Performance or Potential

Performance or Potential

Performance or Potential

What would you bet on,  Performance or Potential ?

Some recent conversations have really triggered this thought. Living in uncertainty is becoming our new norm. Every other day we see new business models emerge and challenge traditional ones. Disruptive brands are becoming market leaders. 

So when you bet on a company would it only be on past performance, a lagging indicator or on their potential growth looking at leading indicators?

Now think of hiring talent, what is the basis for making your hiring decisions? Are you considering lagging indicators or looking at leading ones?


Just to highlight: 

  1. Pedigree and education, an indicative of intelligence but not wisdom!
  2. Experience, an indicative of exposure but not excellence!
  3. Performance, an indicative of achievement not accomplishment


In conversations I have had, a good individual contributor is struggling to get a role to manage a team! The reason being given to him is that you haven’t got team management experience.

A sales leader with over 2 decades is rejected to run a large business because he has been managing small P& Ls so far.

Am quoting just some recent examples but what it’s pointing to is that if you have never been in a position you apply your profile may never get selected for it! So, if you are good at what you do you may be stuck doing it for a while unless someone spots your potential and is willing to take a chance on you.

Not fair but real, most HR selection procedures are based on hiring candidates on proof of past performance. 

Have you noticed this around you ? Has this happened to you?

What’s your best practice on this?