Latest / Technology Now / Winning at the edge with Oracle Red Bull Racing's Christian Horner
Transcript
- Aubrey: Hello everyone, and a very warm welcome to Technology Now, a weekly show from Hewlett Packard Enterprise where we take what's happening in the world around us and explore how it's changing the way organizations are using technology. We're your lovely hosts, Aubrey Level... Michael: ... and Michael Bird. And in this episode we are doing something rather special. Now, usually we'd book in a guest to talk about a topic, but this week the guest kind of is the topic because a short while back I had a very, very special chance to head to sunny Milton Keens here in the UK, which of course would be cause enough for a celebration on its own. But I went there to visit Oracle, Red Bull Racing CEO and team principal Christian Horner, whose team of course won both the Formula One drivers and construction championships this year. Now, when I spoke to him, we discussed all things strategy, data and what other organizations can learn from the way that F1 does things. So it does mean our format will be slightly different this time around. However, if you are still the kind of person who needs to know why what's going on in the world matters to your organization, then this podcast is for you. And of course if you're enjoying it, do make sure you subscribe on your podcast app of choice so you don't miss out. Right? This feels very relevant. Let's start the engines. Aubrey: Okay, so today we are talking all things Formula 1, the highest class of international racing for open wheel, single-seater formula of racing cars. And Michael, I know you are a huge super fan of F1 and this interview between you and Christian must have been like on your bucket list. What was it like? Michael: It was pretty incredible. I was a bit nervous beforehand and I had to tell myself, don't just sit there with your mouth open starstruck for the whole time because it was a little bit like meeting one of my heroes. I've been watching Formula 1 properly for about 20 years or so since from when I was a child, and Christian has been a big part of that. He joined the sport I think in 2005 and he's very, he's always on television, he's always there. He's a big part of the team. So it was amazing to be able to speak to somebody who's such a big part of the sport that I absolutely love. So yeah, it was incredible. It was such a cool experience. Aubrey: Well, I know we can't wait to hear it, so I think what we're going to do is roll this interview into two segments and in between that we're going to have our beloved book club with our listeners. So really all that stuff to do is say, wave that green flag. Let's do this. Michael:What exactly is your role in the team? Christian Horne...: Well, for Monday to Friday, I'm the CEO of a high technology business running on a campus here that incorporates effectively three different businesses. There's Red Bull Racing Formula 1 Team, there's Red Bull Power Trains, which is gearing up for entry in 2026. And Red Bull Advanced Technologies, which is taking Formula 1 know-how and applying to commercial projects. So Monday to Friday I'm doing that. And then 22 weekends of the year, I'm the team principal of a high performing sports team at 22 different Grand Prix around the world. So yeah, I wear several different hats. It's full on, it's a lot of pressure, it's a lot of travel, it's a lot of time away from home, but it's something that I've always done and always enjoyed doing. Michael:Yeah. Can I say that sounds pretty exhausting. Quite full on. How do you make time for everything? Christian Horne...: Well, I think you've just got to be disciplined with your time. It's about managing your time effectively and efficiently and having good people around you delegating because you can't do everything. And being focusing on the things that you can control rather than the things that you can't. Michael: Super. What is the process for putting together a championship winning strategy? Christian Horne...:Well, the key thing is making sure that all departments and all personnel within those departments know exactly what their goals and objectives are. And it's working as one collective group, as one team where every department relies on each other and working as a collective, where obviously the common aspect is the car itself. And to ensure that as that common component that as a team we are doing our very best to present ourselves in the best possible way weekend after weekend. Michael: So how do you ensure that the whole team shares a strategic vision and understands what their role is. Is it like all about culture? Christian Horne...:I think culture is a key element and it's having clear goals, clear objectives, clear targets and a can-do attitude. And Formula 1 is one of the biggest team sports in the world. We're up against some massive opponents and competitors and it's about working as a collective to take on some of the biggest OEMs in the world as a subsidiary of an energy drinks company. And it demonstrates that anything is possible. Michael: So how do you square the needs of the business against what the end strategic goal is? Presumably there can sometimes be a bit of a disconnect between those. Christian Horne...:Well, I think it's just a matter of aligning them. I mean obviously it's a matter of question of wanting to win. That's what the goals are. And of course you've then got to do it within the regulations. It's a matter of making sure that the shareholders are happy, that the numbers are looking, that commercial revenues are strong, that we have the right technical partners, the right operational partners, and that we have the right people in the right roles. Michael: So is winning the race the most important thing? If you have to make a business decision or a race decision, which one comes first? Christian Horne...:Well, of course we are here as a race team, so it's all about winning on track. And if you win on track, there's that old outage, win on Sunday, sell on Monday. So that's very much the way that we focus on. It's about the championship. It's not just about an individual race. So sometimes you've got to take a strategic view over perhaps a race weekend to... because it's the bigger picture. It's the longer game. It's the marathon rather than the sprint