culture

VW's latest problem: is it the message, the messenger or something else?

Volkswagen CEO Matthias Mueller .  Photo credit: Guenter Schiffmann/Bloomberg

Volkswagen CEO Matthias Mueller.

Photo credit: Guenter Schiffmann/Bloomberg

I feel bad for Matthias Mueller right now. The current CEO of beleaguered automaker Volkswagen is attempting to smooth things over with lawmakers this week in his first official visit to the U.S. However, he couldn’t hide from his off-putting comments on Sunday at the Detroit Auto Show. Remarkably VW dug a deeper hole for Mueller when it cast blame on the circumstances of the interview rather than the substance of his remarks.

Frustrating as this is, I don’t blame Mueller.

I don’t blame the former head of Porsche, who was appointed to CEO of VW and thrust into the smoggy limelight last September, for his overall tone-deafness, lack of urgency on the emissions scandal, or even the gulf of truth that lies somewhere between his “I apologize once again” and “we didn't lie” statements.

I don’t blame Mueller because so far he’s just been the messenger – a poor one perhaps (and that is fixable) – but a messenger nonetheless. And I hold true to the notion that we shouldn’t shoot the messenger.

While VW's communication has been anything but a well-oiled machine, the opportunity to reverse that trend starts this week. Here's what can be gleaned from VW's recent road bumps and how the company can get back on track.  

TELL THE RIGHT STORY

Mueller’s messages are crafted talking points designed to share VW’s point of view or story, which is key here: it's the story VW wants to share, which sometimes isn't the story that needs to be shared. Mueller is still in his infancy as CEO, so getting the story right every time can be challenging, especially when the story is changing, opinions are shifting and emotions are running high.

As hard as it may be for some leaders to tell the unvarnished truth, doing so invites transparency and simplifies things. But simply saying the right thing isn't enough. The right words only begin to mean something when they don't always require notecards and are followed up with meaningful action. This transparency also kills a deceptive form of creative storytelling, often designed to appease a niche audience, rather than getting on with the work of repairing broken trust. In his incredibly short tenure, there has been a repeated theme of ‘misunderstanding’ with his answers that needs to be resolved immediately.

BE PREPARED

Mueller’s counselors and advisors had to know that he’d get tough questions not only from U.S. lawmakers later in the week, but also from media at the auto show in off-the-cuff moments. Language barrier aside, a lack of preparation and ownership of the clear and concise story beyond the scripted moments is showing,  and it's reflecting poorly on him and the company. His response to NPR about ethical problems is an example of not being well prepared and inconsistent: 

MUELLER:  I don’t understand whether (why) you say that.

NPR reporter:  Because Volkswagen in the U.S. intentionally lied to EPA regulators when they asked them about the problem before it came to light.

MUELLER:  We didn't lie. We didn't understand the question first.    

COMMIT TO POSITIVE CULTURE CHANGE

There is no guarantee that Mueller will choose to do the right thing – or the wrong thing – when it comes to steering the company forward. But his recent statements regarding his desire to infuse fun back into the company hints at problems with VW’s culture, especially given the cover up and deception that put VW in this position in the first place. The leadership team that has been running VW prior to and through the emissions scandal also is responsible for anointing Mueller as chief messenger. Whether he emerges from this crisis as a transformational leader is yet to be seen – and it hinges on whether or not he can deliver truthful, transparent answers and simply do the right thing, no matter the short-term cost. That alone will signal a significant shift in corporate culture, which will help to repair its troubled reputation from the inside out.

WELCOME WISE COUNSEL & COMMUNICATION

Like any successful leader, Mueller needs good counsel and must surround himself with thoughtful individuals committed to bettering the company and exceeding public expectations. He needs to set a high bar regarding insights into all facets of the company and candor of how shortcomings will be addressed. However, if what we’re seeing is an eschewing of wise counsel, preparation and well-developed messages that have failed to be delivered with the sincerity in which they were written, then Mueller’s tenure likely will become a brief footnote in the company’s history.

Until now, VW has been its own worst enemy in the last several months, but this week Mueller has an opportunity to change that. While Mueller could benefit from a more thoughtful and concerned public persona that most people intuitively expect of chief executives under fire, there should be an undefined "grace period" for inheriting and cleaning up a mess not of your own making. And despite some foot-in-mouth moments and inconsistent messaging, I find myself rooting for Mueller to make the successful evolution from brand messenger to respected CEO, and here's why:

America loves a great comeback story – especially when one humbly accepts its wrongs and works with unmatched determination and transparency to right the ship or, in this case, the car.

It is without question the story that VW should be working tirelessly and without compromise to write.  

Your company's purpose should be this simple

Being helpful.

Being helpful.

What is your company's purpose?

It is not a trick question. In fact, it could be the most straightforward question organizations can ask about their existence. As Graham Kenny points out in his brief Harvard Business Review article, purpose is different from mission, vision and values as it serves to connect the heart with the head in a way that people can feel it.

A clearly defined purpose should have a meaningful impact on internal and external audiences. It's why concepts like making money, dominating the market or wielding influence -- things that organizations may want to achieve and are not inherently wrong -- don't make for convincing or motivating purpose statements. 

The words you choose will matter. So will the actions they inspire. With that in mind, simplicity could be the key to successfully defining your purpose.

At Ratchet we live by a simple, two-word purpose: be helpful. (In full disclosure, when we created this five years ago we didn't think of calling it "our purpose." It was simply the way we wanted to think about the business.) It is actionable and prescriptive without any guardrails. It puts the focus on others rather than the company. It doesn't suggest being helpful in some areas but not others. It demands we think and rethink what it means to be helpful, and that can lead to some innovative ideas and opportunities.

Can something as simple as "be helpful" work for larger organizations? We believe so. Amid all of the important and pressing aspects of running a successful business, we've found there is no substitute for being helpful -- however the situation defines it. We've also found that those things that many organizations aspire to achieve are attainable through a "be helpful" purpose. Consider the following:

BOTTOM-LINE GROWTH happens when products and services provide value, making it a direct and recurring byproduct of being helpful. Clients and customers are likely to stick with those who provide value. 

HAVING INFLUENCE comes when others openly vouch for your credibility. Demonstrating your influence in ways that help others -- whether you were paid for it or gave it away -- matters. This is the power of third-party validation (PR 101) over simply blowing your own content marketing horn.

THE GENEROUS RUNNER-UP is often remembered by companies that have granted opportunities to others. They will need other partners in the future, so consider sharing insights you were holding back even when things don't go your way. It sets you up to be remembered or referred.  

THE TRANSPARENT PARTNER is one that admits to not having all the answers or solutions. Being willing to refer or contract with expertise outside your own four walls isn't a sign of weakness. Rather it's a gesture of helpfulness that puts clients first, not your company's agenda.

There isn't an algorithm or dashboard that can measure helpfulness. In fact, it will be challenging to see the immediate ROBH -- Return on Being Helpful. But helpfulness is a gratifying way to operate on a daily basis and it tends to pay dividends in the long run.

And yes, quarterly earnings, fundraising quotas or stiff competition can cloud the ideas and ideals surrounding purpose -- which is why organizations should take the time to consider a clear and actionable purpose that inspires and will not falter, even during challenging times. When executed well the right purpose can enhance company culture, spark innovative thinking and deepen business relationships. In essence, it can transform a company and its trajectory.

If it helps, feel free to borrow ours. One thing is for sure: you will never be criticized for being too helpful.