This case raises contemporary issues pertaining to strategy and leadership. It helps to demonstrate that (a) sound economic rationale is a necessary but not sufficient condition to make a business strategy effective, and (b) successful implementation of a strategy is contingent on it being driven by a responsible and ethical leader. The case helps students to understand limitations of the pay-for-performance system, and appreciate negative impact of unethical business decisions. Established in 1852, Wells Fargo had earned a storied reputation for integrity and principled performance. The cornerstone of the Bank's business strategy was "cross-sell", a strategy that augmented Wells Fargo's performance and that of its stock. To implement the strategy, Wells Fargo's management instituted an incentive system that awarded significant bonuses to employees for opening customer accounts, and reprimanded employees who did not meet "quotas" of the number and types of accounts. The obsession of top management with "cross-sell" obscured the vision of the Bank to give unconditional primacy to serving customers' interests. The Bank was fined $185 million for opening over two million unauthorized checking and credit card accounts between 2011 and 2015. The Board had failed to monitor the actions of its senior management. In the aftermath of the debacle, Stumpf resigned from the CEO and Chairman of the Board positions at Wells Fargo. His successor, Tim Sloan, had the unenviable task to restore reputation of the Bank by making changes to its strategy, structure and systems. Using a holistic analysis of the episode from the perspective of corporate strategy, responsible leadership, corporate governance, business ethics and organizational culture, the case provides a platform to discuss challenges that Tim Sloan faced to set the stagecoach of Wells Fargo to start thundering again.

【書誌情報】

ページ数：25ページ

サイズ：A4

商品番号：HBSP-NA0467

発行日：2017/6/1

登録日：2017/8/8