Problem Solution: Intersect Investment

Running head: PROBLEM SOLUTION: INTERSECT INVESTMENT

Problem Solution: Intersect Investment

University of Phoenix

MBA/520

January 17, 2007

University of Phoenix

Abstract

Intersect Investments is a financial consultant company. The CEO and executives intend to implement organizational changes from a sales focus to a customer centric model. The goal 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" (University of Phoenix, 2006).

The focus of this paper is to determine alternatives to reach the end goals. An analysis of alternatives based on the stakeholders' needs and using risk management techniques. Then the alternatives were narrowed and analyzed for the optimum solution.

The optimum solution is one which the company hires an outside consulting company to facilitate organizational changes. In addition, the Sales VP needs to be replaced to encourage alignment. And lastly, additional training clear communication, and an employee incentive program are needed to implement the customer intimacy model and desired growth.

Through diplomacy, intimacy, and bi-directional communications the customer intimacy model will endure thus furnishing Intersect Investments the transformation needed to flourish and grow

Problem Solution: Intersect Investment

Introduction

By using such skills as diplomacy, intimacy, and bi-directional communications long-term relationships can be built to endure for the lifetime of an organization. Customers do not want to be "sold to", rather they want and need to be heard for whom they are, what they want, and with their objective priced for their pockets. Creating the right balance between respect and honor for the customer generates a passion likened to that of a lover's relationship and such a relationship needs care beyond the initial sale (Horowitz 2004). With this in mind this paper will examine the situational background, issues, opportunities, stakeholder perspectives/ethical dilemmas, problem definition, and end-state goals for Intersect Investments transformation from traditional-selling to a customer-intimacy selling model.

Situation Background

The unpredictable climate of the financial services industry has left many companies wondering if or when stability will return. Intersect Investment has struggled since September 11, 2001 to maintain both their clients and their credibility on Wall Street. Within the last year Intersect Investment's CEO Frank Jeffers introduced a new vision of transforming the current sales focused strategy to one that is more customer centric. The Executive Vice President of Marketing and Sales (EVP) was replaced due to the fact he did not effectively support nor lead his team in implementing the concepts. The new EVP, Janet Angelo, was hired specifically for her expertise in implementing similar visions in other organizations and to implement the new concepts at Intersect Investments.

The sales goals have increased by 14% while the sales staff has increased only by 5% (University of Phoenix, 2006). The sales staff feels that they have insufficient personnel to spend the time on each call needed for customer intimacy and still meet the revenue goal. Through customer intimacy Intersect Investment will become known as "trusted advisors" which will increase sales revenue without increasing employee base, an additional goal that Jeffers desires. By allotting more time with each client and providing information of the products and services available, for the individual or small business, motivate improved company reputation. Improving the company's reputation will bring in more business. This will increase the customer base as well as retain current customers. These aspects will increase the number of sales therefore increasing profitability.

Issue Identification

Although, CEO, Frank Jeffers, has high hopes and ambitions for the company, overcoming high attrition rates and reversing declining employee morale caused by the uncertainty of a new sales and service strategy and lack of communication from senior management may prove to be beyond his resources. For approximately one year, Intersect Investment has been on a major collision course over whom to satisfy; internal or external customers. The fuel for the unresolved conflicts seem to be coming from the sales department and marketing department's senior management's inability to align the organization with the new vision of the company.

The current environment has led to decreasing sales, low morale and customers are leaving due to dissatisfaction in follow-up service. As one step in the process to implement his new vision, Frank Jeffers fired the Executive Vice President of Sales and Marketing. He suggests that the new EVP of Sales and Marketing, Janet Angelo, fire those who aren't onboard with the new customer intimacy strategy. Frank's motto is, "The firing will continue until morale improves." This hard-line attitude runs the risk of alienating capable personnel in an attempt to bring in new ideas, knowledge, and opportunities for growth. Other considerations for Intersect should be the short time span of 12 months to complete the project and the lack of any clear reward system tied to the new customer centric sales and service expectations.

Opportunity Identification

One person's detriment is another's opportunity and Janet Angelo, Executive Vice President of Sales and Marketing, is the key to change the situation to an opportunity. Having the ability to understand the value of customer intimacy from a corporate perspective is good but understanding it internally is even better. Janet Angelo has the knowledge and experience to facilitate the changes in Intersect Investment, helping it to become a unified organization. The leadership team has an opportunity to tailor the presentation of the new vision to the employees. By holding an all-employee meeting and agreeing to answer questions shows the confidence the leadership team has in the vision and the integrity they have in the relationship