly.
Originally published January 4 2021, Updated August 2 2024
Bhuvi is a content marketer at Mercer | Mettl. She's helped various brands find their voice through insightful thought pieces and engaging content. When not scandalizing people with her stories, you’ll find her challenging gender norms, dancing to her own tune, and crusading through life, laughing.
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