that you're interested in. Michael: I think strategy's been something that you guys have done really well this year, isn't it? Something that I think has won races. I suppose some people just think fast car go around the track really quickly, job done. But strategy's such an important part, isn't it? Christian Horne...: Strategy plays a key role. There's a huge amount of analysis, amount of preparation that goes into a Grand Prix of looking at all the permeables. And then of course we use a huge amount of data during a Grand Prix that we're processing and looking at different algorithms and gaming scenarios to say, okay, what is the quickest route to the end of a race? Is it a one stop? Is it a two stop? What happens if the safety car comes out? Strategically, how is it best that we play both of our cars? So you're constantly looking at that gaming scenario, and it's a matter of using your experience and not being afraid to blindly follow the numbers, but challenge the numbers as well and use your experience. Michael: How do you make sure that you are always staying ahead? And I say that because I know that there's been some regulation changes recently. The rules basically constantly changing. How would you make sure that actually you are just able to keep on top of that? Christian Horne...:I think you can never be satisfied. It's never enough. Even when you win a race, you're still learning and you've got to be analytical of your own performance. You've got to be critical of all aspects of performance. And so it's never enough. And it's that fear of failure that drives on the motivation to continue to succeed. And winning is an addiction. And once you've sampled it, you don't want to let that feeling go. And that exists throughout the organization. Michael:I guess a lot on the context. How do you deal with defeat? Because I suppose unlike many other businesses like defeat or winning is such a public thing and it's such a thing that, I don't know, does it permeate across the whole organization when you come back from a race and you've won and everyone's buzzing, and maybe is the opposite true when maybe you've lost a race that you probably should have won? Christian Horne...: No, absolutely. And you feel that within the organization? I think that, you know, learn as much on the days that you lose a race and the days that you win a race and it's applying those lessons. And of course you can't win every Grand Prix. And I think it's a matter of if it doesn't hurt when you lose, then it doesn't mean enough. And I think that you have to just use that. You have to turn it into a positive energy to apply the lessons from whatever's gone wrong and apply them to the next race. Michael: Fair enough. What do you think other businesses can learn from the way that Red Bull Racing does things? Christian Horne...:Well, I think there's so many analogies between what we do in preparation for Grand Prix and how we operate as a business with other industries and businesses. Of course we're very public in what we do and it's very fast moving. But I think that the way that we address and tackle problems, we deal with challenges, whether it's through the regulator with rules and regulations, how we interpret those rules, how we apply those rules, how we react, the speed of change, not being afraid to reverse a decision if it's the wrong decision, rather than blindly following down a blind alley. So it's being agile and nimble and reacting to the circumstance and the regulations that you're faced with. Michael:And I guess being nimble and react not just over a week or over a month. It's like yeah, in an instant on race day. Christian Horne...:Absolutely. And sometimes it's got to be instinctive and you've got to follow your instinct. Michael: Yeah. Aubrey: Wow, that was such an interesting segment and really, really interesting guy. We'll have to have Christian back for part two in a couple of minutes, but in the meantime, Michael, what do you love about F1? What's your top three things that you absolutely love about the sport? Michael: Okay, number one is that the sport is constantly innovating. So they're basically building these prototype cars and they're racing them in around what, 24 weeks of the year. And every race the car is subtly different, sometimes really different. And they're constantly having to develop to keep up either with their competitors or get ahead of their competitors. So I love that and I love the sort of really nerdiness of Formula 1, plays to my very nerdy sensibilities. The second thing is all the personalities, all the different drivers, all the team principles like Christian, you get to know them. Some of them are really happy to chat, some of them are quite quiet and you just get all these personalities. It's a little bit like a soap opera, but they race cars. And the third thing I think is this incremental gains. The margins that you were talking about here on Formula 1 are just so small. In qualifying, what they do before the race to decide who's where on starts on the grid for the race, sometimes a second is what is the difference between first and last on the grid? Yeah, those are probably the three things. I'm sure there's more about it. The noise, they're quite loud, they look quite cool. There's probably other things. Aubrey: That's amazing. I think you nailed it right on the head in the interview when you said, some people may look at it as just cars going across the track, but people don't realize all the levels of technology, the skill, the talent that goes into this for making those machines and the cars running perfectly. So pretty incredible. All right, next up it's down to you, our audience. We open the floor for you to give your recommendations on books which have changed the way you look at the world life and business in the last 12 months. They could be technology based, have changed the way you work, or they could have just made you look at the world in a totally different way. If you want to share your recommendations, there's a link in the podcast description. Just record a voice note on your phone and pop it in. Oxana Simva: My name is Oxana Simva and I am project manager of Rebuilding It Project. Recently I've been reading a book called Give and Take by Adam Grant. And the main idea of this book is that you don't always have to focus on your