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