There are many valid ways to evaluate performance. As a shortcut, I've found that this simple 2x2 matrix is widely understood, and works for just about any team or portfolio context... business, sports, academics, etc.
At any point in time, we can simply stack rank each team member by achieved results (e.g., best-to-worst revenue, growth, code, designs) on one dimension and by demonstrated attitude (e.g., punctuality, friendliness, teamwork, coachability, integrity) on the other dimension to come up with a box that looks like this:
When Change Happens
In times like these past few years, when many companies have been"actively managing performance," I figure the matrix looks something like this… where we should all want to stay as far into the green zone as possible.
What's the Point of this Matrix?
This is clearly not sophisticated, and each person's place on the matrix moves over time. Thus, I generally do not write this down anywhere permanent or store it to the cloud with personal info. Still, if only in your imagination, it can be a useful heuristic for leaders to think about each member on their team and how best to help them:
Quadrant I - Shiny Stars - These future leaders should get the bulk of all promotions, raises and special projects that will help retain and develop them.
Quadrant II - Beloved Underperformers - Skill training, coaching and probably some tough conversations in attempt to improve results.
Quadrant III - Bad Results & Bad Attitude - In the private sector, nobody should remain here beyond an occasional bad month.
Quadrant IV - High Performers with Attitude Problems - Let's help these folks understand how they are coming off... and that they are one missed target away from falling to quadrant III.
Good For Personal Reflection, Too
We all have peer groups. These days I find it helpful to imagine how our LP investors would rank me & Burst Capital relative to the other VCs they invest in. Are our objective results among the best? Are we one of the most enjoyable to work with? If not clearly in Quadrant I, what can we do better?
Your 2X2 matrices are legendary.