Key Business Lessons From Formula 1

It takes a large, multi-skilled team to get any F1- The application, optimisation and combination of
car onto the race track. And it takes anotherindividual talents.
large, multi-skilled team to get it round the track.Yet for your people there is no equivalent of a
Races are won, not by the driver's performance,Constructors' Title.
but by the team's. Often it is the pit crew whoYou are concerned about how you are doing in an
determine the outcome of a close race. So whoincreasingly competitive global market. You focus
gets the glory? The driver!much of your strategy on beating the
Yet to whom is that extra split second reallycompetition; what you read and much of what
attributable? Yes the driver risks life and limb toyou say is peppered with references to
become champion. But his team determines thecompetition. As a result you continue to demand
degree of that risk, and his championship placing.improved performance and greater productivity,
No wonder there is a constructors' title as well! Itbut you offer comparatively little in return. You do
is the least the sport can do to recognise thelittle to fire the competitiveness of your people.
people who make it all happen.And what you do to increase their
The fact is that success is rarely attributablecompetitiveness actually undermines the team
solely to one individual, no matter how solitary theeffectiveness. You try to motivate them by
activity. Talent always has to be nurtured andcreating incentives to improve their performance.
equipment refined to create that narrow marginAs you know these are widely acknowledged to
between first and also ran! Team sports try tohave only a limited short term effect. But what
recognise this by awarding "assists" to playersyou fail to recognise is that the self interest they
who help set up scoring opportunities. But F1 iscreate invokes jealousy, conflict and divisions that
different, because it is one of the very fewundermines your efforts and destroys effective
sports that recognises the back room boys andteamwork. Sub-teams work for their own team
the contribution they make. In fact you couldgoals and not those of the organisation - the
argue that the Constructors' Title is the "real" title,ultimate team.
especially in this modern era where it more aboutYou will never win the hearts and minds of your
the car than the driver.people in the way you need to if you persist with
Is this necessary? Certainly F1 teams would existthese tactics. You must find some way to realign
without it and they would likely perform nearly aseveryone in the organisation to win the employee
well. After all F1, perhaps more than any otherengagement you need to deliver the strategic
sport, inspires a passion that almost defies logic.alignment required to compete effective. That is
So it doesn't take much to inspire the peoplewhy you need some kind of Constructors' Title.
who, in any event, are doing something they love.Of course that is where the comparison between
Yet this applies across the sport, so what is thebusiness and F1 appears to fall down, because
'extra' that 'drives' the champion team to beat thebusiness is not a sport and there is no table and it
rest?is not really feasible to try to create one.
It is a camaraderie and alignment that creates anNevertheless it is possible to create a similar
atom more synergy; the determination to alwayseffect and surprisingly it is not very difficult. You
improve personal performance and be a credit tohave to do only two things:
the team, and encouraging others to feel the1. Eliminate all incentive remuneration and bonus
same. When fractions of a second are vital andstructures; and
the slightest slip can spell disaster, each2. Replace it with a model that has everyone
understands the big picture and has totalfocused on business results rather than their own.
confidence in his own abilities and his colleagues'.The way to do this is simple. It is to make all
The Constructors' Title however, gives it anyour employers co-owners of the business and
added edge. It makes it that much moreoffer them a transparent, equitable way of
worthwhile and gives each individual the addedparticipating in its results, even while recognising
competitive urge to personally try even harder,that people contribute in different ways.
knowing that there is something more at stake.There is a way to create such ownership. What is
This is something that is definitely missing frommore it comes at no cost to your business or
the business world. Like F1 your business alsoyour employees and it overcomes the
requires a large, multi-skilled team. Timing may notshortcomings of all existing employee share
be quite so precise, but it is just as important thatownership models. It might not have the same
everyone works at their optimum and acts atcachet as winning a Constructors' Title, but it will
precisely the right time and in the right way. Inhave the same credibility or more; and - more
both cases team effectiveness depends on:importantly - it will achieve the same or better
- The strength of collective purpose; andend results.