Rob Parson at Morgan Stanley

Rob Parson at Morgan Stanley

Written Analysis Communication

Submitted to: Prof. Madhulika Saxena

Table of Contents

Executive Summary........................................................................................................  3

Situational Analysis......................................................................................................... 4

Problem Statement........................................................................................................  5

Options...........................................................................................................................  5

Criteria for Evaluation....................................................................................................  6

Evaluation of Options.....................................................................................................  6-7

Recommendation...........................................................................................................  8

Action Plan.....................................................................................................................  9

Contingency Plan............................................................................................................  10

Executive Summary

This report contains an evaluation of the options available to the management on the issue of Rob Parson’s recommendation for promotion to Managing Director, Capital Market Services. Rob Parson was recruited as a market coverage professional with the official designation of Principle in the financial services sector, an area in which he had relevant work experience as managing director of a smaller firm. This sector, however, is distinguished by firms here the focus is solely on the ability if individuals to attract business and therefore the idea of conformity to any type of organizational culture is unparalleled. However, it is recommendation of this report that the proposal for his promotion be deferred at this point.

Situational Analysis

Morgan Stanley, a leading U.S. Investment Bank, was attempting to transform its work environment to promote innovation. This vision was developed under the leadership of the new president John Mack and his executive team who was looking for people to “shake up the culture.” He recruited Paul Nasr to be the Senior Managing Director in Capital Market Services. Paul was a highly regarded banker with over twenty years of experience. He knew that one of Morgan Stanley’s weak areas was Capital Market Services, an area where he had been successful in the past. Paul also knew that it would take more than a traditional corporate banker to penetrate this market so he recruited Rob Parson through a personal connection. Rob had developed relationships with the important players in the banking and insurance industries and a strong reputation. Rob knows what it takes to get the job done that allows him to connect with his clients but sometimes distances him from his co-workers which opposes the culture at Morgan Stanley.

Rob accepted the position with the understanding that there was a potential for growth although this position of ‘Principal’ had seen a high turnover rate in the -past. Paul had implicitly promised Rob a promotion to managing director during recruitment. Rob had been successful in bringing Morgan Stanley into this market although it was challenging. However, it seemed that he has created some animosity among his peers. Morgan Stanley instituted a 360 degree performance evaluation system that allows an employee to be evaluated by superiors, subordinates, and peers. After Rob’s last performance evaluation, it seemed that he might be having trouble adjusting to the Morgan Stanley culture. The evaluation was negative and indicated that Rob had significant problems working with people inside the firm although he turned around the scales in Morgan Stanley's favor single-handedly by his expertise in the work.

[pic 1]

Problem Statement

Taking a decision whether to promote Rob to the post of managing director or not while taking into account the inability of Rob to conform to the culture of the company and the constraints he faces due to the nature of his work.

Options

1. Promote Rob
2. Do not promote Rob
3. Defer Rob's promotion until he shows some positive changes

Criteria for evaluation

• Repercussions related to Culture : Impact of a particular course of action on the employees in the organization since promoting Rob without any constraints may raise questions about the fairness of the evaluation system
  

• Effect on the Revenues/Market Share of the company: How a particular course of action will impact the revenues of the company especially in the context of Rob playing a major role in increasing the market share from 2% to 12.2%

• Rob's relation with Paul and his possibility of leaving the company:

• Repercussions related to Customer Relations: Impact of a particular course of action on the customers/clients since if Rob leaves the company he might take away some of the customers with him.

Evaluation of options