Under-performing Business Partner
Under-performing Business Partner
(OP)
I am currently in business with two partners. It was an understanding at the start-up that we would market our own skills, in addition to marketing the company as a whole. We have mostly complimentary skills, although actually rarely work together on a project. Partner #3 has a skill set that overlaps Partner #2's. A substantial portion of the work P#3 has done was due to marketing by P#2. Work P#2 was more than capable of doing, but gave to P#3 because of lack of other chargable time. P#3 has done very little marketing and has the billable hours (or lack thereof) to show for it. P#3 also frequently fails to act on leads or follow up.
We have previously discussed this matter at a business meeting. More details of said meeting can be discussed later.
The idea of the partnership was that when one person had a "slow spell" then the business would "stay afloat" via the other two. But, my question is, how long do you allow a "slow spell" to continue? Myself and P#2 are getting tired of carrying P#3. Has anyone dealt with this issue before?
We have previously discussed this matter at a business meeting. More details of said meeting can be discussed later.
The idea of the partnership was that when one person had a "slow spell" then the business would "stay afloat" via the other two. But, my question is, how long do you allow a "slow spell" to continue? Myself and P#2 are getting tired of carrying P#3. Has anyone dealt with this issue before?
Talk To Other Members
RE: Under-performing Business Partner
I would suggest that you sit down again and discuss candidly what each strengths and weknesses are, what your comfort zone is and come up with some agreed upon metrics of monitoring performance and document it. Maybe set up a quarterly internal performance review.
If it turns out that Work P3 just isn't shouldering his share of the load, maybe you want to buy him out or use whatever your by-laws allow for removal.
Greg Lamberson
Consultant - Upstream Energy
Website: www.oil-gas-consulting.com
RE: Under-performing Business Partner
You might need to be sure that this does not violate local engineering laws as regards fee splitting, but given that it is all internal to the company, I suspect it will not.
Jack
Jack M. Kleinfeld, P.E. Kleinfeld Technical Services, Inc.
Infrared Thermography, Finite Element Analysis, Process Engineering
www.KleinfeldTechnical.com
RE: Under-performing Business Partner
Sometimes, some peoples are just plain incompetent at certain things or just plain incompetent period (you say he does not follow on leads, a real sin). I'd look into ways of changing company name and bail out of the partnership altogether because right now, as you describe, all you have is an employee with lots of perks.
Good luck to you.
RE: Under-performing Business Partner
Atlas, that sounds pretty snarky. This kind of thing happens all the time, especially in that partnership called marriage. People lie, give false impressions, become complacent, give up, etc. It's doubtful this partner was always that way.
RE: Under-performing Business Partner
Don Phillips
http://worthingtonengineering.com
RE: Under-performing Business Partner
Otherwise, why not consider creating some sort of profit distribution system whereas the amount of profits paid out are equal to the amount of work put in, and maybe put in some system to account for slow spells, but make sure that in the long run all three business partners are getting compensated equal to the amount of work that they are putting in.
Mike
www.partnerup.com
RE: Under-performing Business Partner
There may be several reasons. Have you taken a direction he disagrees with? Have you and the other partner overruled him on a matter of business or a technical issue? Is he a passive agressive type? What about cultural issues, some people are not as aggressive individualists as we Americans are, but are more likely to work within teams and value consensus versus individuality.
Meet with him and discuss your observations, get to the heart of the matter and offer understanding and see if he responds. If not, then adios. Ensure the parting is amiable, and get going with the future. The good thing about engineering is that there is a shortage, and we can operate from the perspective that there is plenty of work to go around.
RE: Under-performing Business Partner
Equal partners should do equal work to earn their equal share. If they dont do equal work (on average) then they do not deserve an equal share.
Sounds harsh, but thats business.
Dont let them drag you down with them.
csd
RE: Under-performing Business Partner
Maybe it is time to Incorporate, change, restructure ??? ...
Before it is too late.
Mike McCann
McCann Engineering