Defining the parameters for career development becomes a tough yardstick to measure, especially when potential is pit against performance.
Potential gives the performer an edge
All good talent management programs will tell you to consider those employees as high potentials if they score well on performance as well as potential. If an employee is a top performer but is not backed by potential, then you need to give him probably a high bonus or an increment, but not a promotion. For career growth, potential is most critical to move on the career ladder. Your performance may be higher because you may excel at just one particular technical skill, but it’s your leadership skills, interpersonal skills, innovative thinking and strategic abilities that give you an edge. For example, if you are a data entry operator, you may be a high performer because you can type faster.