Mary Schapiro’s job was to fix the SEC Essay

1.Kotters eight stepsAs already noted, the SEC was starkly exposed as ill-equipped to deal with the snake pit erupting across the globe. It was under strong criticism for the serious fraud of Bernard Madoff and the flop of W all(prenominal) Street stalwart Lehman Brothers. Accordingly, Mary Schapiro, a career regulator, was constitute the 29th chairman of SEC to save a languishing SEC. She varyd the commission they were doing things at the SEC including creating new-sprung(prenominal) structures, procedures, and programs to better address the modern financial foodstuffs as an urgent need to restore the credibility and public confidence in the SEC. This analysis is based on Kotters (1995) eight-step process for leading palmy convert. a.Establishing a sense of urgencyThe chairwoman argues that urgency is critical. Schapiro developed a deviate program with three priorities comprising internal assessment, investor protection guidance and mistakes acknowledgement. The tutelage was to turn the SEC to be a high functioning, agile and intelligent, and commit to investor protection and market integrity.b.Creating a guiding coalitionIn beau monde to able to manage the change process, she brought in new leadership and new senior team. The new leadership team set about retraining, skilling up and motivating the SECs talent module. In addition, the investor focused agendum was putting in place. The board and senior management and then all levels of decision making were required to pay attention to risk at all level of an enterprise. The whistle blower program was set up to detect securities violations. A final goal was to admit the mistakes that the SEC make under its watch. This is the first step in communicating the change vision.c.Developing a vision and strategyA vision was created to help direct the change effort, that was, to build a high functioning, agile and intelligent, and committed to investor protection and market integrity agency.d.Communicatin g the change visionIn order to communicate the change vision, the chairwoman developed an open way communication in which all staff and bankers could directly discuss with her.e.Empowering broad-based actionsThe SEC critically trained their staff to become certified fraud examiners. The organisation was re incorporate by removing the whole grade of management sending those to the frontline putting thousand staff to different focus groups such as corrupt foreign practices, insider trading, market manipulation and structured products. In addition, the SEC also set rules for over the counter and plus backed securities, hedge funds and examination program.f.Generate short- term winsMonetary settle with and safe avenue were offered to whistle blower as a way to encourage people to detect securities violation as part of the change program. Fine was charged to financial institution (Goldman Sachs) due to misleading investor owe securities.g.Consolidating gains and producing more ch angeh.Anchor new approaches in the futureThe change in spite of appearance the SEC was continually anchored for several years after the change commenced.