Intersect

Gap Analysis: Intersect Investments

An obstacle for most major financial services corporations is the challenge of maintaining vitality in an ever-changing and increasingly competitive industry. For Intersect Investment Services, the livelihood rests on the company's ability to produce up-to-date services coupled with clientele trust and Wall Street's credibility. This constant pressure to keep up has forced the company to make several drastic changes within the company that may result in the success or failure of the company, and with its fair share of repercussions. This paper will aim to point out the main issues that Intersect is facing, the opportunities that have risen from these issues, and gap analysis will differentiate the current conflicts compared to its end state vision.

Situation Analysis

Issue and Opportunity Identification

For the past 6 years, the financial services industry has experienced some major setbacks regarding their clientele and credibility on Wall Street. Competition among companies has motivated each company to offier innovative products constantly coupled with expert advice (Scenario, Intersect). Intersect Investment Services, a financial consultant firm, is among these struggling companies. CEO, Frank Jeffers realized that if Intersect wanted to survive in this down-trodden industry, it must make some drastic organizational changes. Ergo, he introduced his vision of providing "a broad set of products and services to consumer and small businesses using a model of customer intimacy" to build a trusting relationship with its customers. While the idea had a grandeur appeal, implementation would be a challenge that could potentially bring down the company. From the start, a great deal of his senior management members do not see eye-to-eye in this new strategy, and this in turn has created a rift between his team members that must work together to achieve company goals. The main issues, or rather opportunities, that arise are ways management must gain the commitment and support of its employees and upper management. Managers must realize opportunities to benchmark other companies to find viable alternatives, exercise persistence in enforcing changes, consider the law of effect that most senior members are adapt to, and keep employees in mind when implementing drastic decisions.

Stakeholder Perspectives/Ethical Dilemmas

The stakeholders of Intersect Investment Services are the Stockholders, Intersect consumers and small business customers, CEO, Frank Jeffers and his management team, and Intersect's employees. Each stakeholder is very important in the present and future success of the company, and therefore, must be treated accordingly. The comparison between each different stakeholder's interests, rights, and values shows that while most are in accordance with one another, other interests and values conflict with one another. This conflict, in turn, may create ethical dilemmas in Intersects plans for an organizational transformation.

While profitability is one of the main interests for Intersect's management team and stockholders, the interests of the company's customers are wholly different from members from within the company (i.e. upper management and employees). For example, Intersect customers place value in the company's abilities in producing products, services, and expert advice, and they have the right to have those expectations. However, unlike Intersect's CEO and management team, the customers don't take an interest in the profitability or growth of the company. The Intersect customer's mentality is that they will stay with the company as long as it continues to produce valuable results for its clientele. However, if something goes amiss, customers will leave Intersect without a second look back.

Furthermore, Intersect customers believe that the company no longer has any credibility in offering its products and services. Customers should be able to trust Intersect to have their best interests at heart, and expect great service and advice without a doubt. Moreover, the relationship between Intersect and its clientele is one built on trust and understanding. As in any relationship, if that trust is broken, the relationship is no longer valuable to the customer. In the example of one of Intersect's customers, Innovative Building Solutions, President Sy Miguel states that while the "approach of helping us to add value...was just what I needed...the new services you're marketing aren't even available...how can I look at you as trusted advisors when you can't deliver what you advertise...I will be taking my business to someone I can trust." (Scenario, Intersect)

Last, though the interests of Intersect's upper management and its employees are both for the benefit of the company itself, there are certain rights that conflict each other in the case of Intersect. For example, the company's employees have the right to expect many things from their leaders and management teams. Employees expect to be compensated fairly for their work, have a stable career, and trust the company to ensure their success. However, in the case of Intersect, those criterias aren't being fulfilled. The turnover rate has increased to 25% because employees are getting frustrated at the state of chaos of the company and the poor work environment. Intersect employees also expect effective communication from their leaders as a sign of effective leadership. However, it has gotten to the point where Intersect employees can't trust their leaders because of the lack of communication resulting in a lack of respect and accountability of Intersect management.

End-State Vision

Intersect Investment Services' vision is to be become a reputable company within the financial services industry. The company hopes to achieve its goals through an organizational transformation to build a model of "customer intimacy" for its consumers, and also through the support of its employees. Intersect will place emphasis on developing leadership competencies to create a culture adept to beneficial changes. Furthermore, the company will strive to accommodate the needs of its employees, maintain morale, and gain the respect and trust of each employee. Last, Intersect will "provide a broad set of products and services to consumer and small business customers using a