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HIGH PERFORMANCE ENGINEERING, SMALL AND MEDIUM ENTERPRISES AND INTERNATIONALIZATION: TIMES OF CHANGE BRING SOUND OPPORTUNITIES (PART 1 OF 2)

The field of high performance engineering, with a particular focus on the ones that relate to the Motorsport Industry, are going through global technological and business development changes. The right kind of mindset and strategic tools are essential to generate and utilise at best the opportunities that such changes generate.

Motorsport Engineering – credits AME

NOTHING CAN BE TAKEN FOR GRANTED

The enduring troubles in the working relationship between McLaren and Honda have brought to the attention of pundits and general public alike that organisational culture’s ways to work do matter when trying to establish a strong cooperations among entities that belong to different cultural and mindset contexts.

Honda (appearing to have solved some of its performance and reliability troubles during the recent Malaysian Gran Prix) is betting again on its F1 future with a new partner, Toro Rosso. Lots of energy and positivity has been ritually declared within the announcement of the deal. James Key (Toro Rosso Director) has pointed out that “We look forward to a strong, stable and proactive partnership with our colleagues at Honda”, Takahiro Hachigo has stated “Everyone at Honda is looking forward to working with Toro Rosso, and we are excited to start this new chapter in our Formula 1 journey with them. (…) Honda and Toro Rosso will work as one team to strive for progress and a successful future together”. Two key words to watch for in these statements are ‘proactive’ and ‘one team’; if the two entities will manage to concretely put them into practice results will be reached.

On the organisational culture topic Honda’s Motorsport General Manager has pointed out that things did not work out with McLaren because clearly Honda failed to reach the set goals of performance (reasons for which we have written about in previous articles) yet quite interestingly he states “What we have learned from McLaren is that they have a long history, the company is pretty big, everything is systematic and everything is sorted out so may be we can apply those systems, the way of thinking, into our development”. At the same time he states “On the other hand McLaren is sometimes too systematic. Because of the system they have, it is sometimes difficult to make small tweaks for improvements – it takes a bit of time. May be with Toro Rosso, they are small enough to make changes quicker”.

Proactive, one team, a less systemic more flexible approach to change and development; they seem a possible recipe to reach targets that the ‘one-team’ will set. It is certainly evident that Liberty Media facilitated the deal in order to keep in F1 a relevant global automotive manufacturer. At the same time even this represents one of the many opportunities that is important to identify and catch.

CREATING CONCRETE SYNERGIES FOR GROWTH

In High Performance Engineering and Motorsport’s management terms all of this becomes meaningful because it points out that today working with companies internationally requires setting up cooperative dynamic synergies ready to face continuos changes (caused by factors as market dynamics, budgets, new series that are attracting investments) and this requires a strong sense of cultural awareness to be utilised as a leverage to success.

The question that any organisation should ask is: how do I need to create the specific value essential to a synergic success? To note that nowadays any lasting relationship with clients needs to be perceived from the perspective of a partnership where nothing is taken for granted.

In other words how know-how assets are integrated in such partnerships in order to generate overall value and growth for all (achieving results on track is in these terms a metaphor for achieving results on any given market).

Assumptions, at the roots of expectations, need to be spelled out from the beginning and rooted on facts and hard data as much as possible in order to integrate and synergies organisational cultures.

AN EXAMPLE: RENAULT SPORT F1 AND MICROSOFT

Recently Renault Sport Pierre d’Imbleval has illustrated a concrete example that illustrate these dynamics is the one relevant to the partnership between Renault Sport Formula One Team and Microsoft. Renault Sport has spelled out the key requirements: the need to use technology as an essential support to implement technical changes at an increasingly faster pace; the need to channel and elaborate at best data gathering; the need to share swiftly information among several departments in order to stimulate organisational cooperation. The pragmatism of Microsoft’s organisational culture has focused on these needs utilising technological solutions already available in its portfolio or customising new ones. All of this has strengthen Microsoft’s know-how by putting it to the test within one of the most challenging competitive environments while establishing in the process successful operational and branding synergies with Renault.

MOVING FORWARD

Change is constant and relevant in any market, high performance engineering and Motorsport Industry in particular because of its very own nature. The leveraging power of clear assumptions, expectations and organisational cultural awareness are key aspects to manage for any Small and Medium Enterprise wishing to grow through the development of solid long term synergies with global organisations of any size. Updating and upgrading the way that business strategies are developed is part of the entire process and it will be described in the upcoming second part of this article.

