Maximum potential? Use a gap analysis between what is and what is desired to get clarity about the challenge and develop strategies to achieve. It’s about business you don’t go after, often not even recognise. As a leader, get this done by the people, learn what they are thinking. Financial matrix; look to identify and count lost opportunity, don’t do the CPI plus a bit when building your budget.
Lost opportunity is probably the biggest opportunity a business has. Look to promote people in-house, have an active career matrix in place where people can see what they need to do to improve their position.
Maximum potential is exponential. It is this today until it is reached then it is more because it can be. ‘People live up to or down to our expectations and that IS self-fulling.
So, if someone is not working at the level required, first audit yourself before judging them.As their manager you need to be leading them in a positive direction.If that is not coming about then it will be about the journey you have constructed and the road map of skills and experience you have laid out for that journey.
Once yearly performance reviews are yesterdays damage. Rarely done well, rally done when scheduled, almost never involving useful emotional intelligence – all in all, not just a waste of time but injurious to all parties. Coaching for under-performance needs to happen close to the moment that is observed, in the workplace with strategies to remedy that can be observed, corrected, encouraged. So a half yearly discussion about career and continuous improvement takes over from the fallacy of the performance review.