Charles De Gaulle once famously remarked that “the graveyards are full of indispensable men”. The point he was making is that no-one is indispensable. The world, a country, a company or whatever goes on when its leader disappears.
There are, of course, people who leave indelible marks behind them, but at some point they all disappear and someone else steps up to the plate. They may be a shadow of the former leader, or maybe a great deal better. The only way to find out is to see them in action.
The question of succession is a difficult one, although democracy has taken care of that in terms of government. A leader departs when the people no longer want him. But in companies, it is more complicated. There are, for example, family businesses in which one generation feels obliged to leave the firm to the next generation, even if they are not suited to the job. As a result, the business suffers.
The management guru Jim Collins, in his book “Good to Great” defined business leaders in different ways: Level 4 leaders, he said, had the vision of what they wanted to achieve and got on and did it, using the labour of others. If the company fails when they leave, such men often do not care, because that reflects well on their ability.
Collins’s Level 5 leaders are more humble, but also understand that one can build bigger and better businesses if one accepts one’s limitations and rather than concentrating on your own ideas, looks around to find the best brains to create a better longterm future for the company. Level 5 leaders are looking beyond their own lifetimes.
Taking on outsiders is not always easy, particularly in industries where experience is very specific. Newcomers may be very bright and may even be right when they think that things should change, but it is often the changers who get changed, rather than the system.
Picking a winner to run a racing championship is not easy. Leaving the business to someone who was subordinate to the old leader may not be the smartest thing to do because if they were exceptional they would have become the leader themselves. Racing people do not generally wait in queues, like bureaucrats. Old leaders have unwanted baggage which make it tough for them to step up and demand respect from those who used to be equals. On the other hand, newcomers will make mistakes and upset people, which is why a familiar face is sometimes deemed to be better than a smart outsider.
It is worth noting that over in the United States, IndyCar looks like it is going through this at the moment. CEO Randy Bernard came into motor racing from a very successful background in bull-riding. He joined IndyCar on a five-year contract in 2010 and has been involved in trying to give the series new energy and vigour. Unfortunately for Bernard, some are now beginning to push back against him and are campaigning to have him removed. Bernard has confirmed that one team owner is calling others, trying to get him fired.
No-one in the Formula 1 business gives a toss whether Peter Brabeck-Letmathe, recently named chairman of the Formula One group, is an expert in marketing food. They want to know if he can deal with motor racing people and being on a string of fancy boards does not prove anything. He may turn out to be an inspired choice, who wins the confidence of all and sundry. He may not.
One can argue that there will never be another Bernie Ecclestone, and I would agree with that. Bernie is a man with a remarkable set of skills. But there will come a day when the Formula One group will get another CEO. Be that tomorrow, or in 10 years from now. The big question is not really where to find someone as exceptional as Bernie, but rather whether the organisation will change. The future leader may not need the same skills as Bernie.
There is no doubt that he will need to be good in a boardroom; and good in front of cameras. But perhaps he will also need to be happy to let others run the divisions of the corporation, leaving him to make sure things are running smoothly, and give him the chance to think strategically about where the business is going next – and how to make that happen.
One way or the other, it will be interesting to watch.
And who would you nominate to fill those size 7 shoes?
I have no idea.
In that case, you’re nominated Joe!
I think you’d do an excellent job too.
If only you had some neutral Swiss blood in your lineage, that’d be perfect.
Ross Brawn
Like Ron Dennis, able and probably willing to take it on, but clearly still too close to a current team. Meaning their decisions would always be challenged as biased. Even Lauda would still be perceived as a Ferrari stooge.
Would JYS do?
I very much doubt they’ll be able to find anyone able to do what Bernie is still very good at doing – dividing and conquering the teams while separating venues from just a hairs breadth less money than would bankrupt them, all while having the conscious of a robot.
Finding someone with his a wealth of knowledge of the sport, of its players, along with his ruthlessness? I think it’s vanishingly unlikely.
I suspect the power of the commercial rights holder over the teams and the FIA will severely diminish upon Bernie’s exit. I also suspect this is a major reason CVC is pressing so hard for a rushed public offering. Perhaps they feel it will insulate them if Bernie is forced to exit by the legal fallout from the quickly approaching Gribkowsky verdict? While his indictment is probably not the most likely outcome of the trial, it seems to be a real possibility. I continue to doubt anyone so indicted, even without guilt, could remain in charge of CVC’s interests.
interesting thoughts Joe.
Fifteen years ago, Bernie was getting £7m from the BBC for the show to be on the road. Then ITV offered him something like £70m, if I’m not mistaken. Please correct me if I am. Then the lure of lower costs for the same returns took the show to far parts of the globe, and now the temptation is to abandon the old circuits.
