so the little story gonna tell you about today starts with a picture exactly with
today starts with a picture exactly with
today starts with a picture exactly with this picture now the little man that you
this picture now the little man that you
this picture now the little man that you see there is actually myself at a time
see there is actually myself at a time
see there is actually myself at a time when I still had hair and and the
when I still had hair and and the
when I still had hair and and the picture was shot exactly on June 27 1984
picture was shot exactly on June 27 1984
picture was shot exactly on June 27 1984 and it was my second birthday so you do
and it was my second birthday so you do
and it was my second birthday so you do the math and you know how old I am and
the math and you know how old I am and
the math and you know how old I am and on that day I received from my father
on that day I received from my father
on that day I received from my father a beautiful Ferrari pedal car and that’s
a beautiful Ferrari pedal car and that’s
a beautiful Ferrari pedal car and that’s pretty much the only Ferrari I owned
pretty much the only Ferrari I owned
pretty much the only Ferrari I owned since then you know my father is an
since then you know my father is an
since then you know my father is an engineer not a Formula one engineer but
engineer not a Formula one engineer but
engineer not a Formula one engineer but he’s a Motorhead and is a big fan of
he’s a Motorhead and is a big fan of
he’s a Motorhead and is a big fan of Formula One so since I was a kid he
Formula One so since I was a kid he
Formula One so since I was a kid he would wake me up you know a 3:00 a.m.
would wake me up you know a 3:00 a.m.
would wake me up you know a 3:00 a.m. 4:00 a.m. with an excuse of having a
4:00 a.m. with an excuse of having a
4:00 a.m. with an excuse of having a gelato together and actually watch the
gelato together and actually watch the
gelato together and actually watch the races together from you know all around
races together from you know all around
races together from you know all around the world in our living room in Italy
the world in our living room in Italy
the world in our living room in Italy and we would discuss you know as soon as
and we would discuss you know as soon as
and we would discuss you know as soon as grow up as father and son always you we
grow up as father and son always you we
grow up as father and son always you we would discuss which was the best driver
would discuss which was the best driver
would discuss which was the best driver which was the best team why some teams
which was the best team why some teams
which was the best team why some teams would win and other would lose instead
would win and other would lose instead
would win and other would lose instead and to a certain extent we were always
and to a certain extent we were always
and to a certain extent we were always puzzled by 1/2 an aspect that sometimes
puzzled by 1/2 an aspect that sometimes
puzzled by 1/2 an aspect that sometimes it is not the most innovative team or
it is not the most innovative team or
it is not the most innovative team or the one with the best resources that was
the one with the best resources that was
the one with the best resources that was winning and you know the usual answer
winning and you know the usual answer
winning and you know the usual answer was yeah you know that’s that’s luck you
was yeah you know that’s that’s luck you
was yeah you know that’s that’s luck you know they’d be lucky and I was like hmm
know they’d be lucky and I was like hmm
know they’d be lucky and I was like hmm yeah maybe they were lucky but I think
yeah maybe they were lucky but I think
yeah maybe they were lucky but I think there is something behind then I cannot
there is something behind then I cannot
there is something behind then I cannot really grasp and you know that one day
really grasp and you know that one day
really grasp and you know that one day I’m gonna give you an answer so that’s
I’m gonna give you an answer so that’s
I’m gonna give you an answer so that’s exactly what I’ve been doing and you
exactly what I’ve been doing and you
exactly what I’ve been doing and you know I grew up with the idea that you
know I grew up with the idea that you
know I grew up with the idea that you know I’m not I’m working Formula one you
know I’m not I’m working Formula one you
know I’m not I’m working Formula one you know I’m gonna do everything right to
know I’m gonna do everything right to
know I’m gonna do everything right to work in Formula one and actually you
work in Formula one and actually you
work in Formula one and actually you know I started well good my good grades
know I started well good my good grades
know I started well good my good grades good out of school and guess what as
good out of school and guess what as
good out of school and guess what as soon as I got out of school the
soon as I got out of school the
soon as I got out of school the financial crisis hit and it was very
financial crisis hit and it was very
financial crisis hit and it was very hard to find any type of job in in Italy
hard to find any type of job in in Italy
hard to find any type of job in in Italy especially in Formula one so I I sent my
especially in Formula one so I I sent my
especially in Formula one so I I sent my tonal civvies and I never even got close
tonal civvies and I never even got close
tonal civvies and I never even got close to get an interview so I started doing
to get an interview so I started doing
to get an interview so I started doing other things had a very mediocre career
other things had a very mediocre career
other things had a very mediocre career as a driver in Formula SAE I started up
as a driver in Formula SAE I started up
as a driver in Formula SAE I started up my own
