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Problem Solution: Intersect Investment Company

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Situation Analysis and Problem Statement

The 9-Step process is used to assess a situation and provide possible solutions. The process includes a risk and benefit assessment for planning purposes. This paper will focus on all 9 steps of the process. Step 1 is to look at the situation and properly identify the situation. Step two is to write a problem statement, a concise, 25 words or less statement of a specific issue to be addressed. The third step is the end-state goals. The end-state goals are used as a measuring tool to determine if the process was successful. Steps 4, 5, and 6 look at the alternative solutions proposed. This gives the solutions and then identifies the risk assessments for each. Step 7 is where the optimal solution is narrowed down. Step 8 gives implementation data and 9 ways to have a measurement of success or failure.

In this situational analysis we are reviewing a company, Intersect Investment Company. This company is representative of many small money management firms in the United States. It is important to look at the history of the company to make an informed, educated analysis of the situation. . In the article "Corporate transformation without a crisis," Day and Jung list these three questions; why does this company need this? Where is this company heading? How is the company going to reach its goal(s)? (Day and Jung. 2000)

Situation Background (Step 1)

Why does this company need this? Intersect Investment Company admits the financial services industry has been in a constant state of flux, never certain, always chaotic. The volatile climate has left many financial firms struggling to keep both their clients' trust and Wall Street's credibility.

Where is the company heading? To succeed, investment companies need to offer an ever-expanding array of up-to-the-minute products coupled with expert advice. In the past four years, Intersect Investment Services has at times barely managed to survive, but resisted making a drastic, strategic shift.

How is the company going to reach its goal? A year ago, Intersect CEO Frank Jeffers identified a 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." (Scenario: Intersect Investment Company Overview)

Issue Identification

Intersect Investment has clear and identifiable issues which must be looked and addressed for a successful transformation. It is not easy to analyze the business when the situation is not an emergency. Intersect Investment must take the opportunity to address the issues now while they appear to be small.

* Transformation will not come easy.

* The CEO Frank Jeffers wants this to happen in 12 months, short time span

* "Stuck in the mud" mentality

* sales employee turnover is up 25%

* customer satisfaction has declined by more than 10 %

Opportunity Identification

The identified issues can be viewed as opportunities. The CEO has clearly identified the opportunities he expects to gain from the process. Opportunities such as;

* Branding of the Company's reputation as ethical.

* Gaining the trust of Wall Street

* Reorganization of the company

* Gaining the trust and support of customers

* Becoming a leader in the financial services industry

Stakeholder Perspectives/Ethical Dilemmas

Current staff is essential key stakeholders in this transition. The staff that has been with the company for many years can play crucial roles in mentoring lower ranking staff along the way. Change is hard for any company and team to endure. It is especially hard when the team does not feel like there needs to be change. Scholars Jung and Day speak of the difference.

The most common approach to a large-scale transformation process involves central definition and management. That approach sometimes works in a crisis. To prevent the threatened closure of a factory, its workers may well accept draconian staffing cuts. To save a company from a hostile takeover, managers may allow core businesses to be sold. But without a crisis, these prescriptive methods run into trouble, for the shared conviction that permits a company to endure setbacks and complications can't be centrally imposed.

Current and new customers are also key stakeholders in the transformation. The company must ascertain how the change will affect the customer base in existence. Will they feel appreciated or passed over?

Problem Definition (Step 2)

A problem definition starts with understanding the history, issues and opportunities of the current dilemma. A problem statement for Intersect Investments could be presented as such. Intersect Investment Company must transform its model and methodology of customer service to obtain, maintain and regain a satisfied and stable customer base.

End-State Goals (Step 3)

The End-State Goals are a futuristic look at how it may be, should they wave a magic wand and all pieces come together. This is what success would look like when the process is complete. Intersect Investment's magic wand would provide several end-state goals in which to measure their success by.

* Improved brand image

* 12 month timeline adhered to for transformation

* Increased customer loyalty and satisfaction

* Increased customer base

* Increased sales

* Decreased employee turnover

* Increased status in the financial services industry

Alternative Solutions and Benchmarking Validation (Step 4)

The topic research that was conducted was done to identify companies that were faced with similar situations as Intersect Investment Company. The topic research provided information from companies in different industries that overcame issues that Intersect Investment is currently dealing with, for example implementing a paradigm shift toward a customer centric operational model. Furthermore, by researching these topics the team was



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