Evaluate the change strategy of Morgan Stanley and steps taken to date!

How effective have

they been? What else must be done to ensure a successful transformation?

Evaluasi strategi perubahan dan langkah-langkah yang diambil sampai saat ini! Seberapa efektif
mereka? Apa lagi yang harus dilakukan untuk memastikan transformasi yang sukses?

Judul perubahan strategi Morgan Stanely adalah “One-Firm” Firm. Berdasarkan diskusi kami,
perubahan strategi harus diawali dengan Visi. Visi baru Morgan Stanely adalah “Our goal is to
be the world's best investment bank and the firm of choice for our clients, our people, and our
shareholders.”
Visi ini sangat tepat dan relevan bahkan jika digunakan sampai saat ini, dimana Morgan Stanely
menjadi pilihan semua stakeholders sebagai leading company dalam industry investment bank.

We will successfully meet the needs of global lending and lending customers with excellent
performance. Efforts and creativity to shape, absolute integrity will be our guiding principle
Dalam inisiatif ini, Morgan Stanley merupakan perusahaan yang customer focused dengan
berbasis corporate culture yang kuat (Efforts and creativity to shape absolute integrity)

Morgan Stanley's people are the source of our competitive advantage. We will distinguish
ourselves by creating an environment that fosters teamwork and innovation, by developing and
utilizing our employees' abilities to the fullest, and by treating each other with respect and
dignity.
Morgan stanely mengedepankan sumber daya manusia sebagai motor penggerak perubahan
dengan menguatkan nilai-nilai yang sudah disebutkan. Bahkan sampai saat ini, memiliki
keyakian bahwa “Our people are our strongest asset”, dan sampai saat ini, Morgan Stanley
tetap konsisten mengembangan sumber daya manusianya yang berasal dari berbagai
komunitas global dengan beragam budaya yang inklusif yang dinilai penting bagi klien Morgan
Stanely, dan pastinya Morgan Stanely mengedepankan nilai-nilai yang tidak individualis dan
egois, namun memperhatikan kepedulian terhadap lingkunagn dimana karyawannya di seluruh
dunia menetap.

The concept of a “One-Firm Firm”

“Shake up the culture” and facilitate cross-divisional interactions
DeLong to join Morgan Stanley full-time to "bring HR to a new level." DeLong took the title "
Chief development Officer" and set about building a professional human resources
management organization that he named the "Office of Development" and establishing strong
ties will all members of the operating committee.
Menciptakan budaya perusahaan untuk mengurangi sekat-sekat sehingga komunikasi lintas
divisi tidak mengalami hambatan. Dengan masuknya figure DeLong, membawa perubahan yang
signifikan dalam hal pengembangan sumber daya manusia dengan ikatan yang kuat dalam
semua komite operasi
DeLong membuat perubahan mulai dari system rekrutasi, orientasi, sampai ke pelatihan dan
pengembangan dan pemberian tantangan yang memicu potensi setiap karyawan ke potensi
maksimal (dalam hal ini, John Mack memberikan target kepada karyawannya sebagaimana ia
menetapkan target untuk dirinya sendiri). John Mack menggali pendapat dari berbagai aspek.

1. Began to examine the recruitment and hiring process in an effort to establish common
themes and the Office of Development designed an orientation process that would
deliver a common message to each new recruit, regardless of division. Training
2. Division heads began speaking to the managing directors of other divisions.
3. Managing director conferences brought people together from across the firm and
around the world day-long sessions.
4. DeLong traveled around the world talking to managing directors about management.
Mack wanted them to know that they had the responsibility to be good managers.
5. Socially, Mack wanted people to feel comfortable with each other. Smaller efforts
included expanding the managing directors dining room to encourage people to meet.
6. Mack also sponsored outside activities to get managing directors to mingle. A quarterly
social dinner brought 25 to 35 managing directors and their spouses together.
7. Mack continued to dine with junior professionals, and he encouraged all his managers
to follow his example.
Mack invites junior colleagues to dinner and encourages their supervisors to follow suit
8. DeLong described: John must have held a dinner a night for two years. He had
unbelievable commitment. He'd take out analysts. He'd take out associates. He'd take
out secretaries. He did not care where they were on the organizational ladder.
9. Every time, Mack insists on hosting the whole night. He has done it for two years.
10. He has an incredible sense of mission for his colleagues in the company. pre-training

Performance Evaluation, Promotions, and Compensation

1. Mack believes that only in an environment of encouragement and challenge can the
profession be more proficient in him
their creativity, initiative, wisdom, etc.
2. He wants to strengthen the company's sense of mission in the talent cultivation system
and incentive measures
 Wall Street has historically had a culture where the biggest producers have always made
the most money despite the fact that they are destroyers of culture and destroyers of
people. You have to have the courage to stand up and fire those destructive forces.
 There must be extraordinary destruction before extraordinary construction and you
must have the courage to face it

John Mack’s vision and goal for the firm was to become a “one-firm firm”. Mack wanted to
change the culture and values at Morgan Stanley, in order to attract and retain top talent. He
recognized the fact that Morgan Stanley’s competitive advantage is its people, and was willing
to implement changes in order to develop and retain their best employees. Along with Tom
DeLong, the newly appointed Chief Development Officer, they started implementing a new 360-
degree performance evaluation system which was critical to achieving their goal.
Revamping the performance appraisal system

Deliver Pay for Sustainable Performance:

Achieve greater objectivity and fairness, and base performance evaluation on explicit
performance criteria that broadly define desired behavior.
Provide the primary basis for annual compensation and promotion decisions
Provide more substantive annual performance assessment information

Align Compensations with Shareholders’ Interest:

Increase real-time feedback (instant feedback mechanism)
Increase the consistency and confidentiality of the process

Attract and Retain Top Talent:

Recognize superior, long-term professional performance
Encourage teamwork

Mitigate Excessive Risk-Taking:

Enhance the professional development of all professional employees, strengthen the areas of
expertise of all professional colleagues
Enhance the professional development of all professional employees.
Increase cross-departmental and cross-divisional feedback (Increase interaction across
departmental units)

What else must be done to ensure a successful transformation?

Culture:
Morgan Stanley’s culture guides our employees, and our values inform everything we do.
Morgan Stanley need to continue to exemplify to do the right thing, put clients first, lead with
exceptional ideas, commit to diversity and give back.

Employee and Community Focus:

Morgan Stanley continue to focus on the health and wellbeing of their employees.

Diversity:
Value diverse perspectives and create a corporate culture in which everyone feels they belong.
Continue to engage third party to audit core talent process
Continue to drive greater accountability and improve workforce diversity
Continue to support development and retention of diverse talent
Continue to create more accessible career pathways