THE FIRM – MORGAN STANLEY
LEADING US INVESTMENT FIRM – UNDERGOING ORGANIZATIONAL
RENEWAL
VISION – “ ONE – FIRM ”
TO BE NO 1 IN INVESTMENT BANKING
CONDUCT BUSINESS WITH ABSOLUTE INTEGRITY
FOSTER TEAM WORK AND INNOVATION
ORG CULTURE
MORE IMPORTANT THAN BUSINESS – CULTURE
INTEGRITY OF PROCESSES
DIGNITY AND RESPECT IN PERSONAL CONDUCT
“UP OR OUT” PROMOTION SYSTEM – STANDARD BEARERS
STEEP HIERARCHY
BUILD CONSENSUS – WORK AS A COMMUNITY, NOT INDIVIDUALLY
PERFORMANCE EVALUATION PROCESS– 360 DEGREE
TO ENCOURAGE EMPLOYEES TO WORK IN SYNC
HELP EMPLOYEES TO IMPROVE THEIR SKILLS
PROCESS NOT CLEAR TO MOST
CAPITAL MARKET SERVICES(CMS)
Problems Identified
DIVISION AT MORGAN STANLEY
LINK BETWEEN IBD AND TRADING ARMS OF THE FIRM
ORGANIZATIONAL STRUCTURE INTENDED TO PROVIDE CLIENTS WITH
MORE FOCUSED ATTENTION AND SERVICE
PROFESSIONALS IN CMS WERE ORGANIZED INTO MARKET COVERAGE
AREAS AND WERE EXPECTED TO WORK WITH CORPORATE FINANCE
PROFESSIONALS IN GENERATING NEW BUSINESS
PAUL NASR
SENIOR MD IN CAPITAL MARKET SERVICES
AN EXPERIENCED BANKER WITH 20 YEARS IN THE SAME FIELD
ENCOUNTERED CULTURAL DIFFERENCES ON JOINING MORGAN
STANLEY
IDENTIFIED THE WEAK SPOT OF MORGAN STANLEY IN CAPITAL
MARKET SERVICES TO FINANCE FIRMS
SET ABOUT WORKING TOWARDS IMPROVEMENT IN THE DIVISION
RECRUITED ROB PARSON
ROB PARSON
REBEL – NOT THE ”TYPICAL MORGAN STANLEY TYPE”
SHARP BUT UNFOCUSED IN THE BEGINNING
ACQUIRED THE NECESSARY QUALIFICATIONS AND JOINED THE
BANKING INDUSTRY
WORKED UNDER PAUL NASR AND EARNED THE REPUTATION OF A
GO- GETTER UNDER HIM
WAS OFFERED THE ROLE OF “PRINCIPAL” AT MORGAN STANLEY BY
PAUL
ASSURED PROMOTION TO MD BASED ON HIS PERFORMANCE
PROBLEMS
ProblemsIDENTIFIED
Identified
PROBLEM # 1
MORGAN STANLEY WORK CULTURE VS ROB PARSON’S WORKING STYLE
MORGAN STANLEY BELIEVED IN TEAM WORK WHILE ROB WAS NOT A
TEAM PLAYER
WORK CULTURE OF MORGAN STANLEY WAS CHARACTERIZED BY
EXTRAORDINARY EFFORT AND INNOVATION WITH ABSOLUTE INTEGRITY
ROB PARSON WAS INDEPENDENT AND THOUGH HE PRODUCED
OUTSTANDING RESULTS, THE MEANS TO THE END WAS OF NO CONCERN
ROB PARSON BELEVED IN RESULTS AND ACHIEVING TARGETS
AGGRESSIVELY WITHIN A SHORT PERIOD OF TIME
PROBLEMS
ProblemsIDENTIFIED
Identified
PROBLEM # 2
MORGAN STANLEY’S HIRING PROCESS
NOT IN SYNC WITH ITS CULTURES AND VALUES
POLICIES AND CULTURES NOT EXPLAINED/UNDERSTOOD DURING HIRING
EXPECTED BEHAVIOR NOT COMMUNICATED
HIRING WAS CARRIED OUT REACTIVELY AND BASED ON UNIQUE
PERSONAL QUALITIES
AIM WAS TO SHAKE UP THE CULTURE
PROBLEMS IDENTIFIED
PROBLEM # 3
HANDLING OF ROB PARSON BY PAUL NASR
NASR DID NOT EMPHASIZE ON THE ADJUSTMENTS THAT WOULD NEED
TO OCCUR IN ROB’S MANAGEMENT STYLES TO BECOME A FIT WITH
COMPANY’S CULTURE
HANDLED ROB WITH KID’S GLOVES
