By Ron Schmidt
Betty, standing in front
of her manager at Wells Fargo, exclaimed, “Let me see if I get this right. You
want me to make sure every bank customer has at least eight of our products?”
Manager: “That’s right!”
Betty: “What if they have seven?
Manager: “They need one more!”
Betty: “They need one more?”
Manager: “Why are you questioning me?”
Betty: “Well, I’ve only got my GED, but I’m just thinking, how do you
know they need eight?”
Manager: “The consultants!”
Betty: “The consultants?”
Manager: “That’s what my boss tells me: the consultants say our customers
need eight of our products; 10 is better.”
Betty: “Sorry, but how do the consultants know this?”
Manager: “They just do.”
Betty: “You know I grew up on a dairy farm and in the summer right
before a storm, the wind would shift and that cow smell just came right into
the house.”
Manager: “Yea?”
Betty: “Something is shifting at this bank and it’s starting to smell.”
Manager: “I have no idea what you are talking about!”
Betty: “That’s because you never been on a dairy farm.”
Manager: “I tell you what, you can talk about your dairy farm and all,
but unless you want to go back to the farm, your job is to make sure each of
your customers has eight products, understand?”
Betty: “You know I may be just a farm girl, but what I learned is that
if you feed and water and shelter the cows in a caring way they’re going to
give you more milk.”
Manager: “What does that have to do with eight products?”
Betty: “Well when our customers come in to our branch, if you serve
their needs in a caring way, they seem to appreciate it.”
Manager: “So.”
Betty: “I not sure you’re aware, but I often get new customers into the
bank who ask for me because they are told by friends that I helped them.”
Manager: “What does that have to do with 8 products?”
Betty: “One thing I learned on the farm is that animals begin to trust
you when you care for them.”
Manager: “So.”
Betty: “So if we care for our customers, they will begin to trust us
and always come back when they need to buy a car and a house.”
Manager: “I think you’ve got it all wrong.”
Betty: “How’s that?”
Manager: “We don’t let customers tell us what they need, we tell them!”
Betty: “Really? I guess I missed out on that by not going to college
and all.”
Manager: “Now get out there and do the work of the bank!”
In case you’ve been on a
tropical island this summer, this fictional dialogue may not resonate. So let
me bring you up to date. The CEO of Wells Fargo, John Stumpf, was called to
Washington to testify to a congressional committee this summer on what’s been
going on at his bank the last three to four years. Here are the facts as
reported by various sources including CUToday.info:
- The sales structure put in place by upper-level
corporate executives was referred to as the “Great Eight,” meaning eight
products and services per customer.
- $185 million in fines have been assessed, because
employees opened accounts for customers without their knowledge, i.e.
customers never asked for the additional accounts.
- 5,300 staff have been fired for these practices.
- Whistleblowers were fired.
- Former employees have chastised upper management for
“unethical techniques to improve sales numbers.” Furthermore, staff
“worked like dogs” to meet the rigorous sales goals.
- Finger pointing continues regarding where and how these
practices originated.
While many of the facts
of the case have not been uncovered, this could result in a banking scandal
that tarnishes the trust of both customers and employees. And oh, by the way,
John Stumpf, grew up on a dairy farm in Minnesota, one of 11 kids. Maybe it’s
his time to reflect on what happens to a bank when the wind shifts and the
smell comes not from the animals, but from the shift in the culture and values
of the bank.
Ron Schmidt is with CBS
Certified Public Accountants, LLC, Solon, Ohio. He can be reached at
rschmidt@cbscpasllc.com.Source
CUToday
Comments
Post a Comment
Please no profanity or political comments.