my own
my own a university racing team and we ended up
a university racing team and we ended up
a university racing team and we ended up winning in hockey and I’m in 2009 and
winning in hockey and I’m in 2009 and
winning in hockey and I’m in 2009 and ultimately you know I started working
ultimately you know I started working
ultimately you know I started working with a gp2 team which is the feeder
with a gp2 team which is the feeder
with a gp2 team which is the feeder category of Formula One and I said okay
category of Formula One and I said okay
category of Formula One and I said okay you know what I’m gonna try everything
you know what I’m gonna try everything
you know what I’m gonna try everything here and we try to bring this team to
here and we try to bring this team to
here and we try to bring this team to Formula one and if they make it I’m
Formula one and if they make it I’m
Formula one and if they make it I’m gonna be in Formula One otherwise I’m
gonna be in Formula One otherwise I’m
gonna be in Formula One otherwise I’m gonna do another thing is I always
gonna do another thing is I always
gonna do another thing is I always wanted to do which is I’m gonna start a
wanted to do which is I’m gonna start a
wanted to do which is I’m gonna start a PhD in management so you know how this
PhD in management so you know how this
PhD in management so you know how this story went the team didn’t make it to
story went the team didn’t make it to
story went the team didn’t make it to Formula One and I started my PhD
Formula One and I started my PhD
Formula One and I started my PhD management and you know when starting my
management and you know when starting my
management and you know when starting my PhD management I got you know very
PhD management I got you know very
PhD management I got you know very interesting the topic of strategy and
interesting the topic of strategy and
interesting the topic of strategy and when you talk about strategy this day
when you talk about strategy this day
when you talk about strategy this day you talk about innovation innovation in
you talk about innovation innovation in
you talk about innovation innovation in the firm’s innovation in the
the firm’s innovation in the
the firm’s innovation in the organization in the products in the
organization in the products in the
organization in the products in the processes which we heard a lot of story
processes which we heard a lot of story
processes which we heard a lot of story about innovations these are some of the
about innovations these are some of the
about innovations these are some of the hard cells in innovation literature and
hard cells in innovation literature and
hard cells in innovation literature and you know somehow when you read these
you know somehow when you read these
you know somehow when you read these books there is a you know innovation is
books there is a you know innovation is
books there is a you know innovation is kind of worshipped right and there’s a
kind of worshipped right and there’s a
kind of worshipped right and there’s a lot of talking about you know the world
lot of talking about you know the world
lot of talking about you know the world is changing we have to innovate more we
is changing we have to innovate more we
is changing we have to innovate more we have to change you know and it sounds a
have to change you know and it sounds a
have to change you know and it sounds a little bit like the innovation is the
little bit like the innovation is the
little bit like the innovation is the panacea of all issues all problems but I
panacea of all issues all problems but I
panacea of all issues all problems but I was not quite sure because this would
was not quite sure because this would
was not quite sure because this would not answer to my original question right
not answer to my original question right
not answer to my original question right why sometimes innovating less leads to
why sometimes innovating less leads to
why sometimes innovating less leads to superior performance and so I started
superior performance and so I started
superior performance and so I started looking at several industries you know
looking at several industries you know
looking at several industries you know on car industry cell phones video games
on car industry cell phones video games
on car industry cell phones video games oil gas and ultimately I realized that a
oil gas and ultimately I realized that a
oil gas and ultimately I realized that a very cool setting where I could actually
very cool setting where I could actually
very cool setting where I could actually observe this was Formula one yes
observe this was Formula one yes
observe this was Formula one yes so before me going on with the story of
so before me going on with the story of
so before me going on with the story of Formula One
Formula One
Formula One can I please ask you a question do you
can I please ask you a question do you
can I please ask you a question do you all know what is Formula One if the can
all know what is Formula One if the can
all know what is Formula One if the can you please raise your hand if you have
you please raise your hand if you have
you please raise your hand if you have no clue what formula One is there
no clue what formula One is there
no clue what formula One is there anybody here maybe from us now exact
anybody here maybe from us now exact
anybody here maybe from us now exact weight a minute like you know in us
weight a minute like you know in us
weight a minute like you know in us there’s a great tradition of motorsport
there’s a great tradition of motorsport
there’s a great tradition of motorsport we know that and but it’s slightly
we know that and but it’s slightly
we know that and but it’s slightly different right they have NASCAR they
different right they have NASCAR they
