1. On the basis of the information in this case study, describe the competencies that seem strongest in John Mack.
2. To what extent has John Mack exhibited transformational leadership behaviors to shift Morgan Stanley’s culture and decision making?

John J. Mack, who had left Morgan Stanley four years earlier, was back as CEO, replacing Philip J. Purcell, who had resigned weeks earlier after mounting criticism that he was mismanaging the once-mighty investment bank. Whereas Purcell was a top-down strategist and tended to hole up in his office, Mack is drawing on his skills as a salesman and operator to make Morgan Stanley as nimble and dynamic as possible. He also hired key people to help him put the new culture in place. This Business Week case study examines the leadership of Morgan Stanley CEO John J. Mack. It describes his actions to change the investment bank’s culture and to redirect decision making so that it is more aggressive rather than timid. Read through this Business Week article at www.mhhe.com/mcshane5e, and prepare for the discussion questions below.