Potential analysis

Potential Management

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Potential analysis

The potential analysis describes the structural examination of specific characteristics and competencies. Potential analys´ provide information about abilities of employees, future events, methods or organisations. Due to that, the analysis of the branch of production, the financial sphere, the research & development and the Human resources is differentiated.
A company might analyse its own potential (productivity, market position) by comparing it to those of the competitors (Benchmarking). A market can be analysed to estimate its potential for a certain product. Processes can be structurally analysed due to their optimisation.Image result for Potential analysis diagram

Quality criteria of a potential analysis

The basis of a qualitative potential analys are the following quality criteria that need to be fulfilled for any kind of potential analys.


Validity should show that the used potential analys tool is suitable and whether the significance of the examination of future executives is established or not.


Reliability in potential analyse means to make tests comparable. The potential analysis tools should have the same result after being carried out several times.


The quality criteria objectivity should ensure that the results of potential analys´ were not disturbed by personal influences.