different right they have NASCAR they have IndyCar so when I present my
have IndyCar so when I present my
have IndyCar so when I present my studies in in the US I usually say well
studies in in the US I usually say well
studies in in the US I usually say well you know Formula One the cars look a
you know Formula One the cars look a
you know Formula One the cars look a little bit like IndyCar but actually in
little bit like IndyCar but actually in
little bit like IndyCar but actually in Formula One
Formula One
Formula One there are requires some tracking skills
there are requires some tracking skills
there are requires some tracking skills okay because you know this is a Formula
okay because you know this is a Formula
okay because you know this is a Formula one track is an IndyCar track you don’t
one track is an IndyCar track you don’t
one track is an IndyCar track you don’t simply go and look you actually have to
simply go and look you actually have to
simply go and look you actually have to be good at driving but you know beside
be good at driving but you know beside
be good at driving but you know beside that it’s pretty similar I’m joking of
that it’s pretty similar I’m joking of
that it’s pretty similar I’m joking of course I’m joking but you know some
course I’m joking but you know some
course I’m joking but you know some colleagues of mine from from Harvard say
colleagues of mine from from Harvard say
colleagues of mine from from Harvard say that actually racing might seem like a
that actually racing might seem like a
that actually racing might seem like a you know very far from the world of
you know very far from the world of
you know very far from the world of business but in fact it represents a
business but in fact it represents a
business but in fact it represents a perfect laboratory for research
perfect laboratory for research
perfect laboratory for research particularly for management and business
particularly for management and business
particularly for management and business research why that well first of all we
research why that well first of all we
research why that well first of all we have a clear measure of performance
have a clear measure of performance
have a clear measure of performance right we know exactly how fast the cars
right we know exactly how fast the cars
right we know exactly how fast the cars go we know exactly that every team is
go we know exactly that every team is
go we know exactly that every team is trying to get ahead of the competitors
trying to get ahead of the competitors
trying to get ahead of the competitors this is not the case for every industry
this is not the case for every industry
this is not the case for every industry right there could be some firms that
right there could be some firms that
right there could be some firms that prefer you know prioritizing financial
prefer you know prioritizing financial
prefer you know prioritizing financial performance other prefer market share or
performance other prefer market share or
performance other prefer market share or visibility instead here everybody wants
visibility instead here everybody wants
visibility instead here everybody wants to get ahead of the competitors then we
to get ahead of the competitors then we
to get ahead of the competitors then we have a very precise record of everything
have a very precise record of everything
have a very precise record of everything that happens in the sport we know every
that happens in the sport we know every
that happens in the sport we know every innovation we know that there are
innovation we know that there are
innovation we know that there are regulations released by our Federation
regulations released by our Federation
regulations released by our Federation that’s called the FIA they get changed
that’s called the FIA they get changed
that’s called the FIA they get changed every year and all teams must adapt and
every year and all teams must adapt and
every year and all teams must adapt and at the end of the year all these secret
at the end of the year all these secret
at the end of the year all these secret projects are not secret anymore and the
projects are not secret anymore and the
projects are not secret anymore and the teams published their blueprints so you
teams published their blueprints so you
teams published their blueprints so you can actually observe everything you know
can actually observe everything you know
can actually observe everything you know in terms of every single bits of
in terms of every single bits of
in terms of every single bits of innovation every part of the of the car
innovation every part of the of the car
innovation every part of the of the car also we know who are the drivers we even
also we know who are the drivers we even
also we know who are the drivers we even know what a drivers had for breakfast
know what a drivers had for breakfast
know what a drivers had for breakfast sometimes because they talk in the media
sometimes because they talk in the media
sometimes because they talk in the media and they tell everything about their
and they tell everything about their
and they tell everything about their life we know where Louis salmon throws
life we know where Louis salmon throws
life we know where Louis salmon throws be sleeping the night before well at
be sleeping the night before well at
be sleeping the night before well at least we guess sometimes and and so it’s
least we guess sometimes and and so it’s
least we guess sometimes and and so it’s it’s perfect laboratory for research now
it’s perfect laboratory for research now
it’s perfect laboratory for research now when I started looking at you know at
when I started looking at you know at
when I started looking at you know at this question you know what’s less
this question you know what’s less
