Analysis of the alternatives and recommendations of Wells Fargo

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There and many alternatives wells fargo has come up with to provide better service and fix issues they have had over the previous years. Culture has been a big problem in the wells fargo corporation. Ethics training within the company would be a great alternative to improve that issue. This will help with better leadership skills to executives and employees. It will provide a better understanding in the company of what’s expected and how to handle certain situations properly. Another alternative for wells fargo is the wealth planning service which helps you plan your financial future with confidence and clarity. This alternative will help with fraud accounts and uncertainty of financials.Corporate Culture Alternatives:

One alternative to change the corporate culture at Wells Fargo is to refresh the board of directors and executives. In the annual shareholders vote during April of 2017, a number of directors barely managed to be re-elected. Chairman Steve Sanger only received 57% of votes, and he was running unopposed (Colvin, 2017). Bringing in a fresh board of directors and executives would help in getting the right employees to the company, and help transform the current “soul crushing” corporate culture into a culture that truly focuses on its customers first. Implementation of this alternative would involve severance plans for displaced employees. This could be costly for Wells Fargo, but not as much as one may think due to regulations implemented after the 2016 scandal. In result of these new regulations, severance plans are no longer in correlation with salary. Severance is now based on 2 weeks pay for every year of service, with a minimum on 8 weeks and a maximum of 52 weeks (Rothacker, 2017). Another alternative to this issue is to provide employee and leadership ethics training to its current executives and employees. This training would be not as costly as bringing in new executives to help shift the culture. Another alternative to this issue is creating services that make customers understand that their needs are first. One example of this is Wells Fargo’s Wealth Planning service. This service helps customers to provide clarity on their families goals and current situation, provides analysis and information to help make informed decisions, and monitors the customers current situation to adapt their Wealth Planning. This services is to help customers organize their financial situation and move forward in positive direction. Services like this are a good step in regaining customers trust, and creating a new corporate culture (Wealth Planning). Another alternative for changing the culture of the corporation would be to implement annual internal reviews. Wells Fargo experienced an error in its mortgage underwriting tool that lasted from 2010 to 2015. This error affected 625 customers and caused 400 of them to have their homes foreclosed on. Although this error lasted from 2010 to 2015, it was not made public until a few years later when the error was discovered during an internal review (Roberts, 2018). Implementing annual internal reviews will allow Wells Fargo to address errors like this in a much more timely manner. Another alternative to this issue would be implementing annual reviews conducted by an outside consultant. This may be more expensive for Wells Fargo than conducting its own internal reviews, but it will help gain the trust of the public and its customers. External reviews will allow people outside the company to confirm that Wells Fargo’s culture is heading in the right direction.

Recommendations:

Over the past decade Wells Fargo has been involved in a number of ethical issues that have tarnished the company’s reputation. Due to these ethical issues, Wells Fargo has faced scrutiny of its company culture. One recommendation for Wells Fargo is to refresh the board and executives of the company. Providing training in ethics would be less costly to the company, but training can not change the culture that has already been instilled in the leader of Wells Fargo. Bringing in new executives will provide Wells Fargo with a new and refreshed culture and this change will be more available to the public and its customers. Along with refreshing the board and executives of Wells Fargo, it is important to make sure all employees understand the values of business ethics. It is recommended that these new leader conduct ethic workshops with employees. Leader must educate employees about the importance of maintaining ethical standards in the workplace (Lindamood, 2017). Throughout the development programs, the firm will be able to avoid and hopefully eliminate any future scandals and unethical behaviors. Another recommendation to improve customer relationship is to create established social responsibility programs that support customers and communities. Sponsoring charity events, local schools, and providing scholarship programs are all ways to build a stronger connection with the community. Another way to build trust with customers is through programs like its Wealth Planning service that focuses on the customers needs, wants, and future.