No one can blame Bernie for wanting to be increase his personal wealth in increments of thousands times millions. But no one any longer believes in “value” other than financial worth. I’m not optimistic F1 can survive more than another 5 maybe 10 years.
Bernie may well outlast F1!
He himself may not care what happens after he sells up.. that would make him a “level 4″ leader according to your friend Collins
I would love to be considered for the job. I’m a 44 year F-1 Fan & veteran of many races, with an American Busienss outlook and feel for the history of F-1
Bernie was the right guy back in the 70′s – 90′s but has put F-1 in an ever tightening corner. Fans and sponsors are being shoved into non relavance, all due to TV and political machanations from 3rd world conuntries.
F-1 needs someone who can re mix a sport with a show, today its all to much like dancing with the stars playing to the lowest common denominator. Much Like Facebook when investors realize there is nothing in F-1 with out popularity of people who can afford sponsors prodcts, the share price will tumble…. For too long F-1 has ben absent from the North American market in any real presance,where there is untapped gold only if someone (Ecclestone) would care to grab it, but you cant use 1970′s used car sales man tactics in the USA….
Sorry Tom, keep your day-job, F1 is is English, and should remain so.
What is the reason Americans insist on using F-1 instead of the official F1?
There is no such thing as the official F1. The only official thing that exists is Formula One… and the flying F1 logo
Tom, and why not? Sometimes I feel anybody fresh would do wonders, and the biggest criteria is to get someone who won’t listen to our political guff.
I totally agree with you about the used car salesman thing not working your way. Bernie’s 16 man board sounds like the UN, and about as effective at warfare. Sorry, I mean, peacekeeping.
I would probably not be alone in being glad to replace 16 guys, plus who only knows who else drawing sinecures, with one genuine guy who holds his hands up and says, “Hey, pay me fair, judge me fair”.
One of the companies to steal some salesmanship from is Microsoft. For SQLServer, they simply cannot get the big accounts. Oracle is who owns the critical stuff. So Microsoft pull out awesome stops. As in incidents get notified to top brass, right up to Ballmer. Not even for really big accounts.
Basically, it’s interesting what a huge company will do when they are underdog.
Another thing, I guess easy enough to look up, but just who the heck is the sales team for F1? I reckon a lot more guys like Newey ought to be seconded for big sales, to translate the dedication of it all.
But most of all, to really sell, you have to start showing deep commitment.
In other words, backtrack on the wheeling and dealing culture. Or at the very least, watch Jerry Maguire a few times over
style tip, Tom, eff one, mate, eff one!
Randy Bernard is learning the hard way what Tony George, Chris Pook and Joe Heitzler learned before him. It’s too bad IndyCars chose to go nuclear right after one of the most exciting Indy 500s in recent memory.
Oooh, been waiting to use this one, from a very obscure lady with a wonderful name:
“IN the gloaming, O, My Darling!
When the lights are dim and low,
And the quiet shadows falling
Softly come and softly go.
– Meta Orred
A great man might point out to others where the freaking plate is to step up to!
Does the timing of this piece reflect in any way the comments I made a few days back along the lines of Bernie getting married and retiring? (the two being linked) Presumably to spend his retirement in court over the Gribkowski affair and then trying to get his half of SLEC back from Slavica not to mention extracting his fingers from many pies.
He could of course retire from Delta Topco and retain his Delta Prefco position, which would make things pretty much impossible for Peter B-L.
Of course Peter B-L could turn out to be a “Todt”, rarely seen or heard. I would guess this to be likely since he is on several boards, that probably meet once per quarter, with very little to occupy his time. Bernie’s organisation is set up to expect Bernie fully to engage in any and all aspects at any and all times.
If Peter B-L actually becomes responsible for day to day running of F1, things could change in a huge way.
Bernie needs to go see The Wrestler. One i overlooked. Rourke is heartbreaking in that. Maybe it won’t resonate with one of life’s winners, but it would make him think. Quit whilst ahead. I want to salute the guy, not pity him.
Primping for a nomination , Joe ? Hee hee .
By the way , the students in Quebec have sent in an offer , and we’re waiting to hear the government answer , to find out whether the disruption is over or not .
Students across Canada went out banging pots and pans last night to show support for the Quebec kids .
We should find out soon whether the GP will be running with or without the Metro , as that may be the first target .
And the best man for the job is….our man Ron! (Dennis that is)
as you said, no one is irreplaceable, Mr.E is a remarkable man, but in business as in running a country its not good for the health of the business/country to depend solely on one man (some dictators may disagree), one need only look a the example of Apple, S. Jobs was a unique talent but he also knew that he was’t going to be there forever and established a proper succession plan, so much so that T. Cook had been running the company well before Jobs stepped down.
