Every organization works with limited resources and needs to invest them well. One key area they invest in is their employees. To properly invest in employees, HR uses different methods to assess employees’ risks and performance. One such method is the 9-box grid method. This article will define the 9 box talent grid, how to use it, and the advantages and pitfalls of using the grid.
What is a 9-Box Grid?
The nine-box grid is a 3×3 framework organizations use to measure the performance and potential of their talent pool. In other words, they assess an employee’s present performance while taking a calculative guess at the employee’s future performance (Potential). The nine box grid is split into vertical and horizontal axis. The vertical axis of the grid measures an employee’s potential, while the other axis measures employee performance.
McKinsey introduced the framework when consulting for G. E (General Electric) in the 1970s. McKinsey created the 9-box grid to assist General Motors with their investment decision across their business units. The initial grid had attractiveness and competitiveness as their axis, but this has changed over the years. HR personnel has adapted it to the grid you can see on this page.
In other words, not all business divisions have the same level of appeal. Some should be invested in, while others need to be relinquished. The competitive power and industry attractiveness of the business unit were the two criteria used by the 9 Box Matrix to evaluate business units.
Human Resources teams adopted this model as a talent management tool at some time in the previous 40 years, replacing the two industry axes with people-specific ones, such as performance and potential, as shown below. There are several versions in use since the HR model has never been standardized. However, the utilization trends are constant. The 9 Box Matrix’s major objective is to categorize personnel and decide which ones to promote, keep, and invest in, as well as which ones to reallocate.
Using 9-Box Grid
Source: WhatFix
Using the 9-box grid requires you to understand the principle behind it. This section will discuss the elements of the grid.
Gauging Employee Performance
The horizontal axis of the nine grid box measures performance. Assessing employee performance is a norm in every organization today, so this metric shouldn’t be difficult to understand. The yearly performance review and, more recently, 360-degree feedback are methods of measuring employee performance. On the 9-grid platform, there are three levels of performance, namely:
- Low Performance: The employee isn’t meeting the minimum job requirement and falls short of their target.
- Moderate Performance: The employee partially meets their job requirement and their individual target.
- High Performance: The employee meets all the job requirements and personal targets.
Gauging Employee Growth Potential
The vertical axis of the 9-box assessment framework measures potential. Assessing employee potential is trickier than performance, and we measure performance with clear metrics while measuring employee potential is a calculative guess.
Potential depends on factors like employee experience, the possibility of furthering education, motivation, and ambition, which are qualitative attributes. Like with performance, the potential also has three categories:
- Low Potential: Employee is already doing everything they can, and leaders do not expect any improvement from the person in their job. It can be because of low motivation or low skill, or the employee is already operating at their maximum capability.
- Moderate Potential: These employees show the potential to develop in their existing roles. They need guidance and proper mentoring to develop into high potentials. The individuals in this category are fresh graduates with limited experience or employees who can become experts with professional qualifications.
- High Potential: These employees perform well above expectations in their roles. These people are ready to take up more responsibility and are often considered for much more responsibility. The only time there won’t be the case is when employee performance or potential is low.
Merging the Two Together
Plotting the two axes together will give you one of nine different quadrants. The most favorable parts of the 9-box grid are the quadrants towards the top-right corner plus the unfavorable quadrants by the bottom-left corner. The nine quadrants are:
- Low Performance with a Low Potential.
- Low Performance with a Moderate Potential.
- Low Performance with a High Potential.
- Moderate Performance with a Low Potential.
- Moderate Performance with a Moderate Potential.
- Moderate Performance with a High Potential.
- High Performance with a Low Potential.
- High Performance with a Moderate Potential.
- High Performance with a High Potential.
Management uses this information to take action on employees in the various quadrants. They use it to identify employees for a succession plan and the financial commitment to give to each employee to maximize return.
Explaining the Quadrants
Source: WebHR
The 9 box talent assessment framework divides employees into nine quadrants. In this section, we look at each quadrant and the actions leaders should take to address the needs of employees in those quadrants.
Poor Hires
Poor hires are employees with low performance and low potential. We also refer to them as underperformers, talent risks, or bad hires.
Attend to these employees quickly to stop them from becoming icebergs. Icebergs are employees that drain organization resources from other employees with more potential and better performance, and they can also drag down the team’s performance if left alone.
Actions to Take
- Identify the Roadblocks: Start by identifying the reason the employee is struggling. Are there any ways to get past the roadblocks? If yes, how much will it cost? You can assist the employee if the cost is insignificant. If the investment costs much, it may not be worth the risk.
- Match skill with an appropriate assignment: If their current skill doesn’t fit the role, try matching their expertise with a proper assignment.
- Start Offboarding Process: If you can’t find a solution, it’s best to start preparing an exit plan for the employee.
Dilemmas and Grinders
Dilemmas are inconsistent employees. They show moderate potential but underperform (low performance)—dilemmas are tricky employees. If managed well, they can become core team members. Dilemmas can experience these problems because of a poor onboarding process or a lack of understanding of their job.
