Fixing a Dysfunctional Partnership
Whether through podcast discussions or written perspectives, our content is designed to provide practical takeaways, fresh ideas, and meaningful conversations.
Business partnerships typically start with enthusiasm, trust, commitment and mutual respect. Partners in a new relationship are united in building a successful business. Not unlike a marriage, partnerships can experience their share of "ups and downs." It is not unusual that over time partners tend to move in different, and at times conflicting, directions.
Point NorthEast's™ senior advisor was enlisted to assist in resolving some challenging differences which emerged in a 20+ year business relationship. Two partners had encountered a range of critical issues where they just couldn't rationally discuss nor reach resolution. These problematic issues had been building for many years which created a communication void between the partners. A series of typical issues emerged, including differences about compensation and profit sharing, a significant shift in individual commitment and work performance and the senior partner hiring family members.
Our senior advisor conducted an in-depth fact-finding process to gain a complete, unbiased understanding of the issues. It was clear that this conflict was significantly impacting the business and staging a situation where employees were picking sides. Tensions and frustrations were surfacing throughout the company.
A series of off-site meetings were facilitated with the partners to present the results of the fact-finding effort and initiate a process for discussing and resolving a prioritized and agreed upon set of issues. Although the process yielded a solid plan of action and agreement on how best to proceed, one of the partners had a change of heart. After shifting gears, a revised agreement was reached to dissolve the existing business and agree on a division of assets and clients, which allowed each partner to move forward separately. This was accomplished without litigation and limited negative impact on their new emerged companies.