RSS feedsMy blood runs cold when I think of the potential risks we are running because of one particular partner. My co-partners are adamant that, as managing partner, I am responsible for resolving the situation. Having read the horror story you published last month, I thought I would write and see if any of your readers have faced a similar situation and, if so, how they handled it.
Some partners are blessed with good, sizeable portfolios and the ability to provide excellent general advice. We have one such partner ourselves. Unfortunately, ours suffers from what I describe as ‘poaching paranoia’.
He does not allow other partners or specialists in the firm any direct contact with his clients, nor is anyone permitted to know exactly what he is doing for them. The only way we can find out is to examine his invoices. The situation would not be so bad if he had a small portfolio of small clients, but he has one of the largest client lists in the practice, including some substantial businesses and wealthy individuals. We also know he is giving his clients advice he is not qualified to provide.
Even though our firm provides a good selection of specialist services, the partner in question often approaches one of the other partners or department heads with a hypothetical question on which he would like advice. We now know that his ‘what ifs’ are actual situations that have arisen with clients.
He then goes back to the client with the information he has been given. This makes him look like the fountain of all knowledge and the client is happy. But what if he has misinterpreted the situation? What if he passes on advice that he has misinterpreted? The client could subsequently sue the firm for providing bad advice. How do we stand with the regulatory authorities?
Our investigations suggest he has been handing out financial services advice, taxation advice and advice on matters of corporate finance. He claims the advice he gives is sound, and that appears to be the case so far. Surely, though, it’s only a matter of time before something goes wrong and we find ourselves facing a disciplinary hearing or, worse still, a court.
But there is yet another concern: the fact that we are losing business as a result of this partner’s failure to promote the firm’s specialist services into his client portfolio and this is having an adverse effect on our profitability.
This situation must be resolved, but how? The recalcitrant partner is only 48, so we can’t afford to ride it out until he retires. Should we force him to pull down the barriers he has erected between his clients and the rest of the firm? If so, what is the likely effect on our business, the relationship between the partners and the relationship between the practice and its clients?
Because of his large portfolio he has a large profit share, so perhaps dangling the carrot of increased profits might entice him to open up his portfolio. Alternatively, should we threaten him? Facing down staff is easy, but not when it’s one’s partners. My co-partners have left the decision to me, but only so they can distance themselves from the fallout.
Answers on a postcard please.
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