Designing a Balanced Scorecard, Wells Fargo’s 2001 annual ...



Designing a Balanced Scorecard, Wells Fargo’s 2001 annual report   states that the company’s vision is to satisfy all our customers’ needs, offer them sound financial advice and help them succeed financially. Similarly, the 2002 annual report states that the vision is to earn all our customers’ business. Both annual reports list the following 10 areas of strategic initiatives that the company has been benchmarking itself against for several years:

1. Investments, Trust, Brokerage and Insurance

2. Going for Gr-eight! (Increase the average number of products per customer to eight)

3. Doing it Right for the Customer

4. 100 Percent Bank and Mortgage/ Home Equity Cross-Sell

5. Wells Fargo Cards in Every Wallet

6. When, Where, and How

7. Information-based Marketing

8. Be Our Customers’ Payments Processor

9. Outstanding Customers

10. People as a Competitive Advantage

a. The 2001 and 2002 annual reports provide some specific measures within the initiative. Based on the annual reports and any other information you are able to find, develop a Balanced Scorecard for Wells Fargo that will help it achieve its vision and monitor its performance on the strategic initiatives.

9-45 Wells Fargo describes itself as follows at (September 7, 2003):

Wells Fargo (NYSE: WFC) is a diversified financial services company—providing banking, insurance, investments, mortgage and consumer finance from 5,800+ stores, the world's leading internet banking site () and other distribution channels across North America and elsewhere internationally.

Further, the website states that Wells Fargo’s vision is “to satisfy all our customers' financial needs, help them succeed financially, and become known as one of America's great companies and the number one financial services provider in each of our markets.” Other facts reported include assets of $370 billion, over 20 million customer households served, and 6,290 ATMs.

A Balanced Scorecard for Wells Fargo can be developed similar to the chapter’s Balanced Scorecard for Metro Bank. Although Metro Bank is just beginning its transformation to a one-stop financial supermarket for targeted customers, its financial and customer objectives are similar to Wells Fargo’s. In the 1990’s, Wells Fargo already had a reputation for innovation and cost management (“Wells Fargo Online Financial Services (A),” Harvard Business School Case #9-198-146, p. 2). Examples of measures, targets, and initiatives (actions) described in Wells Fargo’s 2002 Annual Report (pages 18-20, strategic initiatives), focusing on the process perspective and learning and growth perspective, appear in the following table. Additional measures and initiatives are also provided.

| |Measures |Targets |Initiatives |

|Process perspective | | | |

|(1) Investments, trust brokerage and |Percentage of Wells Fargo’s|Increase profit of these|Add more private bankers, license more|

|insurance (satisfy customers’ |profit. |segments as a group to |bankers to sell mutual funds. |

|financial needs) | |25% of Wells Fargo’s | |

| | |profit. | |

|(2) Going for “gr-eight”! (cross-sell)|Number of products per |Increase average to 8. |Offer packages of products that save |

| |customer | |customers time and money. For example,|

| | | |the Homebuyers’ Package offers new |

| | | |mortgage customers a package of |

| | | |banking products that can save |

| | | |customers up to $340 per year. |

|(3) Doing it right for the customer |Proportion of customers |Cut proportion in half |Foster customer-focused culture and |

|(be advocates for customers) |lost per year |(to 1 in 10). |attitudes. |

|(4) 100 percent bank and mortgage/home|Percent of mortgage and |100% cross-selling |Initiative to migrate mortgage and |

|equity cross-sell |home-equity customers in |between banking |home-equity customers to become Wells |

| |Wells Fargo’s banking |customers and mortgage/ |Fargo banking customers. |

| |states who bank with Wells |home-equity customers | |

| |Fargo, and vice versa | | |

|(5) Wells Fargo cards in every wallet |Percent of bank customers |100% for each type of |Cross-selling initiative to existing |

| |who have a credit card or |card |banking customers without Wells Fargo |

| |debit card with Wells Fargo| |credit card. |

|(6) When, where, and how (match when, |Ranking of online services;|#1 ranking |Integrate delivery channels to match |

|where, and how customers want to be |number of active online | |when, where, and how customers want to|

|served) |customers in various | |be served. Some machines and web |

| |categories | |services have Spanish or Chinese |

| | | |language options. |

|(7) Information-based marketing |Percentage of customers |Offer right product at |Deploy customer relationship |

|(analyze and meet customer’s needs) |receiving personalized |the right time to save |management and data mining application|

| |marketing messages |customer time and money.|packages. |

|(8) Be our customers’ payments |Internet payments business | | |

|processor |revenue and transaction | | |

| |volume | | |

|(9) Outstanding customers (attract and|Retention rate for |100% | |

|retain “high-value” customers) |high-value customers | | |

| | | | |

|Learning and growth perspective | | | |

|(10) People as a competitive advantage|Percentage of key jobs | |Develop, reward, and recognize “team |

| |staffed with people with | |members”; build an inclusive |

| |requisite skills, | |workplace. |

| |knowledge, and training | | |

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