Problem Solution: Teratech
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Running head: PROBLEM SOLUTION: TERATECH
Problem Solution: TeraTech
University of Phoenix
Problem Solution: TeraTech
The purpose of this paper is to systematically dissect the situation at TeraTech. Through the use of the situation background, issue identification, opportunity identification, stakeholder perspectives, problem definition, the desired end-state goals can be defined and acquired. This information can then clearly support a defined problem statement.
Situation Analysis
Issue and Opportunity Identification
Intersect Investments is in the financial services industry. Intersect Investments has been struggling to stay afloat competitively since September 11, 2001. Success is rare in the industry. The CEO, Frank Jeffers has devised a new vision in hope of inspiring his employees as well as current and future customers. The new vision is: “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 CEO understands that change must happen throughout the organization. He has fired the Executive Vice President of Marketing and Sales because the person was not on board with the new vision. Frank would like to improve Intersect Investments brand image through the new “customer intimacy” model. Other goals are to establish long term customer relationships as well as gain the trust of Wall Street. (University of Phoenix, 2006).
In the Intersect Investments Scenario, the values and ethics do not appear to be aligned within the agency. Firings, low job security and the general frustration within the organization do not support workplace values and ethics. Give opportunities to feel valued and have direct input. “Values represent stable, long-lasting beliefs about what is important in a variety of situations that guide our decisions and actions. They are evaluative standards that help us define what is right or wrong, or good or bad, in the world. Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad,” (McShane & Von Glinow, 2005). Intersect Investments in entering a period of time where change is necessary for survival of the company. If the employees are not willing to accept change, the company will not continue. With proper guidance, Intersect Investments can thrive with the new changes to the company. “Successful organizational change requires managerial commitment, an implementation plan, and buy-in from all employees” (Kinicki, & Kreitner, 2004). Changing the mission without giving the proper training to the employees endangers the input level that has been established throughout the organization. Training on how the mission affects specific jobs and the organization can easily be incorporated. An employees inputs, for which he or she expects a just return, include education, experience, skills, and effort. On the outcome side of the exchange, the organization provides such things as pay, fringe benefits, and recognition. (Kinicki, & Kreitner, 2004). The team at Intersect is not receiving any feedback on their performance. As the sales team begins to implement the customer intimacy model, feedback from the supervisors supports success. Properly administered feedback and rewards can guide, teach, and motivate people in the direction of positive change (Kinicki, & Kreitner, 2004). Each employee will learn the new products and the customer intimacy model at a different pace. This may take more time than Intersect has to get the changes into place. Using the Expectancy Theory of Motivation, Intersect can determine what motivates he individual employee and tap into that resource in order to stay on the timeline. “Generally, expectancy theory can be used to predict behavior in any situation in which a choice between two or more alternatives must be made” (Kinicki, & Kreitner, 2004).
Stakeholder Perspectives/Ethical Dilemmas
At Intersect Investments the idea of changing the company vision is not being well received. There was no discussion with management or employees. Employees are unsure and unaware of how the new vision will effect their position. Firing an Executive Vice President appeared to be a hasty move. This decision has left employees feeling unsure of the future and their feelings for the organization. Management is also unclear of the expectation throughout the organization. Management is supposed to support and educate the employees, but may not fully grasp the incorporation of the new vision process themselves. Customers want a dependable product in a short time. If Intersect Investments does not deliver, surely another firm will. Employees and customers will be most impacted by the changes.
Problem Statement
Intersect Investments would like to implement a training model which supports teamwork directed at customer intimacy in order to transform leadership using communication throughout the organization.
End-State Vision
Intersect investments would like to establish good communication within the organization, highly functional work groups, and ongoing training in order to change the culture of the company.
Human nature is comfortable with regularity. According to Festingers theory, people are motivated to maintain consistency between their cognitive beliefs and their behavior. Perceived inconsistencies create cognitive dissonance (or psychological discomfort), which, in turn, motivates corrective action. (Kinicki & Kreitner, 2004). There are multiple changes taking place within the organization, and none of them are being managed. The goals must be identified and supervised for the organization to be successful.
Alternative Solutions
Various alternative solutions can be supplied to Interest Investments. Some examples of solutions could be: schedule regular meetings for both upper management and all managers, create work groups from various departments with structured work time, design and put into practice an on- going training format designed to support and teach all levels of staff, management could ask staff how to change the culture, or the company could always continue on as it exists currently. A combination of creating work groups from