Question

1. In 2017, it came to light that in order to meet its demanding profit target, Wells Fargo put such pressure on its employees to hit sales quotas that many employees responded by fraudulently opening customer accounts. Characterize Wells Fargo's corporate culture. How did its culture undercut its strategy execution effort? What lessons about the importance of culture to the strategy execution effort can be learned from this situation? 2. What are the distinctive features of high-performance corporate cultures?

Answer 1

Well Fargo's corporate culture can be characterised by strong work ethic, strict compliance to targets and essentially meeting of performance measurement standards. The corporate culture is effective in terms of keeping the employees directed towards the objectives but at the same time is very intimidating that it resulted in employees committing frauds to show their targets attained under the situation of extreme stress, pressure and threats.

The well Fargo's framed aggressive sales goals fir saes persons which were not salient to each and instead were beyond the capacity of sales territory assigned to sales persons. Well Fargo's made use of terrifying incentives that left employees work burdened, stresses and highly pressurized leading them towards committing frauds. Therefore this intimidating and threatening culture backfired the supervisors and spoiled its strategy execution efforts after coming into cognizant about frauds that sales personnel were making and credit problems. The strategy execution was ineffective and undercut because if setting unrealistic standards and goals for sales people that did not even matched their capabilities. Moreover lack of monitoring and investigation regarding the increase in opening of sales accounts contributed towards not detecting the fraud earlier.

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We learnt that it is essential to incorporate a corporate culture which will facilitate a healthy and positive work environment where each employee will coordinate it's efforts with others to produce the desired result. It is essential to ensure that the corporate culture and goals established match with the knowledge, capabilities and personality of employees and the strategy execution encompasses frequent supervision and investigation by supervisors to see the progress towards goals and t attitude of employees towards work. Moreover strategy execution will also call for providing proper incentives, support and guidance to employees so as to ensure that they are motivated towards accomplishing their targets.

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The distinctive features of high performance corporate cultures are :

1) strong leaders : They have leaders who not only command and set objectives for them but also support them through guidance, support and supervision. They try to facilitate the environment which will lead to the specific performance. They understand their employees and know how to motivate them.

2) Empowered and Highly Engaged Employees:

The high performing culture consists of self driven employees who are motivated to work with dedication to accomplish their targets and goals. They hood accountability and show active participation and engage in all corporate activities.

3) Focused on learning and development:

High performing cultures are self learning also, they continuously try to impart new knowledge and skills to their employees for keeping them updated, motivated and efficient.

4) Open to challenges and change management :

The high performing cultures are always prepared for changes and are ready to incorporate them whenever necessary or required. They are able to manage and sustain the changes well thus leading business towards improvement and efficiency.

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