Rob Parson at Morgan Stanley | 360-Degree Performance Evaluation | MBA HR Case Study with Solution — Transcript

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1. 0:00Paul nser a senior managing director in
2. 0:02Capital Market services at Morgan
3. 0:04Stanley was reviewing the performance
4. 0:06evaluation data for Rob Parson a star
5. 0:09producer at the firm the evaluations
6. 0:11were among the most negative nser had
7. 0:13ever seen although Parson was a top
8. 0:16Revenue generator his difficulty
9. 0:18adjusting to the Morgan Stanley culture
10. 0:20and his interpersonal issues were
11. 0:22significant problems Morgan Stanley's
12. 0:24Vision Morgan Stanley a leading us
13. 0:27Investment Bank since 1935 was
14. 0:30undergoing an organizational renewal
15. 0:32under the leadership of John Mack who
16. 0:34became president in
17. 0:361993 the firm was transforming into a
18. 0:39one firm firm with a mission to be the
19. 0:41world's best investment Bank committed
20. 0:43to exceptional performance Innovation
21. 0:45and integrity the mission emphasized the
22. 0:48importance of teamwork Innovation and
23. 0:50treating employees with dignity and
24. 0:52respect challenges with Rob Parson
25. 0:55Parson was a strong Revenue producer and
26. 0:58had generated substantial new business
27. 1:00for the firm however he was known for
28. 1:02being sharp tonged impatient and
29. 1:05difficult to work with nser understood
30. 1:07that Morgan Stanley valued team players
31. 1:10but he also felt responsible for
32. 1:11building the business and believed
33. 1:13Parson was crucial to that effort
34. 1:15despite Parson's performance his
35. 1:17negative evaluations made it difficult
36. 1:20to promote him to managing director a
37. 1:22position nser had almost implicitly
38. 1:24promised when recruiting him Capital
39. 1:26Market Services CMS the capital Market
40. 1:30services division at Morgan Stanley was
41. 1:32created to make the firm more responsive
42. 1:34to client needs this interdisciplinary
43. 1:37entity linked the investment banking
44. 1:39division with the sales and trading arms
45. 1:41aiming to provide clients with focused
46. 1:43attention and service CMS professionals
47. 1:46were organized into Market coverage
48. 1:48areas and were expected to generate
49. 1:50business and work with corporate finance
50. 1:52professionals product Specialists and
51. 1:54other divisions Market coverage
52. 1:57professionals Market coverage
53. 1:59professionals like Gary Stewart needed
54. 2:01to understand the business in their
55. 2:03industry develop relationships and have
56. 2:05good Market judgment they had to
57. 2:08understand their client's needs work
58. 2:09with product Specialists and synthesize
59. 2:12Market product and client information to
60. 2:14create business opportunities working
61. 2:17with clients was only part of the job
62. 2:19market coverage professionals were
63. 2:21interdependent with other professionals
64. 2:23at the firm they needed to collaborate
65. 2:26with product Specialists and Market side
66. 2:28experts to deliver products and
67. 2:30understand client needs the role
68. 2:32required balancing market knowledge
69. 2:34product expertise and client
70. 2:36relationships Paul nser shaking up
71. 2:39Morgan Stanley's culture when John Mack
72. 2:42became president of Morgan Stanley he
73. 2:44wanted to change the company's Culture
74. 2:46by bringing in new Talent he recruited
75. 2:48Paul nser a well-respected banker with
76. 2:51nearly 20 years of experience nser was
77. 2:54known for building a strong Capital
78. 2:56markets business at a competing firm and
79. 2:58soon took on a leadership role at Morgan
80. 3:00Stanley nser noticed that many
81. 3:02investment Banks focused more on
82. 3:04individual professionals than the
83. 3:06company's culture however at Morgan
84. 3:09Stanley the company's reputation and
85. 3:11integrity were Paramount nser identified
86. 3:14that Morgan Stanley had a weakness in
87. 3:16Capital Market services for financial
88. 3:18institutions such as Banks and insurance
89. 3:21companies knowing the importance of this
90. 3:23Market nser sought to strengthen Morgan
91. 3:25Stanley's presence he believed that the
92. 3:28firm could not ignore the sign
93. 3:29significant market share generated by
94. 3:31these institutions to achieve this nser
95. 3:34recruited Rob Parson a young Banker with
96. 3:37a successful track record in financial
97. 3:39services Parson's energetic and
98. 3:41entrepreneurial Spirit made him the
99. 3:43right fit for this challenging role Rob
100. 3:46Parson an unconventional hire Rob Parson
101. 3:49had built strong relationships in the
102. 3:51banking and insurance Industries over
103. 3:53his 10-year career despite his
104. 3:55unconventional background nser saw