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WHAT LIBERTY MEDIA IS INNOVATING COMMERCIALLY FOR F1…

This AUTOSPORT Plus article, by the title ‘Why Formula 1 fans revolution is coming’ features a very interesting in depth review with #SeanBratches , Commercial Chief of #LibertyMedia #F1 project, on new ways to reshape the way F1 relates to the external world.

Daniel Ricciardo reaching out to fans

It shows in how many different ways digital technology and focus on #userexperience (considering users fans and sponsors alike), many different #businessmodels (regarding several facets can be conceived and implemented in original disruptive ways). Time will tell if this is going to be effective in strengthening the global popularity and appeal of F1. One thought: we should make sure that these disruptions are compatibly implemented (in terms of budget and reach) also in other #motorsport activities. We cannot forget that most of the Motorsport, that involves actual fans on a global scale, is not F1.

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ORGANIZATIONAL CULTURE IN F1 AND AUTOMOTIVE: HONDA’S OVERALL OPPORTUNITY

REALITY CHECK ENDURES

Fernando Alonso frustrations with the Honda power unit reached new peaks during last weekend Belgian GP. The situation has turned almost farcical; as Charles Bradley, Global Editor-in-Chief of motorsport.com reports: ‘Honda finds new way to frustrate Alonso.You could not make it up, as Honda found an all-new way to annoy Fernando Alonso in qualifying. Just after we marvelled at him taking Pouhon flatout, we got a familiar cry from the cockpit: “No power. No power. From Turn 11 to Turn 12. Half a second. How is this possible?” It was a rhetorical question, as we all knew who to blame. Honda’s systems got confused by Fernando not lifting at the double-left hander, and failed to deploy the 160bhp burst that it should have on the run to Fagnes. He missed out on a Q3 spot by 0.084s – even after the bold effort of teammate Stoffel Vandoorne to give him a tow.’

Regarding qualifying Alonso himself had bold statements to frame the current situation in the team as Pablo Elizalde, motorsport.com news editor reports: ‘The Spaniard looked set for a place in Q3 before he suffered a deployment issue with the power unit in his final run, meaning he lost over half a second and was therefore knocked out in Q2. Alonso, who was heard screaming “no power” on the radio, will start the race from 11th place. According to the two-time world champion’s calculations, he could have been quickest had McLaren’s not been hindered by the Honda engine’s lack of power around Spa. “We would have liked to be there but in general it was a very positive day,” said Alonso. “In Q2 until the final attempt we were 1.5 seconds off on a track where we know how much we are losing with the engine, so we would easily be in first and second positions.” He added: “The battery didn’t work and I lost six tenths from Turn 11 to 12. I was two tenths quicker than on the previous lap so I would have improved one or two more in the final sector, so we would have been in Q3 without any problems. “In the end, starting 11th with new tyres maybe gives us an extra opportunity so we’ll try to take advantage tomorrow.”

The next day, on Sunday, he has made a fantastic start reaching 7th position; it did not last long: he got passed by several cars in the straights of Spa with no need to use the DRS to pass him! Such the difference in power! While Alonso is arguably at the very top form of his career driving skills Honda keeps struggling, no matter what changes are made or announced…

IF FERNANDO WOULD HAVE MET SOICHIRO …

Possibly Alonso frustrations could be somewhat mitigated if he would have had the opportunity to meet a top innovator and industrialist within the automotive industry; able to found from the ground-up a corporation that has been defined ‘the most automotive innovative company in the world’. This industrialist famously stated: “Success, can be achieved only through repeated failure and introspection. In fact, success represents one percent of your work, which results only from the ninety-nine percent that is called failure.” The author of the quote is the late legendary founder of Honda: Soichiro Honda, a person that got along very well with Ayrton Senna during the glorious times of the McLaren-Honda partnership at the end of the 1980s and early 1990s.

Mr.Honda was a very straightforward man, always looking for improvements and better performances of its creations. Possibly he could get along really well also with Alonso since he always sought feedback geared towards improvement. Honda has been repeatedly pointed out as one of the most advanced and innovative companies in the world as pointed out by the acclaimed book “Driving Honda. Inside the World’s Most Innovative Car Company” by Jeffrey Rothfeder. Is the Honda F1 power unit developing in the spirit of Soichiro (time is running out by now) or in actuality is the company unable to express its grip on innovation and continuous improvement that characterises the cultural legacy left by its colourful founder?

