The Austrian Niki Lauda (born in 1949) has repeatedly made headlines by turning his life around in spectacular fashion. Not only in Formula 1 racing, but also as an entrepreneur he has proved, time and time again, that something that seemed impossible can be accomplished. His personal mixture of individualism, an uncompromising attitude, pragmatism, and sheer force of will have earned him plenty of successes and gained him many admirers. But another equally remarkable facet of his character is his undeniable ability to think constructively. This attitude can be summed up in just two points:
1. Concentrate on opportunities rather than problems.
2. Cultivate a constructive and positive basic outlook, even if your setbacks seem serious and problems seem insurmountable.
In 1975, Niki Lauda won the Formula 1 World Championship. The next season he was seriously injured in a terrible accident on the Nürburgring when his Ferrari swerved off the track at a speed of over 135 miles per hour and then bounced back into the path of oncoming cars and caught fire. Lauda’s colleagues pulled him out of the blazing wreck of his car, and for five days his life hung in the balance. Then, just six weeks after surviving that inferno, he drove his next race, taking fourth place in the Italian Grand Prix in Monza. If Niki Lauda was not already world famous by then, this feat clinched his reputation. And he went on to gain the status of a true legend by winning another World Championship title in 1977. The reason he cited for his surprise retirement from motor racing in September 1979 has already almost achieved cult status: “I’ve had enough of driving round in circles.”1
That same year he started his first airline, Lauda Air. Setting the objective of using his own airline to break Austrian Airlines’ state monopoly, he embarked on a seemingly hopeless venture. But in spite of receiving support from Bruno Kreisky, who was the Austrian chancellor at the time, Lauda’s company failed to obtain the licenses it needed. So without altogether abandoning his dream of running his own airline, Lauda put the endeavor on hold and turned back to Formula 1, incredibly becoming world champion for the third time in 1984.
He still lacked the concession he needed from the Austrian government to offer scheduled long-haul flights, but in the end sheer persistence paid off, and he secured it. Later on he also acquired a stake in Austrian Airlines, though he subsequently described that investment as the biggest mistake he had ever made, and it caused him mounting difficulties over subsequent years. At the end of 2000, because of major differences between the corporate cultures of the two companies, he stepped down as chairman of Lauda Air. Two years later he sold his remaining shares in the company, and many people saw his dream of being an airline entrepreneur in tatters.
Richard Branson, the billionaire founder of the Virgin Group, when asked, “How do you become a millionaire, Mr. Branson?” is said to have replied that it is quite easy: you should start off as a billionaire and set up an airline. Flying in the face of this, Niki Lauda once again proved, by establishing his airline NIKI, that he knows how to exploit opportunities. The company took off in 2003 and in 2008 reported its fifth consecutive year in profit. The airline’s fleet of Airbuses is steadily growing, as is the number of destinations it serves, and in surveys NIKI regularly rates as the top low-cost airline in terms of its performance.2
But that is not the only opportunity that Lauda has efficiently exploited. He also set up another mobility operator, a car rental company called LaudaMotion that rented cult vehicles like Smarts and Minis at spectacularly low prices: “1 Smart, 1 day, 1 euro.” The clever idea was this: instead of earning its money from the car rental customer, it derived its income from advertising customers whose messages are emblazoned on the vehicles they drive. In October 2009, Lauda sold his 51 percent stake in the company to his business partner, Stefan Miklauz.
Although Niki Lauda last passed the checkered flag in a Formula 1 race around 25 years ago, today his media presence is stronger than that of most active Formula 1 drivers. Very few former professional sports stars have succeeded in maintaining such a high profile as he has.
If you want another example of clever exploitation of opportunities and constructive thinking, look no further than Niki Lauda’s trademark red cap. Having suffered severe burns to his scalp in the crash on the Nürburgring, Lauda took to wearing a cap to prevent people from staring at his injuries. So why not simultaneously turn it into a lucrative advertising space? In a recent interview given to the German weekly newspaper Die Zeit, he said, “Originally I received €100,000 a year; now I get €1.2 million.”3
Unlike almost anyone else, Niki Lauda has proved more than once that there is a way back from even the greatest setbacks: his terrible motor-racing accident; years of struggling to obtain a concession for scheduled long-haul flights; remedying the serious damage to the image of Lauda Air after one of its scheduled flights crashed in 1991, through no fault of his company. Not only that, but by setting up his low-cost airline NIKI and his car rental company, LaudaMotion, he proved that success is possible, even under the toughest competitive conditions. Such examples of successful entrepreneurship are invaluable, especially for the young people in society.
So how can constructive thinking and the systematic exploitation of opportunities be achieved? Most people who are successful have simply made a habit of thinking constructively. There may be some natural talents out there, who manage to hold onto a basic positive attitude for years at a time, even in the face of adversity, but most people tend to make a conscious choice to think constructively and positively after suffering a few setbacks, and they will then endeavor to maintain such an outlook thereafter.
To succeed in the long run, it would be rather risky to rely on one’s “temperament,” because you never know what pressure you might one day find yourself under or which limits you may be driven to. Even the most optimistic sports stars would never dispense with a methodical approach and training designed to improve their mental attitude. Some use autogenic training or other forms of relaxation; others resort to mental training or leave themselves notes to remember to adopt the right mind-set. How you make a habit of thinking constructively and positively is not important. What counts is that you do it and embrace this attitude with such discipline that you never stray from it.
A similar situation applies to systematically exploiting opportunities. Managers need to force themselves to focus their attention and that of the other members of their organization on opportunities, because that is where results can be achieved. Naturally, important problems cannot be ignored, but organizations that concentrate primarily on problems instead of seeking opportunities will always be on the defensive.
From Niki Lauda’s track record, it is obvious that even when he was really up against formidable competition, he must have asked himself what opportunity such a situation might present. If you want to direct your own gaze or focus your organization on opportunities, the exploitation of such openings must be a high priority, and you must demand the corresponding basic positive attitude from the members of your organization. The rough questions to ask are: “Where do particular opportunities lie at the moment? And which opportunities in my area of responsibility would have the biggest impact on our performance and results if they were exploited?” As time goes by, seeking out opportunities this way will become second nature to you and your organization. So take the following basic rule as your guideline: Think constructively and be opportunity-driven, not problem-oriented.
What can you do to adopt or shore up a constructive, positive attitude?
Where do your particular opportunities lie at the moment? Which opportunities in your area of responsibility would make the greatest contribution to the success of your organization if you exploited them?