Although Bernie’s negotiating and tactical skills are very impressive, the job at hand is not such that another highly skilled CEO type could not tackle the negotiating and future strategy any less efficiently, furthermore the landscape of media consumption is rapidly changing with the internet and new media taking a more important role in the way consumers choose to take in their sports and entertainment content.
F1 has been very slow to acknowledge these changing conditions so this would certainly be an appropriate moment for a manager with knowledge of the new rapidly evolving technologies, someone who can look beyond the TV set and maximize the potential of the sport in these areas to come in and take the reins of the sport for the next chapter.
I’m certain there will never be another Bernie E., whether that’s good, bad or indifferent. For sure the business will evolve after he’s gone.
And there I was thinking you were describing mr parr in places.
“One can argue that there will never be another Bernie Ecclestone, and I would agree with that. Bernie is a man with a remarkable set of skills. But there will come a day when the Formula One group will get another CEO. ”
Personally, I think we can be glad that there will never be another Bernie. His portrayal via the F1 broadcast media has always left me with a distinctly uneasy feeling of, “I understand every single word he’s put in that comment, but I can’t trust a single sentiment expressed.” There’s too much “smoke & mirrors” in his methods for my liking, and that’s the last thing we need to see in F1 if it’s to survive for another generation.
The the graveyards of the world are most definitely full of indispensable men. The world may keep spinning, but many times the organizations they’ve run do not.
Sometimes, indispensable men truly are indispensable – to their organizations. Their departure begins the end. I suspect Bernie is one of these men, and Formula One’s commercial rights may be one of these organizations. Perhaps this somewhat explains the rush towards a public offering.
Regarding IndyCar, Randy Bernard is doing a good job, perhaps too good of a job. IndyCar journalist Robin Miller recently wrote that Bernard has achieved something his predecessors never had, he’s nearly balanced IndyCar’s books.
I don’t see IndyCar’s controlling family pushing aside a man who has saved them countless millions while growing the sport, just to assuage the bent egos of a few disgruntled team owners. Bernard will probably survive this, and it will make him stronger.
Bernie is Bernie and he has done a great job with F1 since 1980 for me. Lots I don’t agree with, but in the end we have a Show, that only the Olympics and the World Cup maybe able to upstage the F1 season, and it is done each year, without a break.
I can see Bernie making deals while they try like mad to lower him down 6 feet.
So I do wonder who is there that can run the F1 business as we know of it today?
Does it worry me, no?
As for the IPO, I would think it might worry a few pension funds if they invest in F1. As they like things to be very neat and tidy, but then again they may not invest in F1, but then again it does have great cash flow and business / investors love cash.
You really have to wonder about the Indycar series. After years in the doldrums caused by an acrimonious split where the teams had to shoulder some of the blame, in comes a man who totally revitalises the series. Then, right after one of the best Indy 500 races for years, the teams start arguing again and want to remove him. They haven’t learnt a thing, have they?
Im nearly 40 and a lot of my contemporaries watch F1 but I don’t know a single person younger than me who does.
For this reason alone Ecclestone needs to accept his time has come and move along.
F1 needs a future and it certainly ain’t ecclestone.
Trouble is (or not) you can watch F1 online for free – BE can’t control new mejia (sic). So surely FOM’s TV revenue stream is set to plummet as more people choose not to pay for the privilege. BTW Benjamin Graham was not a fan of IPOs.
Sounds like a Mini Bernie………………….
I think the point you make in in your penultimate paragraph is the relevant one Joe. I would say the business has and is changing and is becoming (does need) to get more corporate and the teams dealt with more fairly and openly with more of the cake. F1 also arguably needs to become more ‘respectable’ in addition to being glamorous. Ross Brawn – as suggested at the outset of these comments – doesn’t seem a bad choice at all – although I’m sure there may well also be even better type 5 people around
I do believe that Bernie loves F1, but most of all he loves making deals. I do not think that he now does what he is doing for the money – he is an employee and so wealthy, but old, that another $1billion will not make a difference.
His major failure was not doing his succession plan long ago.
I think that Flabio B could have done it, until he was caught cheating.
I was actually serious suggesting Ross Brawn.
I know it will never happen, because the powers that be will not consider him and even if they would, he probably wouldn’t accept.
But the thinking behind my suggestion is that:
He has a proven track-record as a leader. He has held various and quite different Senior positions in a number of different teams. He knows the inner workings of F1.
He knows how to play the media, and appears very approachable in the public eye. But I think it is clear that he also has the steely determination required to get the job done. He also does not shy away from confrontation or making uncomfortable and provocative decisions.
He may not be the best number-cruncher & bean-counter in the world (I think Nick Fry currently is responsible for this at MGP), but it doesn’t mean he could appoint someone else capably of it.
Too bad it won’t happen.
Martin Brundle. The only other East Anglian used car salesman in F1. Why change a successful formula?