this question you know what’s less innovative firms were outperforming one
innovative firms were outperforming one
innovative firms were outperforming one case Stan stood out and the case that
case Stan stood out and the case that
case Stan stood out and the case that the story gonna tell you about is
the story gonna tell you about is
the story gonna tell you about is actually about these two gentlemen on
actually about these two gentlemen on
actually about these two gentlemen on top you will see Nick fry
top you will see Nick fry
top you will see Nick fry long-established executive in Formula
long-established executive in Formula
long-established executive in Formula One he started his career with a very
One he started his career with a very
One he started his career with a very famous aasta.martin nothing for me no
famous aasta.martin nothing for me no
famous aasta.martin nothing for me no one then he moved also to Honda brawn GP
one then he moved also to Honda brawn GP
one then he moved also to Honda brawn GP and when he retired a few years ago it
and when he retired a few years ago it
and when he retired a few years ago it was the CEO of the winning car at the
was the CEO of the winning car at the
was the CEO of the winning car at the moment Mercedes Formula One team at the
moment Mercedes Formula One team at the
moment Mercedes Formula One team at the bottom we have one of the legends of the
bottom we have one of the legends of the
bottom we have one of the legends of the sport Ross Brawn
sport Ross Brawn
sport Ross Brawn currently is in charge of reshaping the
currently is in charge of reshaping the
currently is in charge of reshaping the the industry and the rules of the game
the industry and the rules of the game
the industry and the rules of the game is even at the lead of a technical lead
is even at the lead of a technical lead
is even at the lead of a technical lead of Benetton and Ferrari eight world
of Benetton and Ferrari eight world
of Benetton and Ferrari eight world championships eight in the driver’s
championships eight in the driver’s
championships eight in the driver’s championship eight constructors
championship eight constructors
championship eight constructors championship is definitely one of the
championship is definitely one of the
championship is definitely one of the the finest of the sport now what
the finest of the sport now what
the finest of the sport now what happened is that in between 2006 and
happened is that in between 2006 and
happened is that in between 2006 and 2008 these two gentlemen were working
2008 these two gentlemen were working
2008 these two gentlemen were working work for Fonda Formula One team now
work for Fonda Formula One team now
work for Fonda Formula One team now Honda has been for a long time in
Honda has been for a long time in
Honda has been for a long time in Formula One as a supplier in 2006 they
Formula One as a supplier in 2006 they
Formula One as a supplier in 2006 they decided to enter the competition with a
decided to enter the competition with a
decided to enter the competition with a full car so Honda car not just an engine
full car so Honda car not just an engine
full car so Honda car not just an engine and they have higher two very talented
and they have higher two very talented
and they have higher two very talented executives and they put one of the
executives and they put one of the
executives and they put one of the biggest budgets in the field in the
biggest budgets in the field in the
biggest budgets in the field in the competition around 300 millions budget
competition around 300 millions budget
competition around 300 millions budget per year there was a lot of money still
per year there was a lot of money still
per year there was a lot of money still today would be one of the highest
today would be one of the highest
today would be one of the highest budgets but somehow in those years they
budgets but somehow in those years they
budgets but somehow in those years they failed in delivering any sort of
failed in delivering any sort of
failed in delivering any sort of significant result and in 2008 this was
significant result and in 2008 this was
significant result and in 2008 this was getting a little embarrassing right so
getting a little embarrassing right so
getting a little embarrassing right so and also it was a time of financial
and also it was a time of financial
and also it was a time of financial turmoil so at a certain point that he
turmoil so at a certain point that he
turmoil so at a certain point that he said that you know what enough we’re
said that you know what enough we’re
said that you know what enough we’re gonna pull out of Formula One
gonna pull out of Formula One
gonna pull out of Formula One we’re gonna shut down everything and
we’re gonna shut down everything and
we’re gonna shut down everything and this was an issue because the the plan
this was an issue because the the plan
this was an issue because the the plan that they had here UK would have left
that they had here UK would have left
that they had here UK would have left unemployed around 300 people so they
unemployed around 300 people so they
unemployed around 300 people so they call the two top executives the sporting
call the two top executives the sporting
call the two top executives the sporting director and the technical director and
director and the technical director and
director and the technical director and they said you know what you should find
they said you know what you should find
they said you know what you should find a sub buyer but who would possibly buy a
a sub buyer but who would possibly buy a
a sub buyer but who would possibly buy a team like this a team that had
team like this a team that had
team like this a team that had everything lined up to succeed the best
everything lined up to succeed the best
