Using the Nine-Box methodology to manage talent is a must for organizations that want to effectively manage their most precious asset-people.  Specifically, a nine box is a 3×3 matrix used to assess individuals along two dimensions: past performance and potential.

Nine-Box Methodology

Most organizations rely on outdated methods to assess past employee performance. These evaluation methods differ greatly in terms of the tools used, how often they are done, how results are interpreted, and what actions follow. However, many organizations overlook any quantitative assessment of potential, and this is where the Nine-Box offers benefits.

As with any quantitative analysis, it is important to have a well-defined process with clear terms and definitions and this is true with the Nine-Box approach. Both the administration of the methodology and the interpretation must be consistent in order to provide a meaningful, relative ranking.

As stated, the assessment needs to evaluate employees’ performance and potential. Measuring performance involves recording an employee’s performance by placing them in high, medium, or low categories along the horizontal axis. On the vertical axis, potential is also summarized using the same three segments: high, medium, and low.

At the extremes, employees may be high performers with high potential or low performers with low potential.

Below is a Sample of Descriptors for the Nine-Box Methodology:

  • Misplaced employee
  • Unmotivated employee
  • Improve or remove
  • Potential blocker
  • Solid performer
  • Growth employee
  • Trusted professional
  • High impact performer
  • Future leader

The Outputs of a Nine-Box Analysis Include:

  • Identify leadership candidates
  • Determine talent in the organization that should be preserved
  • Pinpoint potential turnover risks
  • Single out employees with the potential to receive development assignments
  • Identify employees that need to improve or be removed

The Nine-Box methodology also helps managers identify the diamonds in the rough – those employees that are low performers with high potential. From there, the key is to understand why performance is low. For example, it could be the right individual but in the wrong role or the right individual but works for the wrong manager. Or, performance may be suffering due to personal or professional issues — or a combination of both. In addition, the factors impacting performance could be short or long-term. Remember, not all low performing employees with high potential should be saved, but the methodology does shine light on this segment.

The most effective organizations use the Nine-Box methodology as a starting point. Then the organization places employees in one of the nine boxes and builds an action plan for each employee. Organizations that do not embrace the Nine-Box methodology are those that run the risk of losing their only core asset–people.

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