Wells Fargo shows standards don’t matter if company culture is broken

Starling Team
Jeffrey Kupfer and Stephen Scott

Seated at the witness table of the Senate Banking Committee, Wells Fargo CEO John Stumpf found himself in a place no bank CEO ever wants to be. The leader of one of the nation/s largest banks was grilled for more than two hours by Senators united in rare bipartisan unity by outrage over revelations that Wells Fargo employees improperly opened accounts without their customers’ knowledge. Today, other CEOs are likely asking themselves how to avoid the same fate.

As Stumpf would no doubt agree, corporate culture is a bottom-line issue. When culture breaks down within an organization, the consequences can be dire. It is estimated that Wells Fargo has seen some $20 billion in its market value vanish since the scandal that brought Stumpf to Capitol Hill was publicized widely in the press. But fines and lost shareholder value are only the beginning. The bank’s broken trust with customers will take years to repair.

Expand

Starling Featured at CEB Reimagine HR Conference

Starling Team

Starling, an applied behavioral science technology startup, was one of five companies featured by the Corporate Executive Board (CEB) Ventures group at the CEB’s ReimagineHR Conference in Miami on September 7-9. ReimagineHR is a multi-day event that brings together hundreds of global heads of HR and their leadership teams, creating a unique opportunity for CEB members to engage in discussions with peers on critical topics, to consider the changing role of HR and to explore the innovation required to effectively plan, recruit, assess, develop, engage, and perform in a world of constant change.

Expand

Culture Club: Regulating Wall Street’s mindset

Starling Team
Starling mentioned in an article by Jacob Schlesinger

Richard Ketchum, chairman of the Financial Industry Regulatory Authority, or Finra. SHANNON STAPLETON/REUTERS

When a top Wall Street regulator issued its examination priorities for 2016, the checklist included a mix of conventional benchmarks: cybersecurity, antimoneylaundering controls, liquidity and the like. But for the first time, the amorphous notion of supervising “culture” made its list, too. 

“Given the significant role culture plays in how a firm conducts its business, this year…we will formalize our assessment of firm culture to better understand how culture affects a firm’s compliance and risk management practices,” Richard Ketchum, chairman of the Financial Industry Regulatory Authority, Wall Street’s selfregulatory organization, wrote in his letter introducing the plan. 

Expand

Cultural-Prudential Regulation: Micro and macro have company

Starling Team

Since the Financial Crisis, we have seen three distinct waves of regulatory activity in the financial sector. An initial focus was placed on micro-prudential rules targeting individual institutions, such as setting higher capital standards and liquidity levels. This was followed by an emphasis on macro-prudential tools targeting the financial industry, including guidance on lever- aged lending and the countercyclical capital buffer

Expand

Why Women-Led Businesses Outperform Their Peers

Valerie Plame
Valerie Plame Wilson

Over the years, from serving in the CIA to sitting on non-profit boards, I have observed first-hand what the addition of even one woman to a meeting or to a decision-making body can do. Put simply, in very many instances, group dynamics improve markedly. Competition gives way to cooperation. A set of individuals, each vying for attention and dominance, becomes a genuinely collaborative team with shared objectives and mutual trust. And that trust powers the better performance of the group.

The Huffington Post recently published a great article on the topic which we encourage you to read.

Expand