The Parking Lot Exercise: A Leadership Tool for Evaluating Fit and Potential

A group of executives work together to evaluate team fit and potential.

As a business leader, the individuals on your team can be your greatest assets OR your greatest liabilities. That’s why it’s so important to constantly evaluate whether your team members are in the right roles and contributing effectively to your organization’s success. The “Parking Lot” exercise offers a simple yet powerful framework for evaluating team fit and potential. Here’s how it works:

You as a leader will imagine all your current or potential employees in a parking lot, about to interview for their current roles. They ask themselves two questions:

  1. Would you hire this person for any job in the organization?
  2. Would you hire this person for their current job?

These straightforward yes/no answers offer deeper insights:

  • Yes/Yes: Celebrate and cultivate these high-performers. Invest in their growth and challenge them to ensure they remain engaged.
  • Yes/No: Recognize strengths, but consider a role realignment where their skills can truly shine. Support them with development opportunities.
  • No/Yes: They may excel in their role but not align with broader company culture. Evaluate long-term fit while appreciating their current contributions.
  • No/No: Tough decisions need to be made. Address performance or misalignment issues through coaching or role transitions.
The Parking Lot Exercise is a leadership tool to evaluate team fit and potential.

By going through these questions, you can gain more clarity on how to align your team with your company’s mission, creating a culture of continuous improvement and engagement. If you’re ready to evaluate your team and ensure alignment and growth across the board, just download our free Parking Lot Exercise PDF and spreadsheet to get started.

FAQs

What is the “Parking Lot” exercise?

The “Parking Lot” exercise is a simple framework designed to help business leaders evaluate team members’ fit and potential within the organization. By imagining employees in a parking lot about to interview for their roles, leaders answer two key questions to determine if individuals are in the right position and contributing effectively to company success.

How can the Parking Lot exercise improve my team’s performance?

The exercise provides clarity on whether employees are in roles that maximize their strengths and align with company goals. It identifies high performers, those who may need role adjustments, and individuals who may require further development or a new position, fostering a culture of growth and engagement.

Can the Parking Lot exercise be used during hiring or performance reviews?

Yes! This exercise is versatile and can be used during both the hiring process and regular performance reviews. It helps assess whether a candidate or current employee fits not just the role but also the company’s culture and long-term goals, making it a valuable tool for ongoing team alignment.

Why is it important to evaluate team fit and potential?

Evaluating team fit and potential is crucial because it ensures that each team member is aligned with the organization’s goals, culture, and long-term vision. When employees are in roles that match their strengths and values, they are more engaged, productive, and motivated to contribute to the company’s success. Regular evaluations help identify misalignments early, allowing for timely adjustments, coaching, or role changes that can prevent performance issues, reduce turnover, and foster a healthier, more dynamic team culture.

Explore More Posts
A leader attentively listening to team members during a discussion.
How Leaders Thrive by Seeking Counsel Over Validation
Great leaders prioritize counsel over validation. Validation may feel secure, but it blinds growth and reinforces biases. By seeking diverse perspectives, leaders uncover insights that challenge ideas, boost decisions, and build trust. Shift to counsel and transform your leadership.
How CEOs Can Create Effective Meetings That Deliver Results
Meetings don’t have to be a waste of time. Discover how CEOs can transform unproductive gatherings into powerful tools with strategies for decision-making, collaboration, and communication. Learn the three essential meeting types and actionable tips to boost efficiency and drive results.
Gratitude in Leadership - More thank just for Thanksgiving
Gratitude in Leadership Drives Trust, Engagement, and Success
Gratitude is a leadership superpower. Discover how it builds trust, boosts engagement, and inspires success with practical strategies to create a culture of appreciation in your teams.

The Arcqus Leadership Toolbox

Subscribe to receive the best weekly leadership tools, resources, and inspiration.

Name(Required)