Written Analysis

&
Decision making

KAREN LEARY

July 21, 2020

 Problems in Karen Leary case
 Karen Leary has an uneasy working relationship with her team
member, Ted Chung
 She is finding it difficult to manage performance + manage
conflict
 Recognizing and properly satisfying a customer’s long-term
financial objectives, while complying with regulations and
company guidelines.
 “There is a great deal of concern about protecting our customers.
So it is very important to me that we do quality business for them
and make sure their investments are right and proper. We deal
with money and are very tightly regulated”
 Problems in Karen Leary case
 Ted Chung did not like to be guided by the Manager
 To retain his independence he did not share full information about
the client and literally blocked any direct communication with the
client
 More aggressive trading plus the “bamboo curtain” increased the
discomfort of Karen Leary who wanted to guide the new team
members.
 Problems in Karen Leary case
 Ted Chung was not integrated into the team
 He did not share any clients or benefit from and collaboration
with other brokers
 He was directed to develop a new market segment which others
were not addressing
 All worked together to isolate him?
 Problems in Karen Leary case
 Ted Chung was not willing to share work space with his colleagues
so naturally he did not seem to share any client information with
them
 May be he did not want anyone to hear details of his new clients?
 Negotiation styles were different
 Karen’s apprehensions or preconceived notions about cultural
gaps
 Problems ?
 Though Karen Leary interviewed Ted eight times she was not
comfortable. However, she hired him because she could not find
anything which was wrong or negative.
 Working as a Team was essential in Elmville, Compliance with rules
was sacrosanct. Ted was buying securities not recommended by
Merrill lynch & margin trading.
 Being too formal and private. Will not fit into team or dealing with
other customers
 Given him feedback and instructions but did not ensure
compliance. Karen Leary shared info on new products and
opportunities with FCs but not about the new market segment.
 Root Causes?
 Karen Leary believed that it was because of the cultural difference
that she was not able to understand the whole person. She
believed that there is a cultural difference between Taiwanese and
Americans. Gender difference - Karen in a Men’s world?
 Ted was trying violations little by little and covered it with paper
work. Karen never checked with the client whether he was aware of
the risks of such trading.
 Was not properly inducted in or made to interact with other FCs.
 May be the rules of conducting business was not explained to him
well. Not inducted into the general mode of working and was kept
special or exclusive for a new segment. Preconceived notions
about the market segment?
 Some options
1. Start Town hall meetings where all FCs share suggestions on how
to make in roads into new segments. Karen Leary can talk about
the potential of Taiwanese business men in the Townhall and ask
ted for his comments. This will generate interest in this market
segment and other s may also try to get customers.
2. Terminate Ted Chung and Karen Leary directly takes charge of the
account. Identify a FC (may be one among the new recruits) and
mentor the FC. A meeting at the client's office to introduce the
new FC is essential.
 Some options
3. Assign the Private office to Ted Chung and make a public
announcement on the new segment (Taiwanese businessmen and
need for privacy). Get acceptance of specific time line for Ted
Chung to bring in new accounts (amounts) and a new FC to work
along with Chung. He has to share client information with that FC.
Full compliance with Merrill Lynch recommended securities.
4. Promise private office to Ted Chung provided he brings in another
two accounts of compare asset size in the next 3 months and
conducts all investments only in Merrill lynch recommended
securities. He will also train another FC to work with him.
 Some options
5. Explain to Ted the convention of giving Private office after a
minimum Tenure and established production. Refuse his request
on that basis.
6. Personally meet the client and confirm that he had given
instructions for the risky investments. Share with him the nature of
risks and downsides possible in such trades. Ted is given an
appropriate feedback after the said meeting. If the client had not
solicited such trades then terminate Ted for non-compliance.
 Some options
7. Reject the demand of Ted for the Time being and promise to
review after 6 months provided there is consistent progress. In the
meantime suggest Taiwanese businessmen as potential target for
all the FCs and ask them to make calls to all Taiwanese
businessmen.
8. Do nothing and ignore the demand made by Ted. Give him
feedback in writing (formal memo) on all aspects including the
need to minimize the trades in non-recommended securities.
9. Check the practices at other branches for assigning private offices
and publish the guidelines in Townhall meeting