Problem Solution: Intersect Investments

Running head: PROBLEM SOLUTION: INTERSECT INVESTMENTS

University of Phoenix

MBA520: Transformational Leadership

Patricia Neu

June 4, 2007

Problem Solution: Intersect Investments

Since September 11, 2001, Intersect Investment has struggled as many other financial firms have in a climate that has been chaotic and inconsistent. Many investment firms are combating this challenge by changing the services offered or expanding them to attract more customers. Intersect’s chief executive officer Frank Jeffers recognized that his company would have to change the way it conducts business if it is going to regain its footings competitively and secure a place in the future of the financial services industry. This paper serves to outline the overall strategy put in place by Intersect to ensure that the best possible solutions are implemented. It summarizes the specific organizational issues and opportunities that exist at Intersect as well as a synopsis of the various shareholders and their interests. Included is an outline of Intersect’s vision after identifying its organizational problems and resolving all conflicts and ethical concerns between various groups. An analysis of each of those alternative solutions considered and its risks is also provided. Finally, this paper describes Intersect’s plans to progress the company toward its vision by detailing the optimal solution chosen, outlining the implementation plan and evaluating the results.

Situation Analysis

Changing the vision/strategy presents some very interesting challenges. To deal with these challenges, Jeffers has to make some tough decisions. He has already replaced the Executive Vice-President (EVP) of Marketing and Sales who was not supportive of the new vision. A new EVP is expected to improve Intersect’s brand image and build the customer relationship stronger. Both of these improvements should generate a positive impact with Wall Street analysts by building a stronger loyalty base.

Jeffers and the leadership team must stay focused on the end-goals and develop a process of key actions to ensure they achieve the target. The group must recognize its critical issues, identify various alternatives for possible solution, assess the potential risks/consequences of each alternative and finally, select the best alternative for addressing the situation. The process should also include an evaluation of the company’s strengths, weaknesses, opportunities and threats to ensure that all critical problems have been addressed in the problem study.

Issue and Opportunity Identification

Intersect Investment has been successful in the past, ranking number three in the financial industry until recent years. The good news for Intersect is that the company has not been slandered in the financial sections for “trust issues” as other companies have. The bad news is that the company does not yet have the reputation as being a “trusted advisor” to its customers. Confidence in this organization’s ability to survive on Wall Street is waning and there is some question as to the company’s ability to rebound.

A number of issues are identified. From a business perspective, Intersect notes a decline in customer base, lacking confidence from Intersect’s customers, decrease in company profitability and a drop in status amongst industry leaders from its number three position. Internally, there is a heightened concern and lacking confidence from the company’s employee-base about the new direction the company is going and its ability to succeed. Turnover rates are very high compared to historical trends at Intersect. There is also discord from the senior management group, many of whom have not bought into the company’s new vision. This adds further to the issues at hand since the new EVP Angelo only has 12 months to develop a customer-relation program. Angelo must quickly familiarize herself with the company’s culture, its strengths and weaknesses, its core customer base and the company’s product offering if she is going to build a successful customer intimacy