What can organisations aspiring to be data driven learn from Formula 1?

Nowhere is the phrase “data-driven” more applicable than Formula One. Thousands of parameters are measured whilst a car is on the track, such as temperature recordings, suspension movements, g-forces etc.  This process of real time measurement—known as telemetry—allows race engineers, both in the team paddock and back at the team factory, to track the performance of the car and to derive insights into how to tune the car for the following race.  Telemetry data has also been used to perfectly replicate track conditions on a driving simulator, which lets engineers see how different parts would behave on the track – providing a virtual environment to test new parts, set-ups, driving styles etc., all without the logistics and expense of transporting the engineering team to a racetrack.

Furthermore, as driver inputs (e.g. throttle position, steering angle), speeds and sector times are recorded it also enables the team to create a data trace over the course of a lap to identify where the car may be able to go faster.  Not only does this set an expectation for the driver for how fast they should be driving, but also acts as an assurance for them to know that they can hit a certain corner more aggressively than they might otherwise think, and that the car will be able to deal with that. 

“You’re gonna turn in at 190 miles an hour in seventh and top gear with blind faith that it’ll stick when you arrive and you don’t end up in Northampton if you get it all wrong.”

                                                                                    Martin Brundle (Silverstone, 2008)

Despite this mammoth amount of available data, what is perhaps more impressive is the quick turnaround in which the insights it delivers are implemented.  Multiple changes in the setup of the car are made between and during races based on data observed from the weekend and during testing.  This culture of agility is something many leaders in business can only envy.

Such a sense of urgency is born out of necessity; the margins between being world champion and being barely in contention are a matter of seconds per lap, and with a race every one or two weeks during the season, the rewards for being able to identify a marginal gain, and to implement it in a short space of time, are substantial.  This is supplemented by the near-constant process of rule changing from the governing body, which seeks to nullify any significant advantage one team gains over another.

Nonetheless, the influence of a driver should not be discounted.  Take, for instance, the most recent grand prix in Turkey, in which Lewis Hamilton drove from a starting position of sixth to win the race, and in doing so equalled Michael Schumacher’s record of seven World Drivers’ Championships.  Late in the race, and with the Mercedes team anticipating rain, Hamilton was asked to make a pit stop, to replace his near bald tyres that would not be expected to survive in wet conditions.  Instead, he opted to stay out, and ultimately nursed his car over the line thirty seconds ahead of second placed Sergio Pérez. 

Yet to call this merely intuition, or to suggest that this was in any way uninformed by the data, would be wrong. As Ron Dennis once said, “the data points are like musical instruments, and the driver is conducting the orchestra based on how he listens to the music”.  In fact, Hamilton revealed after the race that his decision to stay out was informed by the haunting memory of the 2007 Chinese GP, in which he slipped on near-naked tyres into a gravel pit in the pitlane, subsequently resulting in him losing that year’s championship. 

So what can business leaders learn from Formula 1?

1.     Clear purpose – Formula 1 teams benefit from having a clear purpose that everyone in the team is aligned to…winning races and championships.  Therefore, all priorities and decisions within the team are geared towards delivering that purpose.  Business leaders should identify purpose and goals clearly, such as providing great customer experiences, and determine how the data can best help them to achieve their objectives.

2.     Willingness to experiment & quick feedback loops – Formula 1 teams have the ability to analyse and interpret data and respond quickly to make their cars go faster.  An agile mindset and willingness to try new ideas, based on insights provided by data, combined with an ability to respond quickly to feedback, will enable business leaders to develop products and services more aligned with achieving their goals.

3.     Democratisation of data & analytics – the availability and integration of data insights within a Formula 1 team, from the driver to the track-side engineering team to the design and manufacturing teams in the factory, enables the organisational harmony and alignment of understanding required to deliver a faster car.  Business leaders should consider how to increase the availability of data and analytics tools across their organisation and to foster a culture of partnership between business, product, services, operations and marketing teams.

4.     The importance of the human-in-the-loop – in my previous article, The 2020 UK exam fiasco has given ‘algorithms’ a bad name, I highlighted the importance of the interactive relationship between models and model owners.  The driver is the most obvious human element in making a Formula 1 car faster, but there are many more team members applying their expertise and judgement to interpret what telemetry data is telling them.  Equipping employees to engage effectively with data and analytics tools, through development of skills and experience, will be critical for business leaders to shift their organisations towards being data driven.

In conclusion...

Formula 1 is a highly competitive, technologically advanced and pressurised environment.  The parallels to business challenges in other sectors may not be immediately obvious, and our staff don’t necessarily have the challenge of being hurled around a track needing to withstand huge g-forces!  However, the lessons learned in becoming data driven provide an interesting blueprint that business leaders may do well to consider.