HONDA’S ORGANIZATIONAL CULTURE: INNOVATION DRIVEN

Honda has a unique corporate culture that has been set by principles inspired by Soichiro’s way of thinking and doing things in a pragmatic, data driven, challenge seeking and inner organisationally inclusive way. These are Eastern mindset derived principles that leverage upon several factors. Jeffrey Rothfeder has analysed and identified: ‘individual responsibility over corporate mandates; simplicity over complexity; decision making based on observed and verifiable facts, not theories or assumptions; minimalism over waste; a flat organization over an exploding flow chart; autonomous and ad hoc design, development, and manufacturing teams that are nonetheless continuously accountable to one another; perpetual change; unyielding cynicism about what is believed to be the truth; unambiguous goals for employees and suppliers, and the company’s active participation in helping them reach those metrics; freely borrowing from the past as a bridge to what Honda calls innovative discontinuity in the present’. Soichiro Honda set this way of thinking that has become part of his legacy for a company that has grown step by step into a successful corporation in which people still represent a key factor, in fact ‘Honda’s factories are the least automated among carmakers, yet Honda enjoys the highest profit margins’.

How can it be that an organisation characterised by such a distinctive culture, set to focus on decentralised problem solving and opportunity development, struggle so much on its F1 hybrid power unit project? When four years ago Ron Dennis promoted the new McLaren-Honda partnership it seemed that all was in place for a similar path (in the mid to long term) of the legendary repeated successes with Prost and Senna at the end of the 1980s and into the 1990s. This is not happening and besides possibly leading to the demise of Dennis from McLaren may actually lead Honda to eventually give-up on this currently draining F1 venture.

OUT OF SYNC WITH THE F1 CULTURE

Some key organisational aspects recognized as representing barriers to an effective development are represented by practices directly derived from the legacy principles above mentioned: a) problems need to be solved in a decentralised way but leveraging upon their very own resources in a way that they can learn from these precious experiences (and failures); b) because of the intrinsic challenges that F1 technology has, traditionally the company has considered the racing context as a relevant training field for engineers set to develop their expertise and know-how within the automotive field. This means that the input of outsiders has traditionally been avoided.

In other words some aspects that represent assets in the development of Honda automotive projects are relevant barriers within the F1 ones; and what is happening right now has also happened in the past. Honda Racing F1 as a team raced from 2006 to 2008 and had Ross Brawn as Team Manager. As he points out in his recent book ‘Total Competition’: “they did bring me in and I guess that was a recognition that they had to change their approach. I think if you looked at the contrast between what would be the typical model of a successful Formula One team and what I perceive –and I am not that experienced –is a typical model of a successful Japanese company, they couldn’t be further apart. Therefore, when you have a Japanese company owning a Formula One team, it’s difficult –it’s almost two environments at their extremes. How do you bring them together to perhaps exploit the disciplines and philosophies and strengths of a Japanese company in the somewhat chaotic environment of a Formula One team and racing?”

Eric Bouiller, McLaren team racing director, in recent weeks has pointed out similar considerations relevant to the fact that Honda still needs to fully understand, and act accordingly, upon the organisational culture present in F1. “They only need one thing, which is to understand and integrate the F1 racing culture,” Boullier told Autosport. “What I mean by that is: the way we behave in racing and Formula 1 is all driven by a calendar, by some fixed targets, fixed dates, lap time gains; we always try to go to the best solution as fast as possible. “Where a car manufacturer is running a project, you can have a few weeks delay and it’s not going to change the product, it’s not going to change the business model. “In racing, if you don’t bring your upgrade for race one, in race one you will be nowhere. “That is this racing mentality. It’s as far as going to suppliers and making sure that if they do something in one month, the next time they do it in three weeks, and from three weeks to two weeks. “We value more the time gained than the money spent. This is a different approach from the rest of the world.”

Notwithstanding Honda’s approach to continuous improvement, the corporate approach, is quite far away in its implementation from the F1 one that it is needed.

WHAT’S NEXT?

