Frameworks for Effective Performance Management

When it comes measuring performance, there are two frameworks that I find particularly useful. One is the ‘Performance and Potential Matrix’, and the other is known as the ‘The 70-20-10 Model for Learning and Development’. The former helps with talent placement and identifying who you should be investing more time and resources on, while the latter shows you exactly how to do that.

When looking at talent development, it is important for the senior management in your company to understand and identify which employees fall under the route of people management and which are individual contributors. These are different career paths, but both can lead to success. You should avoid putting an individual contributor into a talent management framework, where you view them as a potential manager. It is highly likely that they will not perform as well as you would expect. This can be worrisome and hinder progress, when in actuality, it was simply a matter of incorrect people placement.

For instance, while an employee can be the top performing salesperson in a company, this does not mean that they will also be the best at managing others. So you need to clearly identify where your talents’ strengths lie because clear differentiation upfront allows you to effectively leverage each person’s strengths and potential.

The Performance and Potential Matrix

This first performance management framework is also known as the ‘Nine-Box’ because it is made up of nine cells you place your talent in, beginning on the bottom left and ending with the top right cell, which represents top talent. This is a framework that we use to get an overview of our talent, identify them, and know who to invest our time and resources in.