Scenario: Sales Misconduct at Wells Fargo

Wells Fargo Bank charged $2.1 million in fees on 85,000 deposit accounts that were probably opened without authorization. About 14,000 bogus credit-card accounts were billed approximately $403,000. An outside review found an additional 1.4 million potentially unauthorized deposit and credit-card accounts opened when the bank was encouraging employees to sell multiple products to retail customers, bringing the total to about 3.5 million. Thousands of employees, trying to meet aggressive sales goals, had created accounts in customers' names without their knowledge. Employees who met the bank's sales targets received bonuses and those who did not risked losing their jobs. The scandal over the accounts and the corporate culture that allowed them to go undetected for so long toppled Wells Fargo's previous chief executive, John G. Stumpf, and ignited an outcry from customers, lawmakers and regulators that is still roiling the bank. The bank said it would refund or credit $2.8 million more to cover any fees or charges to customers. It paid $3.3 million in refunds and credits after the original review.

Q1. How have the second and third elements of organizational architecture (i.e. Performance Measurement and Incentives) of Wells Fargo contributed to the sales misconduct?

Q2. How can they be changed to prevent such misconduct from happening again in the future?