Grinders are employees with medium performance but quite low potential. Employees may find themselves here because they seek to improve their qualifications, doing the bare minimum because of job dissatisfaction, or being burnt out after years of being in the same role.
Actions to Take
- Coaching and Mentoring: Coaching and mentoring can help teammates enhance performance. Pairing them with someone who can guide and show them the ropes may be all they need to enhance their results.
- Create a Personal Improvement Plan: A personal improvement plan can see grinders work on their qualification or gain new skills to improve their performance, potential and results.
- Observe their Progress: Monitor their performance over six months to a year to ensure they are making significant performance improvements.
- If the following action plans fail, it might be the time to prepare for the employee’s exit.
Workhorses
Workhorses are employees with elevated performance and lower potential. These employees produce results and are essential for a functioning team. They have a great work mentality and help maintain a high level of performance in the organization.
One reason these employees remain as workhorses is that they’re satisfied with their present position. There is no incentive to aim higher or further improve their skills. This can pose a problem if their role is at risk of being automated in the future. A great example of a workhorse is a division manager who earns well and has good perks. Mostly, they are a great addition to short to medium plans.
Actions to Take
- Appreciate their efforts: Their great work mindset and etiquette are valuable to the company, so reward them for their achievements. Ensure they are happy in their position.
- Carry out analysis on how their role may modify in the future and work on getting them ready to adapt.
Dysfunctional Geniuses
These are rough diamonds. These employees come from prestigious schools or have glowing results/certifications but perform poorly. The major problem of this group of employees is experience, and experience and guidance on the job will see them learn the ropes soon.
Actions to Take
- Give them the tools and the help they need to develop: Dysfunctional geniuses need the time and the confidence to develop into core team members. Follow them up and ensure they have adequate support.
Future Stars
The future stars comprise:
- High performers (high performance with moderate potential).
- High potentials (high potential with a medium performance).
- Core players (moderate potential and performance).
They should make up most of your workforce and are already in a good place, judging by the assessment. The goal is to move them to the top-right quadrant of the 9 box assessment grid in the coming years.
Future stars need development and management to stretch them and help them reach their potential.
Actions to Take
- Ensure they are happy, and keep them engaged. You want to give projects that will challenge them and see them grow.
- You can also provide them with classroom teaching and on-the-job training to improve them.
- Use job rotation to teach them to see the bigger picture: Job rotation helps to expose them to other parts of the organization and help them see the larger picture.
- Peer coach them and get them professional coaching to assist them with personal or professional issues that cause performance barriers.
Stars
Stars are the current high achievers in the company, being the ones ready for promotion and considered in succession plans. These employees are on the top-right corner and are shining examples of what you want all your employees to look like. While not all employees need to be stars, management expects them to put in hours towards that goal.
Actions to take for Stars
- Competitive Pay: The last thing you want is to lose your star to competitors. Therefore, their pay should be industry competitive.
- Stimulating and Engaging Projects: Assign them to projects that will challenge and stimulate their growth. You want to make sure they stay engaged in the company to prevent dissatisfaction.
- Networking with other Stars and Senior Staff: Networking is necessary because they are likely to be next in line to enter senior management or promotions. Networking allows them to meet other star employees and management staff interested in their growth.
- Management Mentorship: Stars can get first-hand tutelage from senior staff members in their department. This is especially the case when a succession plan is in place for the person.
9 Box Grid Succession Planning
One of the many uses of the 9 box grid is succession planning. It helps management and leaders identify those who are suitable for roles in the coming months or years. Identifying leadership talent is necessary for the continual growth of an organization. The 9-box grid framework also helps with identifying these employees.
9 Box Grid and Talent Management
Talent management involves managing the talent in the organization. Part of talent management is investing in developing the capacities of existing employees in your company. The next example will help you determine how to divide the limited resource among employees.
If you have 1000 dollars to invest, you look to invest the most in your stars and future stars because they currently produce the best results. They are also the future in the organization, and next are your workhorses and dysfunctional geniuses.
Dilemmas and grinders come after them, and in last place, poor hires.
The distribution will look like this:
Source: WhatFix
Potential Pitfalls
Every framework has its criticism, and the 9 grid box is no different. Some of its criticism includes the following.
Assessing Performance and Potential
Most organizations still use the traditional one-year performance management to assess their employees. This method is increasingly becoming outdated as companies evolve from traditional performance management to a more flexible and agile style, like a 360 feedback system.
Potential is still a grey area to assess and open to bias. Leaders and management will need to use as many objective metrics as to evaluate their employees.
Employee Reaction
If management shares this information with employees, it can lead to adverse reactions. Employees assessed as having low potential or performance may take it personally. It can further lower their morale, or they decide to look elsewhere for employment if they feel the assessment is wrong.
Conclusion
In conclusion, the 9 box talent review is a great tool to include in your management kit. When properly used, it helps with identifying issues with employees and can be helpful with employee investment decisions and succession plans. Make sure you are persistent with this technique.
