1. Conflict
   1. Stages
      1. perceived conflict
         1. Merger - gutted MS executives
         2. "Handshake deal" for Purcell to hand reigns back to Mack never came to pass, Mack left
         3. Failed mergers with 3 large banks
            1. failure to bridge gaps between MS and Dean Witter
      2. felt conflict
         1. Wachovia merger - lines were drawn between Purcell and Exec Mgmt
         2. Strategic plan failed to be agreed on
      3. manifest conflict
         1. Retail blamed Inv bankers for increasing risk
         2. Inv Bankers blamed retail for slide
         3. Purcell left key executives off org chart
         4. Public attacks from G8 on Purcell's lack of strategic planning
   2. Causes
      1. Pooled interdependence
         1. Investment banking
         2. Retail
      2. Perceptual differences
         1. status incongruence
            1. MS group felt Dean Whitter Executives "won" in merger
         2. difference perspectives
            1. Risk vs. Return; Investments vs. Retail
2. Changes between groups
   1. Distorted Perceptions
      1. Lack of effective leadership
   2. Negative Stereotyping
      1. "Proving" poor leadership through repeated failures
   3. Decreased Communications
      1. Complete breakdown in communication
3. Failed Approaches
   1. Dominating
      1. Purcell
         1. minimal focus on meeting other groups concerns
         2. Purcell had advantage of power
         3. Chose only those who supported him
      2. G8
         1. Used public attacks to force resignation
   2. alter the organizational structure
      1. Was really a dominating tactic
4. New Approaches
   1. Problem Solving (integrating/collaborating)
      1. Very difficult
      2. Maximum focus on both groups' concerns
      3. Make each group responsible for resolving some parts of the conflict
   2. Bring in new people
      1. Mistrust of Zoe Cruz is an issue; she will have to work with others
5. Questions
   1. Describe conflict between Purcell & G8; functional or dysfunctional & why?
   2. What specific changes occurred between the two groups as a result of unresolved conflict?
   3. Which conflict resolution approaches did Purcell use & why weren't they effective?
   4. Which approaches should Mack use to resolve G8 demands & other executives?
6. Resources
   1. Mack plans to step down, early 2010
   2. Bloomberg 9/2009
   3. John Mack Biography
   4. Zoe Cruz leaves