HCM GROUP
HCM Group
HCM Group
A practical guide for avoiding the common trap of conflating results with potential
Introduction: Why the Distinction Matters
Many talent reviews and succession discussions fall short because managers instinctively equate strong performance with leadership readiness. This conflation can result in over-promoting individuals who excel in their current roles but lack the adaptability, influence, or perspective needed for more complex challenges. At the same time, promising future leaders who aren’t in high-visibility roles may be overlooked.
This guide is designed to help HR leaders coach stakeholders on clearly separating performance from readiness—ensuring that talent decisions are forward-looking, fair, and aligned with business needs.
Anchor the Definitions: Performance vs. Readiness
Begin by explicitly defining each concept:
Both are critical—but they serve different purposes. One supports short-term delivery; the other shapes long-term organizational capability.
Use a Two-Lens Talent Framework
To make the distinction operational, introduce a two-lens framework:
Encourage managers to slow down and apply each lens deliberately, rather than blending the two into one vague label of “strong talent.”
Use Behavioral Indicators, Not Labels
Help managers shift from gut-level assessments (“She’s a star!”) to evidence-based evaluation. Ask:
You can provide calibrated examples to help illustrate what readiness looks like versus strong execution.
Example:
A top-performing finance manager consistently closes the books accurately and on time. However, they resist delegation, struggle with cross-functional influence, and avoid ambiguous tasks. Their performance is high, but readiness is limited.
Another employee may be in a plateaued role but volunteers for strategic projects, mentors peers, and drives change. Their current performance may be moderate, but their readiness is high.
Create Structured Tools That Separate Ratings
In your talent review forms and systems, ensure that performance and readiness are rated separately using distinct scales and definitions. Avoid a single score or box that encourages blended thinking.
Use prompts like:
This separation forces more nuanced conversations and prevents false equivalency.
Coach on Common Traps and Biases
In preparation sessions with managers, address the typical cognitive shortcuts:
Remind managers that potential often reveals itself in how people handle stretch, failure, feedback, and team dynamics—not just in hitting today’s numbers.
Facilitate Balanced Talent Reviews
During calibration or succession discussions, act as a moderator to challenge overly simplistic conclusions. If a manager says “He’s ready for anything—just look at his numbers,” prompt them to explore:
Conversely, advocate for emerging leaders whose roles may not showcase their full capabilities yet—but who show learning agility, curiosity, or influence potential.
Reinforce Through Development Planning
Once readiness is properly distinguished, link it to tailored development actions:
This closes the loop and sends a message that both performance and readiness are developmental—not fixed.
Final Thought: Building Talent with a Dual Lens
Performance and readiness must be seen as complementary but independent data points. One earns today’s trust; the other enables tomorrow’s succession.
When HR leaders institutionalize this distinction—with clear language, structured frameworks, and courageous moderation—they strengthen both talent accuracy and business continuity.
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