everything lined up to succeed the best resources a long experience and now they
resources a long experience and now they
resources a long experience and now they also had a lot of depth so they couldn’t
also had a lot of depth so they couldn’t
also had a lot of depth so they couldn’t find anybody and they decided overnight
find anybody and they decided overnight
find anybody and they decided overnight at beginning 2009 to to a management
at beginning 2009 to to a management
at beginning 2009 to to a management buyout so basically they bought the team
buyout so basically they bought the team
buyout so basically they bought the team for one Sterling pound of course with
for one Sterling pound of course with
for one Sterling pound of course with all the depth and duties that that’s
all the depth and duties that that’s
all the depth and duties that that’s implied
implied
implied they left unfortunately at home half of
they left unfortunately at home half of
they left unfortunately at home half of the people after the employees they kept
the people after the employees they kept
the people after the employees they kept the two drivers at the time now I hope
the two drivers at the time now I hope
the two drivers at the time now I hope there’s no Jenson Button of Rubens
there’s no Jenson Button of Rubens
there’s no Jenson Button of Rubens Barrichello fans in the audience but I
Barrichello fans in the audience but I
Barrichello fans in the audience but I must say at the time they were not some
must say at the time they were not some
must say at the time they were not some of the finest Jenson Button had scored
of the finest Jenson Button had scored
of the finest Jenson Button had scored in 2008 their 18th position and Rubens
in 2008 their 18th position and Rubens
in 2008 their 18th position and Rubens Barrichello the 14th position so they
Barrichello the 14th position so they
Barrichello the 14th position so they were not probably some of the best in
were not probably some of the best in
were not probably some of the best in the racetrack and they built a car with
the racetrack and they built a car with
the racetrack and they built a car with what they had a very basic no frills are
what they had a very basic no frills are
what they had a very basic no frills are this was it very few sponsors as you can
this was it very few sponsors as you can
this was it very few sponsors as you can see very few stickers so very little
see very few stickers so very little
see very few stickers so very little support and they went and raised just
support and they went and raised just
support and they went and raised just with a hope of staying in the race and
with a hope of staying in the race and
with a hope of staying in the race and how did he go well on the left hand on
how did he go well on the left hand on
how did he go well on the left hand on the left column the red one you will see
the left column the red one you will see
the left column the red one you will see the constructor championship brawn GP
the constructor championship brawn GP
the constructor championship brawn GP one second red bull that was not the red
one second red bull that was not the red
one second red bull that was not the red bull that we know today it was a very
bull that we know today it was a very
bull that we know today it was a very junior team at a time and only third
junior team at a time and only third
junior team at a time and only third McLaren with only 71 points against 172
McLaren with only 71 points against 172
McLaren with only 71 points against 172 points of brawn GP on the right hand we
points of brawn GP on the right hand we
points of brawn GP on the right hand we see the winner Jenson Button where you
see the winner Jenson Button where you
see the winner Jenson Button where you want that year his only World
want that year his only World
want that year his only World Championship with 95 points and Rubens
Championship with 95 points and Rubens
Championship with 95 points and Rubens Barrichello did quite well with 77
Barrichello did quite well with 77
Barrichello did quite well with 77 points now the question is how was it
points now the question is how was it
points now the question is how was it possible how was it possible that a team
possible how was it possible that a team
possible how was it possible that a team with half resources same drivers same
with half resources same drivers same
with half resources same drivers same executives did so well the answer lies
executives did so well the answer lies
executives did so well the answer lies in this page in 2009 Formula One
in this page in 2009 Formula One
in this page in 2009 Formula One underwent a major revolution a technical
underwent a major revolution a technical
underwent a major revolution a technical revolution and one thing that was
revolution and one thing that was
revolution and one thing that was introduced was the care so all the teams
introduced was the care so all the teams
introduced was the care so all the teams at the beginning of the season were
at the beginning of the season were
at the beginning of the season were asked to reshape completely the car so
asked to reshape completely the car so
asked to reshape completely the car so the cars between 2008 and 2009 were very
the cars between 2008 and 2009 were very
the cars between 2008 and 2009 were very different we’re narrower the wings were
different we’re narrower the wings were
different we’re narrower the wings were different the engine was different and
different the engine was different and
different the engine was different and they could use the care square stands
they could use the care square stands
they could use the care square stands for kinetic energy recovery system
for kinetic energy recovery system
for kinetic energy recovery system basically it’s a system that collects
