Lester Electronics

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).

Intersect’s 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