profit and be taker to be successful, but to be giver is a more efficient model, especially for companies that provide services and long-term project. And I think that this approach is very close to my values and the values of our team. Aubrey: Thanks so much and do keep your suggestions coming in via the link and the podcast description. Right. Let's get back to the interview and find out a little bit more about Christian's personal side. Michael: I'd love to ask you about a book. Is there a book that you've read this year that you think changes your views? Christian Horne...: I'm just trying to think. Is there a book that I've read this year? I mean there's the FIA rule book that probably has the biggest impact on my year. Recently I like biographies and autobiographies particularly of people within sport. So I'm always sucker for that. Michael: What biographies have you read? Christian Horne...: Alex Ferguson's that- Michael: Okay. Christian Horne: ... was a fascinating read. It's always interesting to look at other people's journeys. Michael: Can you talk a little bit about your journey for you getting to where you are today to becoming, as you said, the CEO of this massive racing team? What was your journey to get here? Christian Horne...:Well, my journey, I started off my life as a driver. That was my ambition, that was my target. I started racing in carts. I raced against Max Verstappen's mum at the age of 13. And I progressed, I won a scholarship to move from carting to racing cars. That scholarship was with Reno at the time. And then I progressed through the ranks of former Reno Formula 3 to what is now Formula 2. That was called Formula 3000 at the time. And it was at that stage that obviously the commercial demands of the sport and the sponsorship required was just getting ever bigger and bigger. So rather than going racing for a team, I decided to set up my own team because it was the most cost-effective way of going racing. And having set the team up and driven it for it a year, I decided that it was time that my talent behind the wheel was somewhat limited, but I didn't want to get a proper job. Having grown up in the sport, I decided to try and apply the knowledge of having driven for good teams and not so good teams to try and build the team in a way that I would've liked to have driven for a team. And it was again, always all about the people. Michael: Yeah. And was there a moment when you were driving, when you thought actually, I'd much rather run a team? Was there anything in particular? Christian Horne...: Well, there was a couple of things because when I first set up the team in 1997, I was doing the VAT returns. I was booking the hotels, I was doing the payroll, I was doing all the invoicing, I was washing the truck. You're a Jack of all trades, and then it was like, oh, crikey, you got to get in the car and drive it now. And quite frankly, I just wasn't at the same level of some of my peers at that stage. And I was racing against the likes of Juan Pablo Montoya. And I clearly remember coming out to the pit lane in Estoril, and this was pre-season, I think in 1997. And seeing him head into the first turn with the rim of the wheel trying to pop its way out of the tar itself with his right foot completely planted and obviously the barrier on the left-hand side of the track being ever closer. And I just remember thinking, "Wow, I can't do that." My heart might want to do it, but my head is connected to my right foot and won't allow it. And so I really knew going into that season that that was going to be my last season of driving and thereafter I'd focus on building and running the team, which went on to win three championships in that category. Aubrey: Michael, that is a dream interview. I'm so excited that you got to do that and really fantastic conversation. Thanks so much to the Oracle Red Bull Racing Team and of course Christian for making the time for us. And I have to say, it's so amazing to hear the behind the scenes aspects of F1 and the correlation of how technology and the driver and the team really work together to reach that podium. I think there's a lot of lessons for all of us to learn, even if we're not into the sport itself. Michael: Okay, so we are getting towards the end of this week's show, which means it is time for... You ready, Aubrey? Aubrey: I'm ready. This week in history. Michael: This week in history. Which is a dazzling look at something in the world of business and technology, which has changed our lives. Would you have this week Aubs? Aubrey: The clue for this week was in 1964 there was one machine to do it all. The answer was the mainframe 360 computer. But we've actually decided to change it because something more interesting has popped up. It's happy birthday to the mobile phone. The first recognized call was made by Martin Cooper, considered the father of the cell phone on a New York City Street this week in 1973. The phone, a Motorola Dyna T-A-C of Martin's own design weighed two kilograms or 4.4 pounds. It would be another six years before the first mobile network was launched in Japan. And it was in 1983 that the first commercially available phone was released, which cost the equivalent of over $10,000. Fortunately, in future years, prices and weights have gone down. Connectivity to the net now comes a standard. And thanks to companies like HPE, it's opened up and evolved into the world of edge based mobile computing we know and love today. So that was a bit of an essay, but really a cool piece of history and the clue for next week, we are going up, up and away. Michael: Hoorah. That brings us to the end of Technology Now for this week. Next week we'll be talking all things FinTech and the ways in which technology can help ease the pressure on inflation and help experts regulate the economy. So do get your questions in on all things FinTech and AI related. A huge thanks to our guest today, Christian Horner, and of course, thank you all so much for joining us. Technology Now is hosted by Aubrey Level and me Michael Bird. And this episode was written by Sam Data Paulin and Zoe Anderson with production support from Harry Morton, Alicia Kempston, Alison Paisley, Alex Podmore, and Ed Everston Technology now is a lower street production for Hewlett Packard Enterprise. And we'll see you next week. Thank you. Aubrey: Cheers.