Problem Solution: Intersect Investments
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Problem Solution: Intersect Investments
People are resistant to change and Intersect Investment needs change in order to survive. This is the dilemma that is tasked to the senior management team. They need to find a way to bring the company on board with a new vision which is a stark contrast to the way things used to run at the company. Although, it will not be easy, success will guarantee a future for the company. This paper will outline the current issue and opportunities involved with the scenario, identify stakeholders and their perspective and discuss the current gaps that are preventing success. It will identify the necessary steps to effectively manage and motivate change will which will lead to Intersect accomplishing the goals set out by the CEO.
Situation Analysis
Issue and Opportunity Identification
Intersect Investments is a financial services firm that has been struggling to stay afloat in the post-9/11 marketplace. Intersect has had a difficult time staying afloat without a major strategic change and now the CEO has decided its time for the company to make that change. The new vision for the company handed down by the CEO requires a major operational change moving from a “run and gun” sales environment to one which customer intimacy and value-based selling takes precedence. This change had met with some major resistance from the company’s rank and file and has lead to changes in senior management, with even more changes being considered.
Intersect’s CEO has a good idea about what needs to be done with very little grasp on how to accomplish it. This fact has lead to high turnover, in all areas of the company even with the senior management team. He has brought a new EVP on board to help drive this change, but still exhibits much of his “Ram it down the throat, if you don’t like it, then leave” approach which has proven to be ineffective and thrown the company into chaos.
The sales force is extremely confused on what is expected of them and they have no way to measure their successes based on the new value set put forth by the CEO. Because of this each sales person is left to his or her own devices or the opinions of their direct managers to determine sales strategies. Consequently, customers are getting mixed messages from the sales staff compared to what is being told to the market.
All told there is a lack on congruency in the company and its effects are obvious. Sales Turnover is high, morale is low and if something doesn’t happen soon, it will be extremely difficult for the company to recover and survive. Although change is a difficult process, it is necessary in the case and an effective change management plan needs to be put in place as soon as possible.
Stakeholder Perspectives/Ethical Dilemmas
The stakeholders for Intersect Investments can be broken down into four main groups: senior management, sales managers and employees, shareholders and customers.
The Senior Management team is interested in the long term viability of the company. They are responsible for determining the company direction and providing solid, unified leadership. They must keep the best interest of all stakeholders in mind when making decisions. Much of the senior management team has been with the company for a very long time, because of this they feel a lot of personal ownership and responsibility in the company. The CEO feels this as well and has expressed this in an extreme case of urgency when it comes to affecting change on the organization.
Sales Managers are Employees are interested in having a stable work environment. They need clear direction and goals with proper incentives and motivation. They have mixed thoughts when it comes to the changes that are trying to be brought down in the company and when there is no alignment amongst management and no clear goals and objectives that are consistent with the new vision, it leads to much confusion and misunderstanding with presents itself as resistance to change.
The shareholders are primarily concerned with the profitability of the company. They are interested in seeing strong revenue and growth. They day to day operations of the company a really don’t concern them too much as long as the numbers continue to be there.
The customers are interested in getting the best value for their money, which in the past has been whoever offers the lowest prices. However, things have been trending more towards developing business relationships and if the customer derive additional value from a service besides cost, or lack thereof, they are willing to pay a bit more.
Problem Statement
Intersect Investments will reestablish itself as a major player in