Bottom Line

Wells Fargo must take steps to mitigate the amount of downfall that has resulted from their recent sales scandal.

SWOT Analysis

Strengths

• Possesses a leading market position among financial service companies
• Growth in net income from $21.9B (2013) to $23.1B (2015)

Weaknesses

• Tarnished brand image after recent retail banking sales scandal, lead to firing 5,300 employees
• Little exposure in emerging markets (ex. China, Brazil, India)
• Leadership transitions lending itself to instability

Opportunities

• Changing consumer preferences, namely in the millennial generation
• Anticipation of decreased compliance costs within the U.S. as a result of the current political environment

Threats

• Global regulatory pressures and investigations
• Cyber security threats driving costs of security up
• Increased competition from mobile banking technologies, Fintech startups, and robo-advisors

Proposed Change & Rationale

• The Account Scandal - employees created 185,000 accounts and applied for over 500,000 unauthorized credit cards

Wells Fargo's Reaction and Resolution

Proposed Change: Wells Fargo should reimburse all ATM withdrawals within the United States

• Adds value, customer satisfaction, and cash flow to the company
• Ultimately, this change will attract new customers and increasing convenience for current customers

Kotter's Change Model Analysis

Step 1: Create a Sense of Urgency

• Lost customers
• Tarnished reputation

Step 2: Build a Guiding Coalition

• Train employees
• Improve customer satisfaction

Step 3: Form a Strategic Vision and Initiatives

• Vision: "We want to satisfy our customers' financial needs and help them succeed"
• Align goals with vision
• By establishing new initiative of free ATM withdrawals, sparks further partnership in meeting customers' desire

Step 4: Enlist a Volunteer Army

• Motto: "Together we'll go far"
• Engaging employees through proper mindset
• Collectively attaining goals

Step 5: Enable Action by Removing Barriers

• Company mistrust
• Customers are in control

Step 6: Generate Short-Term Wins

• "Wins are the molecules of results"
• Wins = tangible customer feedback, growth in customer base

Step 7: Sustain Acceleration

• Integrate management functions with leadership practices
• Fee-free ATM structure combines change management with change leadership

Step 8: Institute Change

• Integrate ATM fee reimbursements into automated system
• Communicate this new change to customers - explain how this sets Wells Fargo apart
• Communicate change to team members - connects directly to customer satisfaction and the organization's success