basically it’s a system that collects
basically it’s a system that collects waste heat from the brakes transforms it
waste heat from the brakes transforms it
waste heat from the brakes transforms it into electricity stores in a battery and
into electricity stores in a battery and
into electricity stores in a battery and get it available for additional boost
get it available for additional boost
get it available for additional boost it’s basically like a Toyota Prius
it’s basically like a Toyota Prius
it’s basically like a Toyota Prius slightly more powerful okay now all the
slightly more powerful okay now all the
slightly more powerful okay now all the major teams were very interested in
major teams were very interested in
major teams were very interested in getting this technology running why well
getting this technology running why well
getting this technology running why well first of all they wanted to show that
first of all they wanted to show that
first of all they wanted to show that Formula One was a environmentally
Formula One was a environmentally
Formula One was a environmentally friendly sports activity second they
friendly sports activity second they
friendly sports activity second they wanted to develop the R&D for this kind
wanted to develop the R&D for this kind
wanted to develop the R&D for this kind of technology the later on would have
of technology the later on would have
of technology the later on would have ended up in Road car and a lot of the
ended up in Road car and a lot of the
ended up in Road car and a lot of the technology that today we have in road
technology that today we have in road
technology that today we have in road cars comes from Formula One
cars comes from Formula One
cars comes from Formula One but most of all they wanted you were to
but most of all they wanted you were to
but most of all they wanted you were to meet overtaking their competitors so all
meet overtaking their competitors so all
meet overtaking their competitors so all the major teams Ferrari McLaren at the
the major teams Ferrari McLaren at the
the major teams Ferrari McLaren at the time B&W was racing they decided to go
time B&W was racing they decided to go
time B&W was racing they decided to go for this technology um mr. Braun said we
for this technology um mr. Braun said we
for this technology um mr. Braun said we don’t have the money we don’t have the
don’t have the money we don’t have the
don’t have the money we don’t have the time to develop these and plus we really
time to develop these and plus we really
time to develop these and plus we really don’t know how much power this
don’t know how much power this
don’t know how much power this technology can give us there’s a lot of
technology can give us there’s a lot of
technology can give us there’s a lot of confusion we are really quite challenged
confusion we are really quite challenged
confusion we are really quite challenged in you know coping with all the changes
in you know coping with all the changes
in you know coping with all the changes in the regulation of this year why don’t
in the regulation of this year why don’t
in the regulation of this year why don’t we do a simple no frills perfecting the
we do a simple no frills perfecting the
we do a simple no frills perfecting the type of knowledge and technology we
type of knowledge and technology we
type of knowledge and technology we already know well for example
already know well for example
already know well for example aerodynamics and what I did they
aerodynamics and what I did they
aerodynamics and what I did they improved what they called a double
improved what they called a double
improved what they called a double diffuser which is a technology that was
diffuser which is a technology that was
diffuser which is a technology that was already in the car they just made it
already in the car they just made it
already in the car they just made it larger and more effective to increase
larger and more effective to increase
larger and more effective to increase the grip and the other teams who had the
the grip and the other teams who had the
the grip and the other teams who had the cares had issues issues of fire shocks
cares had issues issues of fire shocks
cares had issues issues of fire shocks to the mechanics and they barely
to the mechanics and they barely
to the mechanics and they barely finished the race and it was even more
finished the race and it was even more
finished the race and it was even more surprising as media pointed that was the
surprising as media pointed that was the
surprising as media pointed that was the team without the cares they were doing
team without the cares they were doing
team without the cares they were doing well in the championship
well in the championship
well in the championship guess what are you a technical director
guess what are you a technical director
guess what are you a technical director director of Red Bull also didn’t used
director of Red Bull also didn’t used
director of Red Bull also didn’t used the cares now my father would say ok
the cares now my father would say ok
the cares now my father would say ok that was luck well I said let’s go and
that was luck well I said let’s go and
that was luck well I said let’s go and see if he was really luck so when my
see if he was really luck so when my
see if he was really luck so when my friends and co-authors Alessandro Marino
friends and co-authors Alessandro Marino
friends and co-authors Alessandro Marino Ries mesquita and Jane and we basically
Ries mesquita and Jane and we basically
Ries mesquita and Jane and we basically transformed 30 years of Formula One
transformed 30 years of Formula One
transformed 30 years of Formula One races into numbers we coded for around
races into numbers we coded for around
