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Gap Analysis Intersect Investment

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Running head: GAP ANALYSIS: INTERSECT INVESTMENTS

Gap Analysis: Intersect Investments

Melinda Valinski

University Of Phoenix

Gap Analysis: Intersect Investments

The Financial Industry is one that is often unpredictable. Intersect Investments has managed to survive through the instability of the industry. After experiencing a decline in sales and customer satisfaction, CEO Frank Jeffers realized the need to make a drastic change. Jeffers chose to transform the company in an effort to recover from the recent losses. The new vision is one that will expand products and services while increasing customer loyalty. The new culture will be based on a model of customer intimacy. In their efforts to change, Intersect Investments has come across obstacles within its infrastructure that could negatively impact the company goals if not resolved immediately. Once resolved, Intersect Investments will be on the way achieving stability in an industry considered to be chaotic.

Situation Analysis

Issue and Opportunity Identification

Intersect Investments has had the opportunity to succeed through times of uncertainty. Continued success will be dependant on a complete cultural transformation. The aggressive 12 month transformation plan has been approved and it is now necessary for the current culture to adapt to the new vision. With change comes resistance. Intersect Investments is experiencing resistance from the directors of the company. The directors are avoiding the new vision and focus on what they personally feel will improve sales performance.

The management’s resistance to change is creating problems with the new vision because the directors are not implementing any of the changes in support of the new initiative. The directors have expressed the feeling that the commitment to the customer intimacy model would have the opposite affect of that which is intended. Companies that follow the customer intimacy model generally look towards the customer’s lifetime value (Treacy & Wiersema, 1993, p. 87). Resistance to change is an emotional/behavioral response to real or imagined threats to an established work routine (Kreitner & Kinicki, 2004, p. 685). In order to overcome this resistance it will be necessary for Intersect Investments to implement change strategies.

Intersect Investments must first make the effort to understand the reasoning behind the resistance exhibited. Once the resistance is understood strategies can be implemented to overcome the obstacle it presents. Participation and involvement will create a sense of worth for the directors. The change was approved without the involvement of the management team which created the resistance. Cultural change initiatives have little positive effect if the top and senior managers do not embrace the need to actively engage in the process from the beginning (Alimo-Metcalfe & Alban-Metcalfe, 2005, p. 35).

Although trained on the new vision, the employees feel as though they have no real knowledge of why there is a change in the direction of the company and how it will impact them. The management staff will need to educate the employees through feedback. Experts say feedback is instructional and motivational. Feedback instructs when it clarifies roles or teaches new behavior (Kreitner & Kinicki, 2004, p.326). It is necessary for the company to clarify the role of the employee and how what a great impact their acceptance of the change will have on the new direction of the company. 360-degree feedback will enable the company to determine whether or not they are on the right path for change.

To avoid a delay in progress, the CEO and leadership staff needs to create a sense of “we-ness” and recognize that they would not be able to achieve success by acting separately (Kreitner & Kinicki, 2004, p.459). Developing this level of mutual dependency is called Instrumental Cohesiveness. Without a sense of cohesiveness the leadership team will continue to be at odds, blocking any chance for success. The company’s Sales and Marketing groups are at odds with each other. Each group blames the other for the inconsistencies of the past and loss of revenue.

Creating an adaptive culture will enable the staff to realize the changing needs of society and change the path of the company to accommodate those needs.

Stakeholder Perspectives/Ethical Dilemmas

All firms have a corporate responsibility to act

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