Morgan Stanley: Becoming “One-Firm Firm”
1. /What are the challenges facing Morgan Stanley as John Mack assumes a leadership role?
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 it’s own area
there were unequal distribution of wealth among pre and post IPO partners
the 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 “new wave” into the company with it’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.m. rivalry and lack of communication
no common goal and definitely not one that is shared with the entire organization – specific goals/division
reluctance of the old personnel(senior mngmt) within the Investment Banking Division to John’s Mack attitude as a leader and it’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
integrated strategy at firm level and known by all it’s members – last but not least having their commitment for reaching the common objective “first class business in a first class way”
change in cultural values of the company. Before the company “motto” would have been “each on his own” 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
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 it’s own area
there were unequal distribution of wealth among pre and post IPO partners
the 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 “new wave” into the company with it’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.m. rivalry and lack of communication
no common goal and definitely not one that is shared with the entire organization – specific goals/division
reluctance of the old personnel(senior mngmt) within the Investment Banking Division to John’s Mack attitude as a leader and it’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
integrated strategy at firm level and known by all it’s members – last but not least having their commitment for reaching the common objective “first class business in a first class way”
change in cultural values of the company. Before the company “motto” would have been “each on his own” 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