Performance at the Limit

Business Lessons from Formula 1 Motor Racing

Mark Jenkins Ken Pasternak

Richard West Unblinking focus, clear and constant communications, and the continual drive for improvement … What business wouldn’t wish to replicate the brand loyalty of Ferrari fans totheir team?

MARY JO JACOBI-JEPHSON, SHELL INTERNATIONAL LTD

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Printed in the United Kingdom at the University Press, Cambridge August 2005

The book industry is changing its numbering system. When quoting the ISBN, please use either the 13 or 10 digit ISBN (shown in brackets) when ordering during 2005 and 2006.

For further details visit: www.cambridge.org/patl

Performance at the Limit

Business Lessons from Formula 1 Motor Racing

Mark JenkinsProfessor of Business Strategy, Cranfield School of Management, UK

Ken Pasternak Inter Associates Ltd., Helsinki, Finland

Richard WestRichard West Associates Ltd., Redenhall, UK

It will serve as an invaluable resource for managers, consultants and students of business and management who are seeking to understand and improve the performance of their organisations.

For further details visit: www.cambridge.org/patl

FEATURES• Drawn from real accounts of

high performance over the last fifty years

• Based on rigorous primary research within the leading Formula 1 teams

• 24 interviews with the most experienced individuals within F1 are used to support the book’s conclusions

Information is correct at time of going to press but is subject to change without prior notice

July 2005 225 pages 16 colours plates 38 figures/tables978 0 521 00000 0 (0 521 84400 2) • HB • £25.00

Performance is the central focus of every organization, and yet for many how this can be achieved is an unanswered question. This book takes the case of Formula 1 motorsport, where the connection between performance and all elements of the organization is fundamental to success.

Can you imagine your organization as a Ferrari or a Jordan, a Williams or a Minardi? Your management team as a pit crew? Yours sales force as the race team and your marketing and research people as the design studio creating a Formula 1 car? The case histories and examples, which are examined provide both inspirational and instructional guidance to those seeking to achieve levels of performance – at the limit of possibility.

This exciting new book focuses on the problems of sustaining organisational performance in dynamic and competitive environments, and addresses how organisations achieve performance levels at the limit of their financial, technological and human potential.

ABOUT THE AUTHORSMark Jenkins is Professor of Business Strategy at Cranfield School of Management. He has eighteen years’ experience as a teacher and consultant in the areas of competitive strategy, knowledge management and innovation. He has been undertaking research on the performance of Formula 1 teams since 1997.

Ken Pasternak worked for twenty-two years for Citibank and the European Bank for Reconstruction and Development on assignments in the USA, Europe and the CIS. Since 1996, he has been delivering seminars for business executives in the areas of strategy, leadership and effective management.

Richard West has held senior commercial roles with McLaren, Williams and Arrows Formula 1 teams and was a Main Board Director of the Le Mans and Daytona 24 hour winning Jaguar Sportscar Team. Since 1984, he has raised in excess of $165 million of commercial sponsorship. He now runs a range of businesses including sponsorship, consultancy and training entities.

CONTENTS1. Introduction2. Why Formula 1 motor racing?3. The performance framework4. Individuals5. Teams6. Partners7. Organisation8. Integrating9. Innovating10. Transforming11. Performance12. Ten business lessons from Formula 1 motor racingAppendix A. Grand Prix Champions 1950–2004Appendix B. Grand Prix graveyard 1950–2004Appendix C. Interview respondentsAppendix D. Published sourcesAppendix E. References.

trim short page to 105mm

ADVANCE PRAISE

‘The authors have produced perhaps the most definitive analysis of what makes Formula 1 teams such high performing businesses. It is a book all senior business leaders should read to help them find ways to speed up their business performance.’

Robert Baldock, a former senior Accenture partner and strategic adviser to the Williams F1 team, and founder and former chairman of the

Motorsport Industry Association

‘Speed, simplicity, boundaryless behavior and leadership at all levels are the hallmark of winners in Formula 1 racing. The same is true for winners in today’s global businesses. Performance at the Limit builds these lessons from unique and insightful research on Formula 1 racing. This is a great read and filled with practical concepts for global business leaders.’

Noel Tichy, Professor, University of Michigan Ross School of Business

‘Formula 1 is the pinnacle of motor sport and one of the most watched sports in the world. Those taking part – drivers, managers and engineers – are always working in pursuit of excellence in a highly competitive environment. Performance at the Limit is a detailed analysis of this world, carried out with a scientific approach. I think it makes for very useful reading for those who want to learn from what goes on behind the scenes and below the surface in Formula 1.’

Jean Todt, Managing Director, Ferrari

‘Performance at the Limit captures the extraordinary power of analogy to create deep meaning. With vivid examples from Formula 1 racing, the authors bring to life the lessons of teamwork, competition, and design that ring true for executives seeking the highest performance. An inspiring and engaging read.’

Kathleen M. Eisenhardt, S. W. Ascherman Professor, Stanford University

‘With the best-known brand in professional sports, Formula 1 represents a great business success story from which other businesses can learn. Unblinking focus, clear and constant communications, and the continual drive for improvement all contribute to realising performance at the limit in all organisations, large and small. What business wouldn’t wish to replicate the brand loyalty of Ferrari fans to their team?”

Mary Jo Jacobi-Jephson, Vice President, Group External Affairs, Shell International Ltd

‘Fast, fun and fabulous. The lessons of Formula 1 will set your mind racing with insight and should send readers racing to book stores.’

Richard D’Aveni, Professor of Strategic Management, Tuck School of Business

‘This book is not so much about F1 as about how to manage in a highly competitive, fast changing, hi tech business environment. It provides valuable lessons for the increasing number of managers who face such circumstances.’

Gerry Johnson, Professor of Strategic Management, University of Strathclyde