Introduction
The financial world has been in constant shock since the events of September 11, 2001. Companies have been struggling to keep their market position, or at least, not lose much of it.
The company we are going to talk about, Intersect Investments, is a finance company that deals with helping people manage their money the best way possible. Since the financial market has been shocked, and the image of the companies in it also, customers have gradually begun to lose their trust. This has been gradually happening to Intersect Investments also. So, now the company is in an uncomfortable position that needs to undergo reform in order not to perish from the market.
Unfortunately, as it is like with any reform, there are easy things to do and harsh things to pursue. It will require good leadership and much professional talent to make the company pass successfully this situation.
Situation Analysis
Issue and Opportunity Identification
In order for Intersect to become one of the three leading companies in the market, it has to impress Wall Street. By this is meant that it has to attract investors that will invest their money in the company. The first thing that investors are going to see is the leadership of that company. If the leadership is well known as having a high level of integrity and a good public figure then it is a plus in attracting investors because they “believe” in the business sense of the leadership. But if the leadership, for example, board executive members of Intersect, has not had a very positive reputation this might make investors worry about investing their money in this company, thus damaging the company’s liquidity. The fact that the company had to change its marketing and sale executive vice president, is not a positive message sent to the market and potential investors. Also, if we add the fact that the last person to be in that role resigned due to his controversies with the company’s CEO regarding the new strategy to be pursued by Intersect makes things look even worse. But the other fact that onboard has come a very energetic and talented professional, like Janet, plays a positive role in rehabilitating the situation and gives an opportunity for the times ahead.
The other issue to be affronted is that of the relation a company has with its working force. This is a crucial point for its wellbeing (Simon, 2006, pg. 1). If the managing staff of the company, along with its workforce, are motivated the productivity of the company will boost. But when a plan that can, or will, affect the workforce is deployed it is better to communicate with them in order to have their feedback. In our case, the plan that the company has for its future will affect the workforce negatively. There will surely be new tasks to be added for the operators and it is possible to have a wage reduction at the beginning due to the changing of the company.
Thus, it is important to communicate fluently within the managing staff and develop strategies that will retain the above medium workforce morale and will minimize the negative effects that this can have on the company’s productivity.
Of crucial importance is the formation of a brand name and image on the market. Intersect already has a positive brand image so it may seem it has an easier job. The marketing strategy it will choose, along with all the other elements mentioned above, will determine its image and brand recognition among consumers. It is important for a company to kick-start the best way it can in the market so it can gain the biggest possible market share. Intersect can utilize all its previous positive brand names but it must also be cautious not to repeat the same mistakes others in the industry have done before it.
Stakeholder Perspectives/Ethical Dilemmas
There are different groups to be considered as stakeholders in this enterprise. The first group would be the very managing team and the workforce of Intersect. They risk having the company become less attractive for customers and investors in the market. This way they will have to cut some of their labor force or make them perform additional duties, as the current plan determines.
Another group of stakeholders would be the shareholders and investors of the company. These are the people that have put their money into the company and would like to see it successful and fruitful. If the company continues its recession in the market, it will be the one who will lose its money. It is natural that they press the managing staff that the company has more positive results and achieve that as fast as they can. Unfortunately, this pressure creates artificial stress to the managing staff and workforce of the company.
And the last stakeholder group would be the customers, the consumers of Intersect services. They are the ones who also put their money and trust in the “hands” of the intersect representatives. If the company does not do well, then these customers would be the first to suffer the negative consequences of the situation.
So the basic ethical dilemma here is how to be loyal and focused to your customers, meanwhile remaining focused and your shareholders and offer fair and good treatment to your workforce?
End-State Vision
The end state vision for Intersect would be that of achieving, at least, its primary objective of becoming one of the three leading companies in the market.
In order to achieve this result, it has to become a very attractive company for the investors in Wall Street. This way the company would ensure the necessary fluidity in cash and the potential to make future investments.
All of this can be achieved only if the trust of the customers is gained. And in order to gain that customer trust, the company has to increase its overall customer satisfaction. The situation in this respect has not been very good lately and the management staff is aware of that. They know they have to change a lot in order to turn their customer satisfaction high and gain their trust.
Gap Analysis
In fact, the situation at Intersect is not one of the best situations a company would like to have. They are in a regression type of situation. I use this concept because the company has been losing ground on the market lastly. It has been losing the market share that it already possessed.
There is an immediate need of balancing the finances of the company because it has been struggling lately to achieve a certain level of profits. If the financial situation is stabilized then it can begin to think about expansion.
The graphics and statistics shown at the management team meeting show that profits for Intersect have been decreasing over the last year. This should be coupled with some other things. As the graphic by Lynd shows, employee turnover has been increasing over the last two quarters and their wages have not been catching up with this increase in working time. Surely the situation among the workforce is not one of the best in regards to morale and incentives to give the best for the company.
The consequent graphic demonstrates that this situation has been resonating among the stakeholders, who are not feeling “happy” about the situation.
Last, but not least, the customers who have put their savings and belief in the devices of Intersect representatives, are, too, having their doubts about the company. They give much importance to trust and value and expect the company to meet their requirements. Unfortunately, the last period has not been positive in this respect for Intersect.
Conclusion
So, how to make things turn around for the company and make the Intersect position from head-down to head-up and rising?
It is the need to perform a radical reform in the way the company operates. The plan that the managing team has is a good one. Focusing more on individual care and intimacy, making the customer first above all, does send a very positive signal of trust and value to the customers. If the managing team achieves the desired result of re-gaining customer satisfaction then the problems related to the investors and shareholders would be eliminated. When investors see the customer satisfaction is back, they would support the company.
But, let’s not forget the key to success here. This “key of success” for the company is how it treats its workforce and the communication among the management team. Motivated, high morale, the workforce would be of great help to the company.
References
Miller, K. (2006). Organizational Communication: Approaches and Processes. 4th edition. McGraw-Hill Company: London & New York.
Simon, H. (2006). Administrative Behavior. 4th edition. Blackwell Publishing: London.
Gomez-Mejia, Luis R.; David B. Balkin and Robert L. Cardy (2008). Management: People, Performance, Change. 3rd edition. New York: McGraw-Hill.
Table 1: Issue and Opportunity Identification
Table 2: Stakeholder Perspectives
Table 3: End State Goals