AUSTRALIAN TAXATION OFFICE

APS nine-box grid

A guide for SES managers and SES/EL2 employees
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Table of Contents
What is the nine-box grid? ..................................................................................................................... 3
Context for the nine-box grid ................................................................................................................. 3
What is the nine-box grid used for? ...................................................................................................... 4
What are individuals assessed on? ....................................................................................................... 4
APS Framework for High Potential ........................................................................................................ 5
How is an individual’s nine-box grid placement decided? ................................................................... 6
What happens after the nine-box grid assessment discussion between EL2 and band1? ................ 6
Who has access to nine-box grid placement information? .................................................................. 6
Managers guide - Using the online tool for assessing potential .......................................................... 7
Step 1: performance.............................................................................................................................. 7
Step 2: assess potential ........................................................................................................................ 7
Step 3: calculate APS nine-box grid position ......................................................................................... 8
Process Flowchart.................................................................................................................................10

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What is the nine-box grid?

The APS nine-box grid is a talent management tool designed to help senior managers to better
understand the potential of their SES and EL2 employees at a point in time.
The identification of potential involves making an assessment of an individual’s likely ability to be
effective in a more complex and ambiguous role in the future. This is a predictive assessment and
should be seen as indicative at a point in time. Placements should not be considered definitive or
enduring.
It is important that managers distinguish between high performance and high potential when
assessing employees. High potential requires the capability to move into, and succeed in, roles of
greater complexity, ambiguity and scale in the future.
Advice from the CEB Corporate Leadership Council is that only 15% of high performers are high
potential employees.
While performance is an input to identifying potential, this is not a performance management tool
and it should not be used as a replacement for the Compass performance system.
The ATO’s use of the nine-box grid is still maturing and we are continuing to evolve our process to
effectively assess potential at the SES and EL2 levels. We are committed to making this process
as transparent as possible. We will do this by ensuring clear communication about the process and
any changes made to the process so that participants are aware of what it is, how it works and
their personal participation.

Context for the nine-box grid

Compass remains the primary vehicle for performance feedback, appraisal and personal
improvement discussions.
The nine-box grid model is primarily a tool for people to think about their career aspirations at a
point in time. The tool is used to help managers and participants take a consistent approach to
assessing potential for people to do more complex roles.
Managers should be cognisant that people’s aspirations can change and that support for
developing people to help realise their full potential is constant, with development offerings
available throughout the year.

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What is the nine-box grid used for?

The tool is used to identify:
 Likely successors (high potential) for more senior/complex leadership roles
 Individuals who are most likely to benefit from targeted development
 Organisational capability gaps where strategic external recruitment may be required
 Individuals who are critical to retain
The outcomes of the assessments will be used as an input for selecting candidates to undertake
in-house leadership development programs targeting people with high potential such as the
Leadership Talent Program (formerly the Challenging Leadership Potential program), and
nominations for other leadership development programs.
Additionally, the outcomes may also be used by NPMs to identify candidates for long and short
term higher duties opportunities, stretch assignments, and other development opportunities.
The APSC guide to career conversations provides detailed prompt questions and suggestions for
tailored development options suitable for employees across all nine boxes.

What are individuals assessed on?

The nine-box grid tool is used to assess SES and the EL2 feeder cohort’s potential by considering
the individual’s ability, engagement and aspiration.
An assessment of an individual’s potential can be made through observation against the qualities,
indicators and behaviours set out in the APS Framework for High Potential (included below). This

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kind of assessment is best made by a manager who is working closely with an individual and is
able to observe their behaviours directly and engage with them about their career aspirations.
Performance is another component. Compass performance conversations will provide a good
basis for considering performance as an input to assessing potential.

APS Framework for High Potential

Quality Indicators What you observe/hear

Ability – capacity to grow,
adapt and develop enough to
handle the complex work
challenges which come with
more senior roles
Cognitive Capacity  Takes in and processes new information
Relatively fixed in an quickly
individual  Makes connections and see patterns
 Adept at conceptualising, formulating
ideas and hypotheses
 Applies theory to complex tasks

Emotional Intelligence  Stable and resilient in face of pressure

Some scope for development  Self-aware with ability to develop
relationships
 Willing to collaborate
 Empathic

Adaptability & Learning  Able to translate learning to behavioural

orientation change
Some scope for development  Inquisitive
 Open to feedback
 Open to new experiences and challenges
(sees change as an opportunity)
 Versatile and adaptable

