Mary Schapiro’s job was to fix the SEC Essay Example for Free

Mary Schapiros job was to fix the arcsecond Essay1.Kotters eight stepsAs already noted, the indorsement was starkly exposed as ill-equipped to deal with the chaos erupting across the globe. It was under strong criticism for the serious fraud of Bernard Madoff and the fail of Wall Street stalwart Lehman Brothers. Accordingly, Mary Schapiro, a career regulator, was appointed the 29th chairman of SEC to save a languishing SEC. She variety showd the way they were doing things at the SEC including creating youthful structures, procedures, and programs to better address the modern pecuniary markets as an urgent need to restore the credibility and public confidence in the SEC. This analysis is base on Kotters (1995) eight-step process for leading successful change. a.Establishing a sense of necessityThe chairwoman argues that urgency is critical. Schapiro developed a change program with three priorities comprising internal assessment, investor protection focus and mistakes ackn owledgement. The mission was to change form the SEC to be a high functioning, mobile and intelligent, and committed to investor protection and market integrity.b.Creating a manoeuvre coalitionIn order 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 staff. In addition, the investor focused agenda was putting in place. The board and senior management and whence all takes 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 rapines. A final goal was to withdraw the mistakes that the SEC made under its watch. This is the first step in communicating the change mint.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 marke t integrity agency.d.Communicating the change visionIn order to communicate the change vision, the chairwoman developed an openway communication in which all staff and bankers could directly argue with her.e.Empowering broad-based actionsThe SEC critically trained their staff to become certified fraud examiners. The organisation was restructured by removing the all layer 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 everywhere the counter and asset backed securities, hedge funds and examination program.f.Generate short- term winsMonetary reward and uninjured 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 mortgage securities.g.Consoli dating gains and producing more changeh.Anchor new approaches in the futureThe change within the SEC was continually anchored for several(prenominal) years after the change commenced.