1. For MS, CMS is an important part of the business and they can’t afford to lag behind in it since it is an important nexus for two of their other businesses.
2. Paul Nasr is in dilemma whether to promote Rob Parson to the post of managing director or not because of his prior implicit commitment to him and the extremely bad performance reviews about him from his colleagues.
3. Paul Nasr is over cautious about his actions as he himself is fairly new to the organization.
4. Situation has been worsened because Paul has always been diplomatic while talking to Rob about his wrong doings and also because employees might feel that he is protecting Rob since he knew him prior to joining MS.
5. Also, this position has seen tremendous turnover rate in the past so no guarantee that Parson's replacement would stay for long.
6. Rob has been instrumental in turning around the fortunes of CMS at Morgan Stanley but his style of working is actually not in line with the organizational culture at Morgan Stanley.
7. Also, the culture at Morgan Stanley does not exactly meet the requirements of the CMS industry.
8. If behavior of Rob was allowed to go unchecked then John Mack’s, The President, attempts to transform the culture of Morgan Stanley’s much hyped “One-firm firm” would take a huge beating.
9. Rob was already a managing director at a smaller firm before joining MS, so he came here with a view to get a leadership role in a bigger organization after good performance. If after such a wonderful performance also he couldn’t get promoted then he might leave the organization and could also take away all the clients that he has made.
10. Also, Rob’s acceptance of his behavior in his appraisal shows that he is aware of his mistakes and is ready to improve upon them.
11. Rob’s intent of moving up in a senior leadership role away from “day to day administrative duties” in his long term goal signals that he is also not very fond of these things.
Problem Statement: