Morgan Stanley - Becoming a "One-Firm Firm"

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Morgan Stanley: becoming “one-Firm Firm” 1. What are the challenges facing Morgan Stanley as John Mack assumes a new leadership role? John Mack faced a barrage of challenges as he took the leadership role in Morgan Stanley. The most significant challenges he faced includes: (a) Division and rivalry between two powerful leaders namely Fisher and Greenhill. They both were diverse in their management style; Fisher trying to instill a new culture into the newly created division of Sales and Marketing whereas Greenhill leading the investment banking division in his old and conservative style, (b) The company was expanding rapidly and was split into ten divisions with each division focusing only on the divisional goals and profit rather than unified goals and profit motives for the entire organization, (c) Rapid growth and globalization of the company with lack of adequate managerial personnel placed unavoidable stress on the existing managers., (d) changes in working culture especially in the top level management was very tough. To change the company motto of “each on his own” to the newly adopted motto of “one-firm firm” by believing in a common good was not an easy task to achieve, (e) There were long delay in making decisions due to the in fight between Fisher and Greenhill, and (f) Instill a new attitude of interacting with different divisions within the company and even giving up profit of one division for the betterment of entity as a whole. 2. Assess John Mack’s vision for Morgan Stanley. What are the key elements? How different is it from the way the firm was historically operated? John Mack’s vision was to “be the world’s best investment bank and the Firm of choice for our clients, our people and our share holders”. The key elements of his vision were; (a) Changes in the management roles from being just a manager to a coach for the

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