Introduction

A simple but tough framework helps leaders see who’s really driving growth - and who’s just taking up space.

What's the problem it solves?

Leaders often fool themselves about their teams. They overvalue effort, loyalty, or past success and avoid making hard calls. This framework forces clarity on who is worth investing in and who needs to move on.

Quick Summary

The article introduces a 2x2 matrix that rates team members by both performance (what they deliver now) and potential (their ability to grow into bigger roles). Most companies only look at results, but that misses future capacity.

Performance is judged by whether someone delivers on promises, understands business impact, and collaborates without causing drama. Potential is about strategic thinking, ability to represent the team with senior leaders, and whether others naturally follow their lead.

Once you plot your team, the picture becomes clear: low/low people need to exit, high/low need a reality check, low/high are useful steady contributors, and high/high deserve the bulk of your attention and growth opportunities. Leaders are warned not to inflate ratings or waste energy on the wrong people. The biggest returns come from investing in top-right quadrant players - often the ones embracing AI today.

Key Takeaways

• Most leaders avoid honest evaluations to protect themselves or their hires.
• Performance alone is not enough - potential matters just as much.
• A 2x2 grid makes it easy to see where each person stands.
• High potential and high performance people deserve the most investment.
• AI fluency is now a common trait of top talent.

What to do

• Assess each team member against both performance and potential.
• Be brutally honest - share with your boss to check bias.
• Move low/low people out quickly instead of wasting energy.
• Give tough feedback to high potential but underperforming employees.
• Maintain solid performers but don’t over-invest in them.
• Focus development, stretch projects, and mentorship on high/high players.
• Encourage AI adoption across your team - it’s becoming a marker of top talent.

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