INSPITE OF KNOWING ABOUT HIS BEHAVIOR, NASR DID NOT GUIDE OR
COUNSELLED HIM PROPERLY
NASR WAS SEEN AS A PROTECTOR OR GODFATHER OF ROB
PROBLEMS IDENTIFIED
PROBLEM # 4
CONFLICT BETWEEN MISSION AND ACTUAL PRACTICE
WE WOULD LIKE TO MAXIMIZE BUSINESS, BUT WE WOULD NOT LIKE
TO MAXIMIZE IT AT THE EXPENSE OF OUR CULTURE, TEAM WORK AND
INTEGRITY OF THE PROCESS
VS
SHAKE UP THE CULTURE
PROBLEMS IDENTIFIED
PROBLEM # 5
APPRAISAL SYSTEM
360 DEGREE
ENSURES APPRAISAL BY SUPERIORS, COLLEAGUES, SUBORDINATES,
CUSTOMERS AND SELF
COMPANIES LOOK AT 360 DEGREE APPRAISAL TO IMPROVE LEADER’S
BEHAVIORS,PROVIDE INSIGHT DURING LEADERSHIP DEVELOPMENT AND
BUILD MORE EFFECTIVE TEAMS
FOCUS SHOULD BE NOT TO RATE, BUT TO GUIDE. MANAGERS ARE
REQUIRED TO BE TOLD EXACTLY HOW TO CHANGE
DRAWBACK IS THAT ANIMOSITY/ COMPETITION CAN SOMETIMES CLOUD A
FAIR AND IMPARTIAL JUDGEMENT BY CO WORKERS
PEOPLE BEING RATED MAY GO INTO COGNITIVE DISSONANCE MODE
360 DEGREE APPRAISAL
PROBLEMS IDENTIFIED
PROBLEM # 5
APPRAISAL SYSTEM
360 DEGREE
ENSURES APPRAISAL BY SUPERIORS, COLLEAGUES, SUBORDINATES,
CUSTOMERS AND SELF
COMPANIES LOOK AT 360 DEGREE APPRAISAL TO IMPROVE LEADER’S
BEHAVIORS,PROVIDE INSIGHT DURING LEADERSHIP DEVELOPMENT AND
BUILD MORE EFFECTIVE TEAMS
FOCUS SHOULD BE NOT TO RATE, BUT TO GUIDE. MANAGERS ARE
REQUIRED TO BE TOLD EXACTLY HOW TO CHANGE
DRAWBACK IS THAT ANIMOSITY/ COMPETITION CAN SOMETIMES CLOUD A
FAIR AND IMPARTIAL JUDGEMENT BY CO WORKERS
PEOPLE BEING RATED MAY GO INTO COGNITIVE DISSONANCE MODE
PERFORMANCE RATING OF ROB HAS BEEN EXCEPTIONAL EXCEPT HIS
MANAGEMENT SKILLS, WHICH HAS SIGNIFICANTLY REDUCED HIS
OVERALL RATING
PROBLEMS IDENTIFIED
PROBLEMS IDENTIFIED
PROBLEM # 6
RIGIDITY OF MORGAN STANLEY
MORGAN STANLEY WORK CULTURE OF BUILDING CONSUMERS WAS
IMPRACTICAL
STUMBLING BLOCK IN ACHIEVING OPTIMISTIC TARGETS
CLIENTS WERE IMPATIENT AND NOT WILLING TO WAIT
PROBLEMS IDENTIFIED
PROBLEM # 7
PERCEPTION VS REALITY
ROB PARSON’S NATURE/ STYLE – VOLATILE, ABRASIVE, COCKY,
OVERBEARING, INSINCERE AND LACK OF TEAM PLAYERS SKILLS-
PERCEPTION WITHIN IBD
ROB PARSON WAS GOOD AT HIS WORK AND DELIVERED WHERE IT
MATTERED MOST (STAR PERFORMER) – REALITY
ROB’S SUCCESS AND HIS TREATMENT BY NASR MAY BE THE REASON
FOR HIS ATTITUDE. GROUND RULES WERE NOT MADE CLEAR TO ROB
BY NASR
PROMOTE OR NOT
DILEMMA
IF PROMOTED,MESSAGE TO THE ENVIRONMENT THAT SOMEONE WHO
DOES NOT FOLLOW THE COMPANY’S CULTURE CAN ACHIEVE ONE OF
THE HIGHEST POSITIONS
IF NOT PROMOTED, COMPANY IS LIKELY TO LOSE ONE OF ITS MAIN
ASSETS
DECISION NEEDS TO BE CONVEYED TO ROB PARSON
PROMOTE OR NOT
McCLELLAND ACHIEVEMENT AND ACQUIRED NEEDS THEORY
N-ACH - ACHIEVEMENT MOTIVATION
BEST LEADERS
TENDENCY TO DEMAND TOO MUCH OF THEIR STAFF IN THE BELIEF THAT
THEY ARE ALL SIMILARLY AND HIGHLY ACHIEVEMENT-FOCUSED
