Business Architecture & The Formula One

Another view on the importance of business architecture, different than The "Da Vinci case (1)," comes from the Formula One (Grand Prix).

The Formula One offers a different but very interesting case as a parallel for business management.

The Formula One is different from other sports much because of the vehicle. In Cycling, the vehicle does also matter and even in ice-skating the equipment has an influencing role in the sports results, but not as much as Formula One.

In business the human resources are always seen as the decisive component in the results of the company, and that is including the management and their applied method. But human resources not only affect the results, they do so by building "vehicles" that are used for the same production. Examples of these are: information systems. It is possible to build these or to buy them in the market, but the quality of the information systems and their use define the success of the organization too. As much as human resources do. Other vehicles are: the buildings itself - modern designed buildings may positively influence the working climate and indirectly improve the performance of the organization.

The best business architecture is that where not only the employees, management and methods are solid and successful, but where the other business components are also influencing, like the mentioned information systems.

Now back to the formula One races. Those who watch the Grand Prix regularly know that there are some good pilots. An example of a good pilot and a personal favorite is Fernando Alonso. Why is he a good pilot; well, having won two F1 World Championships should be a sufficient criteria to tell so. He is currently the only driver with two World Championship titles.

Unfortunately, the vehicle he is using is not the best in town. Best vehicles are those from brands like Ferrari and Mercedes-McLaren. Than there is the influence of fuel-providers. Ferrari works together with Shell, Renault is partner with Elf. One is a global brand of the first league (Shell is #93 in the top 100 of global brands), ELF doesn't occur amongst the top brands.

The Warren-Buffets of these world are looking to invest in companies that are the Ferraris of the F1 (business) in combination with drivers (management) like Alonso. Business architecture is like that. In that case, change the vehicle for the business and the driver for management.
Solid business with high possible growth rates and the best management is obviously what makes perfect business architecture. Great management but poor business, will not end up in Warren's portfolio.

It is not hard to manage a great business. A lot more difficult is it to manage a business in decline or a business that is not passionate. Really great managers are those that make something good out of a lousy "vehicle".