Gap Analysis

Gap Analysis: Intersect Investments

In today's global business world business are always looking for new opportunities to make and save money. In today's hectic and competitive business world, organizations are faced with situations that require careful evaluation, planning and implementing solutions. This means adopting more economical way of doing day-to-day business. Successful organizations are able to adapt to the ever-changing landscape of today's business world by having strong leaders who empower the workforce, provide leadership and make critical decisions to solve complicated problems.

Intersect Investments Services has been a successful financial services organization for more then 25 years. Since the beginning Intersect has rendered several changes to adapt to the needs and challenges of the business world. Frank Jeffers, chief executive officer, has decided to take a calculated and deliberate approach to provide a broad set of products and services to build long term relationships with current and future potential customers referred to as the "customer intimacy" model. This customer intimacy model will provide Intersect with an opportunity to significantly increase sales and improve performance. Like many of the financial service institutions Intersect was strongly affected by the occurrences of September 11, 2001. Intersect is having difficulties keeping a balance between profitability and building trustful relationships with cliental; to overcome challenges of decreased profitability and thinning customer base, Jeffers feel there is a need to make changes in order to adapt and overcome the issues facing Intersect. Jeffers understands that implementing the changes will not be easy; there are internal and external factors to consider and the need for strong leadership to develop, prepare, and implement the changes.

In order for Intersect Investment to continue with its growth and succeed, the company must perform a process of problem-solving which involves recognizing the present issues, identifying the crucial problem, identifying alternatives, assessing risks, and selecting the best alternative or solution beneficial for the situation. This process requires Intersect to execute a strategic evaluation of internal (strengths, weaknesses, stakeholders) and external (threats and opportunities) factors affecting the company and is crucial in identifying Intersects problem.

Situation Analysis

Issue and Opportunity Identification

There are several issues of concern facing Insect investment that must be addressed. The first would be sagging sales, intersect has seen a decrease in the company's profit margin in the past year due to the economic slow down resulting for 9/11 and customer satisfaction has fallen more then 1 % . Second is employee turnover, which is up 25% in the sales department. There is also a substantial resistance to the change initiative to the point that the COE has let go the Executive Vice President of sales and marketing and is considering letting go other resistors. There is also a lack of trust from the employees in sales and marketing which has seen previous attempts of change that failed from the lack of clear communications and follow through. Additionally there is a lack of cohesiveness among members of Janet Angelo's team as evidenced by the arguments that have erupted during team meetings.

Although Intersect has not had negative publicity, which works in their favor, the company needs to effectively communicate and convince customers Intersect is a company that can be trusted with their money and future. At present Intersect has not established that trust and several customers have moved their business to competitors looking for that relationship; having been swayed by marketing and sales strategies and poor customer service at Intersect. The company has been unable to deliver on several products and services they have advertised to their customers as a result they have lost their position as one of the top three leaders in finance.

Intersect has a number of opportunities which can help Janet Angelo formulate solutions that will be instrumental in managing the changes that will result from the sales system changeover. The first of these is the strong leadership abilities of the management team. The company benefits from the transactional leadership style of CEO, Frank Jeffers which complements the experience and participative leadership style of Janet Angelo who has engineered and overseen changes into the "customer intimacy model" three times in her experiences with other companies. Secondly members of Janet Angelo's team possess a wide range as well as a considerable degree of skill in their fields. Additionally, Intersect Investment Services has a strong company culture that has enabled it to survive through some very tough economic times thus far.

Stakeholder Perspectives/Ethical Dilemmas

There are several contradicting viewpoints at Intersect causing dilemmas and delays in the change process. The management team is divided over the validity and necessity of the change, which is causing conflict and weakening group cohesiveness; each holding their own perspective on whether change is best for the company. The ethical dilemma lies in how will the group holding the power, affect change without offending those who are opposed to it, but who also have key talents necessary to the success of the changeover.

Second is the issue causing conflict between the sales force and management; members of the sales team are interested in both personal and professional growth and have the right to be given the tools and the clear direction they need to do their jobs. The dilemma results from the mixed messages the sales team receives. Part of management tells them to sprint ahead with the changes to improve productivity, and others tell them to stick to old methods and still continue to improve productivity. It is managements overall responsibility to ensure through effective communication that the goals for the company are being received and understood by all.

Last is the dilemma causing the conflict between Janet Angelo and Lyn Chen. Lyn, as the Vice President of Sales, is interested in and responsible for growing sales for Intersect. She is also responsible for carrying out policies and procedures Janet sets out in support of the new sales model. Janet's interested in and responsible for the design and implementation of the "customer intimacy" sales model. She has the right to create new policies and procedures to implement the new sales model and to expect members of her team to follow her directions, something that she is not getting from Lyn who