The art of balance in F1: Insights from Stefano Domenicali
Stefano Domenicali, F1's Chief Executive, offers insights into his role, including handling various stakeholders, mediating team disputes, and guiding the sport's expansion. His approach draws from a respect for individuality and an understanding of the sport's dynamics.
Chief Executive of F1 Stefano Domenicali stands out not for his speed but for his steady management style.
As the head of F1, Domenicali has become renowned for his ability to manage the diverse personalities and interests that make up the sport.
From billionaire owners and mercurial drivers to state heads and royals, he's deftly navigated this space, bringing balance to an environment where tensions can run high.
Navigating team rivalries
The Netflix documentary series "Formula 1: Drive to Survive" has made public the challenges of managing the sport's intricate dynamics.
One particular incident saw Domenicali mediating a dispute over new car design regulations between Mercedes' Toto Wolff and Red Bull's Christian Horner.
His ability to defuse such situations, he explains, comes from understanding the individuals involved.
“These kinds of things you learn how to deal with the more you see [them] happening and the more you understand the people. Every one of us is different, so you need to respect that,” Domenicali told the FT.
His management style, devoid of ego and shouting, emphasizes the respectful treatment of everyone, regardless of their role or status.
This approach is born from his experience as a former Ferrari team principal and understanding of the pressures that team managers face.
Steering the expansion of Formula 1
Under Domenicali's leadership, Formula One has seen substantial growth.
The Liberty Media-owned F1 is expanding its reach, bolstering its social media engagement, and making efforts to level the playing field with more equitable revenue sharing and spending limits.
This strategy appears to be paying off, with annual revenue increasing by 20% to over $2.5bn in 2022.
Still, there are concerns. Red Bull's dominance, with driver Max Verstappen winning 15 of 22 races in 2022, has sparked fears of reduced fan engagement.
Domenicali, however, maintains that the sport has not prioritized entertainment over competition.
He believes the financial regulations put in place will help minimize technical disparities and boost competition.
Handling the Pressure
Despite the demanding schedule and expansion, Domenicali is unperturbed.
“What is the weight of a demanding business if you like it and you’re motivated to do it? Zero,” he proclaims, adding that if those creating the entertainment aren't happy, "there is a problem."
He emphasizes the importance of dedication, enthusiasm, and treating everyone equally, asserting, “It’s my style, take it or leave it. I’m not able to have a mask in front of me.”
Learning from the past and looking to the future
Domenicali, born in Imola, home to a renowned F1 circuit, started his career at Scuderia Ferrari.
His time there taught him the value of a strong team. “I learnt the fact that you cannot do anything alone; you need to have a good team, the strongest team ever, actually,” he says.
As CEO, he's looking to the future, with plans to bring Audi back into the fold by 2026 with new, more sustainable power units.
Managing crisis and expansion
Domenicali faced a significant test of his leadership during the 2022 Saudi Grand Prix when a missile attack struck a nearby oil storage facility.
Despite the shock and fear, he managed to assure the drivers and stakeholders of their safety, and the race proceeded as planned.
As F1 continues to expand its footprint, including into Saudi Arabia, rumors abound about potential takeovers.
Domenicali remains unruffled, asserting the importance of quiet and private resolution. "If you want to do something, you don't have to shout or to announce," he says, emphasizing the need to act in the best interest of the business he's responsible for.
This sentiment was echoed in his private approach to a potential misunderstanding with FIA president Mohammed Ben Sulayem over a rumored takeover bid by the Saudi Public Investment Fund.
"If you want to do something, you don't have to shout or to announce," says Domenicali of his attempt to resolve matters privately.
"You do what is in the best interest of the business that you’re responsible for, as simple as that. Everyone is different, but this is me."
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