First of all it is to be noted that from a technical point of view from the beginning of the F1 project Honda has taken an unique original perspective on the power unit design and development. This does match the spirit of the company legacy but at the same time has hindered the effectiveness of the project mostly within a context in which testing restrictions and the token system have no doubt represented a barrier to the power units effective development. After several organisational restructures within the F1 operation and after opening up to external cooperation and help (at one point it was rumoured that even Mercedes came to the technical rescue of their project!) it seems a fact that the UK based engine specialist Illmor has been cooperating with Honda to solve issues more rapidly.

It appears that at the Belgian GP it has not been possible to utilise the latest project upgrade that has been rumoured as output from this cooperation. It has also been pointed out that Honda’s commitment to F1 is ever increasing with an expanded and more independent (from the corporate system) site in Brackley. These decisions have been taken also in order to become suppliers to other F1 teams (in itself a way to accelerate project development) yet initial talks with Sauber and Toro Rosso have gone nowhere and there are still question marks about the partnership with Honda. The next races are going to be no doubt crucial to the overall project, as time is running out fast; ‘too little, too late’ could be the right kind of expression in this context.

THE IMPORTANCE OF LEVERAGING ON CULTURE AWARENESS AND HONDA’S OPPORTUNITY

Organizational culture is the way to think through and do things on a daily basis, it is an action mode. It is always present whether or not it is openly affirmed. The key issue is that the more we are aware and we articulate it openly the more we can fine tune it to leverage on it effectively towards the set goals. In many ways Honda’s declared organisational culture seem to be matching in some aspects factors that are required in the fast paced, pragmatic, data driven F1 environment; in many others there is a clearly a mismatch of focus and overall objectives. Arguably a key issue here for the company is to push its legacy into the ever more complex context of business development towards ever more challenging targets; this is true both within the F1 environment as well as the automotive one that is set for a radical new technological and business model dawn.

Legacies relate to values and values to be maintained and respected within new environments need new operational ways that still pivot on them. Honda with this current F1 project has the opportunity to utilise these experiences to upgrade the overall organisational culture; this would be in the spirit of the values and legacy set by Soichiro Honda. Yet as Bouiller has pointed out, time is the crucial factor in F1 and time (the implementation of innovation to market) is increasingly the crucial factor also in automotive.

As Ross Brawn states: “In terms of innovation and technology being applicable to modern road cars, I think a good crossover is methodology. I think culture is the thing that definitely crosses over.” “the culture and ‘can do’ philosophy in Formula One is really strong. When I have worked with manufacturers, with Ford, Honda or Bridgestone, certain companies took advantage of Formula One by placing their engineers into this environment. It was part of the training of their engineers.”

Time will tell if Honda catches this learning opportunity from the F1 culture; recently it has been reported that the corporation is in need of new approaches different from the ways it has been operating until now. A very recent article published in Bloomberg with the title ‘Honda’s Solo Act Turns Risky in the Alliance-Happy Auto Industry’ should sound as an alarm bell to top management.

Given all of this dynamics it is going to be interesting to follow Honda’s organisational culture moves both in F1 and in automotive (and in both cases the time frame relates much more to the short rather than the mid term).

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HONDA’S ORGANISATIONAL ROOTS REPRESENT A TRAP TO ITS DEVELOPMENT ?

#Honda within #automotive and #motorsport represents an interesting case study of an #organizationalculture traditionally set to not form industry #alliances in terms of research & development or commercial ones.

Takahiro Hachigo HONDA CEO Photographer: Kiyoshi Ota/Bloomberg

This kind of mindset arguably proves itself to be quite troubling within motorsport operations ( see enduring struggle with #hybrid #powerunits in #F1 with #McLaren – where the policy has been to not ask for external expertise ) or in the commercial automotive itself that is set for relevant technological and commercial changes…

To note also that #innovation has been a trademark of the company since the times of the legendary founder #SochiroHonda always a strong willed independent visionary; Honda is too stuck in deep roots to project itself effectively towards a rapidly changing present and future ? #fasttrackbook

An interesting article on the topic at this link.

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John Cooper: Jenius At Work

Great #motorsport #documentary : John Cooper: Genious At Work about #JohnCooper genius, the first person to focus on developing single-seaters rear engined. It all started with his genius by welding together two front end of the popular #FIATtopolino500 !

FIAT 500 Topolino

Cooper T51 and 52 Single seaters become rear engined!

