Wells Fargo scandal, could it have been prevented?
I have a passion for—and an innate ability to hone in on—getting to the heart of a matter and relentlessly searching for a solution that doesn’t yet exist.
So, naturally, when the Wells Fargo scandal made national headlines recently, I started thinking about how things could have gotten so out of control that it led to the firing of 5,300 employees and managers. These misdeeds have seriously damaged the company’s credibility, not to mention costing it $185 million in fines and legal settlements.
[UPDATE : Forbes reported that the Securities and Exchange Commission is looking into the Bank’s sales practices and that its upping its litigation reserves to $1.7 billion. Additionally, other reports emerged that federal prosecutors had jumped on the case, with inquiries coming from the U.S. attorney’s offices for the Southern District of New York and the Northern District of California.]
Still, the problem didn’t stem from a need for more internal accounting controls, more clearly-defined compensation policies and structures, or a stronger code of conduct (which Wells Fargo already had). The essential problem originated with a lack of character and integrity in the workforce.
Historically, the prevailing belief in business has been that you can only hire people with good character traits. This kind of thinking assumes that people either have these qualities or they don’t, which implies a person can’t learn integrity or improve.
That is no longer true.
PowerRound® is a breakthrough solution that develops essential qualities and character traits in people. Our training drives peak performance, improves culture and employee engagement, and reduces risk and turnover—the latter the plague of modern business.
So, when asking, “Could the Wells Fargo scandal have been prevented?” we should consider whether 1) the character deficiency existed at the very top, and 2) if character and integrity shortfalls can be identified proactively—before this kind of serious breach in protocol occurs.
“The answer: whatever the circumstances, there are ways to attack these kinds of problems.”
The PowerRound® Assessment Tool identifies strengths, weaknesses and breakdowns in organizational culture and conduct risk by assessing various character traits and attributes (even blind spots). This includes integrity of management, peers and individuals.
Most surveys identify problems. Yet, year after year, such studies reveal the same gloomy message.
The difference with PowerRound® Training Resources is that they not only identify cultural problems, but map deficiencies to root causes. From this, remediation plans form ways to develop individual shortfalls in essential qualities and character traits.
With PowerRound® Analytics everything can be measured, including qualities and attributes at the micro level (i.e., by person) and at the macro (organizational) level through key performance indicators—and profitability. It also provides great evidence from a compliance perspective.
PowerRound can serve as a stand-alone training system, or it can augment and accelerate other skills-based training.
The Wells Fargo scandal is only a symptom of a much-deeper problem. It’s time to develop our respective workforce’s.