The VW scandal & competitive values: “Made in Germany” = high-performance fraud?

The VW scandal not only led the world market leader, but the entire automotive industry into the Crisis. The DAX also suffered. Digitization is not enough. The software, the bits and bytes, does have it Structure and System, generates value, but no values. However, values ​​are decisive competitive factors.

From the market leader to the fraudster

At the end of July this year, Volkswagen was celebrated as the market leader. In the first six months, the group had sold more vehicles worldwide than its competitor Toyota. It is not only the world's largest automaker, but also achieved Objectiveto be the world's leading auto company too. Three years ahead of schedule.

Only two months later, the discovery of the deliberate deception of authorities and customers for a massive slump in VWAction, like the entire automotive industry and the DAX. Switzerland now bans the sale of manipulated vehicles. Focus online refers to Bloomberg that the falsifications of exhaust gas values ​​have apparently been largely controlled from Germany.

The intelligence service relies on trusted individuals from Volkswagen's US business. Since the group in the United States would not have had the adept engineers to manipulate, the highest management level in Wolfsburg was responsible for the manipulations. Is high-performance fraud the new brand for “Made in Germany”?

Dinosaurs VW vs. Google, Apple, Tesla

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So far, the VW brand has stood for the “Made in Germany” image with its performance. VW and Audi build excellent cars, their models are among the best in the world Welt. So far, the challenge has been to maintain and expand market leadership in times of digitization and Industry 4.0.

VW had previously relied more on old, traditional technologies. Even without a scandal, there was still a risk of perishing as a dinosaur because no courageous step into the 21st century had yet been taken. Tesla, Google and Apple have all been poised to attack the auto industry. The younger generations are no longer so “car-affine”, i.e. instead of car as a status symbol, they prefer car-sharing. Yours is above all Sustainability and flexibility important.

Market leadership with digitization and industry 4.0

What is urgently needed: impulses and talents from others Industries for the digital upheaval. Global studies by the executive search firm Russell Reynolds Associates show that the decision-makers in the automotive industry are compelled to Digital-know-how of other industries are dependent.

However, the profiles of the top management team are very homogeneous. They hold onto existing beliefs 15% more strongly, are 11% more perfectionistic and stick to traditional career patterns: 92% of managers are male; 75% come from the same country as their company, 63% have been with the same company for more than 25 years. What is urgently needed is digital”Change Agents” at senior management level.

So it's only a matter of time before quick-witted competitors with good sustainable offers attack the automotive market. Instead of manipulate, VW should have focused on sustainable innovations years ago. Unfortunately, whether VW sees this development, this technological crisis as an opportunity is no longer the sole debate. The group has to fight for its existence at all levels.

The German economy can not afford a weak VW group

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Achieving world market leadership through deliberate deception leads to harsh consequences, which will not only affect the VW Group, but also the automotive industry. Even if those responsible are identified and held liable, the group shakes its foundations.

Penalties and claims for damages from countries, authorities and customers will deplete the cash reserves of the Company use up and the Group is likely to initiate further accruals of the profits made. The funds will be tied up for years. So where are the reserves for sustainable new developments? VW is facing a massive slump and even if this crisis can be mastered financially and technologically, one thing remains open: will people still believe in VW?

More dangerous is the worldwide loss of trust

Trust takes a long time to build, but it can be destroyed in a second. This has now happened: Customers, authorities, entire countries, their own, worldwide Employees massively violated in their own sense of values. When parallel to the news about the VW scandal, advertising slogans about sustainable top performance are still being announced on all channels, and the truth is demonstrably completely disappointing.

Then feel Customers and employees are not only deceived, but correctly "linked". When trust has been betrayed in this way, it takes a very, very long time, if at all, before trust can be regained. Therefore, classic German values ​​are put to the test: high quality, sustainability, safety, reliability, trust - not alone Technology.

Corporate Governance - the system has failed

Is it about value-oriented ones? Guide or is it more like shareholder value? The Board of Management and the Supervisory Board of Volkswagen AG follow the recommendations of the German Corporate Governance Code in the version dated May 13, 2013 (declaration of compliance dated November 21, 2014). In the Corporate Governance Report, Investor Relations, you can read about the protection of the company, the executive bodies as well as the protection of the employees:

"Responsible, transparent and value-creating corporate governance:
The Future of the Volkswagen Group depends to a large extent on whether we succeed in constantly increasing the value of the company increase. The trust of our customers and investors is a fundamental prerequisite for this. We strengthen this trust through transparent and responsible corporate management, which has the highest priority in our daily work. The German Corporate Governance Code contains recommendations and suggestions for good corporate management and control. The content of the code was developed by the responsible government commission on the basis of essential legal regulations as well as nationally and internationally recognized corporate governance standards.”

We need value-oriented leaders

If such a "value-creating" corporate management is not just about profit, about increasing shareholder value, the system itself has not protected the investors. Instead of profit and growth significant losses. Commitment to a corporate governance system is not sufficient, but rather the spirit alone, ie the People and values ​​that support this system. Where was responsibility, where was transparency? Where are the employees and customers who believed in these values ​​and trusted what the company said?

We can always ask ourselves what actually went wrong and what it is light, ultimately pinning down one or a few culprits. It is of no use to any of us, however, as long as we

1. Value only as a material appreciation, in terms of shareholder value.
2. Data analysis, quarterly data analysis, and increased profits
3. Confidence in technology and material market leadership.

Systems are smoke and mirrors: What we need are leaderswho ethically understand what integrity and responsibility mean, for their own personal value system, for the trust of employees who want to be proud of their performance, for customers who rightly demand and critically question these values, right through to social responsibility.

Digital transformation is not enough

The digital Transformation offers great opportunities for our society. However, we should avoid looking only at the visible rational, the material, the data and facts, but at the potential for success through people, their spirit, their vision, their ethics and values, which alone visions, even utopias become reality permit.

Big data can Background analyze and recognize recurring behavior patterns from information, habits and experiences. They can manipulate systems and thus people, but they do not provide an answer to our question of “why” or what Sinn and the relevance of our work. Both knowledge workers and customers have this claim. They question the purpose, purpose and vision of the company.

Value-oriented leadership as an ethical corrective to the digital world

The focus shifts from the purely material consideration of rational, result-oriented performance to value-oriented leadership, which is Esteem the individual, social and cultural skills of the employees sees the decisive competitive factor. Through values ​​and diversity, through personality. The Character the company spiegelt reflected in the character and values ​​of Executives and employees.

Wir brauchen Courageto free ourselves from our belief in facts and figures. Courage not to rely on the ingenuity of data and systems. They are not the truth, can be manipulated and cannot guarantee corporate governance. More humanity and responsibility is required as an ethical corrective to the digital world.

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