Around here, we warn clients about the long tail of crisis. It’s when the effects of a crisis can drag on for a long time, with unexpected problems, and damage, popping up well after things seem like they’ve settled down. It’s also known as “the ripples,” and can pose an even bigger risk to organizations that fail to act responsibly once the initial shock of a crisis starts to wear off. Here’s one such cautionary tale.
A decade ago, Volkswagen got caught in the “Dieselgate” scandal, where the company was caught cheating on emissions tests. The manufacturer cheated by installing “defeat devices,” software in diesel engines that detected when the car was undergoing emissions testing and altered performance to meet legal limits. During regular driving, the cars emitted nitrogen oxides at levels up to 40 times the legal limit. VW was slapped with a $2B US settlement and a seriously tarnished reputation. Part of the settlement funds went towards creating Electrify America, a network of public fast-charging stations meant to help boost electric vehicle adoption (and force VW to make some public amends).
Sounds like a solid way to make things right, right? Well, not entirely.
The network has since faced criticism for broken chargers, long wait times, and poor management, raising questions about VW’s ability to provide proper oversight and its commitment for maintaining a program designed as a make good for its poor conduct.
These failures haven’t just stalled their reputation recovery; they’ve introduced a whole new generation to the company’s past misconduct. And it’s a shining example of the long tail of crisis as the consequences continue to echo. VW’s experience shows that addressing a crisis isn’t just about paying a fine; it’s about staying accountable and following through. Otherwise, the ripple effects can last far longer than the headlines.
Here are a few thought starters you can discuss at your next team meeting to help your leaders and team see whether your business is ready to handle a crisis:
Discussion Questions:
- What would be your first action if this happened to your organization?
- What can you do after recovering from a crisis to ensure that the ripples end?
- What do follow through and responsibility mean to you?
Kith facilitates crisis preparedness workshops that will help your company attain the clarity, trust, and speed you need to respond confidently – no dithering! – to any crisis. We’d be happy to have a conversation about how we can help your company be ready to chart an effective course to reputation protection.
Looking for more fresh insights? Crisis of the Month is a no-fluff Substack that breaks down real-world crises and what they teach us about leadership, communication, and damage control. Whether you’re in comms, ops, or just crisis-curious, this is your monthly guide to what went wrong — and how to do it better. Sign up today!
