Intersect Investment

Problem Solution: Intersect Investments

Intersect Investment is an organization in the financial services industry, that has struggled in the past and withstood making a strategic move. A new vision is recognized that will offer products and services to clients using a model of customer intimacy. With the new model come many opportunities. However, not all opportunities are issue free. The organization must make a transformation change to ensure its success in the marketplace. Senior leaders of Intersect Investment must demonstrate strategic capability realizing the customer as a valuable asset towards growth and internalizing this idea in order to make it a reality. The end-state goal is ultimately the success of Intersect Investment in the next 12 months. Some changes need to be made in order to meet the goals of the organization.

Situation Analysis

Issue and Opportunity Identification

After September 11, 2001, the financial services industry has been instable and unpredictable. Many firms are failing to demonstrate confidence to their clients and Wall Street. In the past year, Intersect Investment has endured sales employee turnover increase by 25%, and customer satisfaction has dropped by more than 10%. The president of Innovative Building Solutions, a small business client sent an email to Frank stating, "How can I look at you as trusted advisors when you can't deliver what you advertise, let alone offer Ð''trusted' advice from my account manager" (Scenario: Intersect Investment). Another major issue Intersect faces is conflict within its senior leadership team. As of a one year ago, Intersect CEO identified a new vision. The implementation of this new vision requires "transformational change" and "strategic capability" to be the focus for future success.

Stakeholder Perspectives/Ethical Dilemmas

Stakeholders are any group that has a vested interest in Intersect Investment. Frank Jeffers is the CEO of Intersect Investment. He has a vision where he sees the organization and that is 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" (Scenario: Intersect Investment). Frank sets goals for the organization and expects his leaders to meet those goals. He has already replaced the Executive Vice President of Marketing and Sales because the previous EVP showed no support for the transformation and was an ineffective leader. To keep Intersect Investment as the top priority, it is clear the CEO has no moral or ethical issues in making appropriate changes.

Janet Angelo was hired as the Executive Vice President of Marketing and Sales. Her expertise in implementing a "customer model" with other companies earned her the position. She must be able to transform Intersect Investment to improve performance and obtain the support of her leadership team to embrace a new culture. She used several managerial implications to promote the new model also to get full support from the team. A concern for Janet is Vice President of Sales, Lyn Chen, who is resisting change to a "customer intimacy" model. Frank has suggested "replace those who aren't on board" (Scenario: Intersect Investment). Losing Lyn would be a true loss to the company because she has proven to be successful. Most important it could lead to moral issues in sales.

Thomas Hardy is the Senior Vice President of human resources. With Intersect Investment in his best interest, Tom developed the training for the new sales model, and will be working with Janet to present it to sales. He has addressed the senior leadership team and has focused on areas that will assist in making the vision a success. As the source who handles executive staffing, a time may arise where he and Janet may need to discuss replacing some existing members.

Lyn Chen is currently the Vice President of Sales. She has been affiliated with Intersect Investment for almost 20 years. Recent performance in sales has declined. She has failed to meet revenue targets, there is a 25% increase of employee turnover in sales, and customer satisfaction has fallen by more that 10% (Scenario: Intersect Investment). Lyn represents an internal force of change (Kreitner & Kinicki, 2004, p. 13). There is conflict between her and Joel Contino, and she has demonstrated inappropriate leader behaviors through vocalizing her opposition to a change to a "customer intimacy" model. The culture of sales has been on methods that strictly improve production. She is close minded to the importance of the customer having a long-term relationship with Intersect Investment. Lyn was not in attendance in the meeting for sales and service employees, led by Joel and Janet. This further shows her lack of support and willingness to realize the future opportunity for the organization.

Joel Contino is Vice President of Marketing, who is also focused on realizing the new vision. His department has developed marketing goals that can help the company reach sales figures to be successful. However, he points out how the sales department refuses to change their manner of interaction with customers. Joel is making an effort to convince Lyn that the new model will be successful if she would be willing to see things differently. He has shown Lyn benchmarking data of companies who have moved to customer intimacy model grow at a faster rate. Overall, Joel understands the two major issues will be; earning trusted advisor, and improving both customer and employee satisfaction.

Finally, the Director of Sales Operations is Annie Sorrento. She strongly believes the new vision of change to a customer intimacy model will require an extensive leadership engagement and new value development within the organization. Even though she is supportive of Frank's vision, she is also must work with human resources in trying to maintain employee satisfaction in sales. Annie managed to identify the top three reasons employees are leaving Intersect Investment.

Problem Statement

A problem statement is created to guarantee the "right" problem is resolved. An understanding of the real issues and opportunities will be the grounds of the problem statement. Intersect Investment wants to grow in the financial services industry by adding new customers, retaining current customers, and increasing the amount current customers spend and invest with the company. Intersect new vision is centered on customer intimacy that will build long-term relationships with customers which are based on trust and value. Janet