Gap Analysis: Intersect Investments
In late 2001, the financial services industry started facing problems due to external forces which were out of control from companies’ managers who can not control the social and political pressures the market is receiving from customers and Wall Street. Leaders needed to develop strategies to be able to maintain the companies competitive in the new external scenario the industry was having. Intersect Investment is a company which was not exempt of this situation and leaders of the company had to take action on how to recover the lost trust from base customers and have a profitable company in the market. Frank Jeffers, CEO of Intersect Investment, developed a new company vision which was not supported by all staff members as the companies’ organizational culture was not faced on the customer needs. The new vision required a change to focus on the customer and not the sale numbers, situation which cause some employees to show resistance to the change. The Executive Vice President of Marketing and Sales was not supportive on the new philosophy, so CEO using his legitimate power had to let go the manager from the company. “Legitimate power is an agreement among organizational members that people in certain roles can request certain behaviors of others” (McShane & Von Glinow, 2005, p. 360) CEO needed a new manager which believed in the new vision and Janet Angelo was hired to help Frank Jeffers implement the customer intimacy model at Intersect Investment.
Due to the resistance, CEO had to let go from the company the Executive Vice President of Marketing and Sales as this person was not supportive on the new vision and CEO using his legitimate power decided for the best of the company.
Situation Analysis
Issue and Oppo ...