105. 3:58potential in Parson Parson did not fit
106. 4:00the typical Morgan Stanley mold having
107. 4:03dropped out of college before eventually
108. 4:05earning an MBA from the University of
109. 4:07Southern California he had a knack for
110. 4:09hustling and quickly made his mark on
111. 4:12Wall Street Parson initially hesitated
112. 4:14to join Morgan Stanley but was convinced
113. 4:17by naser's reputation he admired naser's
114. 4:20client skills and saw him as a role
115. 4:22model Parson joined Morgan Stanley as a
116. 4:25market coverage professional in the
117. 4:26capital markets division focusing on
118. 4:29Financial in institutions he was given
119. 4:31the title of principal with the promise
120. 4:33of a fast track to managing director if
121. 4:35he performed well challenges and
122. 4:38frustrations Parson's new role at Morgan
123. 4:41Stanley came with significant challenges
124. 4:44the position had seen High turnover and
125. 4:46the firm had little Capital markets
126. 4:48business with its important Investment
127. 4:49Banking clients Parson found the
128. 4:52situation worse than expected with
129. 4:54dramatic turnover in trading coverage
130. 4:56and an understaffed bank group High
131. 4:58interest rates further compounded the
132. 5:01challenges the financial services
133. 5:03segment was highly competitive requiring
134. 5:05aggressive
135. 5:06characteristics Parson had to be
136. 5:08resilient and not easily discouraged as
137. 5:11clients often engaged in Cutthroat
138. 5:13negotiations nser supported Parson
139. 5:16understanding the constraints he faced
140. 5:19however Parson's approach often clashed
141. 5:21with Morgan Stanley's consensus building
142. 5:23culture internal conflicts Parson's
143. 5:27style created tension within the firm
144. 5:30colleagues described him as volatile and
145. 5:32abrasive lacking team player skills nser
146. 5:35tried to mediate by advising Parson
147. 5:37gently but the problems persisted Parson
148. 5:40found the firm's focus on form over
149. 5:42substance frustrating and questioned
150. 5:44whether his results mattered more than
151. 5:46his unconventional background despite
152. 5:49these conflicts Parson was praised for
153. 5:51his ability to create business
154. 5:53opportunities and generate substantial
155. 5:55revenues he secured firsttime business
156. 5:58with over 10 clients and helped Morgan
157. 6:00Stanley climb from 10th to third in
158. 6:02market share in the financial services
159. 6:04sector nser acknowledged Parson's client
160. 6:07relationship skills and saw him as a
161. 6:09valuable asset externally The Dilemma
162. 6:12nser faced a dilemma he had hired Parson
163. 6:15through a personal connection which led
164. 6:17some to perceive favoritism nser
165. 6:20believed in treating Parson fairly
166. 6:22without compromising Morgan Stanley's
167. 6:24culture of teamwork and integrity he
168. 6:26reflected on how he could have better
169. 6:28communicated the cultural differences to
170. 6:30Parson if he had been at Morgan Stanley
171. 6:32longer nser recognized Parson's unique
172. 6:35drive and ambition but also noted the
173. 6:37disruption he caused the challenge was
174. 6:40balancing Parson's valuable
175. 6:42contributions with maintaining Morgan
176. 6:44Stanley's collaborative environment nser
177. 6:47needed to decide how to address Parson's
178. 6:49performance and the issues it raised
179. 6:51while upholding the firm's values the
180. 6:53performance evaluation process at Morgan
181. 6:56Stanley when Mack became president of
182. 6:58Morgan Stanley he introduced a
183. 7:00significant change a firmwide 360d
184. 7:04performance evaluation process this new
185. 7:06system aimed to transform the firm's
186. 7:08Culture by evaluating every professional
187. 7:11based on feedback from their superiors
188. 7:13colleagues and subordinates Mack
189. 7:16believed that by changing the criteria
190. 7:17for evaluation and compensation
191. 7:20employees would be encouraged to embrace
192. 7:21teamwork cooperation and cross- selling
193. 7:25goals of the new evaluation system the
194. 7:27new evaluation process had had two main
195. 7:30objectives cultural change to promote a
196. 7:33culture that values teamwork and
197. 7:35cooperation developmental feedback to
198. 7:38help employees improve in four key areas
199. 7:41Market professional skills management
200. 7:43and Leadership Effectiveness commercial
201. 7:45orientation and teamwork one firm
202. 7:48contribution evaluators were asked to
203. 7:50provide detailed comments on an
204. 7:52individual's strengths and weaknesses
205. 7:54using specific examples despite being in
206. 7:57place for 2 years there was still some
207. 7:59confusion about its practical
208. 8:01implications one managing director noted
