Tackling under performance Peter Scott Peter Scott Consulting

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

PETER SCOTT CONSULTING 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?

PETER SCOTT CONSULTING What is under performance? How have you decided that a partner is under performing? What criteria and standards have you applied?

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING To build higher performance… What standards do you apply? Who decides?

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING What do your clients want? Undertake an external client / referrer survey Use a third party This will set your performance standards

PETER SCOTT CONSULTING 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?

PETER SCOTT CONSULTING Know your partners What do they want? To be the best? To earn the most? To destroy the competition?

PETER SCOTT CONSULTING OR… Are they content with what they earn? Are they too comfortable? Are they prepared to be managed?

PETER SCOTT CONSULTING 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’

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING Driving up performance is a continuous journey… focus on BIG ISSUES make decisions implement decisions bank progress move on

PETER SCOTT CONSULTING However something needs to be present first… leadership

PETER SCOTT CONSULTING Leadership… Thinking and visionary Challenging Inspirational Ability to take partners with him/her A determination to implement change

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING To do this leaders will need… Partner buy-in - a clear brief / authority to deliver - support of most partners – 80/20 rule - governance procedures

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING What do you do about the partner who is under performing? To do nothing should not be an option

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING How to exit partners Do it for the right reasons Know your partnership agreement Obtain a mandate Pluck up courage

PETER SCOTT CONSULTING How to exit partners Taking the decision will require you to be ‘hard-nosed’ Implementing the decision requires some humanity

PETER SCOTT CONSULTING 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

PETER SCOTT CONSULTING Under performing partners are a barrier to your becoming competitive So: Face up to your BIG ISSUES Make decisions Make it happen Move on

PETER SCOTT CONSULTING What are you going to take away with you from today and do something about to make your firm more competitive?

PETER SCOTT CONSULTING Any questions?