Question

Using the competing values framework as a point of reference, how would you describe the organizational culture under CEO Kovacevich and under CEO Sloan? Provide examples to support your conclusions.

Answer 1

Answer:

Out of the four quadrants of the Competing Values Framework, the IDEO example is closest to the Human Relations Model (or Clan by some other terminology). This model puts a lot of emphasis on flexibility and internal focus, cohesion among employees and morale of the employees. Also, it lays a lot of focus on Collaboration among employees. IDEO promotes collaboration among its employees and helping each other in a big way. The senior leaders help the junior team on projects and other efforts. They may even devote a full day helping the teams. In IDEO, asking for help is not considered to be the sign of incompetence or lacking subject knowledge. This attitude and behavior are promoted by everyone across the leadership ad junior levels. IDEO does not believe in promoting competition among peers so that people are ready to ask for help and ready for helping. This helping behavior is also taken into consideration while recruiting people and doing employee appraisals. So, overall, IDEO promotes a culture of collaboration, flexibility and helping each other to succeed well in all their initiatives.

Answer 2

Answer:

Competing Values Framework premises contain four competing values within each enterprise: create, collaborate, control and compete. These values tend to compete in a sense for the organization's limited resources such as time, funding and people.

CEO Kovacevich and CEO Sloan led the same company (Wells Fargo) but their organizational culture was different as shown below.

Explanation:

UNder Kovacevich's leadership style, accountability for success is in the hands of each and every employee.

Kovacevich is responsible for many trends currently found in the financial services industry such as:

• Calling branches stores. This is a reference to both the diversified products they sell, beyond normal banking products, and also to the sales focus the employees have.

• Expansion into non-traditional banking businesses, such as investments and insurance which culminated in the Gramm-Leach-Bliley Act.

• Integrated cross-sell strategy which means to market most products only to existing customers, primarily by employees, instead of each product line attracting its own customers via its own marketing.

Under CEO Sloan, the main focus was

• Transforming the Community Bank: retail banking was expanded to include consumer lending business. He revamped the incentives for retail bankers who serve customers in bank branches and call centers by eliminating product sales goals. He rewarded teamwork and excellent customer experience, risk management, and team performance. He designed measures that take a longer view of relationship with customers, as well as the direct feedback they from them.

• Establishment of stronger and more proactive ways to audit  sales processes. For example, as many as 18,000 mysterious customer visits to branches each year was identified. This made the Internal Audit Group increased their coverage and branch visits.

• He reviewed operations and increased accountability across the entire company. Oversight, compliance, and human resources were streamlined such that when a concern emerges, it is quickly identified and escalated to the appropriate quarters.

• He compensated customers who were affected by mistakes from the bank by engaging the services of a third-party consultant that reviewed more than 165 million retail banking accounts opened between January 2009 and September 2016 to identify financial harm stemming from potentially unauthorized accounts and made provision for refunds to customers based on this analysis.