Rob Parson at Morgan Stanley

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 Parsons 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 Stanleys
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 Robs 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.

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
Factors
considered for
evaluation
Repercussions
related
to
Culture
Effect on the
Revenues/Mar
ket Share of
the company
Rob's relation
with Paul and

Promote
Rob

Do
not
promote
Rob

Defer
Rob's
promoti
on

his possibility
of leaving the
company
Repercussions
related
to
Customer
Relations

Promote Rob :
Recommending Rob Parson for promotion will not affect his
customers as well as the position of the company in the market.
Relation with Paul also wil not be affected but this decision will
involve the completion of the evaluation and development
summary, which would eventually be reviewed by a evaluation
committee. The committee, a group of senior managing
directors across the firm, is likely to reject the recommendation
based on the Parsons increasing negative 360 degree
performance appraisal review.
Such an action will also set a precedent that attracting business
at the cost of company culture was acceptable and would
therefore be detrimental to the efforts of the senior
management at creating an environment that fosters teamwork
and collaboration.
Do not Promote Rob:
If Rob is not promoted the environment of the company with
respect to the teamwork and collaboration will be restored but
it will affect the relation between Rob and Paul which might
even lead to him leaving the job. This would affect both the
company's performance as well as the affect the
customer/client relation in case he takes the clients with him to
some other organization.
Defer Rob's promotion:
Deferring the recommendation for promotion would still require
the completion of the evaluation and development summary,
which would then form the basis of Parsons annual
performance review. Such a course of action will maintain the
relation between Rob and Paul as well as keep the culture of the
company intact. It will also provide an opportunity to Rob to
improve his attitudes towards others.

Recommendation
Based on the evaluation of the best options we recommend
that Rob Parsons promotion be deferred for another year.

Action Plan
The decision to defer the recommendation for Rob Parsons
Promotion and the reason for the same need to be conveyed
personally, a necessity considering his efforts and contribution
to business at Morgan Stanley. It should also be conveyed that
the company would be reluctant to lose a performer like Parson
and that the management was willing to explore the possibility
of a mentorship program or professional counselling to assist
Parsons interpersonal development.

Contingency Plan
As Rob Parson is a very important asset to the company so
promote him despite his bad feedback and ensure his work is
promoted by the senior managers among his colleagues to
foster a better relationship amongst them.