On July 29, 2009, Michael Schumacher (born in 1969) announced his Formula 1 comeback, but just a few weeks later, with a heavy heart, he had to put the brakes on that plan. In 2010, both the motor racing fraternity and Formula 1 fans were tremendously excited to see how successful his comeback with Mercedes would turn out. One typical feature of Formula 1 is the tendency to sum up pretty much any conceivable result in some kind of statistic, and a defining character trait of Michael Schumacher is having almost every significant figure at his fingertips. The long list of records he holds in the sport is truly impressive, and a comparison with his closest rivals in this respect reveals an astonishing gap1:
Most world championship titles
1st place: Michael Schumacher, 7 titles
2nd place: Juan Manuel Fangio, 5 titles (the last won in 1957)
Most Grand Prix victories
1st place: Michael Schumacher, 91 victories
2nd place: Alain Prost, 51 victories
Most victories within one season
1st place: Michael Schumacher, 13 wins
2nd place: Michael Schumacher, 11 wins
3rd place: Michael Schumacher, 9 wins (2001)
3rd place: Michael Schumacher, 9 wins (2000)
3rd place: Michael Schumacher, 9 wins (1995)
3rd place: Nigel Mansell, 9 wins (1992)
Most appearances on the victory rostrum
1st place: Michael Schumacher, 154 times
2nd place: Alain Prost, 106 times
Most points in a career
1st place: Michael Schumacher, 1,369 points
2nd place: Alain Prost, 798.5 points
Fastest lap times
1st place: Michael Schumacher, 74 laps
2nd place: Alain Prost, 41 laps.
Gradually it has become clear to the public that a good racing driver needs to be ambitious and very, very sure of himself. Applying himself with skill, diligence, stamina, meticulousness, and a strong desire to achieve perfection, Schumacher strove to improve every detail of his performance—and the results bore out his approach.
In addition to setting all these records, he leads a commendably scandal-free life. Furthermore, in 2006 he achieved something that many sports stars fail to do: choosing the right time to pull out of the profession, retiring when he was runner-up in the Drivers’ Championship.
So managers can learn valuable lessons from Schumacher’s consistently results-driven approach.
Management is all about results. This may sound rather banal, yet it is amazing that the focus of many people working for an organization is more on input than output. The common characteristic of people who consistently perform remarkably well is their single-minded orientation toward results—as opposed to concentrating on effort, stress, or input.
One of the clearest indications of this is that when the going gets tough, instead of “making do” with what has already been achieved, top performers put in the extra effort required to attain their objective. In other words, they “go the extra mile.” At the same time, they do not look for alibis or excuses if something has not worked out because they know that setbacks or failures have to be faced and that giving up in the face of adversity is not an option. This will not guarantee them the attainment of all their goals, but embracing the principle of adopting a systematically results-oriented approach does get them very far—much farther than those who are laxer about focusing on achieving results.
Michael Schumacher’s obsession with detail is a prime example of someone who genuinely strives for the best possible results in every domain of his work. He is remarkable for being so demanding of himself in areas where other racing drivers content themselves with far less. For example, he doggedly acquired extensive technical knowledge so that he could serve his team by ensuring that its technicians could do their level best based on the feedback he gave them.
The significant fact here is that focusing on the end result and asking yourself how you can help to achieve the outcome alters the answers to questions about what you can—and need—to do. This is a mark of good managers; they are results-oriented and see how what they accomplish contributes to the overall result.
Management must give its organization direction. To that end, it has to think through and define the organization’s business mission and its specific purpose. It must also set appropriate objectives and organize the available resources in such a way that those objectives can be reached. The ensuing results then indicate just how effective the management’s actions really are. Every organization will grow stronger by clearly defining its objectives.
Taking detailed measurements in Formula 1 has the advantage of enabling very accurate comparisons with initial objectives. It enables the team to ascertain where it is working effectively and where there is still even the slightest room for improvement. This approach not only provides a sound basis for correct decisions, but also makes the organization as a whole more effective because it highlights where potential improvements can be made. It is therefore wise to ensure that clear objectives are set in your area of responsibility and that it is made just as clear which variables will be used to measure and judge the results.
When doing all this, the objectives in question should meet the following conditions: First, they should not be easily attainable. If no real effort is required, the target has been poorly set. Second, the desired results should of course nonetheless be attainable. Setting unrealistic objectives at the outset is not just demotivating, but even damaging, because it undermines the credibility of managing by objectives. Third, the relevance of the set objectives should be clear. They should make a meaningful contribution to the whole. It ought to make a difference whether the result is achieved or not. Fourth, if possible, the result should be measurable—at the very least, it must be possible to judge the degree of attainment.
The areas where objectives need to be set and results achieved in the context of managing organizations is discussed in Chapter 13 on Andy Grove: market standing, innovation, productivity, physical and financial resources, profitability, the performance as well as the development and attitude of the people in the organization, and public responsibility.
Especially if things do not go according to plan, the result needs to be taken seriously. Throughout his long career, Schumacher has impressed everyone by showing what a master he is at recovering from setbacks—the sign of a true professional. That said, it is important to remember that being results-oriented is a principle of management, not of life. Michael Schumacher pursues numerous interests not with results in mind, but simply because they give him pleasure and enjoyment.
Focus on results, not effort.
Are the benchmarks for evaluating performance in your organization appropriate and sufficiently clearly defined? If not, how can you change this?