Intuit\'s New CEO: Steve Bennett in Many

Intuit's New CEO: Steve Bennett

In many ways, Intuit was a classic entrepreneurial success story. Seventeen years after its founding, the company reached $1 billion in sales, was solidly profitable, and its stock price was 40 times FY 2000 earnings. Evaluate the state of Intuit's development prior to Bennett's arrival in early 2000 using the frameworks described in Models of Organizational Growth and Evolution (stages of organizational growth; pyramid of organizational development, the eight hurdles model). What hurdles have they successfully cleared? Where have they stumbled?

Evaluation of the state of Intuit prior to the arrival of Steve Bennett can be in the form of the organizational development and evolution models. This would determine the level or degree of success in relation to the strategies and objectives of the company. The first model to apply in the examination of the situation of Intuit within the economy is the stages of organizational growth.

Stages of Organizational Growth

This model of evaluation involves the application of three stages of organizational growth. The first stage is the Chaos or chaotic scenario in the development of the business organization. It is a situation when there are unclear policies and procedures in relation to the movement or growth of the business. During this stage, there are shifting priorities, lack of clear direction, goals, and objectives. In the development and growth of the Intuit Company, the first stage represents the point at which the founder or the owner was planning to start the business. The company had minimum funds to facilitate its operations and expand its production. This scenario was the foundation of the organization on the run to the rapid development and growth (Bonham, 2008).

The second stage of organizational development is the stability era. During this stage of organizational development, the company clearly outlines its priorities, goals, objectives, and strategies. In relation to the growth and development of Intuit prior to the arrival of Bennett, the company manages to obtain enough funds to stabilize its operations and production levels. The company decides to operate on clear objectives, specific market segmentation, and satisfaction of the needs of clients or consumers. This allows the organization to increase its revenues while minimizing the cost of production. This is the ideal scenario for rapid growth and development within the market and the industry (Bonham, 2008). The experience of stability by Intuit Company is the main reason behind the development or transformation of the industry to the multi-dollar organization. The company manages to maintain its employees over long time thus development of culture that can clearly associate with the organization. Stability and culture operate closely to drive the company towards transformation.

Stage three of the organizational development is the high performance period. During this stage, the organization highlights on how to improve performances or service and product deliveries in relation to the consumers. Intuit Company decides to carry out extensive market research to determine the needs and preferences of the consumers. This allows the organization to control a large share of the market. The company enhances its performances through the culture, knowledge of the market and commitment to the mission, objectives, and vision of the organization. Intuit Company experiences high performance stage by application of top management benefits from the founder or chairperson of the organization. This management benefits transfers to the lower ranks thus enhances the chance of the organization to grow and develop rapidly. The Company in context (Intuit Company) understands the importance of high performance concerning rapid growth and development (Bonham, 2008).

Pyramid Organizational Development

Organizational development represents the opportunity by which the firm or organization plans and implement relevant changes in the entire capacity of the business with the aim of increasing its effectiveness and profitability levels. This involves have the priority of the organization as one body thus planning for future growth of the company. The pyramid of organizational development model involves the use of six key levels or stages crucial to the long-term success of the company. The six levels represent key stages and issues the company must implement or oversee in the process of growth and development (Blythe, 2005).

The first level of the pyramid of organizational development is the identification and illustration of the viable market to operate or conduct business operations (Blythe, 2005). The success of an organization depends on how effectively and efficiently it identifies the market or audience to deal with. Intuit Company clearly identifies its audience and conduct extensive research on how effectively to serve the needs of consumers. This level of the pyramid of organizational development by Intuit Company offers the crucial competitive advantage thus illustration of the way to the top (rapid economic and financial growth and development).

The second level of pyramid or organizational development is the products identification (Blythe, 2005). The products in the market must satisfy the needs of the audience or market coverage. The product of the Intuit Company (Quicken Software) controls large share of the market because of its capacity to satisfy the needs of consumers. Intuit Company focuses on satisfaction of the needs of the market or consumers. This is through extensive market research thus the company clearly understands the needs of consumers and how effectively and efficiently to serve them in order to maximize the profit levels.

The third, crucial aspect of the pyramid of organizational development is the available resources to facilitate the operations of the company (Blythe, 2005). Resources available at the disposal of the company determine the level of success in relation to rapid growth and development. Intuit Company decides to solicit finds necessary for the development of the organization during initial stages of growth. This revolves around personal wealth, generation of funds through promotions, and contributions from other parties. The company acquires enough resources to execute its plan hence experiences the rapid growth and development prior to the arrival of Bennett.

Operational Systems represent the fourth, crucial element of the pyramid of the organizational development (Blythe, 2005). This element determines the capacity of the organization to offer enough support to its daily operations such as attending to their consumers. Intuit Company applies effective, operational systems to obtain competitive advantage over other players within the market. Customer care programs work effectively towards attraction of new audience while maintaining the actual clients of the organization. This strategy allows the organization to experience rapid growth and development.

Another important element for success is the management system (Blythe, 2005). Intuit Company enjoys the benefits of effective and efficient management system. The management system of the company functions towards planning and execution of strategies to the long-term growth and development within the market structure. The management system by the owner of the organization offers the crucial aspects necessary for rapid growth and development.

The last essential element is the culture (Blythe, 2005). Culture operates toward development and growth of the organization. Intuit Company notes the importance of culture in relation to development thus applies the culture of the organization in addressing the needs of consumers. This allows the company to maximize its profits while expanding its market coverage thus the rapid growth and development prior to the arrival of Bennett.

