THINK INSIDE THE BOX · TOOL 01 · B2 · 50 min

Nine Boxes for Every Employee

How a grid built to judge whole businesses ended up judging people — and why so many managers now argue about it.

All the tools  ·  The Eisenhower Matrix →

Today: you'll learn the true story of the nine-box grid, use it to sort six employees, and practise the language of careful comparison: far better than, slightly less, not quite as good as.
Before we start — talk these through:
  • Have you ever been rated or ranked — at school, at work, in sport? How did it feel?
  • What is the difference between how well someone does their job now and how far they could go?
  • Can a boss judge someone's future fairly? What might get in the way?

The vocabulary of this story

Ten items. Say your answer out loud before you reveal it.

A · What do they mean here? Work it out from the context

Read the sentence, guess the meaning of the word in bold, then reveal.

By 1970 the company's portfolio included jet engines, fridges, light bulbs and nuclear power stations.
portfolio — the whole collection of businesses (or investments, or pieces of work) that one person or company owns.
The board decided to divest the weakest units and use the money to build the strong ones.
divest — to sell off or get rid of a business or investment.
She had underperformed for three quarters in a row, and her manager finally asked what was wrong.
underperform — to do less well than expected or than others.
The chief executive was 64, so the board started looking for his successor.
successor — the person who takes over a job or role after someone else leaves it.

B · Which word matches the meaning?

The three words are: candid · bias · pigeonhole. Read each meaning, say the word, then reveal.

An unfair tendency to favour some people or ideas over others — often without noticing it.
bias — “Managers may show bias towards people who remind them of themselves.”
(verb) To decide too quickly what kind of person someone is, so that they can't easily escape that idea.
pigeonhole — “Once you are pigeonholed as ‘reliable but not a leader’, it is hard to change people's minds.”
Honest and direct, even when the truth is uncomfortable.
candid — “The meeting only works if managers are candid about their people.”

C · Which word completes all three phrases?

One missing word fits every phrase in the group. Say it, then reveal.

show great ___  ·  reach your full ___  ·  high-___ employees
potential — the ability to develop and succeed in the future.
hold a ___ review  ·  spot young ___  ·  the war for ___
talent — people with skill; a talent review is a meeting where managers discuss the skills and future of their staff.
businesses that ___  ·  children who ___ at school  ·  plants that ___ in the sun
flourish — to grow, develop and succeed strongly.

Now use them — out loud

Before we read:
  • Is it better to divest a weak part of your life (a habit, a hobby, a commitment) or to try to fix it? Give an example.
  • Where do you think you could flourish most — and what would help you reach your potential?
  • Have you ever been pigeonholed? Were people right about you?

The story, in three parts

Read each part. After it, answer the quick check from memory, then discuss one question.

Part 1 — A company too big to see

By the late 1960s, General Electric was one of the biggest companies in the world. It made almost everything: light bulbs, fridges, televisions, jet engines, even nuclear power stations. Every year it sold more. But there was a problem that worried its chief executive, Fred Borch. Sales were growing much faster than profits. People inside the company had a name for it: profitless growth.

The trouble was that GE's portfolio had become too big for anyone to understand. Every division asked for money, and every division had a good story. How could the leaders in New York compare a factory making toasters with a team building computers?

In 1969 Borch asked the consulting firm McKinsey for help. Together they reorganised GE into “strategic business units” and built a simple tool to judge them. Each unit was scored on two questions: How attractive is this market? and How strong are we in it? Each answer was low, medium or high — and three times three makes nine boxes.

Quick check — from memory, then reveal:

1. What was “profitless growth”?

2. Why was it hard for GE's leaders to decide where to put their money?

3. What two questions did the grid ask about each business?

1. Sales were rising, but profits were not rising nearly as fast.

2. The company made so many different things that the divisions were almost impossible to compare — and every one had a good reason to ask for money.

3. How attractive is the market, and how strong is GE in that market?

Discuss:
  • Why do you think a simple grid helped more than a long, detailed report?

