Betraying a colleague's confidence and disclosing information (1 Viewer)

[Phipps Afficianado]

First off, I had a few cocktails before registering, and I already know that I spelled aficionado incorrectly.

I work in a service business and we have a long standing client that has been with us for 25 years and combined they are our 2nd largest client that represents 15% of our business. I am not the senior partner in charge of this client, but I have been heavily involved working on this client for close to 20 years. The senior partner is in his late 70's and the client almost exclusively deals with the senior partner. I have worked directly with the client's controller for close to 10 years and have a very good working relationship and can usually get necessary information or solve problems via back channels.

I have noticed over the past 3 years that the senior partner is slipping and it is affecting his work with this client. His memory is slipping and he regularly does not respond in a timely manner to the client's other advisors because he is focused on our largest client. He regularly shares information with me weeks after the initial request and when he is under immediate deadline. He also botched a negotiation on behalf of the client a couple years ago and the client brought in another advisor to finish the negotiation. I did smooth this out via back channels through the client's VP. I had to put some severe spin on the information in order for the senior partner to save face with the client.

I found out last night through the controller that our client is considering replacing us. I was not told outright, but there was enough inferred for me to read between the lines. The controller asked that I not share this information with the senior partner or anyone else with my company.

There is no certainty that we will lose the client, I am led to believe that these are only initial discussions. If I disclose the information to the senior partner and he uses the information incorrectly, it most likely will cost the controller their job. If I keep the confidence, I feel I am not being loyal to my company and giving it the best chance to retain the business.

 

[eoMMan]

Tell the old guy to retire. Is there an owner or managing partner to can talk with about the senior partner slipping?

If he leaves and you take over the account, you'll do a great job and keep them from leaving, right?

 

[dutch]

Don't disclose...yet. Your relationship with this client is apparently a strong one and you don't want to do anything to damage that and while your firm is potentially on thin ice these kinds of deals often come to light on their own sooner or later. Just keep putting a good face on your firm and keep your eyes and ears open.

 

[jon_mx]

Why do you have to disclose. Just raise the concern that you believe the company is on the verge of losing this client and explain the problems you are seeing.

 

[Grace Under Pressure]

Why do you have to disclose. Just raise the concern that you believe the company is on the verge of losing this client and explain the problems you are seeing.

That's how I took it. Raise your concerns without being specific. Being worried about losing clients is part of being a good provider.

 

[Phil Elliott]

With a relationship over 25 years, the client and senior partner can't have an honest discussion? Why doesn't the client just suggest they would like to try a different partner. Why would the client's controller suggest they are looking for a replacement? Sounds like he is giving you the heads up to try and make some changes before they dump you.

 

[FUBAR]

Why do you have to disclose. Just raise the concern that you believe the company is on the verge of losing this client and explain the problems you are seeing.

except instead of "being worried" about losing them, consider how to better address the client's needs.

 

[Steve Tasker]

What is your role within the firm / where do you rank in respect to the senior partner? How do you anticipate he will react if you say something to him?

 

[RUSF18]

Is there really not some sort of succession plan in place for a senior partner in his late 70s? If there is, can you tell the controller that there is a plan for a smooth transition and in the meantime, to come to you with any concerns?

 

[tri-man 47]

Why do you have to disclose. Just raise the concern that you believe the company is on the verge of losing this client and explain the problems you are seeing.

That's how I took it. Raise your concerns without being specific. Being worried about losing clients is part of being a good provider.

s

 

[Ramsay Hunt Experience]

Seems to me that this is a bigger issue than something the senior partner needs to know. The potential loss of 15% of the partnership's business is a partnership issue. The partners need to know that. It sucks, but partnerships have to force older, once-valued partners into emeritus positions all the time (its why a lot of law firms have hard policies against full partnership roles for attorneys in their 70s).

I'd try to keep the controller's name out of it, but the controller had to know you couldn't keep this to yourself. He put you in an awful position if that's his expectation.

 

[Phipps Afficianado]

I am a likely successor. The senior partner had a falling out with his previous partner 30 years ago and has always handled direct access with this client in order protect himself financially. All direct contact with the client goes through him.

 

[5Rings]

Tell the old guy to retire. Is there an owner or managing partner to can talk with about the senior partner slipping?

If he leaves and you take over the account, you'll do a great job and keep them from leaving, right?

Good luck with that. Many of these old guys refuse to retire, guys in this generation are unique in that their identity is tied to the job.

I like the idea of talking to an owner or other partner. We've moved guys like this into figurehead positions with no day to day requirements.

 

[The_Man]

There is no way you should go to the senior partner with this info. He sounds like he has always selfishly hoarded information, and now he's a selfish hoarder who is slipping. If you bring this info to him, it seems very likely to me that he will just use it to screw things up and/or screw over your friend at the client.