The eight hurdles model

In the process of development of the business entity, it is crucial to overcome the presence of eight hurdles. The first hurdle represents the need to identify strategic direction and enhancing the focus on the main objective. Intuit Company excels in passing the first hurdle since the main strategy of the company is to serve the needs of the consumers through effective and efficient means. This allows the company to obtain competitive advantage over other competitors within the market. The second hurdle involves positioning of services and products within the expanded market. The first product of the company (Quicken) controls large market share because of effective positioning within the competitive market. Intuit Company excels in overcoming this hurdle towards achieving the rapid growth and development. The third hurdle or challenge to the organization is to maintain the audience or market targets. Intuit Company excels in overcoming this hurdle by conducting extensive market research. The aim of the research is to identify how effectively and efficiently to address the needs of consumers. This allows the organization to apply its culture in maintaining their increasing consumers (Mosley, 2011).

The fourth hurdle towards development is the construction of the management team to oversee operational activities of the company. Intuit Company overcomes this hurdle by adoption of the management team under the direction of the Chief Executive Officer (CEO). The company also identifies crucial board of the director to run the activities in relation to the development of the company. The fifth hurdle represents the development of effective infrastructures. This acts towards enhancement of the activities within the context of the company. Intuit Company tries to overcome this hurdle through application of networking services to enhance its interactions with the consumers. The sixth hurdle is the construction of effective and efficient financial capability. At the initial stages of the development of the company, Intuit Company has trouble in coping with the financial needs of the market. After crucial strategies, the company is able to overcome the hurdle through controlling of large shares of the market. The sixth hurdle is the development of appropriate culture (Mosley, 2011). Intuit Company develops effective and efficient culture in relation to how the organization interacts with the consumers. Overcoming this hurdle allows the company to maintain the actual consumers while attracting potential clients. The last hurdle that proves difficult for the company to overcome is the management of risks and vulnerabilities. This affects the company in the late 1990s.

Some have argued that there is a qualitative difference between an entrepreneurship and a professionally managed firm regardless of size. Would you characterize Intuit as a billion dollar entrepreneurship or a professionally managed firm or somewhere in between at the time of Bennett's arrival in early 2000? Provide specific examples to support your conclusions.

Entrepreneurship is the act or practice of starting a new organization or refreshing mature business entities in relation to identification of fresh opportunities. Entrepreneurship proves to be difficult since most of the business entities fail in their attempts to acquire the benefits of new opportunities (Bygrave, 2011). Entrepreneurship varies depend on the structures and culture of the organization. Professionally managed firm represents the company management system where ownership and management are distinct, and competence comes before loyalty. Accountability is crucial to the implementation of professionally managed firms. All employees are accountable for the responsibilities and roles. This follows extensive monitoring system delivery of feedback to curb discrepancies that occur because of manual errors (Tansky, 2006). Intuit Company classifies as a million dollar entrepreneurship because of the introduction of Bennett and the changes following the arrival of the new CEO. Bennett starts by restructuring the human resources system through elimination of the layer of vice-presidents. This is one of the characteristics of the entrepreneurship business entity. The new CEO sees the need to revise the structures and hierarchy with the aim of obtaining benefits of the opportunities. To prove further that Intuit Company is a million dollar entrepreneurship, Bennett upon his arrival restructures the form of communication. He minimizes the effect of collective responsibility but adopt the new model of individual responsibility. Bennett also saw the need to change the reviews of operation processes and budgetary system within the traditional Intuit Company. This is an illustration of entrepreneurship model of business entity. Bennett also in the process of restructuring the company oversaw replacement of one value and several meanings attached to the existing value and culture of the company. This represents overhauling or improving the condition of the company with the aim of maximizing the profits and benefits of the new opportunities. Intuit Company has some elements of professionally managed firm through application of accountability, competence, and transparency activities. This indicates that the company is somewhere in between entrepreneurship and professionally managed firm.

Steve Bennett made numerous changes in his first eight months on the job and has plans for more in the near future. Evaluate each of these changes in view of what you have learned in this course. Is Bennett on the right track? Have some of his actions had unintended consequences? Was the pace too fast or too slow? What risks do you see in his approach? What major challenges lie ahead? What kind of company do you expect Intuit to be by 2003?

The change upon the arrival of Bennett (The New CEO) was on restructuring the organizational system. In order to maximize the opportunities of the, Bennett oversaw the reorganization of the company. The new CEO favors the 16 direct reports to the original three senior vice presidents reporting to the CEO. This approach of change is on the right track since it offers exclusive information on all aspect of the company. The approach enhances the monitoring process hence effective and efficient evaluation of the business entity. To supplement this change, Bennett oversaw the restructuring of the communication system. This was on passing information to other employees on the termination of contract of the senior employees. The short form of e-mails enables the organization to save time and resource. The approach might have the unintended result in the form of lowering the morale of other employees. This is because; they would feel unappreciated for their efforts within maximization of the profit levels of the company (William, 2004).

The second significant change upon the arrival of Bennett is on operating reviews, wall streets, and budgeting systems. Bennett saw the need to inform the Wall Street entity that the company (Intuit Company) was underperforming (William, 2004). This approach towards maximization of new opportunities allows the company to implement its strategies in meeting the set goals and objectives. The approach should act as a motivational tool towards achievement of the goals since there is room for improvement. Bennett also oversaw the changing of the review process to allow leaders to set expectations and ensure that they are on the right track towards achieving the targets. Previously, review process was like team building activity. The new approach enhances the focus of the leaders on meeting the set demands hence effective towards the development of the company. The risk of its implementation might result from back clash from employees who might feel alienation to the job or responsibilities. The other change was on the revision of the budgetary system. The aim of the introduction of the zero-based budget was to motivate employees into being accountable for their actions and responsibilities. Employees must be accountable for the implementation and accumulation of funds in the process of executing their roles. This makes it necessary to refreshing the company in order to maximize the benefits of the opportunities within the market settings. This approach of change indicates that Bennett is on the right track while trying to improve the condition of the Intuit Company.