David Fletcher is a portfolio manager at the investment management firm JFP. After the resignation of two of his research analysts, Stephanie Whitney and Brian Doyle, Fletcher is tasked with rebuilding his research team. In our analysis of JFP's company environment, we found that JFP does not have a clear structure and is very independent-work heavy, yet is highly competitive and does not encourage communication between team members. Fletcher's alternatives are to hire Mary Robinson, Donald Fiske, or both. Ultimately, our suggestion is that it would be best to hire both Robinson and Fiske.
The portfolio management and investment industry is incredibly competitive, demanding, and has a high burn-out rate. Many who do well are independent spirits and the industry discourages team collaboration. This is reflected in JFP where the employees are motivated by their opportunity for personal gain. Many employees have the ultimate goal of becoming a portfolio manager and therefore, few in the industry and those at JFP are invested in a team dynamic.
A disagreement between two of Fletcher's employees, Stephanie Whitney and Brian Doyle, reveals the problem with the lack of structure in the organization. Both employees have high expertise in their respective industries and therefore are not accustomed to cooperating with others in their highly independent work. The company culture of JFP is small, tight-knit, and "family"-like. There is no formal structure, leading to ineffective management. Fletcher focuses more on his individual tasks rather than leading his team and promoting cohesion.
David Fletcher needs to piece together the most effective and efficient team that can work well together towards the ultimate goal of making the investors money. With the resignation of two important employees, Stephanie Whitney and Brian Doyle, David Fletcher needs to rebuild his team and address the greater organizational and leadership issues he faces in creating and leading this team. The first issue that needs to be addressed is how to form, organize, and lead this team. Other successful teams in the industry use a variety of methods in building, organizing, and leading their teams including hiring experienced analysts with many years of industry experience or using part-time consultants who dedicate a portion of their time to the portfolio and stock picks they would be working on. Fletcher then faces the issue of finding hires who are not only efficient, successful, and knowledgeable, but also have the ability to work well with the rest of the team. Lastly, there should be a way to guide and advise the new hires as they enter the firm help them become acquainted with the working environment.
When looking at what needs to be done in order for David Fletcher and his team to be successful, there are 3 main courses of action that can be taken. The first is qu...