Propensity to lead  Not afraid to take the lead

Some scope for development  Comfortable with authority and
empowering others
 Influential and inspiring team player

Engagement – strong
commitment to the APS with
application of discretionary
effort to achieve objectives
Alignment with APS culture  Commitment to the work of the APS or
& values agency.
 Behaviours align with APS values
 Demonstrates the ATO’s Cultural Traits
and Leadership Attributes

Discretionary Effort  Goes above and beyond expectations to

achieve goals

Environmental Fit*

Aspiration – motivation and Motivation  Committed to goals and Internally driven

desire to rise to more senior  Willing to take risks
positions  Committed to achieving outcomes

Career Aspiration  Eager to broaden experience and take on

more complex responsibilities/roles

* May be important for some agencies or some functions (i.e. a person’s ability to work in different locations for an agency with an
international presence; professional qualifications in a specific field)

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How is an individual’s nine-box grid placement

decided?
In addition to regular informal and mid-year Compass check-ins, SES B1 and EL2 employees are
required to have an end of year Compass discussion with their manager in relation to their
performance, career aspirations and development requirements.
EL2s in Higher Work Value positions, who have other EL2s report to them, should participate in the
nine-box grid assessment of their direct reports with their SES officer. The assessment should
have due regard to the principles of procedural fairness and the anti-discrimination laws.
During this conversation the individual and the manager should consider where the individual
should be placed on the nine-box grid at that current point in time, taking into account the
individual’s performance outcomes and their ability, engagement and aspirations, acknowledging
that the individual’s career aspirations may change and alter the placement on the grid in future
assessment rounds. Reasons for the decision must be provided to the individual concerned
All SES and EL2 employees will receive annual notification that assessments are due to be
undertaken and guidance on undertaking the process.

What happens after the nine-box grid assessment

discussion between EL2 and band1?
Outcomes will be collated and validated through discussion with the Business Line executive and
Group Executive for EL2s and the Group Executive and ATO Executive for SES Band 1s. Drawing
on multiple points of view will assist with considering relativity across the Line/Group/ATO and will
help ensure personal bias is minimised. This moderation process will be facilitated by ATO People
to ensure consistency and procedural fairness in the process.
If an individual’s placement is changed following these discussions, the individual’s manager will
advise the individual and explain the reasoning for the change as soon as possible. An individual
may request reconsideration of a moderated decision by providing specific reasons in a timely
manner.
NB: In situations where EL2 or SES Band 1 employees are reporting to a peer level manager, the
higher level manager should discuss the outcome of the process with the direct manager and they
should then determine who (if not both) is best placed to discuss the moderated outcome with the
individual.

Who has access to nine-box grid placement

information?
 Individuals being assessed (their own placement only)
 Individual’s manager
 BSL Executive (for EL2s only)
 Group Executive Committee
 ATO Executive
 ATO Talent Council
 SES Services
Placements are not shared with peers or more broadly across the ATO.

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Managers guide - Using the online tool for assessing

potential
The nine-box grid is an easy to use Excel spreadsheet based tool which will assist you in
developing an initial potential rating. This spreadsheet is sent to all NPMs by SES Services prior to
commencement of the assessment process (usually around June/July).
The final potential placement for your employees should not be based solely on the outcome of this
assessment. As discussed earlier, you should review the nine-box grid tool with the individual
being assessed and, taking into account their performance outcomes and their ability, engagement
and aspirations, consider where they should be placed on the nine box grid at that current point in
time.
The spreadsheet contains three tabs:
Tab 1: Nine-box Grid—the APS nine-box grid descriptors
Tab 2: Assessing potential—a tool to assist you in undertaking an initial assessment of
an employee’s potential. (Based on APS framework for high potential)
Tab 3: BSL—a list of all substantive SES Band 1 or EL2 employees in your Business Line
(broken down by manager).

Step 1: performance
When inputting the performance rating you are assessing the employee’s performance at their
substantive level. The performance rating should be determined as high, moderate or low based
on the applicant’s performance in their current position.
The performance rating you input against the individual should reflect the outcome of the end of
year check in conversation.
To complete the performance assessment, select the appropriate rating for each individual (high,
moderate, low) from the drop down menu under the ‘Performance’ heading on ‘Tab 3 - BSL’.

