HODL 3274

LINDSEY JENNETTE &

LEILA SHAHINE
WELLS FARGO'S
BACKGROUND
Founded in 1852 in New York City.

Founders Henry Wells and William George Fargo started

the banking company due to the California Gold Rush

creating the need for people to have access to money

anywhere in the country.

Wells Fargo has approximately 7,200 branches in 31

countries with over 250,000 employees.

In 2020, Wells Fargo had $1.92 trillion in assets and

ranked 30th on Fortune’s 500 list of America’s largest

corporations
 Our Philosophy
"We're proactively enhancing our security to help protect your
accounts and information. We also empower you with security and
privacy options so you can choose what's best for you."

Our Mission Our Vision Our Goals

Regain trust from our Aim to serve

Enact a restructuring
customers and customers at the
program
strengthen our reputation highest standards
WELLS FARGO SCANDAL
Wells Fargo’s most notable scandal ran from 2002 to 2016,
where employees were pressured and rewarded for opening
upwards of 3.5 million unauthorized credit cards and
checking accounts.

The pressure to meet unrealistic sales targets reflected

mismanagement on multiple levels throughout the
company.

They were ordered to pay $185 million in penalties and fines

in 2016 for creating the unwanted accounts.

To make amends, they contacted some 40 million customers

and paid tens of millions of dollars in restitution.
Florida Branch Manager

"I so pressured to hit

daily quotas that I was
required to do hourly check-
in calls with my regional boss,

FORMER
and employees were forced
to stay late, work weekends,
or receive threats of being
fired if quotas were not hit"
EMPLOYEES'
STATEMENTS Employee at San
Francisco Headquarters
"We were forced to continue working and
making calls just minutes after the branch
had been robbed, and police were still
conducting an investigation. The immense
pressure and rigid expectations led to
people feeling as if they had no choice but
to manipulate customers and, in many
cases, break the law in fear that they
would lose their jobs."
 RECOVERY
ACTION STEPS
Reemphasized corporate values

Helped them regain trust amongst

the government and their customers

Reduced management levels and began

working with regulators

They brought in a new CEO and added staff

in to make their management more ethical

Implement a new customer-centric focused

system
"We did away with our high-pressure
product sales targets"
 PROSCI'S ADKAR MODEL
Awareness Desire
Of the need for change: To participate and support
-Why? the change:
-Why now? -WIIFM
-What if we don't -Personal motivators
Organizational motivators

Knowledge Ability Reinforcement

On how to change:
-Within context
-Need to know during
-Need to know after
To implement required To sustain the change:
skills and behaviors: -Mechanisms
-Size of K-A gaps -Measurements
-Barriers/capacity -Sustainment
-Practice/coaching
AWARENESS
What went right What went wrong

Hired a new CEO from the outside Avoided blame for many years and

Before any major changes were made instead continued running ad campaigns

new CEO Charles Scharf wanted to highlighting their trustworthiness

understand the company's strategies Waited many years to address upper-

first level management's hand in the scandal

Fired any whistleblowers who wanted to

address the unethical strategies

DESIRE
What went right What went wrong

CEO Charles Scharf used his leadership The implementation of a new CEO and

to take time in understanding what the "customer-centric focused" approach

employees want and how they can was not enough to get cusotmers to

benefit from the company's original desire bringing their money into the

mission bank

Wells Fargo developed a new strategic Raised wages in an attempt to

execution and operations unit that works compensate for the stress employees

with regulators to gain the trust of were under, but this backfired

employees back It instead made employees feel like

KNOWLEDGE
What went right What went wrong

They reduced the number of regions Employees and customers were left in

financial advisors worked with from 21 to not knowing that reimbursement was

14 to help them have the opportunity to still unpaid, creating more lack of trust

work more personally with customers in New marketing campaigns aimed at

their region restablishing the company's

This also helped reduce the chances of trustworthiness were not acknowledged

another scandal popping up because

ethical management could have the

knowledge to oversee much better

ABILITY
What went right What went wrong

They redefined company culture and took Although they implemented the

away the unattainable sales targets, "customer-centric focused" approach,

allowing employees to feel less pressured employees still claim seeing colleagues

Set up a hotline that would take bending rules to hit target.

employees potential future concerns

without them risking being fired

REINFORCEMENT
What went right What went wrong

Implemented an approach that would Office culture within some of the

allow the voices of all levels of company's branches still possess a level

management in executive meetings so of fear, showcasing that not every office

changes could be maintained is being runned ethically

The hotline allowed people to be held There still is an unbalanced

accountable interaction amongst upper-level

management and lower-level

employees.
 RECOMMENDATIONS

Create Sustainable
Seek Input
Goals
Expand whistleblower Bridge hierarchal
& promote grievance gaps
policies

Increase Employee Restructure

Collaboration Leadership
Create overlap in
Interaction
executive positions &
between all levels
take feedback
THANK YOU
QUESTIONS?