On the eve of the presidential debate, we are reminded of the crisis in leadership that presently exists in this country.
In the case of Wells Fargo, words serving as their mission statement and values were carefully constructed yet meaningless catch phrases, “Everything we do is built on trust. It doesn’t happen with one transaction, in one day on the job or in one quarter. It’s earned relationship by relationship.”
Statements no doubt prepared by expensive consultants and approved by Wells Fargo’s leadership team.
America’s Most Valuable Bank is a title Wells Fargo will no longer hold as the revelation that thousands of their employees were creating bogus checking and credit card accounts in order to meet their strict and unrealistic quotas the only way possible – by cheating.
This fraudulent practice has been going on for years. Over two million fake accounts were created and, as a result, over 5000 people were fired. Clearly this scandal reveals cultural and management problems at Wells Fargo. There are lessons to be learned from this crazy story, and one is: The Misuse of Metrics.
With over two million accounts opened, and no further activity on those accounts, the only metric that mattered was opening accounts. Where was the compliance monitoring?
Best said by Senator Elizabeth Warren who challenged Wells Fargo’s CEO John Stumpf at Banking Committee Hearing.
Let’s also consider Mylan’s CEO Heather Bresch who testified in front of the House Oversight and Government Reform Committee. The price of the device, used in emergencies to treat severe allergic reactions, has increased more than 500% since Mylan acquired it in 2007.
Let’s model real leadership for our children. Hopefully their generation won’t play a game of words. We can do better; we must do better.
Tina Nocera, Founder