Just brilliant! This is fully in the spirit of #innovation that we are pointing out in the book #fasttrackbook

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Motorsport and advanced healthcare solutions: a faster and faster race

A few days ago an innovative solution has been presented to transport safely and swiftly newborns  during emergencies via means of terrestrial or airborne transportation. The baby carrier, named ‘BabyPod 20’ has ben developed by Williams Advanced Engineering. The project has been developed in cooperation with Advance Healthcare Technology (AHT) that has been present within this specific manufacturing field for years.

The ‘Baby Pod 20’

This project recalls other ones in which healthcare has been benefiting by expertise and technologies originating from Motorsport. Some of these projects have been recently presented an even organised by SGINetwork (a scientific innovation development hub) where McLaren Applied Technologies pointed out several projects that have been developed by them (one of the first one was carried forward in cooperation with Glaxo).

Once again innovation in the healthcare field has been generated from Motorsport as we have pointed out in an article we wrote months ago ‘Motorsport Industry, Innovation and Knowledge Sharing Across Industries’ linked o a presentation we made in September 2016 within a conference held at Regent’s University in London.

Not only technology but also organisational processes developed on track have been found very useful to improve healthcare processes as pointed out in this real life example ‘F1 Pit Stop Techniques To Help Save Lives in Resuscitation of Newborn Babies’ .

While working on the research relevant to the book Fast Track Innovation we are finding other projects linking Motorsport know-how to advanced healthcare systems: projects that have been brought forward even many years ago, by companies much smaller than Williams and McLaren yet technically extremely effective.

Many Small and Medium Sized Enterprises (SME) within the Motorsport Industry can fully take advantage of know-how that they already have and that they can convey (in an aware methodical way), recognised value added within other fields, not only healthcare. Stay tuned …

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Ready for an even more electrifying LeMans in 2018

For #LeMans 2018 , #Panoz has annouced that it will be ready to race with it all electric #Green4U GT-EV.

Panoz Green4U 2018 LeMans GT-EV

An additional achievement and challenge for electric vehicles racing racing. The field keeps on developing fast and this kind of innovative technology will no doubt have an influence on all of the progress on electric mobility that is rapidly taking place.

More information at this article:

Green4U X Panoz racing GT-EV to be first ever all-electric car to attempt Le Mans

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Mahindra Racing FormulaE maiden win!

In April 2016, in Donington, during FormulaE tests, we met the Mahindra Racing Team during testing and we interviewed the Team Manager, Dilbagh Gill, to talk about the evolution of the entire innovative automotive project leading the indian corporation to be part of the series.

The book features also the interview with Chetan Maini that created the Reva, the first electric car in India (today Mahindra Reva) that was going to represent the roots to Mahindra’s development part to ForumlaE.

Today Mahindra Racing has scored its maiden win at the Berlin ePrix , two cars on the podium!

Felix Rosenqvist 1st the Berlin ePrix finish line

Congratulations to the entire team, this achievement represents a concrete sense of pride and growth for indian Motorsport.

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Lamborghini’s research and development reaches out to the high-tech medical field

The nature of the agreement is in conceptually in line with other knowledge transfer projects originating from the High Performance Automotive and Motorsport: as pointed out in previous articles and presentations (Motorsport Industry. Innovation and knowledge sharing across industries) , McLaren Applied Technologies and Williams Advanced Engineering have been utilising their know-how for the development of innovative solution in other fields (being aerospace, industrial, consumer electronics or biomedical fields among others) and increasingly these kinds of developments are taking place to develop innovative products and solutions.

Dr. Mauro Ferrari and Stefano Domenicali (credits Umberto Guizzardi)

Specifically the Huston Methodist Research Institute is set to explore the research developed by Lamborghini in the field of carbon-fiber to enhance research and applications in innovative prosthetics solutions.

It will be interesting to follow how this project unfolds. No doubt the futuristic synergic visions of Stefano Domenicali and Dr.Mauro Ferrari have played an essential role in making this happen.

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Digital disruption in automotive

Organizational #visions are impacted by the #disruptive forces of pervasive #digital challenges and change. Increasingly they need revisions, upgrades, new directions. This is all because digital challenges unavoidably affect any level of management #decisionmaking .

#Volvo represents an interesting case study on the subject matter in terms not only of technological#innovation but also of managerial one.

At this link an interesting article on the topic.

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