Tackling under performance
Peter Scott
Peter Scott Consulting
How many of you do NOT
have an under performing
partner?
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
bank progress
move on
make decisions
implement decisions
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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?
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