Partnership balance....or not...

[shaz]

Hi - I'm one half of alimited liability partnership, in the 4th year of business. We have recently stopped working ourselves to focus on management more - we have 3 emplyees about to increase to 5; In the process of drawing up a partnership agreement, we each wrote our own job descriptions, and its become blindingly obvious that my partner is the secretary - anddoes the practical tasks, and I do the startegy, legalities, finance etc. etc.

Now that I've ut the issue on the teable, she's become very hostile and defensive - it's getting unpleasant.

Has anyone been in a similar situation? What's the best way of handling such situations? All help gratefully recieved....shaz :?

[WakingDragon]

You haven't said what the partner is getting hostile about. Your description of the job roles sounds pretty patronising to her though - I hope you worded it better in your discussions!

[shaz]

Thank you for you response - and - sorry about all my typos - my fingers were not working as fast as my brain!

I don't mean it to sound patronising - but on her job desc, written by her, are mainly admin tasks - sending out letters, taking calls, passing customer requests to employees, and organising annual electrical equipment tests.

My attempts to get her involved in strategy, planning and setting goals, and finance have fallen by the wayside.

Now that I have raised the issue - we are in total conflict. I don't mean to appear patronising - and I tried to say that I felt I was doing more for the same money - not that she was doing less.

[WakingDragon]

Ah. What you have said is still that you add more value. Are you asking for an increased proportion of the takings to reflect what you see as your more valuable input or are you trying to get her to contribute more?

[DuaneJackson]

What are the issues from your POV?

Do you think you should have more of the income?

Have a frank chat with each other - away from the business - away from work. Down the pub maybe? - to try to work out what the issues are and deal with them.

You're doing the right thing by trying to do something about it rather than just let it linger.

I've been in a similar position before and we got it sorted out due to being hinest with each other and saying what we really thought.

Are you perhaps undervaluing her? Does she bring more to the table that's not somethign that can be written down? For instance - has her credit histiry been useful in obtaining loans? Does she act as a sounding borad for you? Does she stop you going off and implementing some of your ideas that may not have been throughly thought out?

[shaz]

Hi - Yes - that's one possible solution I have put forward - I can accept an inbalance if it's fairly spread across the board.

It is difficult to value an individuals input - it involves a judgement that would be difficult to achieve consensus on I suspect. A second solution I suggested is that we could take our own job descriptions, and find jobs on the open market with the same skills, and use the salary range to evaluate our own inputs.

She could take more responsibility also.

I thought that others here may have some additional suggestions particularly about the concept of value in the sense we are using it...not personal but in terms of input.

[WakingDragon]

Duane is right that you need to have a serious chat, but you should be very careful about how you discuss it.

Maybe there is a way to encourage a greater contribution through subtler, smaller steps.

Bottom line, though, is that you will never be putting in EXACTLY the same value.

[shaz]

I guess it's difficult at the moment as feelings are at an all time high - she's shocked - I'm angry - we're both on the defensive - can't make an omelette without breaking eggs I guess!

I think you're right - and I appreciate your challenging questions - you've both helped me clarify what the issues are for me;The challenge is how to move forward in the way that makes the best of what we both do perhaps.

With regard to a serious chat though - how do I move forward when she won't accept that there's an issue to address?

[DuaneJackson]

Tell her you really value her friendship and you don't want anything to some in the way of that.

You have some serious concerns about the business that you think you need to discuss - can we please have a chat down the pub thisevening/tomorrow evening to clear the air.

Maybe put that in an email rather then verbally.

When you do sit own for a chat - have an open mind and *listen* to what she has to say. Be prepared to change your mind on some things that you hole to be a fundamental truth.

[WakingDragon]

I really feel for you shaz. Taking it carefully is the best option. This is her business as well and she may be feeling not a little threatened. It is not in your interests to have her angry or upset.

At the root of this is your perception that she is not pulling an equal load. You might actually be wrong, and there is no harm in admitting to the possibility. Between the two of you, you may be able to come up with a solution that works.

[shaz]

Duane - thank you - a bit of diplomacy was what I probably needed to hear to get me off the horse I had climbed onto.... :lol:

[DuaneJackson]

No problem - my spelling mistakes were intientional by the way to make you feel better about yours - honest! : )

[Cornish Steve]

What did you agree when you entered into this partnerships? Were expectations clear on both sides? What was put in writing? Maybe that can help to bring objectivity to the discussion.

[Rob Holmes]

Heres a way of helping express the anger..

A - Acknowledge theres a problem
N - Not Loudly
G - Get your feelings in
E - Elicit a resolution
R - Re-assert the relationship

I knew those courses I did were not totally pointless ;)

Rob

[Alpha]

I'm not surprised that she is getting hostile!!

firstly why have you been in this LLP for 4 years without drawing up the partnership agreement? it should have been done before you started.

You both add value to the partnership in different ways and presumably one of you would not have started the business without the other so please do not get too hung up on job descriptions unless you intend to change the profit share or introduce some other remuneration method to change the income for what you both believe you contribute.


Concentrate of the task aspects without giving titles which may then go someway to repairing the damage. It may be best if you sat down with a professional advisor to draft the agreement properly.

:D

[shaz]

Alpha - when we first got into the partnership we though - naively - that things would always be amicable. Things have changed becasue since xmas we have been working together in a different way - instead of doing the work oursleves alongside employees, we have stepped back solely into management. It'sjust become apparent that hermanagement is less than mine.

Matrixx - thanks for the very constructive suggestion - I thnk we're approaching the 'E' now....thankfully.

goldctrsteve - when we first entered into the partnership we didn't make an explicit agreement - and equality was provided for by us both doing the practical work of the business ourselves, together as a team.

The separation from that, seems to have contributed to /brought to light the imbalance. The job descriptions wre part of a partnership agreement, and a plan to cover the work of the other in the event of some emergency.

[WakingDragon]

It's not an uncommon thing - plenty of partnerships are set up in this way. And plenty of them have similar troubles.

But I have known people get through this kind of stuff before and I am sure that you will too if you are careful and tactful.

[shaz]

Waking dragon - thanks for the vote of support - and encouragement.

I need to go out now - but I'll call back tomorrow for any other posts - thanks to everyone who has contributed - I'll certainly be back to the forum again - it's been a very helpful visit. Thanks :)

[Antonia @limeone.com]

but no partnership in the world will protect both of you from the bad feelings if one feels devalued or demeaned.

I suggest you think about mediation over the current problems and do some listening to your partner to understand what she feels she does in adding value to the partnership.

I am sure when you examine the roles more fully there will be a lot of hidden items. It is very expensive when partners fall out and often means an end to that business venture. That does not need to happen and sometimes a third party and a slight readjustment is all that is needed.

If the feelings in your words in the above posts ie you feel she does less of significance to the business then it may be matters have come to a head but have simmered beneath the surface for some time.

Be careful of letting all the dragons loose at the same time. Business is all about co-operation and compromise and most are destroyed by internal feuding.

[KM-Tiger]

In the process of drawing up a partnership agreement, we each wrote our own job descriptions, and its become blindingly obvious that my partner is the secretary - anddoes the practical tasks, and I do the startegy, legalities, finance etc. etc.
You could look at this as being a strength rather than a weakness of the partnership. If you are good at your role, then it's good to have someone else who deals with implementation and follow through?

I think what matters more is overall commitment and contribution to the business. The real question is do you both have the same level of contribution and commitment, in whatever role that might be?

Another question you could ask each other is this:-

In the absence of one partner, could the other one successfully continue to run the business?