How do you handle a once high-flying partner, who is no longer performing at the same levels ?

This is one of the hardest situations in partnerships because it's often emotional—there's history, relationships, and sometimes friendship involved. But I've learned you need to treat it like a doctor diagnosing an illness: care deeply, but stay clinical. The diagnostic phase: First, understand the root cause. Partner performance drops for a few predictable reasons: Your product or program changed: New competitors, pricing shifts, or program changes that made your solution less attractive Their business shifted: They got acquired, changed strategic focus, or found a more lucrative partnership Market dynamics: Their region or vertical hit headwinds unrelated to your partnership Relationship entropy: The champion who drove the partnership left, and the new leadership doesn't have the same commitment Capability gaps: Markets evolved, and they lack the skills or capacity to compete effectively Schedule a candid conversation—not a QBR with slides, but a real discussion. I usually say something like: "I've noticed our partnership isn't generating the results it used to, and I want to understand what's changed from your perspective. I'm not here to judge—I'm here to figure out if there's a path forward that makes sense for both of us." The intervention options: Option 1 - Reinvestment (if the partnership is strategically valuable): Sometimes great partners hit rough patches. If the relationship is worth saving and the root cause is addressable, double down temporarily. This might mean dedicated enablement, co-selling resources, or even financial investment through increased MDF. Set clear milestones—"We'll invest X for 90 days, and we need to see Y results." Ensure it is specific, measurable and time-bound. Option 2 - Pivot the relationship: Maybe they're no longer viable for net-new sales but excellent at services or customer success. Or perhaps they should transition from global to regional focus. Redefine the partnership around what they do well today, not what they did well two years ago. I've salvaged many relationships by narrowing scope to areas of mutual strength. Option 3 - Graceful transition: Sometimes partnerships run their course. If the diagnosis shows fundamental misalignment, it's better to transition gracefully than let the relationship slowly decay. Offer to help them offload existing customers to other partners, honor existing commitments, and leave the door open for future reconnection. I've had partners return 18 months later after resolving their internal issues. Option 4 - Performance improvement plan (the hard conversation): For partners with significant contracted commitments or tier status they're not earning, you may need a formal performance plan: "Here's where you are, here's where you need to be, here's the support we'll provide, and here's the timeline. If we don't see progress, we'll need to adjust the relationship." This sounds harsh, but most partners respect clarity over ambiguity. The philosophy that guides my approach: Think of partnerships like gardens, not machines. Some plants thrive for years, others bloom for a season then fade. Your job isn't to keep every plant alive forever—it's to maintain a healthy, diverse garden. Putting all your energy into reviving a dying plant means neglecting 20 healthy ones. That said, loyalty matters. If a partner invested heavily when you were small, and they're struggling now through no fault of their own, there's moral weight to supporting them. But loyalty shouldn't mean indefinite subsidy. I reccomend you create a "partnership health score" that you review quarterly—combination of revenue trends, engagement metrics, and strategic alignment. When a top-tier partner drops below a certain threshold for two consecutive quarters, trigger the diagnostic conversation. Don't wait until the decline is irreversible. Also, maintain what I call a "comeback file"—partners who've left or declined but where the relationship ended positively. Check in with them annually. Markets change, companies change, and sometimes timing is everything.

I would first want to find out why they are not performing anymore. Has the contact person changed which disrupted the relationship, did they start focusing on a competitor, have we neglected them, did they make any bad experiences with us or in projects, is there an economic reason…? It is important that you (re-)connect with that partner and ask these questions, maybe in the format of a retro (what went well, what didn’t, how to continue?). Once you know the reason and this is still a partner who wants to re-engage with you and sees the potential of the partnership, work on what broke it and make it a good partnership again. You would need to rebuild trust and re-take this partner through your partner journey. Once you experience success together again, the partnership will start flourishing again.