Intersect Investment Services
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Problem Solution: Intersect Investment Services.
Intersect Investment company has been facing economic challenges since September 11, 2001. The tragedy has impacted the investment industry and forced Intersect to make drastic changes in order to survive as a business. Intersect has decided to implement a new customer intimacy model within 12 months that will build long-term relationships between customers and employees, which will ultimately increase Intersects ranking to number 3 in the industry, increase customer satisfaction by 50 percent, and reduce employee turnover by 25 percent. The goals will be achieved through the implementation of effective communication strategies and the development of a coaching culture.
Describe the Situation
Issue and Opportunity Identification
In order to decrease employee turnover, increase revenue and profit, rebuild brand image, achieve customer satisfaction and ultimately save the business, organizational change must take place. This change is in the form of implementing a new vision which will “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” (Intersect Scenario).
Intersects CEO Frank Jeffers has hired Janet Angelo as Executive Vice President of Marketing and Sales to successfully implement the new model in 12 months. This implementation will be a challenge for Janet, but she has the opportunity to motivate employees by teaching goal-setting. Janet can help enhance effort and performance of employees by establishing goals, holding individuals accountable for goals, showing employees how to complete difficult assignments and tasks, advising employees on how to overcome performance roadblocks, expressing verbal support, communication with employees and recognizing and rewarding progress” (Kreitner-Kinicki, 2005).
Stakeholder Perspectives/Ethical Dilemmas
The stakeholders involved with Intersect Investors are the leadership team, the lower-level employees, the customers and Wall Street. The leadership team wants each of their departments to be successful, the lower-level employees want to increase sales through increased productivity rather than customer intimacy and also want efficient communication from the leadership team, the customers want trust and consistency, and Wall Street wants to see profit.
Stakeholders that have competing values in Intersect are the CEO Frank Jeffers and Janet Angelo. Frank wants the new customer intimacy model implemented as soon as possible in order to realize larger profit, increased customer satisfaction, and decreased employee turnover. If this means firing employees, Frank is willing to do so. Janet wants to be successful in the implementation of the new model because her reputation and job is at risk. She wants to initially keep the leadership team, even though some members are not aligned with the new vision of Intersect.
Janet Angelo also has competing values with Lyn Chen Vice President of Sales. Janet wants to successfully implement the new customer intimacy model through the guidance of the leadership team. Lyn wants to continue to achieve her sales goals by increasing productivity.
Lower-level employees have competing values with the leadership team in that the visions, goals and the reason for the new model are unclear to the lower level employees, resulting in frustration, insecurity and negative emotions. The Leadership Team wants allies within the lower level employees to help promote the success of the new model.
Ethical dilemmas which could arise from the competing values of stakeholders are the loss of a large number of good employees due to mixed messages and ineffective communication and the lack of alignment of vision with certain leadership team members resulting in termination of employment.
Frame the “Right” Problem
Intersect Investment can realize a decrease in employee turnover, increase in customer satisfaction, increase in revenue and profit, a new brand image, and the trust of Wall Street through the realization of the new customer intimacy model successfully implemented by the Executive Vice President of Marketing and Sales, Janet Angelo.
Describe the “End-State” Vision
Intersect Investment has achieved the number three spot in the industry with an increase in customer base of 25%, 50% increased customer satisfaction, 25% reduction in employee turnover, and successful implementation of the customer intimacy model in 12 months.
Identify the Alternatives and Benchmarking Validation
At Morgan Crucible, a global engineering group, a major restructuring and cultural change was needed due to the previous management teams acquisition of many other companies without unifying them, acquiring heavy debts and overhead costs, and poor management. Warren Knowlton was hired as CEO to turn the company around based on his previous successes at Owens Corning and Pilkinton. “The first step was to create an internal communication strategy to support the business through significant change” (Gould, Scarlett, 2006). The CEO emphasized communication by attending all the network meetings, sharing his personal insights on the business and reinforcing the importance of employee understanding. He wanted to make sure employees understood “what was happening, why, and what each persons role was in helping to turn the company around” (Gould, Scarlett, 2006). In order to track progress, Morgan created a benchmark by sending out a questionnaire to over 100 sites in order to “gauge how employees felt about the changes and the company overall” (Gould, Scarlett, 2006). They received response rates as high as 94 percent by offering snacks while questionnaires were in process of completion to “a donation to a local charity for each completed survey” (Gould, Scarlett, 2006). One of the most urgent findings from the questionnaire was to develop a line-manager communication. Another finding was to create an internal united global organization which resulted in two global newsletters. The CEOs most important message was “leadership must come from all levels within the group. Its not reserved for the board, executive committee, or any single team. Likewise, communications must be done well at every level” (Gould, Scarlett, 2006). Morgan continued to track progress through employee surveys which were compared from year to year. Morgan was successful in its transformation because