If you are a manager, or aspire to be a manager, you will probably be required at some point to evaluate the potential of your direct reports for a succession planning process. It is part of the “Managing People” risk of the Geek 5.
One common point of confusion for managers is the difference between performance and potential. Many managers assume that is an employee is a superstar at her job then she will be great for bigger roles and promotions. Sometimes that is true, but just as often it is not true.
Performance and potential are not the same concept.
Performance looks at the quality and quantity of what was done in the past. It measures behaviors and actions and accomplishment of goals. Performance is measured during performance reviews.
Potential looks at what an associate is capable of doing in the future. Employees with high potential are also generally good performers. They are good at their current job, but they also have the ability and drive and skills to take on bigger roles and to be successful at higher levels.
Some employees do outstanding work in their current jobs, but are best suited for staying in that role. They are high performers in performance reviews but correctly placed for succession planning.
Here are some possible scenarios with different performance and potential.
PAT: Pat does well in the current job. Pat’s does not exhibit any of the skills or competencies needed for future roles. Pat is like a “Professional in Position”. Pat earns a good performance review rating and gets a bonus and a merit increase. In succession planning, Pat is rated as Correctly Placed. He is best suited for his current role.
CHRIS: Chris does well in the current job. Chris also shows some of the skills and competencies needed to work at a higher level. For example, Chris shows the ability to learn new information and is often seen as a “go-to” person. Chris earns a good performance review rating and gets a bonus and a merit increase. Chris shows long-term potential for promotion and is rated as Promotable in succession planning. With development, Chris is expected to be ready in 1-3 years to move to a bigger role.
SAM: Sam was rated as Highly Promotable in previous succession planning. Having strong potential and strong performance, Sam just got an exciting promotion into a challenging new role. Sam earns a great performance review rating and gets a bonus and a merit increase. Sam is learning the new position and working to adapt key skills to the new role. Although all signs indicate success in the future, Sam is rated in the current succession planning as Correctly Placed. In the new role, Sam has some growth and learning to do.
In all of these scenarios, the employees were strong performers and they were rewarded during performance reviews. However, they were rated differently in succession planning.
