Intersect Investments Gap Analysis

Gap Analysis: Intersect Investments

In the years following the terrorist attacks on September 11, 2001, the financial sector has seen days like never before in history. Companies in this industry have been fighting tooth and nail to stay afloat and realize profitability. This calls for more innovation on the part of the CEOs and senior management to be able to stay ahead of the game. Intersect Investment Services is no exception and the CEO, Frank Jeffers, has come up with a new vision in order to lead Intersect to greater heights; “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, 2007). This vision is also geared towards gaining more credibility on Wall Street. In adopting this new vision, Intersect will have to undergo a radical organizational change within a short period of time and it needs to be as smooth as possible, which is easier said than done.

Situation Analysis

Issue and Opportunity Identification

Intersect Investment Services is one of many companies in the financial services sector that has been going through rough times. This situation has led to many companies struggling to survive in the cutthroat business world. Maintaining the current clientele and gaining Wall Street’s confidence is a hurdle for most of these companies and in order to overcome them, they need to offer an array of new products to their customers and at the same time, be able to service the existing products and offer sound advice.

Intersect has barely managed to stay afloat over the last few years and finally the CEO, Frank Jeffers, decided it is high time that Intersect changed its tune and implement drastic changes to match the new vision: “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, 2007). If the new vision is implemented successfully, the end result will increase sales, the client base and improve Intersect’s overall image in the financial services sector. The drastic changes called for to implement the new vision will mainly affect the sales and marketing department and will be implemented over a 12 month period. As with all changes, there is some resistance and the new Executive Vice President of Marketing and Sales, Janet Angelo, is bearing the brunt of it, receiving mixed messages and half the support she needs from the senior management. According to Kreitner & Kinicki (2004), resistance to change is defined as “an emotional or behavioral response to real or imagined threats to an established work routine” (p.23). The lead resistor at Intersect seems to be Lyn Chen, Vice President of Sales. Ordinarily, her subordinates echo her feelings on this and we therefore have the sales team not working towards the implementation of the new vision despite their training. Lyn Chen’s resistance is brought about by the fact that the model they have used for a long time is successful. It seems her motto is “if it’s not broken, don’t fix it’ which is totally unacceptable for a dynamic industry like the financial services sector, where change is inevitable. In light of this dissention, it is up to the CEO, Frank Jeffers, to take action and nip the resistance in the bud as has already happened with the former Executive Vice President of Sale and Marketing. He needs to enforce the new vision and ensure that whichever senior manager that does not show support, should be let go.

An evident issue at Intersect is the lack of communication and this is a contributory factor to resistance to change. In order for the organizational change to be effective and successful, there needs to be a good communication flow between management and the employees. Lack of good communication leads to mixed messages thus resulting in failure. According to Kotter’s eight steps for leading organization change, the one mistake that faces senior management is the lack of effective communication of the new vision. Janet Angelo and her senior management team need to reestablish an effective flow of communication within Intersect and explain to all the employees why the change is necessary and what the expected end result is.

Stakeholder Perspectives/Ethical Dilemmas

The stakeholders identified in this scenario, either directly or indirectly, include the management/leaders of Intersect, the employees and the customers. For the management/leaders of Intersect, it is their sole responsibility to ensure effective and thorough communication of the new vision, reasons, implementation and the employees’ roles, to the employees within the company. The communication of the goals is especially important in order to avoid any misrepresentation or confusion and thus gaining success from the onset. Effective communication can be implemented through use of available company resources like the intranet, bulletin boards, through both formal and informal meetings and also by using training sessions.

The other stakeholders identified at Intersect are the employees themselves. The employees have the right to a stable work environment and a sense of job security. Employee loyalty and sense of belonging are also enhanced when they are made to feel like a part of the organization. Communicating clearly to employees about the new vision and the organizational change, can quell resistance since the employees fully understand what is going on around them and what is expected of them during the transformation. The employees also feel comfortable in their work and do not waste their energy anticipating and spreading rumors about the unknown. The last group of stakeholders are the customers at large, both consumer and small business. The customers expect to be valued and also to be able to trust the advisors at Intersect. With Intersect thriving in the financial sector, the customers are more comfortable investing more and are more receptive to the company’s new products. The last thing Intersect wants is to lose business due to lack of commitment on its part, so their clientele have to be treated with exceptional professionalism and offered the best suited products for their investment needs.

End-State Vision

Intersect Investment Services is a company on the move and rearing to be the best of the best in the financial services industry. In order for

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