Rob Parson at Morgan Stanley Critical Essay

Rob Parson at Morgan Stanley Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000. Paul Nasr, as senior managing director in Morgan Stanley thought the performance evaluation data for his brilliant producer, Rob Parson. Parson was a strong revenue producer. Nasar had promised the promotion when he recruited Parson to Morgan Stanley. Morgan Stanley’s people are the source of their competitive advantages.

They regard team work and innovation, by developing and utilizing our employees abilities to the fullest and treating each other with dignity and respect. Their leadership, that is “one firm” recognized that clients interested with the firm at many different points of intersection. The Capital Market Services (CMS) division at Morgan Stanley was created as part of an effort to make the firm more responsive to client needs. It was an explicitly interdisciplinary entity designed to serve as a link between the Investment Banking Division (IBD) and the sales and trading arms of the firm, Equity and Fixed Income.

The organizational structure was intended to provide clients with more focused attention and service. It also was a mechanism that allowed cross-divisional and avoided feuds over how to allocate fees across different sub-units. In Paul Nasr’s opinion, there are a lot of investment banks that have little corporate culture and little infrastructure. These are firms where the “franchise” is not attracting business: individual professionals are. The ability to go out, bring in the business, and write up the ticket depends solely on the entrepreneurial ability of the individual.

This means that firms turn a blind eye to certain behaviors, because the pursuit of the business and survival were more important. If you break a few eggs internally to get a ticket written with a major client, nobody is going to raise eyebrows and say, “hey, slow down. We don’t want to break eggs. ” At Morgan Stanley, this just is not true. Here the franchise matters, the culture is important, and the firm cares a lot about the integrity of the process. Even he is not the typical Morgan Stanley type, he does not fit the profile at all and he didn’t go to prestigious schools but it doesn’t matter.

Parson accepted the job and joined Morgan Stanley as a market coverage professional in the Capital Markets division focusing on financial institutions. Nasr trusts Parson and praised his client relationship skills. Nasr regards that Parson is unique individual, unique in his drive, his pursuit of business and his ambition. Mack when he became president of Morgan Stanley was a firmwide, 360-degree performance evaluation process through which all of the professionals in the firm were evaluated by superiors and colleagues as well as subordinates.

Top management at Morgan Stanley had introduced the new performance evaluation process amidst great fanfare with the explicit goal of changing the culture of the firm. Mack believed that changing the criteria by which people were evaluated and compensated would encourage employees to conform to a new way of doing business that emphasized team-work, cooperation, and cross-selling. This case is showed how the Parson’s existence can be influenced too much in Morgan Stanley. Rob Parson is a unique individual, He is unique in his drive.

He is unique in his pursuit of business. He is unique in his ambition. His knowledge of markets is excellent and he connects well with clients. And at the same time, he is unique in how many eggs he breaks every day. Everywhere he goes you have to follow him and pick up the broken eggs and pit them back together. Nast believed that it hadn’t mattered that Parson had been “breaking eggs” at his last job because it was such a different place. How Parson’s strategy for the firm can be effects? Because Parson know that it should know concern and need of clients.

His clients love him. Every time they come to New York from anywhere around the world, they want to take him to dinner. And you want to go out to dinner with him because he is probably one of the most amusing, entertaining, and interesting people to be with. Parson also thinks importantly interdependent with other professionals in the firm. Namely, Nexus; He understands that the market coverage professional is the nexus of all this information – market, product and client. If he understands those things, then he has a much better chance of doing business.