The diesel scandal plunged the Volkswagen Group overnight into the deepest crisis in its corporate history. “Our people were suddenly ashamed — even though the vast majority had done nothing wrong,” recalls crisis communications expert Nicolai Laude, who became the voice of this crisis as Volkswagen's “Spokesperson Diesel Issue.”
On the morning of September 18, 2015, the world seemed okay at Volkswagen. Hours later, management and communications were already in a state of emergency. “Although no one had an overview of the problem yet, our group companies were confronted with thousands of media inquiries worldwide,” recalls Nicolai Laude, then company spokesperson for sales & marketing. The diesel crisis had caught Volkswagen cold.
Adverse events or crises in organizations often do not occur suddenly, but are announced through “issues,” developments that can damage the trust of customers, employees and other stakeholders. If such warning signs are ignored or suppressed, the situation may worsen unnecessarily.
Saying nothing doesn't work
“In many cases, a mixture of pressure to perform, incorrect assessment of the effects of media coverage on corporate reputation and probably also a lack of error culture prevents early internal reporting,” says experienced crisis communicator Laude. For example, although there had been indications of “technical challenges” with regard to compliance with emission limits for diesel vehicles in the USA, the headquarters in Germany had not been made aware of them.
In order to effectively manage issues, adverse events or crises, an organization needs a well-functioning flow of information and a clear reporting chain. Managers should not hesitate to ask for support if they are unable to handle a situation themselves. The affected organization should communicate transparently in the event and crisis situation, remain in dialogue with those affected and learn from the situation in order to better master future risks. An open communication culture, early recognition of warning signs and active action are the keys to avoiding or successfully managing crises.
Cobras and Pythons
When an issue comes to light, it is important to speak up quickly and as clearly as possible. “Saying nothing doesn't work. People need to know that the issue has been addressed and that they are taking on the matter,” says Nicolai Laude. Laude was named “Spokesperson Diesel Issue” for the globally active group. A jump in the cold water.
The fact that the issue hit Volkswagen off guard made Laude's task even more difficult. Although there are hardly any generally applicable rules for identifying issues, “when it comes to a lot of money, life and limb, violations of environmental regulations or human rights, or employees, there is a great risk that an issue will also become a topic in the media.” Issues are sometimes difficult to recognize because they have different characters, says Laude. “Some creep up as slowly as a python, others show up as fast as a cobra bites.”
Actively address the issue
If an issue emerges that it is important to actively address it yourself, says Laude and outlines a picture from his childhood: “If your soccer ball flies through a closed window at the neighbor's house, you should confess it to your parents before the neighbor is at your door.”
Dealing with issues and alerting event and crisis organizations are important topics in the new textbook Crisis management — refocused. It looks beyond theory and encourages readers to incorporate lessons from previous events and crises into their work. Numerous reports include not only crisis managers, but also experts from the fields of surgery, psychology, aviation, tourism and the media. Nicolai Laude is one of these experts.
Nicolai Laude
German crisis communications expert Nicolai Laude (*1969) is Head of Integrity and Sustainability Communications at the globally active Volkswagen Group. The business graduate joined the Group in 2011 and, when the diesel scandal broke out in 2015, became part of the communications team that was supposed to deal with this crisis. He soon became the Group's spokesperson responsible for this matter. Even 10 years after the outbreak of the scandal, it is still ongoing.