Wells Fargo: Corporate Culture & Valuing Value over Profits
My wife considers me a bit of a news junkie, and we often find ourselves disagreeing on the nature and purpose of the news. Rightly so, too often, Emily argues that the news is simply a collection of stories highlighting everything that is sad and wrong in this world....
One of the news stories i've been closely tracking is the Wells Fargo debacle. Check out this ABC News Story for an overview. It's really a sad story and situation, and a seemingly horrible environment to work in. I'm fascinated at how Wells Fargo let their culture and work environment grow to the point where hundreds or thousands of their employees were deliberately creating fake bank accounts using customer accounts. I can only imagine, of course, how challenging it is to run a company the size of Wells Fargo. Recently, John Stumpf, the CEO who was at the helm throughout this crisis, resigned his position at Wells Fargo. Throughout the investigation, Stumpf has done his best to take responsibility, apologize, and promise to improve the company culture.
My question and my interest is focused around this question: How do companies or organizations maximize profits while maintaining a healthy culture and workplace? I believe I have the secret, and it's simpler than anyone thinks. John Stumpf must know it, although he struggled to let it permeate through the massive culture and environment of Wells Fargo. The answer is not in creating the best profit-driven, capitalistic culture which thrives off of employees competing and meeting sales or performance goals. Sales and performance goals are important, for sure. Profits are necessary, yes, especially in industries such as banking and finances. But that isn't what will create an environment and culture which will breed success, and encourage personal and corporate growth while establishing a culture of integrity and honesty. I believe what will create that culture and environment that Wells Fargo and every other company out there needs is the idea of valuing value over profit. It sounds confusing or strange, but it's really quite simple. Wells Fargo must see the value they bring to customers as their reason to sit at the desks every day. This must trump (no pun intended?) the drive of financial profits. If Wells Fargo senior leadership goes to work daily thinking of how they can bring value to their customers and the public at large, profits will follow. And of course there's a balance. A company can't live off of bringing value to customers alone without turning profits and making shareholders happy. But it's a foundational way of thinking which needs to start at the top of Wells Fargo. It's a way of thinking that needs to trickle down to their regional managers, branch managers, and bank employees. Wells Fargo doesn't exist to just make money. They exist to "satisfy customers' financial needs, and help them succeed financially" - as stated on their website's Vision & Values page. THIS must be the reason every Wells Fargo employee goes to work every day. It's as simple as ensuring that the company vision / mission is clearly defined and ingrained in the minds and culture of the entire organization. The idea that valuing the value brought to customers is more important than financial profits will actually increase profits in the long run, retain customers, create a healthier workplace, and improve employee longevity and health. It's a culture that's created over years. It'll take years for Wells Fargo to repair that culture and environment. Hopefully they've learned their valuable lesson.
If you're interested in a much more encouraging story of well known company which has figured out this no-brainer approach, look no further than Southwest Airlines and Gary Kelly, who by the way is an outspoken born-again Christian. Kelly says, “Southwest is a great place to work and brings the greatest joy because we have such meaningful purpose." I won't get into all the details, but Southwest has it figured out, and everyone who knows anything about company culture, the airline industry, or customer service in general knows it. Here's a story if you're further interested in Southwests approach to culture, values, and customer service, and why they're so ridiculously successful.
One of the news stories i've been closely tracking is the Wells Fargo debacle. Check out this ABC News Story for an overview. It's really a sad story and situation, and a seemingly horrible environment to work in. I'm fascinated at how Wells Fargo let their culture and work environment grow to the point where hundreds or thousands of their employees were deliberately creating fake bank accounts using customer accounts. I can only imagine, of course, how challenging it is to run a company the size of Wells Fargo. Recently, John Stumpf, the CEO who was at the helm throughout this crisis, resigned his position at Wells Fargo. Throughout the investigation, Stumpf has done his best to take responsibility, apologize, and promise to improve the company culture.
My question and my interest is focused around this question: How do companies or organizations maximize profits while maintaining a healthy culture and workplace? I believe I have the secret, and it's simpler than anyone thinks. John Stumpf must know it, although he struggled to let it permeate through the massive culture and environment of Wells Fargo. The answer is not in creating the best profit-driven, capitalistic culture which thrives off of employees competing and meeting sales or performance goals. Sales and performance goals are important, for sure. Profits are necessary, yes, especially in industries such as banking and finances. But that isn't what will create an environment and culture which will breed success, and encourage personal and corporate growth while establishing a culture of integrity and honesty. I believe what will create that culture and environment that Wells Fargo and every other company out there needs is the idea of valuing value over profit. It sounds confusing or strange, but it's really quite simple. Wells Fargo must see the value they bring to customers as their reason to sit at the desks every day. This must trump (no pun intended?) the drive of financial profits. If Wells Fargo senior leadership goes to work daily thinking of how they can bring value to their customers and the public at large, profits will follow. And of course there's a balance. A company can't live off of bringing value to customers alone without turning profits and making shareholders happy. But it's a foundational way of thinking which needs to start at the top of Wells Fargo. It's a way of thinking that needs to trickle down to their regional managers, branch managers, and bank employees. Wells Fargo doesn't exist to just make money. They exist to "satisfy customers' financial needs, and help them succeed financially" - as stated on their website's Vision & Values page. THIS must be the reason every Wells Fargo employee goes to work every day. It's as simple as ensuring that the company vision / mission is clearly defined and ingrained in the minds and culture of the entire organization. The idea that valuing the value brought to customers is more important than financial profits will actually increase profits in the long run, retain customers, create a healthier workplace, and improve employee longevity and health. It's a culture that's created over years. It'll take years for Wells Fargo to repair that culture and environment. Hopefully they've learned their valuable lesson.
If you're interested in a much more encouraging story of well known company which has figured out this no-brainer approach, look no further than Southwest Airlines and Gary Kelly, who by the way is an outspoken born-again Christian. Kelly says, “Southwest is a great place to work and brings the greatest joy because we have such meaningful purpose." I won't get into all the details, but Southwest has it figured out, and everyone who knows anything about company culture, the airline industry, or customer service in general knows it. Here's a story if you're further interested in Southwests approach to culture, values, and customer service, and why they're so ridiculously successful.
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