Lehman Brothers Case Write Up I thought that Mr.

Frankels turnaround of Lehman Brothers research department was a testament to sound planning and determination. The business decisions he made were unprecedented at the time and largely lead to his success. From the hiring process to the structured implementation of McKinseys Seven Ss, Mr. Frankel shot Lehman up from 15th to 1st in the world. Of all the initiative he set in place, I felt that it was his training program and employee retention that made the most difference when it came to his success. Mr. Frankel mentioned in his presentation that research departments at other organizations were like silos. Analysts who were experts in different investment areas rarely conversed with each other and were essentially competing with one another for their jobs. Lehman sought to break down these barriers through the use of a training program that not only got new recruits ready for work, but instilled in them a sense of team pride. On more than one occasion, Mr. Frankel noted the benefits of having a high ranking employee being loyal to him and his causes as a result of this training program. By only hiring and training team players, Lehman was able to ascend the rankings in just a few years. Although he mentioned that he had to lay off dead weight at the beginning of his term, employee retention was unusually high at Lehman. The loyalty and sense of belonging he helped create in his employees made it difficult for them to leave even when offered better paying jobs elsewhere. As Lehman was 1st in the rankings, it was not uncommon for other firms to try to lure the best of the best away from them. It was the company loyalty and the subsequent employee retention that helped Lehman stay on top.