1. Using Kotter's 8-step change management model, explain what the Wells Fargo bank should have done differently.

The Surprise Ethics Lesson of Wells Fargo

In 2016 Wells Fargo bank decided it was not doing enough cross-selling, Cross-selling means getting customers who use one service, such as checking, to use other services, such as savings or credit cards. There is nothing wrong with cross-selling - all banks do it. Wells Fargo developed a specific strategy to encourage cross-selling, which was to involve its employees in telling customers about other products and services.

In order to encourage employees to support the program, Wells Fargo employed the traditional strategy of providing incentives to employees who succeeded at cross-selling.

This is where everything went wrong. Employees not only responded to these incentives by cross-selling, they actually created fake accounts in the names of existing Well Fargo customers. Some customers figured this out, but many didn't and ended up paying fees on accounts they didn't even know they had. The problem was huge. In attempting to correct the problem the company fired 5,300 employees and lost its highly respected CEO. Well Fargo made a number of mistakes including not publicly acknowledging the problem soon enough and not having adequate controls to detect the fake accounts. But what is unique about this problem is that so many employees (thousands) were involved in the wrong doing. Unlike many corporate crises, this was not one or two rogue executives in an otherwise healthy organization. This was plain wrong-doing on a massive scale.