I think this is very common.  Generally senior executives underestimate the degree to which a middle manager will tolerate a problem because they do not have the skill to solve the problem or they feel powerless to solve it.  Senior executives assume power and act accordingly.  But it takes a searching, open leader to honestly evaluate their organization and the front-line leaders in it to make sure each leader understands their responsibility to act.

This person didn't have the ability to deal with the problem when it first appeared in the downturn of Juan's performance.  Everything after that is a management and leadership issue.  As a manager, Robert didn't know he didn't possess the skill to help Juan avoid the career limiting attitude and behavior.  His manager should have recognized it.

But Robert had the skill to reprimand or terminate Juan.  And he should have acted.  This inability to address problems when they first appear seems endemic to this organization, or at least this branch of it.

So Robert's leaders didn't realize or act to help Robert with his problem teammate early.  Robert failed to act when it became painfully obvious.  If you're going to be wrong by failing to act, why not be wrong early and avoid the rush.  The elephant in the organization is the lack of leadership, delegated responsibility and initiative on the part of middle managers.  Some take charge leader, (like your partner) should step in and start hunting for everyone who feeds the elephant.

Mike...