Saturday, November 30, 2019
Morgan Stanley free essay sample
The challenges faced by Morgan Stanley as John Mack assumes a leadership role were as follows: ? internal fights were taking place at all managerial levels between divisions , as the company at that moment was split in ten divisions and each one of it was totally focusing on profit maximization into itÃ¢â¬â¢s own area ? there were unequal distribution of wealth among pre and post IPO partners ? he firm was in a period of rapid growth , diversification and globalization period , environment that put a lot of pressure on people generally and management especially ? traditionally rivalry btw Fisher and Greenhill , Greenhill representing the interest of investment banking division , old and conservative and Fisher being the Ã¢â¬Å"new waveÃ¢â¬ into the company with itÃ¢â¬â¢s new divisions such as Sales and Marketing , Fixed Income Division -bottom line the company was ruled by very high ego persons ? long time decision-making due to the a. . rivalry and lack of communication ? no common goal and definitely not one that is shared with the entire organization Ã¢â¬â specific goals/division ? reluctance of the old personnel(senior mngmt) within the Investment Banking Division to JohnÃ¢â¬â¢s Mack attitude as a leader and itÃ¢â¬â¢s ideas of change ? the fact that divisions had to teach to give up profit orientation/division and to start interact with the rest of the company and try to generate best outcomes fm related businesses and common approach to certain customers ? ntegrated strategy at firm level and known by all itÃ¢â¬â¢s members Ã¢â¬â last but not least having their commitment for reaching the common objective Ã¢â¬Å"first class business in a first class wayÃ¢â¬ Change in cultural values of the company. We will write a custom essay sample on Morgan Stanley or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Before the company Ã¢â¬Å"mottoÃ¢â¬ would have been Ã¢â¬Å"each on his ownÃ¢â¬ and now everybody should believe in common concept , have common symbols and behaviors ? John Mack was a real cultural hero bcs he has started with MS very early and he was promoted due to his competencies perfect example to be followed ? ue to this common leadership approach , they had to adapt to a lot of new things : appearance of new rules and clear procedure with regards to Organization Development , acceptance of kind of Ã¢â¬Å"guruÃ¢â¬ managers that were brought into the organization by J. Mack , well structured and communicated organization scheme , a lot of interaction between division through itÃ¢â¬â¢s middle and senior managers . Never the less , they had to adapt to J. Mack way of doing things : being at all times close to the peoples(no meter if they were executives or secretary) and very demanding in the same time 2. /Assess John MackÃ¢â¬â¢s vision and values for Morgan Stanley? What are the key elements? How different is it from the way the firm has historically operated? His vision for MS was to Ã¢â¬Å"be the worldÃ¢â¬â¢s best investment bank and the Firm of choice for our clients, our people and our shareholdersÃ¢â¬ . The key elements for reaching this vision were: management to assume not just the role of being a manager , also the role of a real coach for itÃ¢â¬â¢s team , a pipe through with best ideas to flow and a on the job trainer for itÃ¢â¬â¢s subordinates ? certain freedom given to the employees for being innovative and take risks but aligned with companyÃ¢â¬â¢s policy ? have a team oriented approach at global level ?put a real emphasis on people retention and development. Give clear direction and clear communication within the company for common objectives ? stop evaluating individually , and change the was to a collective evaluation ? ave total changed the mngmt behavior and get their total support ? have a lot of informal interaction and put an emphasize on this There is a total difference between new style of leadership and the old one, actually before; the company had no leaders, just managers who were controlling the business. Historical Ã¢â¬Å"way of doing thingsÃ¢â¬ was described within the first answer and we can add the recruitment policy, the missing of clear Ã¢â¬Å"career pathÃ¢â¬ for employees, missing of common and shared values, even missing of common objectives. . /What recommendations would you make about how the process should be redesigned? We think that the way J. Mack started is very good by getting peoples under the same Ã¢â¬Å"umbrellaÃ¢â¬ and putting them together to work to a common goal, prize them, reward them up to their team accomplishments; allowing them to know each other under informal meetings; letting the people to feel that they are making things happened, getting their commitment and forcing the to interact and communicate. An accent should be put in our opinion on cross selling activities Ã¢â¬â way that best results can appear fm a certain business and maybe a reorganization of the company , based on industry profile of serviced customers (e. g. for customers in commodity industry maybe a division should have been created and those employees to be able to offer the whole range of products and services to that customer without to force the customer to talk to a lot of people and sign a lot of separate contracts)-promoting the Ã¢â¬Å"One face to the customerÃ¢â¬ concept.