1. The Bank You Trusted is Busted
Jana Matulovic, Jaritza Ortega, Meri Nordström & Stefanie Dennig

2. Together We’ll Go Far

3. Background One of the biggest banks in the U.S.
Founded in 1852 by Henry Wells and William Fargo
Employes 270,000 employees and has 70 million customers
Headquarters in San Francisco but offices in 42 countries
Main services: banking, insurance, mortgage, investments and financial consulting

4. Wells Fargo’s Cross-Selling Sales Culture
Pressure-cooker cross-selling sales culture
Aggressive sales goals and mantras like ‘Going for Gr-Eight’, ‘Eight is Great’ and ‘Run it like you own it’
Incentive programs: ‘Jump into January’, ‘Fly into February’, ‘March into March’

5. The Crisis
Employees created millions of unauthorized bank accounts under existing customers’ names
Total fake accounts created: 3.5 million
The creation of the fake accounts generated $2.4 million between 2011 and 2015 for the financial institution
Average amount taken from customers: $24
Wells Fargo ordered to pay a fine of $185 million

6. Meanwhile in Court...

7. Questions to Consider
Taking on the role as part of the executive board of Wells Fargo, how should the following questions be addressed:
What should Wells Fargo do to mitigate the crisis?
How can Wells Fargo rebuild trust and credibility with internal and external stakeholders?

8. Alternatives: What should Wells Fargo do?
Two alternatives:
Internal reconstruction/ organizational changes
Corporate rebranding
Merger
Board work with SW-analysis
Strengths
Weaknesses

9. Alternative 1: Internal Reconstruction
Replace the CEO with someone already working for Wells Fargo
Fire the employees involved in creating the unauthorized accounts
Make changes to the company’s culture
Create a campaign around the new changes

10. Alternative 2: Corporate Rebranding
Replace the CEO with an executive from another reputable bank
Change the name of Wells Fargo to Stagecoach or Bank of San Francisco
Change the logo of Wells Fargo
Align culture with their new brand and image
Create a marketing campaign around the new brand

11. Alternative 3: Merger
Merge Wells Fargo with a company with a good reputation
Internal workshops between both companies
Align values, mission, and vision
Create shared knowledge through employee training

12. So what really happened?

13. Management Decisions
Firing of 5,300 “bad apples” over the course of five years
Replaced CEO John Stumpf with Tim Sloan
Culture change project
Commitment campaign
Building better every day campaign

14. Building Better Every Day

15. Key Learnings How a crisis might be avoided:
Openness with communication
Internal corporate communication
Transparent and healthy corporate climate
Understanding the components of corporate reputation: credibility, responsibility, reliability, and trustworthiness

16. Thank You!