U.S. Representative Ed Royce (R-Calif.), a senior member of the House Financial Services Committee, questioned Wells Fargo Chairman and CEO John Stumpf during a hearing entitled “Holding Wall Street Accountable: Investigating Wells Fargo’s Opening of Unauthorized Customer Accounts.”
“The idea of a cross-selling target of at least eight products clearly is part of a long-term practice at Wells Fargo going back at least to your predecessor because in 1998 Fortune Magazine quotes ‘doubling the average product purchase to eight” as your predecessor’s ‘current obsession.’ Morphing the goal to a mandate here seems to be a big part of the problem and I say mandate because if people are fired for not hitting that goal it’s a mandate. That seems to be at the center of a toxic sales culture that you’ve overseen. But I’d ask you, was the goal of eight cross-sold products something understood and embraced by management and by your salesforce? In retrospect, do you think that target contributed, in some way, to the negative change in your sales culture?” questioned Rep. Royce.
“We never had a target of eight, again, it was aspirational. We had team members who would work with customers on need-based selling and …read more
Source:: U.S. Rep. Ed Royce