The 9-box grid comes with its share of limitations. Here’s what you might find challenging. 1. Difference between performance & potential It can be challenging to differentiate between performance and potential without a clear definition or comprehension of both concepts. While most companies have a straightforward procedure for assessing employee performance, many still lack experience evaluating potential, leading to inaccurate individual ratings, especially with potential metrics often being unclear. 2. Employee reactions Employees' morale and motivation could take a hit if you are open and honest about their performance. Low-ranking employees may respond negatively to labels such as "low performer" or "low potential," and with good reason. This information can also establish a hierarchy within the company, which can harm productivity and morale. If the assessment results are transparent and available for everyone to see, that could create a gap between top performers and team members who may need additional training to improve their skill set and fulfill job requirements. 3. Employee labels affecting future opportunities The 9-box grid assigns employees to a specific label, which influences how management perceives them. For example, describing an employee as a poor performer with low potential on the grid could alter how management treats and perceives that employee in the future, even if they develop great competency and become a high performer.