N-AFFIL - AFFILIATION MOTIVATION
A STRONG N-AFFIL 'AFFILIATION-MOTIVATION' UNDERMINES A MANAGER'S
OBJECTIVITY, BECAUSE OF THEIR NEED TO BE LIKED, AND THAT THIS
AFFECTS A MANAGER'S DECISION-MAKING CAPABILITY
N-POW - AUTHORITY/POWER MOTIVATION
DETERMINED WORK ETHICS AND COMMITMENT TO THE ORGANISATION
WHILE N-POW PEOPLE ARE ATTRACTED TO THE LEADERSHIP ROLE, THEY
MAY NOT POSSESS THE REQUIRED FLEXIBILITY AND PEOPLE-CENTRED
SKILLS
PROMOTE OR NOT
STACEY ADAMS EQUITY THEORY
PAY AND CONDITIONS ALONE DO NOT DETERMINE MOTIVATION
WHEN PEOPLE FEEL FAIRLY OR ADVANTAGEOUSLY TREATED THEY ARE
MORE LIKELY TO BE MOTIVATED; AND VICE - VERSA
EMPLOYEES SEEK TO MAINTAIN EQUITY BETWEEN THE INPUTS THAT
THEY BRING TO A JOB AND THE OUTCOMES THAT THEY RECEIVE FROM
IT - AGAINST THE PERCEIVED INPUTS AND OUTCOMES OF OTHERS
PROMOTE OR NOT
CURT LEWIN THEORY OF PERSONALITY
LEWIN DESCRIBED PERSONALITY AS MORE THAN THE SUM TOTAL OF
THE PERSON AND HIS FIELD
WE SEE THINGS, NOT IN ISOLATION, BUT ALONGWITH THE CONTEXT IN
WHICH THEY ARE PLACED. A SERIES OF DOTS PLACED IN THE
FORMATION OF A STAR WILL BE SEEN AS A STAR AND NOT A SERIES OF
DOTS
TOGETHER, ALL THE DOTS TAKE ON A NEW MEANING THAT NO
INDIVIDUAL DOT DOES - THAT OF A STAR. SO, THE PATTERN
IS MORE THAN A COLLECTION OF DOTS
SIMILARLY, PEOPLE CANNOT BE SEEN AS THEIR BELIEFS, BEHAVIOURS,
SITUATIONS OR DESIRES IN ISOLATION. THEY ARE MORE THAN A SUM
TOTAL OF THESE COMBINED
PROMOTE OR NOT
HERZBERG'S HYGIENE FACTORS VS MOTIVATORS THEORY
SUGGESTS THAT "THE FACTORS INVOLVED IN PRODUCTING JOB
SATISFACTION AND MOTIVATION ARE SEPARATE AND DISTINCT FROM
THE FACTORS THAT LEAD TO JOB DISSATISFACTION."
SEMANTICALLY, THIS MAY SEEM STRANGE BUT AS HERZBERG STATES,
THESE TWO FEELINGS ARE NOT OPPOSITES OF EACH OTHER
RESOLVING THE KNOTTY ISSUE
HENCE, GOING BY THE THEORIES PROPOUNDED BY CURT LEWIN AND HERZBERG,
IT IS FELT THAT ROB SHOULD NOT BE PROMOTED AS OF NOW
PROMOTION CAN BE DEFERRED TILL NEXT ASSESSMENT
HE SHOULD BE COUNCELLED BY PAUL REGARDING HIS BEHAVIOR AND LACK OF
TEAM SPIRIT, AND ALSO ABOUT THE CULTURE OF MORGAN STANLEY
HE, MOST LIKELY, WILL NOT QUIT. IF HE QUITS, IT WILL BE A LOSS TO THE
ORGANIZATION, BUT THIS LOSS SHOULD NOT BE AVOIDED AT THE EXPENSE OF
THE CULTURE OF MORGAN STANLEY
IN ADDITION, THERE IS ALSO A REQUIREMENT OF RESOLVING THE INTERNAL
DRAWBACKS IN THE SYSTEM OF MORGAN STANLEY SUCH AS RECRUITMENT
SYSTEM, APPRAISAL SYSTEM, CHANNELS OF REPORTING, LACK OF FLEXIBILITY
ETC
SAME COULD BE DONE BY USING TOOLS OF SYSTEMS THINKING TO INCLUDE
SYSTEMS DYNAMICS (CAUSAL LOOP) AND SOFT SYSTEMS METHODOLOGY (RICH
PICTURE) AS PROPOUNDED BY PETER SENGE AND PETER CHECKLAND
RESPECTIVELY
PERFORMANCE
EVALUATION OF
ROB PARSON
BY
PAUL NASR
