The scariest framework to evaluate your team
Be prepared for what you see in the mirror
👋 Hi, it's Greg and Taylor. Welcome to our newsletter on everything you wish your CEO told you about how to get ahead.
We're all dishonest with ourselves about how good our teams are.
We don't want to replace someone, so we convince ourselves they're “pretty good.” We don't want their performance to reflect badly on our hiring or management, so we focus on effort instead of results. Someone used to be great two years ago, and we haven't updated our opinion of them since (or vice versa).
Most of the time, we just don't think about it that much. We get caught up in the day-to-day work and rarely zoom out and honestly assess where each person on our team stands.
But right now, you need a super-powered team to compete. The old model - where you could carry mediocre performers because headcount was cheap - is over. As CEO, I want my leaders thinking about their team this way. And as a leader, you need to know your high performers - who you should invest your limited time and energy on.
Today, we’re sharing an “oldie but goodie” framework for this.
(And remember, if you have been managing this team for 6 months or more, it’s a reflection of your own ability to hire, mentor and manage. So this could get uncomfortable - but that’s the point).
– Greg
The framework: High potential / high performance
We evaluate every team member on two dimensions: potential and performance.
Think of it as a 2x2 matrix. On one axis, you're measuring what someone delivers right now. On the other, you're measuring their capacity to grow and take on bigger challenges.
Most evaluation systems only look at performance (e.g., did they hit their goals, complete their projects, meet expectations). That misses half the picture.
The magic happens when you can identify people who are both delivering today and have room to grow. Those are the people you want to bet on.
How to assess performance
Ask yourself these three questions about each team member:
Do they deliver what they promise, when they promise it? If someone consistently misses deadlines or delivers subpar work, everything else is irrelevant.
Do they understand how their work impacts the business and work on the right things? The best performers understand the why behind their work and can prioritize effectively when trade-offs emerge.
Do they get those outputs the way that we want without causing friction? Results matter, but so does the process. Do they collaborate well, communicate clearly, and make the team more effective? Or do they create drama and tension that drags everyone else down?
How to assess potential
Potential is harder to assess - we use these three questions:
Can they think strategically, on multiple timelines, both high and low? High-potential people can zoom out to see the big picture and zoom in to handle details. They can think 12-18 months ahead and understand how today’s decisions impact tomorrow’s outcomes.
Could they join a meeting with your boss in your stead? When they're in meetings with skip-level leaders, do they hold their own? Can they distill complex ideas into clear, actionable insights? Do senior people listen when they speak?
Will people follow them? This isn't about having a big personality or being the loudest person in the room. It's about whether other people naturally look to them for direction or decisions, especially when things get challenging.
What to do with the information
Once you've plotted everyone on the matrix, your action plan becomes clear:
Low potential, low performance (bottom left): Start moving them out. These are people who aren't delivering today and aren't likely to get much better. Don't spend months trying to coach them up. Redirect that energy to people who can actually grow. And remember, if 25% of your team is in this quadrant, it’s a reflection of them and you.
High potential, low performance (top left): You shouldn’t have too many of these people, but if you do they need a tough conversation. Often they're smart but lack focus, discipline, or the right incentives. Be direct: “You have potential, but your performance isn't matching it.”
High performance, low potential (bottom right): Maintain but don't over-invest. These are solid contributors who execute well but probably won't grow into leadership roles. Every team needs some of these, but I almost always see managers over-value loyal contributors - so maintain for now, but know that these people will not figure out your future.
High potential, high performance (top right): Invest more time here. This is where you should be spending the majority of your development energy. Give them stretch assignments, include them in strategic conversations, and help them prepare for bigger roles.
Here’s a tip: Don't put people in this category unless you're actually willing to invest in them. If you identify someone as high potential but then treat them like any other team member, you'll lose them.
My advice
Most managers spend way too much time trying to fix low performers and not enough time developing high performers. 80% of your impact will come from investing in the 20% of people with the highest potential and performance.
Be honest about the assessment. It's tempting to rate everyone as high potential because you like them or they've been around a while. But that dilutes your ability to identify and develop the people who can actually drive the business forward.
To help yourself stay honest, share your assessment with your boss. They’ll be the first to say, “Really? That person is high-performance?” - which helps you not grade-inflate.
And one other thing: When we did this exercise for our company, almost everyone in the high performance / high potential bucket was an AI power user. AI usage is essential to being a superstar today - don’t make excuses for it.
Have a great week,
Greg and Taylor