Part 2 — Green, yellow, red

The grid became known as the GE–McKinsey matrix, and it worked like a traffic light. Businesses in the three top-right boxes were coloured green: invest and grow. The three boxes along the middle diagonal were yellow: hold steady. The bottom-left boxes were red: take the cash, or divest. In the 1970s and 1980s, GE sold dozens of businesses and poured money into the strongest ones.

Then somebody noticed that the same shape could be used for something very different: people. A company is a portfolio of businesses — but it is also a portfolio of employees. Instead of market attractiveness and business strength, HR teams asked two new questions: How well does this person perform now? and How much potential do they have?

Nobody is completely sure who first drew the people version. But GE became famous for its annual talent reviews, especially under Jack Welch, its chief executive from 1981 to 2001, who was candid — some said brutal — about ranking staff. By the 1990s and 2000s, the “nine-box” had spread to large companies all over the world.

Quick check — from memory, then reveal:

1. What did a red box mean for a GE business?

2. What were the two new questions when the grid was used for people?

3. Do we know exactly who invented the people version?

1. Take the cash from it, or sell it (divest).

2. How well does the person perform now, and how much potential do they have for the future?

3. No — its exact origin is unclear, but GE's talent reviews helped make it famous.

Discuss:
  • Is it acceptable to use the same tool for businesses and for human beings? Why, or why not?

Part 3 — The room where careers are decided

Today, in thousands of companies, managers meet once or twice a year for a talent review. Each employee's name goes on a sticky note or a screen, and the managers argue about which box it belongs in. The top-right box — high performance, high potential — holds the future leaders. They get training, big projects and a place on the list of possible successors. The bottom-left box holds people who are underperforming and may be asked to leave.

Supporters say the grid forces managers to be honest and to talk about people they might otherwise ignore. It can reveal a quiet employee who is far more talented than anyone had noticed.

Critics see a darker side. “Performance” can be measured, but “potential” is only a guess — and guesses are where bias hides. Managers may see potential in people who look and sound like themselves. And the labels stick: someone pigeonholed as “low potential” at 30 may never get the chance to prove otherwise. Some companies have stopped using the grid; many still rely on it. The nine boxes are simple. The people inside them are not.

Quick check — from memory, then reveal:

1. What happens to people in the top-right box?

2. What is one advantage of the grid, according to its supporters?

3. Why do critics say that “potential” is a problem?

1. They are treated as future leaders: they get training, big projects and are considered as possible successors.

2. It forces managers to be honest and to discuss everyone — so a quiet but talented person can be noticed.

3. Potential can't really be measured; it is a guess, and guesses can be affected by bias.

Discuss:
  • Would you like to know which box your manager had put you in? Why, or why not?

How the tool works

The grid has two axes. Along the bottom: performance — how well someone is doing the job now. Up the side: potential — how far they could grow in the future. Each axis has three levels, so every person lands in one of nine boxes. The labels vary between companies; these are typical.

RoughdiamondFuturestarStarInconsistentplayerCoreplayerHighperformerTalentriskEffectiveworkerTrustedprofessionalPerformance (now)Potential (future)lowhighlowhigh

Using it, step by step

  1. Decide what performance means for this job — results, quality, behaviour — and look at evidence, not feelings.
  2. Decide what potential means: can this person handle a bigger or different role in the next few years?
  3. Place each person, then argue about it with other managers. The discussion is worth more than the box.
  4. Agree an action for each box: stretch the stars, support the rough diamonds, value the trusted professionals, and have an honest talk with anyone at risk.

Try it yourself

Read each description. Which box of the grid does the person belong in? Choose, then check.

1. Top results every quarter — and clearly hungry to lead a much bigger team.
2. New in the job and her results are still weak, but she learns faster than anyone her manager has seen.
3. An expert whose results are excellent, but who has told everyone he never wants a management job.
4. His results have been poor for two years, and he shows little interest in learning anything new.
5. Her results are fine but not outstanding — yet everyone agrees she could run the whole department one day.
6. Does a solid, average job, and could probably grow a little with the right support.

