Presentation on theme: "Heba Darghli Brandon Taylor Luis Thompson. History Founded in 1852 Famous for their Stagecoach! Secure online payments in 1995 Merged with Wachovia in."— Presentation transcript:
Heba Darghli Brandon Taylor Luis Thompson
History Founded in 1852 Famous for their Stagecoach! Secure online payments in 1995 Merged with Wachovia in 2009, creating the fourth largest bank in US That’s the stagecoach!
WF Prides itself on diversity, community service, and exceptional customer service. “We want to satisfy all our customers’ financial needs and help them succeed financially” Vision
Cross-selling products Checking Savings Credit/Debit/ATM cards Renters insurance Retirement accounts Teen accounts Child/baby savings ID theft Much more
Waste Quantified Informal Survey of Tellers ◦22 individuals ◦Subject: estimated # poor solutions ◦Estimated number of dissatisfied customers Findings ◦Estimated that 11% of solutions were of a poor nature. ◦12 customer acct. closings
Financial Data Net charge-offs were $2.6 billion in quarter, 2011 (for loans and accounts) 3 rd quarter NI= 4.05 BB could have been higher Charge-off expense is tucked into the 47BB Administrative and Operating Expense ◦Doesn’t appear like much in perspective to the other costs
Retail Branches Process customer transactions New services Focus on sales and exceptional customer service All employees must meet or exceed quotas, or face termination Tip: Avoid trips to the bank on the 1 st and 3 rd of each month.
Quota System (quarterly) Tellers: 280 “solutions”, or 93.3 accounts Bankers: 2 accounts and 15 other “solutions” daily (total 1,680+ “solutions”). Branch managers will face consequences if branch profit levels, or sales drop too much. Daily check-ins/scolding from district manager ◦District manager scolded by market president ◦Market president scolded by regional president ◦Etcetera Unreasonable quota systems cause stress and depression
Ethical Issues Leading to Waste Lying Manipulation Abusing the elderly/mentally ill Abusing language barriers Opening accounts without customer knowing Re-opening new accounts and closing others for various, made-up reasons
Going Lean Sale quotas should be attainable Adjust quotas with foot traffic Look at profitability of “phony accounts” Reduced turnover leads to less employee need ◦Operating lean by having experienced employees
Going Lean Tenent 1—Value lies within the service provided Tenent 2—Gemba (opportunity) alter or remove quota system Tenent 3—Muda(waste) lower# quality solutions= higher revenue/lower charge- offs
Going Lean Tenent 4—quota system=Push, Increase value to cust. = respond to mkt pull Tenent 5—Perfection (Svc. not Mfg.) 5 S’s ◦Seiri—sort correct level for quota system ◦Seiton—ensure employees not over pressured ◦Seiso—ensure tellers are experienced and well trained ◦Seiketsu—implement standardized training ◦Shitsuke—keep employees happy and well trained to sustain level of service.
New Process Flowchart Reduce sale quotas Adjusted quotas based on traffic Quality account policy Account quality control via banker connection Mandatory funding of accounts Result: improved profits and reduced employee churn
Benefits of Change Happier employees, especially in non- converted Wachovia locations ◦Reduced turnover/training costs Less waste Higher profits Better public image of banking industry
Conclusion / Updates Waste at Wells Fargo is abundant Hindering Profits Need to implement lean process improvement Federal Lawsuit alleges “Daily Solution Reward System” promotes unethical and illegal activity. Brandon Taylor no longer with WFB and has never been happier