races into numbers we coded for around two years every single bit of innovation
two years every single bit of innovation
two years every single bit of innovation over more than 300 cars we call that all
over more than 300 cars we call that all
over more than 300 cars we call that all the regulation all the drivers all the
the regulation all the drivers all the
the regulation all the drivers all the performances of all cars and we made a
performances of all cars and we made a
performances of all cars and we made a mega mathematical model and and we wrote
mega mathematical model and and we wrote
mega mathematical model and and we wrote a paper on it and guess what we
a paper on it and guess what we
a paper on it and guess what we discovered first of all the relation
discovered first of all the relation
discovered first of all the relation between innovation and performance is
between innovation and performance is
between innovation and performance is not linear meaning that it’s not true
not linear meaning that it’s not true
not linear meaning that it’s not true that the more innovation you have the
that the more innovation you have the
that the more innovation you have the better performance you receive actually
better performance you receive actually
better performance you receive actually its curvilinear meaning that after a
its curvilinear meaning that after a
its curvilinear meaning that after a point the innovation returns flatten and
point the innovation returns flatten and
point the innovation returns flatten and eventually become negative and there is
eventually become negative and there is
eventually become negative and there is a sweet spot we are in stable
a sweet spot we are in stable
a sweet spot we are in stable environments you are if you hit that
environments you are if you hit that
environments you are if you hit that sweet spot that right specific amount of
sweet spot that right specific amount of
sweet spot that right specific amount of innovation you will maximize your
innovation you will maximize your
innovation you will maximize your performance but what is even more
performance but what is even more
performance but what is even more interesting is that when environment
interesting is that when environment
interesting is that when environment become more turbulent in our case when
become more turbulent in our case when
become more turbulent in our case when the regulation change more and so the
the regulation change more and so the
the regulation change more and so the teams are more challenged in innovating
teams are more challenged in innovating
teams are more challenged in innovating the car the curve recedes and so does
the car the curve recedes and so does
the car the curve recedes and so does the sweet spot meaning that we obtain
the sweet spot meaning that we obtain
the sweet spot meaning that we obtain the optimum point for performance at the
the optimum point for performance at the
the optimum point for performance at the lower level of innovation so what’s the
lower level of innovation so what’s the
lower level of innovation so what’s the takeaway of this well when complexity
takeaway of this well when complexity
takeaway of this well when complexity Rises less is more and you should not be
Rises less is more and you should not be
Rises less is more and you should not be afraid of thinking that you’re not
afraid of thinking that you’re not
afraid of thinking that you’re not capable of doing more I mean look around
capable of doing more I mean look around
capable of doing more I mean look around you especially in time of crisis there
you especially in time of crisis there
you especially in time of crisis there are so many companies who managed to
are so many companies who managed to
are so many companies who managed to disrupt the market just by delivering
disrupt the market just by delivering
disrupt the market just by delivering products that work well they are simple
products that work well they are simple
products that work well they are simple no frills and they cater a specific
no frills and they cater a specific
no frills and they cater a specific service and this is very true especially
service and this is very true especially
service and this is very true especially in settings in environments where for
in settings in environments where for
in settings in environments where for example there is a competitor there is a
example there is a competitor there is a
example there is a competitor there is a much more advanced technology and this
much more advanced technology and this
much more advanced technology and this is being true for a long time since the
is being true for a long time since the
is being true for a long time since the times of the 40 so remember there are no
times of the 40 so remember there are no
times of the 40 so remember there are no such thing as good or bad ideas there
such thing as good or bad ideas there
such thing as good or bad ideas there are ideas that either fit or don’t fit
are ideas that either fit or don’t fit
are ideas that either fit or don’t fit the environment before committing to
the environment before committing to
the environment before committing to make your decision before making major
make your decision before making major
make your decision before making major lips always try to understand what your
lips always try to understand what your
lips always try to understand what your environment is doing how it’s changing
environment is doing how it’s changing
environment is doing how it’s changing there are three things you should look
there are three things you should look
there are three things you should look at one the magnitude of change how big
at one the magnitude of change how big
at one the magnitude of change how big is the change
is the change
is the change how does state one differ from state two
