Bernie Ecclestone defined Formula One. What could his departure mean for F1 leadership?
Bernie
Ecclestone ruled Formula One for four decades. In many ways, he defined the
sport. He was a classic ‘hero’ leader - he set the tone, took the decisions, and made the deals. Heroes like
this can be commercially successful. However, they often stifle the people
around them and create a culture of dependency. When they depart, they leave a
void.
It’s fair to say that
Ecclestone was a controversial leader. He is widely credited with transforming
F1 into a multibillion-dollar business. He has also been widely criticised for
his autocratic style. Former world champion Sir Jackie Stewart believed Ecclestone was “too powerful” and said
he had, “such power and influence that he could suffocate almost any performer who would dare to suggest that there must be change." He also complained that there
was no succession plan. This is a common issue in organisations ruled by a hero
leader.
In 2013, the International Journal of
Motorsport Management published an analysis
of Bernie Ecclestone ’s roles as CEO of Formula One. The analysis found
that, “Ecclestone fulfills a diversity of tasks that are typically performed by
a number of key individuals within a management team,” and suggested that a professional management team may be
required to succeed him.
It appears that new
F1 owners Liberty Media do indeed intend to change the way the sport is
run. Alongside new CEO Chase Carey,
there are high-profile appointments in other roles, including former Mercedes
team boss Ross
Brawn as managing director of motorsports.
Brawn commented: “We have an almost unprecedented opportunity to work
together with the teams and promoters for a better F1 for them and, most
importantly, for the fans.” Mention of the fans is critical. There has been a drop from 600 million to 400 million
in global TV viewing figures since 2008. Industry observers
attribute this to Ecclestone’s exclusive broadcasting deals. Many argue that his unwavering pursuit
of the deal and the bottom line led to a lack of focus on long-term,
sustainable success.
There is no doubt that F1
needs to reconnect with its core audience and to engage the audience of
tomorrow. For all its glitz and glamour, it would benefit from becoming
increasingly accessible. How can its new leaders achieve this? I’d suggest that
customers, not cash, need to be much more central to the entire decision-making
process. Leaders need to work with each other, and also with the sport’s
multiple stakeholders. It’s a fast-moving world, so agility and speed of
decision-making are important – but those decisions could be better made
through greater customer insight and collaboration. The result would be an F1
that can evolve from the Ecclestone era into a more connected, customer-driven
sport suited to the 21st century.
