Problem Definition Inersect Investment Services Company

PROBLEM DEFINITION: Intersect Investment Services Company

Problem Definition: Intersect Investment Services Company

Angelica Francis

University of Phoenix

Situation Analysis and Problem Statement

The financial service industry was rocked by the terrorist attacks of September 11, 2001. Intersect Investment Services was no exception. Once enjoying top status is now struggling to maintain client trust and credibility on Wall Street. The leadership at Intersect Investment Services realizes that they must offer a large variety of innovative products along with expert advice to maintain top ranking within the industry.

Situation Background (Step 1)

Intersects CEO Frank Jeffers came up with a new vision, ÐŽ§Provide a broad set of products and services to consumer and small business customers using a model of customer intimacy that will build long-term relationships based on trust and value to the customer.ЎЁ (Company overview, 2006, P1)

Mr. Jeffers realizes that implementation of his plan will necessitate radical change within the organization. He already relieved one Executive Vice President (EVP) of Marketing and Sales because he did not support the vision or lead his staff to follow it either. Mr. Jeffers has brought Janet Angelo on board due to her expertise in implementing a customer intimacy model in her previous positions. She improved customer loyalty and sales in those positions and therefore is expected to do the same at Intersect but within a 12-month time frame.

Intersect has also fallen short of revenue targets, sales employee turnover is up 25% and customer satisfaction is down by more than 10% all within the past year.

Issue Identification

One of Intersects more obvious issues is the internal forces for change such as decreased job satisfaction, productivity and conflict. Employees are leaving, according to Annie Sorrento ÐŽV Director of Sales Operations, because they do not understand the new direction; are not confident in upper managementÐŽ¦s ability to implement the new strategy and are not being kept informed enough to get their jobs done. Due to the increased employee turnover, there is a loss of revenue. Tom Hardy ÐŽV Senior Vice President of Human Resources, has briefed the senior leadership team that it would take three months to fill a position, four months to train the new employee and another eight months to ensure that he or she is properly trained. There is a revenue difference of approximately $110 thousand for consumers and $300 thousand for small business between new employees and average employees. Other employee issues include rumors of layoffs; concerns of being told what to do and not why it is being done; getting mixed messages from leadership; not having access to the proper information to conduct their jobs nor the confidence in the managersÐŽ¦ support for the vision.

Opportunity Identification

Intersect Investment Services have several opportunities that if handled correctly could prove to contribute to overall success within the company and industry. Some that are readily identified are to expand the business by adding new customers, retaining current customers as well as increasing the expenditures and investments of current customers. Another opportunity would be to provide top-notch customer service along with our services that add value to our customers to foster the customer intimacy strategic focus.

Resistance to change by some of the employees presents yet another opportunity; ÐŽ§Resistance to change is an emotional/behavioral response to real or imagined threats to an established work routine.ЎЁ (Kreitner and Kinicki, 2004) Some areas of opportunity for Intersect to address employee job satisfaction and trust in leadership that were raised in the all employee meeting, could include combating surprise and fear of the unknown. Water cooler talks have raised concerns among the employees and management now has the opportunity to fill the gaps in communication by keeping all parties involved informed. This could also reverse the climate of mistrust. After all if an employee trusts the management team, he or she is usually willing to work harder and take more chances with the new ideas/visions. If employees see that the senior management team is working to improve the lines of communication then those intimidating changes will not create as much doubt about their capabilities.

Stakeholder Perspectives/Ethical Dilemmas

One dilemma is that Frank Jeffers is eager to implement his new vision seemingly at the expense of anyone who opposes it or the 12-month time frame.

The next dilemma is with some of the senior leadership team not supporting Mr. Jeffers vision. Lyn Chen ÐŽV Vice President of Sales, feels that the goals set for her department are unrealistic.

And as evidenced in the letter from Sy Miguel, customer service is lagging at Intersect Investment Services. While marketing material is being sent out to current customers concerning