Problem Solution: Intersect Investments

Problem Solution: Intersect Investments

RUNNING HEAD: Problem Solution: Intersect Investments

Problem Solution: Intersect Investments

Amos Richard Wills

University of Phoenix

May 16, 2007

Critical Aspects of the Company's Current Situation

Since 2001, the financial service industry has been in a constant state of change, fluctuating markets, and inconstant leadership. The volatile climate has left many financial firms struggling to keep both their clients' trust and Wall Street's credibility. To succeed, financial firms and investment companies need to expand their products and services to consumer and small business customers. Recently, Intersect Investment Services has at times barely managed to survive but resisted making a change in the industry. Finally, a year ago, Intersect Investment's CEO made a drastic, strategic shift and identified a new vision. However, Intersect senior management leadership understands that implementing a new vision will require revolutionary organizational change.

Intersect Investment need to provide a broad set of products and services to consumers and small business customers to succeed in today’s volatile markets. First, this will require extensive leadership engagement and new value development to implement an organizational change. Second, the company plans to introduce new services to its small business and consumer customers. A strategic shift from a traditional – selling to a “customer intimacy’ model will improve customer loyalty and increase sales. Intersect Investments recognizes to successfully lead the company through the restructuring efforts will involve strategy and focus change. Finally, the company needs new leadership to lead the organizational transformation necessary to reverse their declining performance and ensure the company's success in the marketplace.

Major Implications for the Company

Organizations encounter many different forces for change. These forces come from external sources outside the organization and from internal sources. Awareness of these forces can help managers determine when they should consider implementing an organizational change. Let us examine the external and internal forces for change (Kreitner & Kinicki, 2004). External forces include demographic characteristics, technological advancements, market changes and social and political pressures. However, Intersect motivation to change was centered on internal forces in human resources and managerial behavior. Intersect was suffering from absenteeism, high turnover, low productivity, and job dissatisfaction. Excessive interpersonal conflict between managers and their subordinates is a sign that change is needed. Inappropriate leader behaviors such as inadequate direction or support may result in human resource problems requiring change. For an example, Intersect had to replace the Executive Vice President of Marketing and Sales for not supporting the company's new philosophy because he failed to lead his organization in following the new approach. Another major implication facing Intersect strategic vision and change could cause an ethical dilemma. Today's managers are criticized for emphasizing short-term, quick-fix solutions to organizational problems. When applied to organizational change, this approach is doomed from the start. Quick-fix solutions do not really solve underlying problems, and they have little staying power. Researchers and managers alike have thus tried to identify effective ways to manage the change process (Kreitner & Kinicki, 2004). [Triple click anywhere in this sentence to begin typing.]

Change Model

Company’s sense of urgency for change within an organization is the first element of the process of change. It is difficult at times when organizations are doing well, however; customers also drive change. There are external forces that drive change. These elements include demographic characteristic, market changes, technological advancements, and social and political pressures. Organizations are also affected by internal forces of change. This includes human resource problems such as job dissatisfaction, productively, absenteeism, and employee turnover. Managerial behavior and decisions contribute to forces that drive change.

Kotter's change model is used as a guide to address human variables and potential resistance to change. Kotter's eight-stage process for major change also, addresses contingency strategies for managing any resistance. 1)