High performance · High potential

Your most valuable people. The risk here is losing them through neglect.

• Have an explicit conversation about their future in the business. Don't assume they know they're valued
• Give them a stretch assignment or increased scope in the next quarter
• Understand what would make them leave, and address it before it becomes a reason
• Involve them in decisions beyond their current role
• Consider whether they're ready for a step up, and what that looks like

Risk to avoid: Assuming Stars are fine because they're performing. They're the most recruitable people on your team.

High performance · Moderate potential

Consistent, reliable, doing the job well. May not be destined for a bigger role, but incredibly valuable where they are.

• Recognise and reward their consistency explicitly. Don't take them for granted
• Understand whether the moderate-potential rating is permanent or circumstantial (life stage, role fit, interest)
• Don't push them towards a management track if that's not what they want
• Use them as an anchor in the team, their consistency is stabilising
• Keep them challenged within their current scope

Risk to avoid: Boring them into leaving by assuming they don't need attention because they're performing.

High performance · Low potential

Doing the job well, probably at or near their ceiling in this role. That's fine. Not everyone needs to grow upwards.

• Recognise their reliability. They often get overlooked because they don't cause problems
• Be honest (with yourself) about whether there's a future for them in a growing business
• Don't invest heavily in upward development if the ceiling is real
• Keep role expectations clear so they know what good looks like and can keep hitting it

Risk to avoid: Promoting them beyond their ceiling because they've been reliable. It rarely ends well for either side.

Moderate performance · High potential

Significant upside, but not yet delivering consistently. Usually a development or environment problem, not a capability problem.

• Diagnose why performance is moderate: is it clarity, confidence, support, or the wrong role?
• Accelerate development: stretch assignments, senior exposure, structured coaching
• Set clear short-term performance expectations so they have something specific to hit
• Check in more frequently. They often need more contact time than Stars
• Be honest about the timeline: if performance doesn't improve, the potential conversation gets harder to sustain

Risk to avoid: Investing heavily in development while tolerating underperformance indefinitely. Set a clear window.

Moderate performance · Moderate potential

The backbone of most teams. Not spectacular, but solid and stable.

• Make sure expectations are clear and agreed. Core Players often drift because nobody's set a clear bar
• Provide consistent support and a stable environment
• Identify one area of development to focus on. Don't try to fix everything at once
• Recognise their contribution. They often feel invisible next to higher-profile colleagues
• Revisit the potential rating: sometimes Core Players surprise you when given the right opportunity

Risk to avoid: Ignoring them. They're not causing problems, but they can quietly disengage if they feel overlooked.

Low performance · High potential

Significant upside, but currently underdelivering. The question is why.

• Have a direct conversation: is the performance gap a surprise to them, or do they know?
• Diagnose the root cause: unclear expectations, wrong role, personal circumstances, lack of support?
• Set very specific short-term performance targets and check in weekly
• Give them a real development opportunity alongside the performance conversation, not instead of it
• Set a clear review point: if performance hasn't moved in 60–90 days, the potential rating gets harder to act on

Risk to avoid: Being so excited by the potential that you tolerate poor performance for too long. Potential that never converts is just promise.

Moderate performance · Low potential

Doing enough, but not growing. May be in the right role at the wrong company stage.

• Narrow their focus to the highest-value activities in their current role
• Don't invest in development for a role they'll never reach
• Be honest about whether the role itself has a future as the business grows
• Have a quiet conversation about what they want. Sometimes they're aware of the ceiling and would welcome a change
• Keep expectations clear and manage performance consistently

Risk to avoid: Carrying them indefinitely because they're not causing problems. As you grow, Average Performers can drag on team standards.

Low performance · Moderate potential

Frustrating because you can see the potential, but the delivery isn't there.

• Clarify expectations immediately and specifically. Vague feedback doesn't work here
• Identify the pattern: is it certain situations, certain types of work, certain managers?
• Set a short, clear performance-improvement window: 30 to 60 days with weekly check-ins
• Separate the performance conversation from the potential conversation. Don't conflate them
• If performance doesn't improve within the agreed window, act. Potential without delivery isn't enough.

Risk to avoid: Having the same conversation repeatedly without consequences. It damages your credibility with the rest of the team.

Low performance · Low potential

The clearest case for action. The question is not whether to act, but when and how.

• Have the honest conversation now. The longer you wait, the harder it gets and the more it costs
• Document performance concerns and the support provided
• Set a formal improvement plan with clear targets, a defined timeline, and agreed consequences
• Involve HR or take legal advice if needed before acting
• If exit is the right outcome, handle it with dignity. How you treat people on the way out is watched by everyone still in the room

Risk to avoid: Tolerating a Risk placement because the conversation is uncomfortable. Every week you delay, the team notices.