In September 2016, Wells Fargo made headlines when allegations surfaced that its employees created more than 1.5 million fake deposit accounts and half a million fake credit cards while under pressure to increase sales numbers. Then in March 2017, it came out that the actual number of fake accounts was nearly twice what was originally reported.
How did this happen? Employees at Wells Fargo were strongly incentivized to grow their numbers regardless of how that impacted their customers and the customer experience. The organization as a whole became overly focused on a single, narrow metric (this many new accounts). People didn’t stop and think about the unintended consequences of having such a narrow focus.Read More