Think employee.
It's not an exaggeration to say the Volkswagen emissions scandal is one of the most serious cases of corporate wrongdoing in recent times. But it's also easy to focus solely on the damage being wrought to Volkswagen's reputation and potential criminal action, and their public reaction to the crisis. Potentially more damaging to VW/s brand and business in the long-term is how it is managing its relationship with its employees.
Sure, the company has a lot to answer to its customers, suppliers, numerous governments and industry. But as it struggles to explain itself to external critics and respond to irate investors, it must take care not to alienate the very people who will be essential to its survival. Reports over the last few days centre on how Volkswagens leadership have been locked away in crisis talks, talks no doubt focusing on how to handle the negative PR that doesn't seem to end. The danger for VW is that it only speaks externally, managing the message to external stakeholders, and neglects its captive internal audience of employees.
Put yourself in a typical Volkswagen employee's shoes:
Until very recently, you're proud, motivated, a member of what was a potent symbol of Germany's economic prowess. When the news hit, you're most likely - unless you're part of the group responsible for the emissions testing software - shocked, in disbelief, potentially even in denial the situation occurred, let alone as bad as it’s turning out to be.
You're probably angry, both with the culprits as well as the reaction of the media and the public, and you definitely have a lot of questions: Why did this happen? Who is responsible? What's going to be done about it? Will you pay the price even if you're innocent?
You're probably very afraid of the consequences of this crisis, both individually for your job and for your business, your career, your industry. As a global company, VW's crisis will have global implications beyond simply the German core of the business.
You're probably also feeling very embarrassed, as your company's dirty laundry is exposed to the world while your neighbours and friends give you a second glance.
And what about the colleagues you used to trust - were they in some way responsible for this mess?
It's easy to shout advice from afar but in this instance VW would do well to revisit its core values of innovation, value and responsibility, and recommit the last one. They've absolutely failed on their responsibility to the public and the environment but they still have a chance to salvage the relationship they have with their people. It's key for VW bosses to realise that the very people they're currently ignoring are going to be the same people they rely on to rebuild the business once the dust settles. VW needs to remember to follow the same rules of thumb for crisis management internally and externally:
Communicate: Often, clearly, and openly with your employees of all levels. Don't hide until you have the answer and don’t only focus on the senior leadership. Even the janitors need to know what's going on.
Transparency: As much as possible, reveal the plans for fixing the problem and be open about the downsides. Employees know this will severely affect the business for the foreseeable future; ignoring that fact will only make it worse.
Be honest about identifying the triggers in VW's corporate culture that allowed this type of duplicity to manifest itself, and share your plans for eliminating the rot.
Involve: Ask their advice. Ask for their ideas. Ask them why they think it happened. Ask for their forgiveness.
It's a safe bet that VW will survive - reputation in tatters but it will be rebuilt and renewed and the market will bounce back. It will have to work hard to regain the trust of the public but if it loses the trust of its staff, that recovery will be harder, longer, and potentially more precarious.
Illustration by James Kape.
Danielle Zezulinksi is a Programme Director and Coach at Wolff Olins London. You can follow her @dazezuli