Charlie and WFC Board’s Philosophy: CEO first, Shareholders second, Customers third, Employees last.
The pressure for shareholder return often becomes all consuming and very short-term focused. Decisions are made based almost solely on their impact on earnings in the current quarter and year. Customers and employees are sacrificed at the altar of making the quarterly number.
Although this shareholder-focused approach will initially show financial results, the business will begin to erode. A few quarters of good performance turns into a death spiral of dissatisfied customers and unmotivated employees.
(There is no question that Wells Fargo has been in a death spiral for the past 3 to 7 years. Charlie’s hardcore negative attitude towards employees has only hastened the pace of the bank’s downfall. “The definition of insanity is to keep doing the same thing and expect a different outcome.”)
A smarter philosophy which has lead to success for many global companies:
Employees first, customers second and shareholders third
“If the employee is happy, the customer is happy, the business is happy, and the shareholders are happy.”
If the person who works at your company is proud of the job they're doing, if you give them the tools to do a good job, if they're proud of the brand, if they are looked after, if they're treated well, then they're going to be smiling, they're going to be happy and the customer will have a nice experience. If the person who's working for your company is not given the right tools, is not looked after, is not appreciated, they're not going to do things with a smile and therefore the customer will be treated in a way where often they won't want to come back for more.
When you put the needs of your employees first, you give them the time and space to serve your clients. And by serving your clients you serve your shareholders. In other words, by putting employees at the forefront you’re best able to serve all your stakeholders.
The philosophy is to treat your employees as assets and convert them into your brand ambassadors to accomplish organizational goals and objectives.