Intersect Investment Services Corporation
Essay title: Intersect Investment Services Corporation
Problem Solution: Intersect Investment Services Corporation
In order to maintain competitiveness in an ever-changing market, a company must be aware of external and internal forces which affect the company and rapidly respond to those forces. According to Kreitner & Kinickis Organizational Behavior, 6th Edition (2003), external forces of change include technological advancements, market changes, as well as social and political pressures such as war, values, and leadership (673). Some of the internal forces of change include absenteeism, productivity Issues, unmet needs, and job dissatisfaction. Other internal forces of change are managerial conflicts, leadership, and company reorganization (673).
A company must also know what type of change is necessary. Kreitner & Kinickis Organizational Behavior, 6th Edition (2003) describes three types of change, adaptive, innovative, and radical. Adaptive change is resurfacing a practice at a later time (677). Innovative change is taking a practice of another company and modifying it to fit the needs of ones own company (677). Radical change is “introducing a practice new to the industry (677).” Intersect Investment Services (IIS) is experiencing innovative change. According to the Scenario, IIS hired Janet Angelo “for her expertise in implementing a customer intimacy model at two other companies (1).” The purpose of this paper is to identify the issues, opportunities, and perspective stakeholders of IIS. This paper will also define the problem and the end-state goals of the company.
Situation Background (Step 1)
IIS is currently experiencing the effects of a volatile market that brought about client uncertainty and the loss of credibility with Wall Street. IIS must quickly salvage its reputation as a once trusted financial services company. The board of directors and upper management realize that a major change is necessary to regain its brand image and achieve its ultimate goal of increasing sales by broadening its customer base. The proposed changes are strategic and customer-oriented. By adding value to its current services and introducing new products, IIS plans to retain current customers and win new ones by building both a stronger relationship and customer trust.
Internal reshuffling and the hiring of a VP of Marketing and Sales to assist with the major organizational restructuring prove the determination of its CEO to implement the changes even at the expense of losing key loyal and talented staff that had do not embrace the current vision. IIS ambitious plan is to have the new concept in place within 12 months and must show immediate improvement in sales revenue on a quarter to quarter basis.
Like any other attempt to introduce changes to the work place, resistance to change comes from within and from every level. IIS must develop the right tactics and use the right approach to lead its work force through a smooth change while limiting its losses. Janet, the new VP of Marketing and Sales will have to demonstrate her talent and experience when dealing with very serious challenges and Issues that are coming her way (University of Phoenix, 2005).
Issue Identification
Many corporations struggle with their surroundings since the tragic events of September 11, 2001. A worldwide economic recession combined with globalization caused many companies to rethink their business models. The financial services sector is no different. Through no fault of their own, IIS is currently experiencing unstable external environments. The financial services sector has been in a volatile state of flux. Kreitner & Kinicki (2003) discuss how even GE Corporation can hit their quarterly numbers and still suffer a 9.3% stock sell-off in a chaotic market environment.
Those external environmental forces imposed changes on the way Intersect conceives its current relationship with its customers. In order to adapt to the changing environment, they have developed a new vision statement – “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, 2005).”
The vision statement presents Intersect with its first Issue. How is CEO, Frank Jeffers, going to gain support for his vision? According to Lawson & Prices article entitled The Psychology of Change Management (2003), “When a companys goals for new behavior are not reinforced, employees are less likely to adopt it consistently.” Frank recently dismissed the EVP of Marketing and hired Janet Angelo who has experience increasing customer satisfaction. It is Janets appointment to EVP of Marketing