Today we're going to dig into a topic that confuses people at every level of the corporate ladder. You'll hear about it in calibration meetings, in talent reviews, in leadership offsites. Sometimes it's talked about openly; other times it's whispered about like some kind of secret scoring system. I'm talking about performance and potential.
Performance… sure; that part makes sense. What did you deliver; how well did you deliver it; how predictable and reliable is your output; did you solve the problems in front of you; did you create value for your team. But potential; that's the fuzzy part. Potential for what; and how do you influence a rating that sounds like it's based entirely on somebody's personal opinion.
Imagine being evaluated not just on the work you deliver today… but on a future version of you that may or may not exist. Most people in corporate jobs don't even know that their rating has two pieces. They think their "performance rating" is the whole story. But the real decisions about promotions and opportunities are often driven by the other number; the potential number. So the question we're asking today is simple: what is potential really measuring… and do you even want to maximize it?
A common tool used in end of year evaluations is the classic two‑axis grid; one axis for Performance and the other for Potential. It looks simple on paper. People are sorted from low to high on both scales, then placed into a tidy little box that supposedly determines their future. Those who land in the top right quadrant get the opportunities, the visibility, the fast track. Those in the bottom left… well, they often find themselves stalled out, sidelined, or in some cases quietly pushed out. The biggest issue is that these scales are vague and often applied inconsistently across teams. Two leaders can sit in the same talent review and have completely different interpretations of what "high potential" even means.
For some companies, potential means "how likely are they to produce at a high level in the next year." For others, it means "how close are they to their next promotion." Some organizations define potential as "shows leadership skills." Others look for "scalability"; meaning the ability to handle bigger, broader, and more ambiguous challenges. And a few go even further; blending curiosity, change-readiness, resilience under pressure, strong communication, and strategic thinking into one catch-all label. In other words; potential is often a company's way of asking "Do we see you becoming more valuable to us in the future than you are today?"
But because it's forward-looking, your ranking on this scale often comes down to something people don't like to admit… politics. Potential isn't a direct measurement of your abilities or your hard skills; it isn't even a pure reflection of your current performance. It's a perception game; a bet leaders make about how you'll behave in situations you haven't faced yet. It's assumption dressed up as science. But that doesn't mean you're powerless. Once you understand the ingredients that drive potential, you can learn how to shape the perception of your future self—and change the trajectory of your career.
