MM5002 People in Organization

Rob Parson at
Morgan Stanley
(A)
 Outline

Strategic
Leadershi
p

People
Problem
Factor

HR
Analysis

Recomme HR
ndation Practices
 Fact

Morgan Stanley held

The 3rd rank position

with

A market share of 12.2%

 Problem

Paul Nasr promised the PROMOTION when recruited Rob Parson to Morgan Stanley
Rob Parson had GENERATED substantial revenues since joining the firm
However,
Rob Parson has INTERPERSONAL PROBLEMS in working with PEOPLE INSIDE the firm

DECISION MAKING to Promote as Managing Director

Performance Organization

Division Company Culture

 Decision

Do not fit the culture

i.e. teamwork
Rob Parson WIL NOT Attitude
No guarantee he will change
GET PROMOTION
The position is crucial
i.e. standard bearers to junior

Strong business acumen

securing major deals and generating
revenues for his desk
Rob Parson WILL STAY Strong relationship with clients
..people look forward to having
at the company meals with him

In condition not to report to Paul Nasr

..group felt that I was his protector
 Lesson Learn #1

Morgan Stanley, hierarchical,

was attempted to

transform its work environtment

that fosters

teamwork and innovation

by putting

people as competitive advantage

 Strategic Leadership
Financial
Complex, fast paced, the most demanding client and global industry
Industry

Vision

ONE FIRM

Operating Goals Strategic

Mission Values Strategy & Metrics Leaders
To provide
The world`s best
a unified face Consensus and
investment bank
Exceptional service to the customers Up or out
and the firm
Integrity and also to have Promotion system
of choice Market Share
Dignity mechanism in place in a hierarchy
for our clients,
Respect to effectively as standard bearers
our people and
coordinate work for all junior staff
our shareholders
across the firm
 People Factor

Paul Nasr Rob Parson Gary Stuart

Hired by John Hired by Paul Nasr Senior Market

Mack to shake up as a principal Coverage
the culture Professional
Young banker with
John Mack proven track record Very good
Highly regarded understanding of
The president in 1993 banker Strong relationship market and
with important customer relation
Transform the firm Leadership role players in the
into one-firm industry
Think that
Low adaptation to interdependent
360 degree the culture is with other
organization
performance important professional in firm
culture
appraisal is very important
 Lesson Learn #2

Morgan Stanley use

360 degree performance appraisal

that delivers

employee`s job measurement

by combine information from

managers, peers, subordinates, self and customers


Goals
Hierarchy
PAUL NASR PROBLEMS
Hire reactively in order to
develop presence in the market
I handled him with kid gloves
..give him time. He doesn'tt
know the Morgan Stanley system
yet.
Analysis
Nasr said 360 Degree comments
it takes more than
traditional corporate banker A self starter who is
to get this job done unusually aggressive in
pursuing the business
Stuart said
He makes things happen He has made
that wouldn`t otherwise a big difference with
happen several clients
LEADERSHIP GAPS
Nasr said 360 Degree comments
in the meantime he Lack
Lack of
of team
team player
player skills
skill
broken every following rule
within Morgan Stanley to are not happy with him
get there basically questioning their
Rob Parson said prices.are not happy with
him questioning their
What`s the problem? What
did I do wrong? knowledge of the markets
 Lesson Learn #3

A star from previous company,

when joining new company,

not only has to understand the products

but also

The people, processes, platform, and politics

that delivers

collaborations and delegation of organization culture

 HR Practices

How to say to Rob Parson?

Acknowledge Provide Talk about

What the positive the negative the future

Say As supervisor Say What

Say it`s company
I didn`t do good can we do
decision that he
How would not get the
job orienting and together to
developing Rob to improve in
promotion
fit the culture the future?

Make it informal, to create a dialog in a relax place to get

Where Rob Parson to talk (discussion).
Preferably outside the company e.g cafe
 Recommendations
Hire Strategically not reactively

Developed the company stars to create the sustainable competitive

advantage
i.e. Mapping and create the program

Compensation for stars

i.e. Compensation based performance

On board deep orientation

i.e. Emphasized the important of the organization culture and goals since
the 1st day to every new employee

Performance feedback to every employees

i.e. Unfortunately, the people who typically receive the least attention
from their boss are the average performers. However, they are the ones
who could probably benefit from it the most
 Exhibit 3 E&D Summary Form(1)

Evaluation and Development Summary

Evaluatee: Parson, Robert,L Evaluation Director: Nasr, Paul A
Title : Principal Signature :
Div/Dept : IBD/Capital Market Date :
Review of Performance

Performance Summary, including accomplishment

-Has almost good in Professional Skills and Commercial Orientation.
- Average on Management Skills
- Low on One Firm Contribution, especially in Team Player Skills with downward
Evaluation THEMES
Strengths Comments
1. Professional Skills Mostly very high rating of this item
2. Commercial Orientation Need development on Adherence to firm
policies
 Exhibit 3 E&D Summary Form(2)

Evaluation and Development Summary

Evaluatee: Parson, Robert,L Evaluation Director: Nasr, Paul A
EVALUATION THEMES
Development Area Comments
1. One Firm contribution Low Team Player Skills
2. Management Skills Low leadership & management of people,
evaluation, development and coaching,
management of diverse workforce

PERFORMANCE OBJECTIVE FOR NEXT YEAR:

Business Goals : increase market share and got the second rank position
Professional Development Goals : Develop the team player sense and absorb the
culture of Morgan Stanley
CAREER GOALS
-Short term : Principal while development low item of his performance rating as
define in development Area above