Situation Analysis

Under the leadership of John Mack, Morgan Stanley was in the midst of
organizational renewal. The firm was transforming itself into a One-Firm Firm
typically to reorient itself towards an increasingly fast-paced and competitive
environment. People at Morgan Stanley are the main source of competitive
advantage. They distinguish themselves by creating an environment that fosters
teamwork and innovation, by using the employees abilities to the fullest and by
treating each other with dignity.
Paul Nasr, a senior managing director in Capital Market Services had recruited
Rob Parson in one of the most crucial segments of Investment banking, where MS
had historically been weak in delivering services to financial firms such as banks
and insurance companies. He knew from previous work experience that Rob was
typical guy who fit exactly into this position and also promised him of a
promotion to the next level.
Rob Parson was an excellent revenue generator, he had a very deep knowledge
in capital markets, and he was in fact better than anyone in this division at MS.
Throughout his ten years of experience he built strong relationships with
important players in this market, mainly banking and insurance firms in the fixed
income markets area. Even though Rob is bringing business, he totally violates
the MS culture of teamwork. Rob did not do business in the Morgan Stanleys way
and therefore was looked down by the entire division. He created a very hostile
environment around him, other divisions like the syndicates and the traders were
not happy with Rob questioning their knowledge and his constant interference.
Paul Nasr had a very sticky situation in hand, when he was running through Rob
Parsons performance evaluation data packet he was shocked. They were the
most negative he had ever read. He himself being new to the firm did not know
how to address the areas of concern related to Rob Parson. Paul Nasr has to
quickly react to this situation and decide how to provide feedback to Rob Parson.