August 25, 2015
I’ve just returned from the Belgian Grand Prix at Spa. Although many of my students think that I’m off to a Grand Prix every other weekend, sadly this isn’t the case. In fact, I only tend to visit a Grand Prix when we’re working on a further edition of our book – Performance at the Limit: Business Lessons from Formula 1 Motor Racing. In these situations Mr Ecclestone has kindly supported our endeavours by permitting us access to the F1 Paddock, the essential place to be if you want to meet up with the movers and shakers in the various F1 teams.
The first time was at Imola in 2004 – ten years after that fateful weekend when Roland Ratzenberger and Ayrton Senna lost their lives, then we were at Barcelona in 2008 working on the second edition. Now it’s time for the third edition and, as luck would have it, this time it was the Belgian Grand Prix at Spa that fitted into our publishing schedule – it is a circuit I have always wanted to visit, one that oozes from the history of F1, where else would you find a version of the circuit which was modified in 1979 being referred to as the ‘new’ circuit?
It’s always enjoyable to attend a Grand Prix and to breathe in the real atmosphere of F1, but on the other hand this would hopefully be a fairly straightforward visit – interviewing some familiar and some new faces to update the F1 story and how it provides real insights for organisations and their managers to learn from. I’d managed to make contact with a few people prior to Spa to see if it would be OK for us to talk to them. One of these was Manor’s Graeme Lowdon, I’d never met him before, but I’d always thought he seemed to be a straight-forward and approachable kind of individual, and this was borne out when he responded positively to my Email within 50 mins – no passing me on to the media team, or his PA, just ‘yes, come and see me when you get to the race’ they don’t hang around in F1.
This was great news, our book focused on how other businesses and organisations can learn from F1, and as Manor F1 had just effectively risen from the ashes of administration to race again – I felt that there must be some real issues here that would interest a wider readership. So we met with Graeme at the Manor hospitality unit and I started with the question as to how he and the organisation had dealt with the challenges it had been facing over the last twelve months and how it had managed to make it back to the F1 grid in 2015, my thought was that this would get us into a discussion about the problems of going into administration. But Graeme started talking about the 2014 Japanese Grand Prix and the dreadful accident that befell Jules Bianchi and the challenge of then going to first Russian Grand Prix at Sochi while Jules was still in a critical condition in hospital. How could I have been so crass? Why did I not anticipate that the biggest challenge the team faced was nothing to do with administration, but with the catastrophic injuries suffered by one of their drivers at the Japanese Grand Prix. Like every F1 fan I had been devastated to hear that Jules had lost his fight for life in July 2015, but somehow I had managed to separate this from the organisation and most importantly the people in that organisation. What was I thinking? Or rather why was I not thinking?
How many of us can envisage a situation where one of our colleagues dies in the course of doing his or her job? Sadly, it does happen – today we woke to the sad news that Justin Wilson had succumbed to his injuries at an Indycar race – how do we then pick ourselves up from that devastation, what can those leading the organisation do to help and support others when they themselves are grieving too? And then if you realised that your business was now in a desperate financial situation that could not be immediately resolved, wouldn’t it be easier to walk away? To decide that this was the time to do something else? Not so Graeme Lowdon and John Booth of Manor F1. They pulled Manor from the ashes or perhaps more accurately from EBay, where much of the teams equipment was due to be sold, and they put themselves back on the grid where, currently they are fighting with McLaren for position, a team with around four times the budget and people that they have.
We had a great time at Spa, many of the teams could not have been more helpful and co-operative – particularly Mercedes, McLaren, Williams and Sauber. But my abiding memory will always be Manor F1, what they’ve been through, but also the quiet commitment and resolve they have demonstrated, never giving up, when most of us would have been pleased to be able to do so. One term that is used now and again in F1 is ‘racer’ it means someone who has a passion and a commitment to go racing no matter what, it’s not about the money, it’s not about status or fame, but the joy of racing and the desire to win the next race. Teams like McLaren and Williams epitomise this approach, as do their leadership, and for me so do Manor F1. They have demonstrated a different order of commitment, one which shows who the real racers are.
March 27, 2013
In one of my lectures on strategic change I use a quote from Professor Larry Greiner, formerly of the Harvard Business School, ‘The clues to future success lie in the past’. I use it to explore the notion that every organisation has a unique history and it is only by understanding that history and using it to build future success that organisations can succeed in a way that is impossible for their competitors to copy. Let’s face it, most organisation’s today have very similar strategies, what makes the difference is their ability to deliver the strategy and the uniqueness they bring from their past. When you look at success stories like Apple and Harley Davidson you can see that the key is that they build on their past successes in ways that are relevant to present and future markets.
