IIM NAGPUR PGP-1

Case Analysis Rob Parson at

Morgan Stanley (A)
Written Analysis and Communication
Group 8

P16013 Navneet Choudhary

P16016 Prasanna Dharkar
P16040 Sourabh Patil
P16041 Pradeep Kumar
P16043 Priyavadan Pulli Reddy
 LETTER OF TRANSMITTAL

To,

Mr. Paul Nasr,

Senior Managing Director,
Capital Market Services, Morgan Stanley.
1st Jan, 1999.

Subject: Analysis of Rob Parsons candidature for Managing Directors position.

Dear Mr. Nasr,

Please find appended below, a report containing an evaluation of Rob Parsons candidature for
promotion to managing director. The recommendation, action plan and contingency plan are
included.

Yours Sincerely,

Pradeep, Executive Assistant.

 Executive Summary

Capital Market Service divisions Principal, Mr. Rob Parson, has shown excellent business skills
and his contribution to companys market share growth is very crucial. He is eligible for
promotion to Managing Director. His good relations with several clients, the highest level of
expertise in corporate finance make his candidature stronger. But he has shown weak
interpersonal skills and teamwork, which are the most important cultural aspects of Morgan
Stanley.

This proposal is evaluated against the criteria of cultural repercussions and repercussion on
revenue and profits. His promotion would send wrong message to companys employees and it
might damage organization culture and credibility. Therefore it is recommended not to consider
Rob for promotion this year. However training sessions can be provided to him to improvise his
soft skills.
Contents

1. Situation Analysis................................................................................................... 5
2. Problem Statement:................................................................................................. 6
3. Available Options................................................................................................... 6
4. Criteria for evaluation.............................................................................................. 6
5. Evaluation of options:.............................................................................................. 7
6. Recommendation................................................................................................... 8
7. Action Plan........................................................................................................... 8
8. Contingency Plan................................................................................................... 8
1. Situation Analysis

Mr. Rob Parson, who has joined Capital Markets division as a Principal, has performed the
major role in gaining Morgan Stanleys market share from 2% to 12%. And this strong
performance supports his candidature for Managing Directors position. But Robs
promotion decision involves some other considerations also because his performance
evaluations show that he was having difficulty adjusting to the Morgan Stanley culture.
Therefore, risks and benefits associated with Mr. Robs promotion can provide a strong
foundation for further decision making.

If Rob gets promotion in the current situation, then there are few favorable possible
outcomes from the business point of view. Rob has been able to contribute to companys
exponential market share growth, and therefore growth rate on the similar lines is expected
in future if he gets a promotion. Currently, Morgan Stanley is ranked third and considering
Robs extremely competitive nature; the company will continue its progress if Rob gets
promoted. Rob is also aware about the weaknesses of Morgan Stanley such as its very
little existence in capital market business, and he rightly attempted to address it. So, for a
company, it is very important to get a leader who knows weaknesses of the firm and
possible solutions to overcome it. Rob is excellent at making good relations with the
clients, and this personal relationship enables Morgan Stanley to provide its customers a
delightful experience. He helps clients to find their hidden problem and create a business
opportunity that might not otherwise happen. The company would be able to maintain
their rate of growth if Rob gets a promotion. Rob has the ability to cross-sell, and also, he
has the willingness to share information, this cooperative nature would help to maintain
teams morale.

Robs promotion also involves possible negative implications. His volatile personality
causes a problem, and his tendency to react too quickly to any problem shows he needs to
improve his soft skills. His immature nature will pose a threat to companys reputation if
he becomes Managing Director. Rob doesnt treat colleagues with respect and because of
such unprofessional behavior; people wouldnt be comfortable working under him. This
would either impact employee efficiency or increase attrition rate. Hence there would be
instability in teams if Rob gets the promotion. At Morgan Stanley, the culture is important,
and it gives a lot of importance to the integrity of the process. It has been observed that
Rob violates standard procedures to maximize the business. Therefore if he gets the
promotion, other employees would get the motivation to follow unprofessional ways to get
profits and as a result, it would impact the organization culture. If Rob becomes Managing
Director and company doesnt be able to keep the integrity, then it might pose a risk to the
companys credibility.
 Based on the performance, Currently, Rob is the strongest candidate for Managing
Directors position. And Rob also might be expecting his promotion, so if he doesnt get it,
then the company might lose him. As a result, the company might lose valuable clients and
business. The company would face difficulties in maintaining their market share because a
majority of current market share is the result of Robs aggressive business skills. But on
the other hand, if management doesnt promote Rob then it would rebuild the trust among
employees, and it would reiterate Morgan Stanleys culture and integrity.

2. Problem Statement

Whether or not to recommend Rob Parson for promotion.

3. Available Options

1. Recommend Rob Parson for promotion

2. Do not recommend Rob Parson for promotion

4. Criteria for evaluation

1. Cultural repercussions

Culture is the most important aspect of any organization. In Morgan Stanley, from its mission
statement and performance evaluation process, it is evident that it gives a lot of importance to
culture. The organization is transforming itself into a One-Firm firm which suggests that
Morgan Stanley shall be the firm of choice for its clients, employees and shareholders.
Therefore, this criterion is ranked 1st among the two criteria.

2. Repercussions on revenue and profit

Revenue and profits are the key drivers for any business, but making profits at the expense of
organizations culture is not encouraged. So, this criterion is ranked 2nd.
5. Evaluation of options

1. Recommend Rob Parson for promotion

a) Cultural repercussions

The morale of the employees would go down if Rob Parson is recommended for promotion
and they would lose the trust in the performance evaluation system. In general, the
employees start losing trust in the companys mission and its goals if it contradicts its
statements by promoting someone who never followed the companys culture. It indirectly
encourages others to break the rules if needed for the sake of their convenience. Hence Robs
recommendation would cause negative implications from organizations culture point of
view.

b) Repercussions on revenue and profit

If Rob Parson is recommended for promotion he may or may not get promoted as the final
decision lies in the hands of the entire promotions committee.

i) If he gets promoted, it would give a boost to Rob Parson and motivate him to work
with more enthusiasm. As he already has excellent knowledge of markets and good
relations with clients, this promotion would encourage him to perform even better and
bring more revenues to the company.
ii) If he is not promoted, it might discourage him as promotion is implicitly promised to
him during his joining. There is a chance of him leaving the company which might
reduce the revenue because the new person who comes in might not perform the same
way as he performed.

2.Do not recommend Rob Parson for promotion

a) Cultural repercussions

It gives a lot of confidence to the employees because they get a feeling that the company
cares about what they speak. This decision sends a strong signal to everyone that culture of
the company is more important than individuals.

b) Repercussions on revenue and profit

If he is not recommended for promotion, it will make him upset as the promotion is
implicitly promised at the time of his recruitment. There is high chance that he might leave
the company. As the clients are well connected with him and as most of the clients are
brought by him, there are high chances that clients also leave the company if Rob Parson
leaves the company. This will result in decrease of revenues and profit.
6. Recommendation

It is recommended not to consider Rob for promotion this year.

7. Action Plan

This decision and the reason for the same need to be conveyed personally.

8. Contingency Plan

In order to retain Rob Parson and utilize his potential for Morgan Stanleys future growth, it
is recommended to provide a mentorship program or professional counseling to assist his
interpersonal development. This mentorship duration can be restricted to six months after
which promotion committee can reevaluate him.

Total Word Count - 1138