Also, you will probably find yourself in his targets, since you had info first that he didn't even know about his long-time and jealously guarded client. He will not trust you and he will resent you.

I would either keep it quiet or take it to the President/CEO or another senior partner who you would trust with your job. Because if you go to another senior partner with this info, and it gets back to the old guy that you went behind his back, you are finished.

 

[Tom Servo]

I'm somewhat lost. What's a controller and where is he in the corporate structure with respect to the OP and senior partners?

 

[Steve Tasker]

I'm somewhat lost. What's a controller and where is he in the corporate structure with respect to the OP and senior partners?

The OP and Senior Partner work for a service firm. Senior Partner presumably outranks the OP.

Controller works for the client as one of the (or perhaps THE) lead "financial guys", but is presumably not the corporate president/CEO/whatever. The corporate president/CEO has a long-standing relationship with the senior partner. The OP and controller have a long-standing relationship, but neither of them ultimately "controls" his side of the equation.

Corporate president/CEO is considering replacing the service firm and informs Controller of this. Controller, out of friendship/respect/loyalty/etc. to OP, tells OP of this and asks OP to keep it quiet.

At least, that's how I read it.

 

[Corporation]

I'm somewhat lost. What's a controller and where is he in the corporate structure with respect to the OP and senior partners?

The controller is a senior finance/accounting role. The controller in this instance works for the client.

I agree that you need to discuss concerns without specifics raised by the controller.

 

[johnnycakes]

With a relationship over 25 years, the client and senior partner can't have an honest discussion? Why doesn't the client just suggest they would like to try a different partner. Why would the client's controller suggest they are looking for a replacement? Sounds like he is giving you the heads up to try and make some changes before they dump you.

I kind of have a feel for the relationships... Can we say "the client" ultimately boils down to one highly influential individual whose authority would never be challenged, even by the senior partner, though both individuals are members of much larger organizations? I'm kind of thinking "the client" may be someone similar to a Robert Kraft if the Kraft Group... Lots of players in the organization; many may be influential, but at the end of the day, RKK calls the shots.

If this describes your kind of situation, then it becomes a question of how long have @the client" and the senior partner worked together. If it's a long time and "the client" really only wants to deal with the senior partner, then I would find a way to suggest to the senior partner that he and the client go out for dinner and have a heart-to-heart about their relationship. I would not implicate anyone in the client organization.

If the senior partner had not known the client for a long time - perhaps a senior partner newly assigned to that client - then it becomes trickier. Ultimately, the client must be dissuaded, but if the relationship is based more on respect than one of oersonal trust, then the solution may blurry well be to find a way to rally the troops internally to put a new partner on lead. Still might lose the client, though.

Best hope for salvation is likely a long trusting relationship between the two key players... Let the client suggest that perhaps senior partner should think about retirement.

 

[Steve Tasker]

Why do you have to disclose. Just raise the concern that you believe the company is on the verge of losing this client and explain the problems you are seeing.

except instead of "being worried" about losing them, consider how to better address the client's needs.

I think this all sounds great on paper, but in practice this doesn't always work (per my experience; I'm sure others in service firms have had similar experiences). Depending on the senior partner's personality, etc., he may need to be informed that there is an actual serious "threat" of losing the client before any action is taken.

I tend to agree with Ramsay that if this client does comprise 15% of the total business, you need to at least tell someone higher up whom you trust. It's not just a basic client management issue at that point...it's a partnership-wide issue.

 

[Angry Beavers]

I am a likely successor. The senior partner had a falling out with his previous partner 30 years ago and has always handled direct access with this client in order protect himself financially. All direct contact with the client goes through him.

You need to suggest ways to help the client and keep your mouth shut. You having a better relationship with the client than he does will be a threat to the SP and he will look for a reason to jepordize your job.

 

[johnnycakes]

If the relationship between "the client" and the senior partner is a long and personal one, then do not underestimate the possibility the client's loyalty is to that senior partner more than to the firm. If not handled properly, you may lose that client despite all efforts.

 

[glumpy]

I think what you need to do is try to work within your firm to address any concerns or potential issues....whatever you think may reinforce your company's relationship with the client without violating the trust. While it's probably in different type situations I have frequently been put into that kind of a compromising position over the years and all I could do was to use it as a heads up to tweak services and reinforce communications. Sometimes you need to manage from the bottom, so to speak.

eta: From your OP:

I found out last night through the controller that our client is considering replacing us. I was not told outright, but there was enough inferred for me to read between the lines. The controller asked that I not share this information with the senior partner or anyone else with my company.

There is no certainty that we will lose the client, I am led to believe that these are only initial discussions.

You are being encouraged to take more control of this account. imo. surreptitiously