Problem Solution: Intersect Investments
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Introduction
The situation analysis and problem statement approach as a solving method with a thorough understanding of the customers needs and the technological capabilities of the industry-accelerates the creation of a successful result. However, before embarking on the journey to define the problem, disciplined preparation can make the difference between success and failure. A clear statement of the problem and clear understanding of what is the problem is needed as well as detailed analysis of the existing situation is essential to success.
A need can present itself in many forms and shapes. The problem could be a particular manufacturing or performance issue, or another problem could be as general as finding a way to reduce cost. What is the normal response to a problem? In many instances, the people responsible for problem solving-start generating ideas immediately. Quite often, however; and for various reasons, these very people have limited knowledge about the situation Background.
Situation Background (Step 1)
Intersect Investments, a financial services company, has recently experienced a loss of market share from their number 3 position in the financial services industry. The events of September 11, 2001 have left the financial services industry in a constant state of flux, of which Intersect Investments has not been immune. Intersect Investments has at times barley survived the past 4 years and has resisted changes to their services and product mix. One year ago Intersect Investments CEO, Frank Jeffers, identified a plan to restore investor confidence and establish long-term relationship through the implementation of a customer intimacy model. The new vision will require a change in the corporate culture of Intersect Investments to establish the relationships Frank Jeffers believes is critical to future success of the company. Intersect Investments must provide for the long-term as well as the short-term investment needs of consumers and small business owner. To be successful in the new vision, leadership must effectively communicate the corporate mission to employees and employees must in turn embrace the changes and work toward establishing the new customer intimacy model.
Issue Identification
1- On Wall Street, confidence in the financial services industry is waning
2- Sales employee turnover is up 25%
3- Customer satisfaction has declined by more than 10%
4- 12 months period to implement “customer intimacy” model
Opportunity Identification
1- Introduction of new services and brand image, primarily to its small business and consumer customer.
2- Increasing the potential customer base.
3- Improve profitability by reducing sales employee turnover.
4- Increase the confidence in the stock market as well as increase the stock value.
5- Increase clients trust and Wall Streets credibility.
Stakeholder Perspectives/Ethical Dilemmas
An ethical dilemma can happen when conflict of interests is occurs between the key stakeholders, for example; the employees and the customers can be considered as a key stakeholder and the customers would like to have a better service with lower prices as well as the employees would like to have more benefits with stable jobs, as we can see from the Intersect Investment case, the CEO Frank is ready to sacrifice with any one in order to implement his strategy as he mentioned to Janet (JANUARY 31, 2005 Frank Jeffers office, Meeting with Frank Jeffers and Janet Angelo), here we can find the conflict of interest between the CEO and the employees who will loss their jobs because of the new strategy.
As well as Frank has had to replace the Executive Vice President of Marketing and Sales, as the previous EVP did not support the new philosophy and failed to lead his organization in following the new approach even the EVP was working with Frank for at least 15 years.
Problem Definition (Step 2)
– Intersect Investment will increase the stock market confidence by increasing the stock holders confidence in the financial industry, and have a bigger market share.
– By having a lower rate of sales employee turnover Intersect will reduce the cost of turnover and will increase customer satisfaction as well as will increase the stakeholder satisfaction in general. Intersect can work on the “environmental factors that produce stress” (Kreitner & Kinicki, 2004, Ch 19).
– By implementing the “customer intimacy” model, Intersect will stop the declining of customer satisfaction; moreover; “customer intimacy” model will increase the customer satisfaction in quarterly basis.
– Having the approval and support from deferent key stakeholders will boost the 12 months period to implement “customer intimacy” model.
End-State Goals (Step 3)
– Development: Successfully developing new services and brand image, primarily to its small business and consumer customers as well as increasing the potential customer base by providing a better service and packages.
– Improve profitability: identifying cost-cutting measures and Improve profitability by reducing sales employee turnover as well as increase the confidence in the stock market.
– Employees loyalty: Sharing the future success with the employees to increase loyalty implementing a clear strategy “what an individual is trying to accomplish” (Kreitner & Kinicki, 2004, Ch 9). Improve work environment and better leadership transformation.
– Customer base: By implementing the “customer intimacy” model, Intersect will increase the customer base and satisfaction and will end up with long term-relations with the customers.
Alternative Solutions and Benchmarking Validation (Step 4)
Significant changes would be needed from Intersect Investment leadership if the customer intimacy model was to be realized. Intersect Investments has internal issues of lack management trust from employees, complaints of lack of communication from leadership, poor working conditions and lack of key management support of the new corporate vision. For the benchmarking exercise,
Researching various websites on the Internet, articles in the university library, and communicated