Potential-to-Performance Ratio (PPR): “Revealing the Gap Between Capability and Delivery”

Origin

Traditional performance systems measure output but ignore unrealized potential. The PPR concept emerged from talent management practices and workforce optimization research, comparing what employees could achieve (potential) with what they actually deliver (performance).

Associated Theories

* Talent Management Frameworks: Used to identify and nurture high-potential (HiPo) employees.

* Vroom’s Expectancy Theory: Connects effort, ability, and outcomes, showing why performance may lag behind capability.

* Maslow’s Self-Actualization: Suggests untapped potential exists when employees lack conditions to fully realize their abilities.

How HR Can Use This

* Talent Deployment: Place employees in roles that match their potential more effectively.

* Training Needs Analysis: Design interventions where performance lags behind capability.

* Succession Planning: Identify individuals with high potential for leadership, even if their current performance is average.

* Employee Engagement: Motivate by showing pathways to convert potential into measurable results.

Performance Calibration: Balance recognition between high results and high future promise.

Please note that all HR Words have been Sourced from Google/Wikipedia and I copy from different places and share with everyone while learning something new everyday.

Have A Great HR Day 🤓

Regards

Dr. Vishal Verma