how does state one differ from state two
how does state one differ from state two when you observe it second the frequency
when you observe it second the frequency
when you observe it second the frequency of change how often the real change
of change how often the real change
of change how often the real change happen every week every month every year
happen every week every month every year
happen every week every month every year every ten years and are they big or
every ten years and are they big or
every ten years and are they big or small because you could have very
small because you could have very
small because you could have very frequent changes but maybe they are
frequent changes but maybe they are
frequent changes but maybe they are small enough to be easy to adapt and
small enough to be easy to adapt and
small enough to be easy to adapt and finally how likely it is that you are
finally how likely it is that you are
finally how likely it is that you are able to predict how the change is going
able to predict how the change is going
able to predict how the change is going to be the future states because most
to be the future states because most
to be the future states because most changes even the most radical one
changes even the most radical one
changes even the most radical one sometimes can be interpreted and one can
sometimes can be interpreted and one can
sometimes can be interpreted and one can adapt very well if is able to predict so
adapt very well if is able to predict so
adapt very well if is able to predict so try to predict your
try to predict your
try to predict your environment and if it’s unpredictable
environment and if it’s unpredictable
environment and if it’s unpredictable note that down reduce complexity during
note that down reduce complexity during
note that down reduce complexity during turbulence and wait for a stable moment
turbulence and wait for a stable moment
turbulence and wait for a stable moment to accelerate but don’t give up your
to accelerate but don’t give up your
to accelerate but don’t give up your ideas if you have to hold back don’t
ideas if you have to hold back don’t
ideas if you have to hold back don’t forget them
forget them
forget them don’t put them away they might be
don’t put them away they might be
don’t put them away they might be perfect at a different point in time
perfect at a different point in time
perfect at a different point in time think about this
think about this
think about this February 5th 1996 Business Week was
February 5th 1996 Business Week was
February 5th 1996 Business Week was celebrating the fall of an American icon
celebrating the fall of an American icon
celebrating the fall of an American icon Apple exactly ten years in one day after
Apple exactly ten years in one day after
Apple exactly ten years in one day after Steve Jobs Magic Kingdom same same
Steve Jobs Magic Kingdom same same
Steve Jobs Magic Kingdom same same newspaper and it took us ten years to
newspaper and it took us ten years to
newspaper and it took us ten years to understand that computers were not just
understand that computers were not just
understand that computers were not just very functional machines but also
very functional machines but also
very functional machines but also beautiful machines objects of design
beautiful machines objects of design
beautiful machines objects of design that tell us something about who we are
that tell us something about who we are
that tell us something about who we are and what we want to be and talking about
and what we want to be and talking about
and what we want to be and talking about what we want to be what about childhood
what we want to be what about childhood
what we want to be what about childhood dreams when is the time to really push
dreams when is the time to really push
dreams when is the time to really push the envelope on your dreams on your
the envelope on your dreams on your
the envelope on your dreams on your ideas well I don’t have an answer to
ideas well I don’t have an answer to
ideas well I don’t have an answer to that I can only tell you my experience
that I can only tell you my experience
that I can only tell you my experience after few years of publishing my studies
after few years of publishing my studies
after few years of publishing my studies and luckily getting some media exposure
and luckily getting some media exposure
and luckily getting some media exposure and some awards some teams call me up
and some awards some teams call me up
and some awards some teams call me up and say hey pal why don’t you come to
and say hey pal why don’t you come to
and say hey pal why don’t you come to the pits to give us some help so
the pits to give us some help so
the pits to give us some help so eventually I ended up doing the job of
eventually I ended up doing the job of
eventually I ended up doing the job of my my dreams it’s just it was not the
my my dreams it’s just it was not the
my my dreams it’s just it was not the conventional way because when I was
conventional way because when I was
conventional way because when I was ready for it the environment was not
ready for it the environment was not
ready for it the environment was not ready for me and so to leave you with a
ready for me and so to leave you with a
ready for me and so to leave you with a sentence from the great driver
sentence from the great driver
sentence from the great driver Mario Andretti if things seems under
Mario Andretti if things seems under
Mario Andretti if things seems under control you’re not just going fast
control you’re not just going fast
control you’re not just going fast enough and when things are under control
enough and when things are under control
enough and when things are under control that’s the time to accelerate
”
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