Tackling under performance

Peter Scott

Peter Scott Consulting

How many of you do NOT have an under performing partner?

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Do you know how much under performance is costing you?

Direct financial loss?

Lost clients?

Lost opportunities?

Partner recruitment / retention?

Poor staff morale / high staff turnover?

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What is under performance?

How have you decided that a partner is under performing?

What criteria and standards have you applied?

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Need to distinguish from…

Contribution / reward mismatch

(which may be the result of under performance)

Reward mechanisms aim to fairly match reward to contribution

NOT the way to deal with under performance

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Need to differentiate between…

Failure to perform to certain agreed standards – often a skills problem

Bad behaviour – an attitude problem

Each will require a different solution

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How many of you have partners who…

Are under performing but could improve?

Have attitude / behavioural problems and are unlikely to improve?

If you identify the problem, the solution may identify itself

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To build higher performance…

What standards do you apply?

Who decides?

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Driving up performance standards

Managing change

Client / market driven

Firms have a choice…

- raise their game – to be competitive

or

- stay as they are – a downward spiral

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What do your clients want?

Undertake an external client / referrer survey

Use a third party

This will set your performance standards

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The choice is yours

Recognise the kind of firm you are now

Decide what kind of firm you want to be

Work out what it will take to get there

But – do your partners want that?

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Know your partners

What do they want?

To be the best?

To earn the most?

To destroy the competition?

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OR…

Are they content with what they earn?

Are they too comfortable?

Are they prepared to be managed?

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Is under performance making you uncompetitive?

Clients may think so-

‘I don’t believe they have the resources’

‘Sometimes they lack polish and quality in depth’

‘Their quality is patchy’

‘City firms have greater depth of expertise’

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Where to start?

Developing a strategy for driving up performance should not be a piecemeal exercise

Every aspect of a firm should be looked at

Needs to take priority because it is a barrier to your becoming competitive

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Driving up performance is a continuous journey…

focus on BIG ISSUES make decisions

implement decisionsbank progressmove on

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However something needs to be present first…

leadership

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Leadership…

Thinking and visionary

Challenging

Inspirational

Ability to take partners with him/her

A determination to implement change

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Leadership that…

Focuses on the BIG ISSUES

Is prepared to face up to a firm’s ‘SACRED COWS’

USE AN ISSUE TO DRIVE YOUR PERFORMANCE INITIATIVE

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How to use an issue as a performance catalyst?

A partner’s financial management will indicate:

Willingness to be managed / to be accountable

Ability to manage client relationships

Business acumen

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To do this leaders will need…

Partner buy-in

- a clear brief / authority to deliver

- support of most partners – 80/20 rule

- governance procedures

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How to obtain partner buy-in?

Know your partners

Present them with well thought out plans

Use a third party to persuade if necessary

Make decisions

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What do you do about the partner who is under performing?

To do nothing should not be an option

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To cull or to coach?

Coach – if a partner has a positive attitude to improving and there is a realistic chance of it happening

Consider exit if a partner is unwilling or unable to improve

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How to exit partners

Do it for the right reasons

Know your partnership agreement

Obtain a mandate

Pluck up courage

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How to exit partners

Taking the decision will require you to be ‘hard-nosed’

Implementing the decision requires some humanity

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When dealing with a partner exit

Make clear there is no alternative

Maintain the momentum

Choose a ‘best friend’ for the partner

Seek outside help if necessary

Consider outplacement

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Under performing partners are a barrier to your becoming competitive

So:

Face up to your BIG ISSUES

Make decisions

Make it happen

Move on

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What are you going to take away with

you from today and do something about

to make your firm more competitive?

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Any questions?