Never has the principle of remembering your past, but adapting to the future been more readily demonstrated than in Formula 1. Enzo Ferrari was first and foremost a builder of racing cars, he moved into supplying customers with versions of his racing cars to help fund the racing, but he was never a mere automotive manufacturer. Ferrari’s focus on the cars led to suggestions that he disliked drivers becoming too successful and would often manage things to suggest that ultimately it was the car that was the reason for winning, not the driver. A strong focus on the car has permeated many of the F1 teams in the UK, with Lotus, McLaren and Williams all concerned with the racing car as the focus, of course they wanted good drivers, but ultimately it was all about the car. Frank Williams’ famous mantra for anyone wanting him to sign a cheque was always ‘Will it make the car go faster?’.
The story at Red Bull Racing however demonstrates a very different history. Dietrich Mateschitz supported by his driver coach/mentor Dr Helmut Marko was never into cars. His focus has always been unequivocally on the driver. Red Bull entered F1 not as car maker, but as a sponsor with a clear focus on developing driver talent. They bought a stake in the Sauber team in 1995, and in 2001 introduced the Red Bull Junior Team under the guidance of Dr Marko. The purpose of Red Bull Juniors was to develop young talent, and ultimately to move them into F1. This included a young German, Sebastian Vettel, who Red Bull had first supported driving karts in 2000 when he was 12 years old. In 2001 Mateschitz had a disagreement with Peter Sauber; Mateschitz wanted Enrique Bernoldi in the car, whereas Sauber was keen on a young Finn called Kimi Raikkonen. As a consequence Mateschitz withdrew his funding from Sauber and looked to purchase the struggling Arrows team to provide a seat for Bernoldi. This failed to work out, but in 2004 he was looking for a drive for a young Austrian driver, Christian Klein, and in discussions with Jaguar Racing discovered that Ford might be interested in selling the team. He purchased Jaguar Racing with the initial intention of keeping the existing management team, but a disagreement over…wait for it… drivers, meant that they were relieved of their posts and Christian Horner became the new team principal at the start of 2005.
So in the end what we have is a very different history that marks Red Bull Racing ultimately as a team constructed for Red Bull drivers to show their talent, not, like Ferrari, McLaren or Williams for the building of racing cars, and like most aspects of an organisation’s history, it is both a strength and a weakness. So what happened in the 2013 Malaysian Grand Prix is perhaps less surprising than you may think and maybe what arises from Vettel ignoring team orders is more a question for Christian Horner and, particularly, Adrian Newey as to the kind of organisation they want to work for, and the kind of history they want to leave behind, than it is for anything related to drivers or indeed cars.
February 21, 2013
Luca Marmorini, Ferrari’s Head of Engines, has been quoted in Autosport.com as saying that it is important that Ferrari have a second (ie in addition to Sauber) customer for their 2014 power unit – note the term ‘power unit’ as effectively these are engine + energy recovery systems, so the simple term ‘engine’ no longer seems to do it justice.
The reason for this concern is that their current second customer Toro Rosso have recently announced that they will be shifting to a Renault power unit in 2014, which makes sense organizationally as they are co-owned by Dietrich Mateschitz of Red Bull with Red Bull Racing, so presumably they can share more data during development and racing and therefore improve the performance of both teams. However Toro Rosso’s location in Faenza makes Maranello the ideal partner from a logistical point of view as they are literally a few kilometres down the road. Location matters in F1, otherwise we wouldn’t have Motorsport Valley in the UK, and so the proximity between the power unit supplier and customer cannot be ignored. For this reason, Marmorini hopes that all is not lost with Toro Rosso and that they may review their decision to go to Renault, as he says on the Autosport site: “I don’t know if Toro Rosso will be with us next year. We are still working very well with them now. They’re an important contribution to Ferrari engine development, but I also think we are giving them a competitive engine.”
A key factor in this is data. Derek Gardner, the now sadly departed designer of the six wheel Tyrrell, told me that a key problem that they had with the six wheeler was the speed of development of the front tyres, which were far smaller than the standard F1 front tyre that Goodyear supplied to all the other teams. As a consequence they were getting far less data on the performance of the tyre – as it was only fitted to two cars and so were unable to develop it as fast as the other which had feedback from twenty four cars (there were 13 teams racing back in 1976). Data therefore is everything if you want to improve performance.