Step 2: assess potential

When assessing potential, you are assessing the employee’s potential to move into, and succeed
in, roles of greater complexity, ambiguity and scale in the future.
In order to determine the potential of an employee, you will need to score the employee against
eight set criteria relating to their ability, engagement and aspiration on ‘Tab 2 - Assessing potential’
of this spreadsheet. These criteria are based on the APS framework for high potential.
The tool will automatically assign the employee an interim ‘potential assessment’ (high, moderate,
low) based on the scores you provide.
To finalise the potential assessment, select the rating that corresponds with the outcome from the
Assessing potential tab (as set out above) from the drop down menu under the ‘Potential’ heading
on ‘Tab 3 - BSL’.
SES Band 2 managers: You will need to complete an assessment for each SES Band 1 in your
reporting line. Please press the 'Clear ratings' button on ‘Tab 2 - Assessing potential’ prior to
commencing each assessment. If you have SES Band 1 employees that report to managers
other than yourself, please ensure you complete their assessments in conjunction with
their direct manager.
SES Band 1 managers: You will need to complete an assessment for each EL2 in your reporting
line. Please press the 'Clear ratings' button on ‘Tab 2 - Assessing potential’ prior to commencing
each assessment. If you have EL2 employees that report to managers other than yourself,
please ensure you complete their assessments in conjunction with their direct manager.

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Step 3: calculate APS nine-box grid position
The spreadsheet will automatically calculate the employee’s position on the APS nine-box grid
based on the performance and potential ratings you provide.
You will be able to manually adjust this potential assessment if needed to ensure it reflects the
outcome you and your employee are satisfied with.
Tab 2 - Example
ASSESSING POTENTIAL

1 = Rarely/occasionally 2 = Regularly 3 = Consistently/always

ABILITY Average score

Cognitive Capacity 1-3

 Takes in and processes new information quickly

 Makes connections and sees patterns
 Grasps new concepts through formulating ideas and hypotheses
Applies theory to complex tasks

Emotional Intelligence 1-3

Emotional stability and resilience

Self-awareness
Builds good relationships
Willingness to collaborate
Empathy

Adaptability & Learning Orientation 1-3

An interest in learning

Openness to feedback
Versatility
Adaptability
Translates learning to behavioural change and action

Propensity to Lead 1-3

Comfort with holding authority

Propensity to set and drive direction
Uses influence
Develops, motivates and inspires others

ASPIRATION Average score

Motivation 1-3

Commitment to goals
Sees goals to completion
Take calculated risks in the interest of achieving outcomes
Achieves in a variety of contexts and settings

Career Aspiration

Expresses desire to progress their career in more complex or senior roles

Preparedness to take on greater responsibility 
Preparedness undertake new or complex assignments in order to learn
Ambition

ENGAGEMENT Average score

Alignment with APS Culture and Values - How consistently do they demonstrate the following? 1-3

Commitment to serve the government of the day

Integrity, role modelling the APS values
Ability to work effectively in the agency and APS context
Personal maturity
Authenticity

Discretionary Effort - How Consistently do they demonstrate the following? 1-3

 Willingness to go above and beyond expectations to achieve a goal

POTENTIAL ASSESSMENT #N/A

Low potential (avg score 1 - 1.7) Moderate potential (avg score 1.8 - 2.3) High potential (avg score 2.4 - 3)

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Tab 3 - Example

INSERT BUSINESS LINE

Manager
First Substantive Manager Nine-box grid
Surname First Performance Potential
name level Surname position
name
Frank Jones EL2 Ian Jackson Moderate Low Solid Contributor
John Smith EL2 Ian Jackson Moderate Moderate Well Placed
Mary Brown EL2 Ian Jackson High High Top Talent
Paul Smith EL2 Ian Jackson Moderate High Emerging Potential

David Black EL2 Jennifer Grey Moderate Low Solid Contributor

Liam White EL2 Jennifer Grey Low Moderate Uncertain
Olivia Brown EL2 Jennifer Grey High Moderate High Achiever

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Process Flowchart

Compass Performance Conversations

(You should talk about the 9 box grid at this discussion too)

Ratings reviewed for relativity

(BSL Level for EL2s and Group Executive and ATO Executive
for SES B1)

NPMs advised of outcomes and any changes

NPMs discuss outcomes (if changed) with SES B1 / direct

reports

SES B1 (and/or EL2.2 manager) discuss outcomes (if

changed) with EL2 direct reports

ATO wide results collated by SES Services for NPM,

Group and/or ATO Executive to access for future
development considerations

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