Intersect Investment Situational Analysis

Situation Analysis and Problem Statement

The following paper will discuss the situational background of Intersect Investment Services, a financial company who's CEO has identified a new vision: to "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." (UoP, 2006). Issues and opportunities associated with the organization transformation will be stated as well as stakeholders and their ethical dilemma's dealing with the change. After which, a problem statement will be given as well as end-state goals for the company.

Situation Background (Step 1)

Intersect has felt the woes plaguing the financial services market since the events of September 11, 2001. During the past four years, Intersect has refused to make any strategic shifts, hoping their past way of doing business would continue to help the company survive. However, with other companies now offering an ever-expanding array of up-to-the-minute products coupled with expert advice, Intersect CEO Frank Jeffers has determined that it is time to change.

Armed with a new company vision and a plan to switch to the new "customer intimacy" model, Mr. Jeffers understands that implementing this vision will require revolutionary organizational change. This change has already led to the termination of the Executive Vice President of Marketing and Sales for failing to meet Mr. Jeffers expectations and the recent hiring of Janet Angelo for her expertise in implementing a "customer intimacy" model at two other companies and most recently at a bank. It is Mr. Jeffers hope that Ms. Angelo can help lead the company revolution to become no less than third in the industry.

Issue Identification

1) Transformational change ability. Management is not aligned with the new company vision. Sales people have been trained on the new sales and service model and many refuse to use it.

2) Strategic capability. Many employees not aligned with new vision; they don't understand why company must change. Directors are still preaching handling more clients in order to sell more products. The vision is being completely ignoring.

3) Sales turnover increase. Employees do not understand the company direction, they don't believe upper management has the ability to pull off the new strategy and they are not getting the information they need to do their jobs.

4) Becoming trusted sales advisors. Account manager only interested in getting customers to renew our current Intersect contract. Manager state the new services that are being marketed aren't available.

Opportunity Identification

1) Increase customer satisfaction. The new vision to: 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 will no doubt increase customer satisfaction.

2) Increase revenue. Benchmarking performed on Western Telecom showed high performing sales reps receive 20 percent more revenue per day even though their calls were eight percent longer than Intersect.

3) Becoming trusted advisor. Customers want a "trusted advisor," Furthermore, they have expressed that they want it to be Intersect. Customers have their savings and their futures at stake when they use Intersect. They love the expanded portfolio of services that are offered as well as the whole approach of helping to add value to their employees.

4) Customer intimacy. Within the small business sales group at Intersect customer satisfaction and revenues went up significantly when customer intimacy was implemented. It has been reinforced for the past two months and revenues have gone up four percent. Additionally, employees feel great about what they're doing for their clients.

Stakeholder Perspectives/Ethical Dilemmas

1) CEO. Frank Jeffers must do whatever is necessary to bring the company from the brink of disaster; and he has. Already replacing key members that were not performing as needed, Mr. Jeffers has expressed further commitment to replacing other members of the company that are unwilling to get on board with the new change.

2) Management. There are members of the management team that feel that changing the corporate vision is not the answer. Some have been fired which lead to the others beginning to question whether or not to stay. Management must be on board with the plan in order to sell the idea to the employees and make the transition seem positive and less stressful.

3) Employees. Employees could follow in the footsteps of management and question whether or not they want to stay if the transformation process and new vision is not explained. Employees are confused as to the direction the company is headed and are receiving mixed signal from upper management.

4) Customers. Although consumers can find alternative financial products from alternative companies, many times it is hard to find alternate financial products that meet their demand. Depending on the cost that Intersect will be offering their new products, some consumers may be either unable or unwilling to pay the prices required by