So currently it seems (and things could still move around a fair bit) that if Toro Rosso move to Renault then Renault will be the leading supplier with power units in five teams: Red Bull Racing; Toro Rosso; Lotus; Williams and Caterham. Mercedes will be supplying power units to three teams: their works team plus McLaren and Force India. Ferrari will be supplying two teams – themselves and Sauber. It seems very unlikely that Cosworth, who currently supply Marussia, will be in the frame for 2014 (but never say never) and so who knows, we may see Ferrari supplying the power unit for Marussia, which will make an interesting dynamic in their race with Caterham to tenth place.
December 7, 2011
The news that both Ferrari and Red Bull Racing are planning to withdraw from FOTA has led many to suggest that this is the end of the team’s association. Clearly it is better for the teams to act as one if they wish to get a bigger share of the FOM revenues, but as seems to always happen, self interest is the decider at the end of the day. They are all agreed that they want to reduce costs – doesn’t any organisation? The important question is therefore how do you do it? When you’ve got your own bespoke test track then a ban on testing means you can’t use one of your key assets to improve your performance, so you can see why Ferrari would feel that being in FOTA isn’t in their best interests, RBR are in a different situation where their business model is a very different one to the other teams, so, again it may make better sense for them to go their own way. Of course we also have HRT who were the first to leave FOTA back in January 2011. The other reason rumoured for the departure of Ferrari and Red Bull Racing is the issue of third (or fourth) cars where constructors are allowed to sell/loan their cars to other teams, a practice well used in the 1950 and 60s. Stirling Moss’s legendary victory for Lotus at Monaco in 1960 was not achieved for Lotus Racing, but for Rob Walker’s private team using a Lotus 18. This is an issue which FOTA has been divided on and it could be argued that building more cars would effectively reduce the costs of certain teams such as Ferrari and also for RBR, whose original concept was to provide cars for Scuderia Toro Rosso. It’s just a very different way of achieving the same objective.
However regardless of the reasons for Ferrari and RBR to leave the team’s association, does this spell the end of FOTA? As history has a habit of repeating itself, it is interesting to note that in the controversies around previous Concorde Agreements, there were three teams who were united in refusing to sign up to the fourth agreement which was due to run from 1997 to 2002. They were McLaren, Williams and Tyrrell. In many ways it was this stand that led to the financial demise of the Tyrrell organisation, a team who had dominated F1 in the late sixties/ early seventies. Eventually a revised, fifth, agreement was drawn up which included the three teams and was to run from 1998 to 2007. The current (sixth) agreement is to run until the end of 2012, and this is where the negotiations are focused. The point of history is that the three teams who resisted the fourth Concorde Agreement are very much at the heart of FOTA today, McLaren providing the chairman, Williams a committed participant and the team that was originally Tyrrell Racing has now morphed into Mercedes GP (sorry Mercedes AMG GP!), via spells as British American Racing and Honda, with senior management team Nick Fry and Ross Brawn very much committed to FOTA. So even if FOTA doesn’t represent all the F1 teams, it may represent a significantly powerful voice that can influence the terms of the seventh Concorde Agreement, if it holds together.
October 13, 2011
There is no question that Sebastian Vettel is a worthy driver’s champion for 2011. He had the best car, but he rarely put a wheel wrong, and so his title is undoubtedly well deserved. I do feel that Sebastian, like Lewis before him, is very much a champion who, although a worthy champion, is still highly dependent on the support of the team for the title, this I would contrast to other champions who really lead their teams to victory. It is the difference between someone who is dependent on the team for their success and someone the team is dependent upon, someone who brings the team up with them.
I guess the contrast I would draw would be the difference between Michael Schumacher at Benetton where supported by Flavio Briatore, Ross Brawn and others he achieved two world championships, here he was a champion, but not a leader. In contrast, during Michael’s time at Ferrari he played a very key role in turning round the whole organisation , becoming the catalyst for change and winning the greatest number of championships that have ever been won, Michael grew from being a champion to being a leader. Similarly, I would also put Fernando Alonso in the leader category, he played a key role in the success of Renault in the 2005/6 seasons and has gone on, with a brief blip at McLaren, to do the same at Ferrari. If we look back into previous champions individuals like Ayrton Senna, Alain Prost, Niki Lauda and Jackie Stewart all fit with the leadership role. The interesting question for me is where Jenson Button is on this, in many ways he seems to be stepping up to the leadership role this season, not only through his performance on the track but his demeanour, his confidence, his approach are all suggesting something stronger than a driver who just gets in the car and performs on the track.
So the obvious thing for Sebastian to do now, or certainly in a year or two, is to move to a new team that needs a leader and see if he can shift up a gear from being world champion, not easy, but some have done it. Who knows, like Michael at Ferrari, he may even persuade Adrian Newey to come with him.
