Morgan Stanley 2001 Annual Report Download - page 18

The value in a Morgan Stanley relationship lies not only in the solutions that we
offer but also in the dialogue that we hope to stimulate. Presented with an idea,
the client asks: “Why is that the right idea for me, now, in the context of what’s
happening in my life, my company or the capital markets? What should be on my
agenda? How can I get something done?”
The power is likely to be in the framework for thinking, not in any one idea
itself. By opening the way for different approaches, even for the counter-
intuitive, an insightful dialogue clarifies the client’s own way of thinking. A good
relationship can both organize ideas and liberate them, bringing thought that
much closer to action.
WORKING RELATIONSHIPS
MANAGING UNCERTAINTY
How should clients rethink their assump-
tions about the global outlook in the
aftermath of September 11? More than
50 Morgan Stanley analysts, researchers
and others from our securities division
devoted hundreds of hours to this question.
Four possible scenarios for the future
emerged, from the optimistic “Global
Healing” to the worst-case “Global L” of
negative economic growth and political
fragmentation. Challenges emerge in all
scenarios, and each carries important
implications for specific industries and
stocks. Morgan Stanley has helped clients
apply this framework to their portfolio
and business strategies, as we have
applied it to our own, unearthing hidden
risks and potential opportunities.
THE CLIENT ALLIANCE
In 2001, we realigned several business
units, bringing them closer together to
better serve our clients. In August, we
introduced the Client Alliance, a unit that
will capitalize on the capabilities of Morgan
Stanley’s investment management division
and our individual investor group. This
joint venture is charged with bringing
together product development, informa-
tion technology and distribution skills to
create the next generation of financial
tools and services. The Client Alliance will
help Morgan Stanley gain a unique under-
standing of individual investors’ needs so
that our advice, products and strategic
asset allocation recommendations can be
tailored more closely to each person’s
investment objectives.
BUSINESS CONTINUITY PLANNING
Institutional clients taking a new look at
their own preparedness have asked
Morgan Stanley for information on our
Business Continuity Planning (BCP). Our
BCP initiative evolved over 10 years in
response to the Gulf War, what we learned
in previous bombings in New York City
and London, and Y2K concerns. The
resulting plan made it possible for our
people to keep the firm open for business
in the anxious, uncertain days immedi-
ately following September 11. We discuss
this topic with clients in the same way we
would approach any other topic with them:
helping them think through their own
solutions by providing a unique and knowl-
edgeable outlook on a difficult problem.
MORGAN STANLEY ANNUAL REPORT 2001 15