209. 8:04that while being a team player was
210. 8:06valued the criteria were not explicitly
211. 8:08defined Rob Parson's
212. 8:11self-evaluation in his self-evaluation
213. 8:14Parson acknowledged the need to be more
214. 8:16patient and less aggressive internally
215. 8:18he admitted to not promoting his
216. 8:20achievements well enough within the firm
217. 8:22and expressed a desire to better
218. 8:23communicate his successes with a wide
219. 8:25range of clients Parson's long-term
220. 8:28career goal was to hold a senior
221. 8:30leadership role focused on client
222. 8:32relationships away from day-to-day
223. 8:34administrative duties nser dilemma as
224. 8:37nser reviewed Parson's performance
225. 8:39evaluations he faced several critical
226. 8:42decisions promotion consideration
227. 8:44whether or not to promote Parson to
228. 8:46managing director evaluation and
229. 8:49development summary completing this
230. 8:51summary would be crucial for Parson's
231. 8:53annual performance review and would be
232. 8:55reviewed by the promotions committee if
233. 8:57Parson were a candidate for promotion
234. 8:59feedback session having a conversation
235. 9:02with Parson to explain his decision
236. 9:04provide feedback and offer developmental
237. 9:06advice this session's Effectiveness
238. 9:09would impact Parson's future performance
239. 9:11and his decision to stay with the firm
240. 9:13if not promoted nser knew the importance
241. 9:15of this evaluation process his decisions
242. 9:19and feedback would not only affect
243. 9:20Parson's career but also influence the
244. 9:23broader goal of fostering a
245. 9:24collaborative and team oriented culture
246. 9:26at Morgan Stanley the impact of the
247. 9:29three 360° performance evaluation at
248. 9:31Morgan Stanley the introduction of the
249. 9:34360° performance evaluation at Morgan
250. 9:37Stanley was a bold move aimed at
251. 9:39transforming the company's culture Mack
252. 9:42the president believed that by changing
253. 9:44how employees were evaluated and
254. 9:46compensated The Firm could Foster a
255. 9:48culture of teamwork cooperation and
256. 9:50cross- selling this evaluation process
257. 9:53was comprehensive involving feedback
258. 9:55from superiors colleagues and
259. 9:57subordinates and focused on on four key
260. 9:59areas Market professional skills
261. 10:02management and Leadership Effectiveness
262. 10:04commercial orientation and teamwork one
263. 10:07firm contribution despite the ambitious
264. 10:09goals the new system faced challenges 2
265. 10:13years into its implementation there was
266. 10:15still confusion about what being a team
267. 10:17player truly meant in Practical terms
268. 10:20this lack of clear criteria made it
269. 10:22difficult for employees to understand
270. 10:24how to align their efforts with the
271. 10:25firm's expectations Rob Parson's
272. 10:28experience highlighted some of these
273. 10:30challenges in his self-evaluation Parson
274. 10:33acknowledged areas for personal growth
275. 10:35such as developing more patience and
276. 10:37improving his internal communication
277. 10:39about his successes he had a clear
278. 10:41long-term goal of moving into a senior
279. 10:44leadership role focused on client
280. 10:46relationships rather than daily
281. 10:47administrative tasks nser tasked with
282. 10:50evaluating Parson found himself at a
283. 10:53Crossroads he had to decide whether to
284. 10:55recommend Parson for promotion to
285. 10:57managing director and how to deliver
286. 10:59feedback that would be constructive and
287. 11:01motivating this decision was crucial not
288. 11:04only for Parson's career but also for
289. 11:06retaining Talent within the firm the
290. 11:08effectiveness of nasser's feedback
291. 11:10session would significantly impact
292. 11:12Parson's future performance and his
293. 11:14decision to stay with Morgan Stanley if
294. 11:16not promoted it was a delicate balance
295. 11:19between recognizing Parson's
296. 11:20achievements and guiding him towards
297. 11:22aligning more closely with the firm's
298. 11:24cultural expectations in conclusion the
299. 11:27360° performance of evaluation process
300. 11:30at Morgan Stanley was a step in the
301. 11:32right direction for fostering a
302. 11:34collaborative culture however its
303. 11:36success depended heavily on clear
304. 11:38communication of expectations and
305. 11:40constructive feedback as the firm
306. 11:42continued to refine this process the
307. 11:45goal was to ensure that all employees
308. 11:46had a clear understanding of how to be
309. 11:48successful within the new cultural
310. 11:50framework this would not only improve
311. 11:52individual performance but also Drive
312. 11:55the overall success of Morgan Stanley