Assessing Performance, Potential, and Readiness

View or download the printable version of the Quick Guide to Assessing Performance, Potential, and Readiness (PDF).

Why Assess?

Graph showing performance (x-axis), potential (y-axis) and readiness (z-axis).

Your success as a supervisor depends on your ability to provide feedback and coaching in ways that support an employee’s performance in their current role and recognize potential for future roles. If a future role has been identified and current performance is strong, you may focus your coaching on getting them ready to succeed in that future role.

Steps to Assess

Consider Performance

What is it?

Performance is effectiveness in achieving the goals and meeting the expectations of the CURRENT role. The person:

Delivers RESULTS: meets expectations in what they accomplish
Demonstrates BEHAVIORS: meets expectations in how they get results

When to assess?

In-the-moment coaching, regular check-ins, performance review. Note: you won’t assess potential as part of the formal review (just performance) but it may be part of the discussion of next steps

What do I coach?

As a manager, you will likely spend the majority of your coaching supporting performance and development in the current role. This may include:
- Performance gaps. Strong overall performing with 1-2 areas for improvement needed. Pinpoint the specific skill, knowledge gap, or behavior that needs development.
- Evolving needs of current role. Performing well now, but their role is evolving and new skills or knowledge will be needed in the near-future.
  - Identify the future skills and knowledge critical for continued success in the evolving role. What new technologies, methodologies, or responsibilities are emerging? How prepared is the employee for these shifts?
  - Clarify and explain these evolving needs, gauge interest and readiness, collaboratively build a development plan. If the employee shows low interest in the future direction of their role, consider career conversations to explore a better match.
- Organization needs/priorities change. Performing well, but the organization’s needs are changing
  - Communicate the big picture of the changes and new priorities and evaluate how their current work aligns with the organization’s new direction. Are the priorities of the role shifting? Do current projects or tasks still hold the same value?
  - Re-evaluate priorities together, provide guidance and then give them space to adapt to the changes
  - Provide needed feedback and coaching in ongoing 1:1 meetings
- Performance decline/low performance. Inconsistent performance requires a diagnostic approach.
  - If performance has been strong in the past, but has dropped recently, first seek to understand why performance has dipped. Is it a skill gap, motivational issue, burnout, personal challenges, team dynamics, or a lack of resources?
  - Express concern, not accusation, listen actively, and provide specific examples.
  - Clarify/set specific performance goals and expectations, and ask for their input. Help them understand how their behavior impacts both work and others around them. Agree on the follow-up plan and establish periodic check points.
  - If performance remains below expectations despite these conversations, clear expectations, and follow-up, partner with your HR team to determine appropriate next steps.

Assess Potential

What is it?

Potential is the capacity to eventually develop the skills needed to succeed in a specific future role or level.

When thinking about an employee’s potential for a role, it’s crucial to first answer the question: “Potential for what?” The skills that make an exceptional individual contributor are often different from those required for effective leadership. Some employees may be on a path to becoming experts in their field, while others may show signs of being ready to lead - like guiding teammates, thinking strategically, or influencing decisions. Understanding which direction fits best helps you shape their growth, give them the right opportunities, and have career conversations that match both their goals and the organization’s needs. Once you have clarified the desired career path, assess:

Skills, knowledge, and abilities required to succeed in the future role
- Note: if the future role is not one you are familiar with, the employee may need to be proactive in seeking out information about that role and/or you may need to seek information from others (e.g., other leaders, HR professionals, etc.)
Their capacity and motivation to develop through these behaviors:
- Ability to solve complex problems
- Persists when faced with mistakes, setbacks, and roadblocks
- Driven and motivated to prioritize learning and skill development
- Learns and improves quickly when supported with feedback and coaching

When to assess?

If meets/exceeds current role expectations
Has interest in developing skills needed for a future role
Shows evidence they could be successful in a specific future role or level

What do I coach?

If someone has a high potential for the next role, focus your coaching on reinforcing and recognizing their performance in the current role, and getting them ready for that next role.

The "Low Potential" label

People often struggle with labeling someone as “low potential.” That’s why it’s critical to ask, “Potential for what?” You don’t want to evaluate someone’s potential against a role they have no interest in pursuing.

Well-placed: If an employee is a strong performer in their current role but not interested in the next level (whether as a higher-level individual contributor or a leader), they are considered well placed. Focus your efforts on in-role development to sustain and enhance their performance and engagement. Encourage them to explore opportunities to mentor others. Continue to assess their potential periodically, as interests and life circumstances can change and may affect their capacity and motivation to grow.

Misplaced: If you find that an employee’s long-term interests do not align with their current career path, they may be misplaced. In that case, focus on maintaining strong performance while also having open career conversations. Encourage them to explore roles or paths that may be a better fit for their goals and strengths.

View or download the printable version of the Quick Guide to Assessing Performa…

Service Areas

Supervisory Development Program

Topics

Feedback and Coaching

Resource Type

Quick Guide

Course Focus

Advanced Manager as Coach

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Assessing Performance, Potential, and Readiness

Why Assess?

Steps to Assess

Resource Type

Course Focus

Related Resources for Supervisors

Talent Strategy

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