Understanding Employee Performance Variation and Capability Development


A practical model for understanding employee performance variation
Why does the same person perform differently across situations, even when the relevant knowledge and skills appear to be present?
Organisations often interpret employee performance variation primarily through capability. When performance falls short, the natural response is to ask what the person needs to learn or improve. Yet capability provides only part of the explanation.
Performance can also vary because of how a situation is understood, the conditions shaping capability deployment, and wider organisational influences such as workload, incentives, authority, systems or local norms. The eventual outcome adds another layer: a favourable result does not always indicate sound performance, just as an unfavourable result does not necessarily indicate poor judgement.
Our new practical reference paper, Understanding Performance and Capability Development, introduces the Performance and Capability Development Reference Model as a way of examining these relationships more systematically.
The model distinguishes between the situation encountered, existing capability, capability deployment, performance, consequences and how experience can contribute to subsequent learning and development. It can help leaders and development practitioners ask a more precise question before choosing an intervention: what is actually producing the performance variation we are seeing?
The paper also considers how experience can contribute to capability development, and why AI-supported performance makes the distinction between immediate performance, independent capability and learning increasingly important.
Read the full reference paper.




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