With a few exceptions (mainly the desperately boring European Grand Prix at Valencia) 2011 has been a superb series of races. And of course we did have the rain factor in Hungary, but the excitement was already there, it was just the icing on the cake.
Jenson Button: What a great way to celebrate your 200th Grand Prix and the place where Jenson won his first race back in 2006. Jenson may not be Alonso material, but he’s a great character and on his day, unbeatable. It could have been very different, I actually think he may have pitted if he’d been in front of Lewis when the rain started to come down, but that’s conjecture on my part. A great result and who knows what will come next.
Sebastian Vettel: Although he didn’t win, he was ahead of both his main rivals for the championship – Lewis and Fernando. This was a good championship banker for Sebastian and still makes him the favourite. He is now almost 100 points ahead of both of them (notice I haven’t put Mark Webber down as a rival), and that means they need to win four races with Seb not picking up a single point to overtake him. Not very likely.
Martin Whitmarsh: Martin has come in for a bit of stick regarding McLaren’s performance, I have no idea why, as he is doing a brilliant job. McLaren have prided themselves on being the only team that can run two ‘number one’ drivers, however this has often been at the cost of much intra-team rivalry and friction (Senna/Prost; Hamilton/Alonso), and it has to be said that Ron Dennis’s partial approach to drivers has often appeared to fuel such tensions. Martin Whitmarsh has a different style and one which is about fairness, balance and the team. Undoubtedly there is a good relationship between Jenson and Lewis, but it is the team approach that will either build or destroy this, congratulations to Martin and McLaren for giving us such great racing yesterday. If McLaren had used team orders it would have been so much more boring and we wouldn’t have seen the best of Jenson or Lewis.
Lewis Hamilton: It was a big shame for Lewis as he deserved a far better result than he ended up with, but he took the outcome with stoicism and for that he probably should have been a winner as well! There is much more to come from Lewis in the second part of the season.
Team Orders: Towards the end of the Hungary race I was reminded of Austria 2002, the day when Jean Todt, oblivious to the views of F1 fans across the world decided to get Rubens Barrichello, who had outdriven Schumi all weekend, to pull over and allow the Schumi-meister to win the race. Undoubtedly Todt’s motives were sincere and for the benefit of the team, but in reality they did far more damage to the team and their lead driver. Contrast this with Lewis and Jenson fighting tooth and nail for every last piece of the abrasive Hungaroring circuit and you realise how much racing team orders can destroy. Let’s hope all teams reflect on this and think how they can get the best out of everyone and put on great racing, because that was what we witnessed yesterday.
So which do you think was the better race – a grand prix that lasted over four hours and where spectators had to endure hours standing in torrential rain, or a sunny, on time race in a beautiful Spanish city? Montreal and Valencia could not have been more different, and the biggest difference was the racing – in Valencia there really wasn’t any.
Vettel: Sebastian seems to have moved his driving onto a new level, and despite the mistake in Montreal which created Button’s victory, he really is looking untouchable. Hard to see how he can now lose the 2011 title, but stranger things have happened.
Ferrari: Despite a lot of criticism Ferrari seemed to be the only team with the race pace to keep RBR in check. As usual Fernando is the one that is always there to find the sudden opportunity. He could still win this championship.
Lewis’s radio broadcasts. I always enjoy Lewis claiming 100% visibility when it was chucking it down, as he did in Montreal. In the end it didn’t do him any good, but his radio broadcasts are always entertaining, or LOL as my daughter would text. I particularly enjoyed ‘ I can’t go any slower’ when his engineer was asking him to be more careful with the rear tyres, followed by ‘I can’t go any faster’ when it looked like he was dropping back towards Felipe Massa. F1 would be so much duller (yes really!) without Lewis.
Jaime Alguersuari: Alguersuari has come in for some (undeserved in my view) criticism in the last few races. He silenced his detractors in Valencia with a great drive from 18th on the grid to 8th in the race.
Valencia Circuit: Although it looks great, with the bridge and the old gothic fish market, but since the first grand prix it has only been able to produce mind numbing processional ‘racing’. Given that Bernie has always said there are too many European Grand Prix, it has always been strange to have two Spanish races, if we have to have two can we find a better track?
McLaren: McLaren made some good calls in Montreal, but the race really didn’t work for them in Valencia, perhaps it was the high downforce, or perhaps they don’t go well at boring tracks, let’s see what happens at Silverstone.
Michael Schumacher: Finished 17th, unlike some, I’ve been very reluctant to write Michael off, but as Vettel looks more and more like a champion, Michael looks less and less like one.