Morgan Stanley:

Becoming a
“One-Firm Firm”
K.S. Nihar - 20021141043
Namrata Gupta - 20021141060
Prashansa - 20021141075
Pratiksha - 20021141077
Snigdha - 20021141108
 INTRODUCTION

Investment bank to the bluest of the blue-chip companies.

❏ American multinational investment bank and financial services company.

❏ Headquarters: New York, New York, United States

❏ Main areas of business:

➢ Institutional securities
➢ Wealth management and
➢ Investment management.
 Morgan Stanley- Company Timeline
1935 Late 2022
Founded by Henry
Sturgis Morgan,
1971 1975 1970s A global firm of
Launched a sales Investment more than 60,000
Dean G. Witter,
and trading Reorganized employees today
Harold Stanley, banking in more than 42
operation. into divisions
Reynolds Securities powerhouse countries

Early
1970 Mid-1970s 1977 1980s
All 230 employees Expanded Approximately
focused on internationally 1,000 At the top of
traditional employees the
corporate finance underwriting
pyramid
 PROBLEMS IDENTIFIED

01 02 03
Recapturing the Teamwork and Firm's way of
"Value of the collaboration working.
Franchise" across
organizational
boundaries.

04 05 06
Implementing new Moving from single Intense competition
management systems long-term banking among investment
without tainting the relationships to banks.
entrepreneurial multiple transaction
culture and based banking
creativity relationshops.
 PROBLEMS IDENTIFIED

07 08 09
Ranking a Needing capital to Meeting the ever
disappointing sixth fund their changing demands of
by 1983. expansion and the financial world.
diversification.

10 11 12
Removing the Shortage of Lack of structure
Fiefdoms. Leadership
experience and
management talent.
Why the move towards 'One-firm firm'?

Effect of Long term Inability to

Forces Rivalry Work
Move from single Tension and Long delays in decision
long-term banking competition between making and loss of
relationships to multiple Fisher and Greenhill effectiveness to respond
transaction-based mounted over the years to changes
relationships
Why the move towards 'One-firm firm'?

Organizational No Career No Performance

problems Development Progress
Rapid Growth led to Hiring people with Developmental
shortage of leadership “raw intellect and some feedback was virtually
and management talent. basic social skills” non- existent.
 One-Firm Firm

- One Strategy for all Divisions

- Long-Term Focus
- Step Towards Competitive
Advantage
- “... the firm of choice for our
clients, our people, and our
shareholders.”
Challenges in Becoming One-Firm Firm

1 3
Lack of Good
Getting the Buy-in Managerial Talent

2 4
Lack of cross-firm Individual Goals over
collaboration Firm Goals
 Advantages of One-Firm Firm

1 3
Positioning for Long Environment for
Run Teamwork and Innovation

2 4
Strong Corporate
Attracting & Retaining Culture and Employer
Top Quality Talent Branding
 John Mack
Strengths
● Outgoing and Assertive
Nature
● Strong Managerial Skills
● Eye for Gaps in Business and
HR Processes
● Game Changer - Reputation
● Highly Agile
Challenges
● Internal Fight Between
Divisions
● Dissatisfaction Due to
Unequal Wealth Distribution
● Rapid Growth and
Diversification
● Lack of Common Interest
and Shared Values
Leadership Style
- Transformational Leader
- Fulfilling the 4 “I’s” of
Transformational Leadership
- Driving the Rapid Change at
Morgan Stanley
- Inspiring Employees to Walk
the Talk
- Driving the Firm Towards
Shared Values and Interest
- Breaking down the Silos
 Change Initiatives

New Management Building HR

Team to a New Level

Facilitated Encouraging
Cross-firm people to meet
Collaboration
New Performance Appraisal System
Career Related Developmental Vs.
Conversation Evaluative PMS
From year-end profits to
Between Managers &
fair & meritocratic
Subordinates
compensation

Through evaluation, Paying Fairly to

promotion & compensation employees

Transform the Culture Linking Performance to

Compensation
 Suggestions to tackle the problems

❖ To enhance the professional development of all employees

❖ Achieve greater objectivity and fairness, and base performance evaluation
on
❖ Explicit performance criteria that broadly define desired behaviour
❖ Increase real-time feedback
❖ Recognizing long-term professional performance
❖ Providing the primary basis for annual compensation and promotion
decisions
❖ Providing more substantive annual performance appraisals
❖ Encouraging teamwork
❖ Increasing other types of feedback
❖ Increasing the consistency and confidentiality
Thank
You!