1. Star — high performance now and high potential.

2. Rough diamond — low performance so far, but high potential.

3. Trusted professional — high performance, low potential for a bigger role — valuable, but not a future leader.

4. Talent risk — low performance and low potential.

5. Future star — medium performance, high potential.

6. Core player — medium performance and medium potential — the middle box.

Where the tool breaks

Potential is a guess. Performance can be measured; potential can't. When people guess, bias creeps in — and the grid can make a guess look like a fact.

Boxes become labels. A person placed in a low box may get fewer chances, and so never show what they could do.

It's a snapshot. Someone struggling after a difficult year may look like a “risk” when they simply need time.

Talk it through:
  • Which of the three problems above seems most serious to you?
  • What could a company do to make the grid fairer?

Its cousins

The GE–McKinsey MatrixThe original nine boxes — for businesses, not people.
The BCG MatrixStars, cash cows, question marks and dogs: the four-box grid that inspired GE's. Open the lesson →
The Skill–Will MatrixA four-box grid that asks how able and how willing a person is.
The Eisenhower MatrixThe same two-question idea — but for sorting your tasks. Open the lesson →

Grammar — comparing with much, far, slightly

A grid is all about comparison — this person is stronger than that one, this business is less attractive. At B2, the skill is to say how much stronger or weaker. The words before the comparative do that work.

A big difference: much / far / a lot / considerably + comparative.
“Our Paris office is far more profitable than our Lyon office.”  “Life in the new team is a lot easier.”
A small difference: slightly / a little / a bit / marginally + comparative.
“The second hotel was slightly cheaper, but a bit further from the beach.”
Not + as … as (with nearly or quite):
“The sequel is not nearly as good as the first film.” (a big gap)  “My Spanish is not quite as fluent as my French.” (a small gap)
The more …, the more … — two things changing together:
“The longer you wait, the harder it gets.”
Watch out: very cannot come before a comparative (very cheaper ✗). And more is not used with short adjectives: cheaper, not more cheap.

1. Complete the comparisons

Write one word in each gap. The clue in brackets tells you the size of the difference.

1. Ana's sales were higher than anyone else's — nearly double. (big difference)

2. Tom's results were lower than last year: 49% instead of 50%. (small difference)

3. The new manager is not as experienced as the old one — she has two years, he had twenty. (big gap)

4. The you practise, the more confident you become.

5. This year's team is bit stronger than last year's.

1. far / much (also: considerably)

2. slightly / marginally

3. nearly

4. more

5. a

2. Find and fix the mistake

Each sentence has one mistake. Say the correct sentence, then write the correction.

1. Her English is very better than it was last year. →

2. The second candidate was more strong in the interview. →

3. The earlier we start, the more it is easy. →

4. Our old office wasn't quite as bright than this one. →

1. much better (not very better)

2. stronger (not more strong)

3. the easier it is

4. as bright as this one

Now compare two people you know well — a friend, a colleague, a family member — using one big-difference phrase and one small-difference phrase.

Speak

Use the grid on your own world. Choose a task, start the timer, and talk. Use the comparison language from the grammar tab.

Useful language: “I'd put myself in … because …” · “My performance is far stronger than my …” · “I'm not quite as … as I'd like to be.” · “The more responsibility I get, the more …”
Time remaining: 4:00
Task 1 — Place yourself

Where would you put yourself on the grid today — and where would you like to be in two years? What would move you?

Task 2 — The fair judge

You must rate someone's potential. What evidence would you want before deciding? What would you ignore?

Task 3 — Beyond work

The grid could sort football players, students or musicians. Choose one group you know and explain how it would work.

To finish — the harder questions

  1. Should employees be told which box they are in? Argue both sides, then decide.
  2. GE first used the grid on businesses, then on people. Is anything lost when a person is treated like a business unit?
  3. Is “potential” something you have, or something other people give you by offering chances?
  4. From memory: make three sentences about this story — one with far, one with slightly, and one with the more …, the more ….