Zak Brown's Fan-Centric Leadership Drives McLaren's Formula 1 Success

Key Quotes

"As a racing driver and as a CEO, you need to be a great communicator, need to be a great listener, you need to have a huge amount of trust in your team. Racing is life or death when you're sitting in the racing car, and maybe business isn't quite life or death, but you know, it feels like it. You have to have the best technology, the best equipment around you. When you kind of list all the things that you have to do to be a great racing driver, I think those are all the things you need to do to be a great CEO."

Zak Brown argues that the skills required for a successful racing driver directly translate to those needed for a CEO. He highlights communication, trust, and reliance on top-tier technology as crucial elements in both high-stakes environments. Brown suggests that the intense nature of racing, even if not literally life or death, fosters a mindset and skillset applicable to leading a competitive business.

"What Netflix has done is where did the sport need to grow? No particular order, it needed to grow in North America from a geographic standpoint. Thank you, Netflix. We now have three Grand Prix in North America and a new Apple deal, etc., etc. It's a major sport in North America. We needed more women; 75% of the new fans that have come into the sport are women and youth, and those were the two demographics that we needed. So, the sport, yeah, has never been healthier."

Zak Brown explains how the Netflix series "Drive to Survive" significantly boosted Formula 1's popularity. He points out that the show was instrumental in growing the sport's audience in North America and attracting more women and young fans. Brown asserts that this increased engagement has made the sport healthier than ever before.

"My job is to assemble the best people in the world, get them working really well together, understand what their needs are, and help them be the best at what they do. So, I remember the first time I stood up and I, you know, spoke to it was probably a thousand people in the Formula 1 team. You know, they're all staring at you, and you're kind of you don't know what's going on through their mind... but I had to kind of just hold my nerve. I knew I couldn't go at this alone, so the first thing I did was create an awesome leadership team."

Zak Brown describes his leadership philosophy upon taking over McLaren Racing. He emphasizes that his role as CEO is not to be a technical expert but to build and empower a strong team. Brown explains that he focused on assembling a capable leadership group and fostering trust and transparency to drive the team forward.

"We are in the entertainment business. So, I focused on our fans because without great fans, you don't get great commercial partners. Without great commercial partners, you can't invest in great racing drivers and great technology. So, kind of making sure that every part of our ecosystem was getting what they needed to see the best of McLaren."

Zak Brown asserts that Formula 1 is fundamentally an entertainment business and that prioritizing fans is key to success. He explains that strong fan engagement leads to valuable commercial partnerships, which in turn fund the necessary investments in drivers and technology. Brown highlights the interconnectedness of these elements within the McLaren ecosystem.

"I used to micromanage a lot, right? When you start your own company and you're the first employee, you do... as that company grew, JMI, you I'd eventually got to a scale where you have to kind of just... and trust your people. And so now I can't do the work of 1400 people. And there was a moment where you have to let go and become a manager, and I think I've had to learn now to become a manager because that's a different skill set sometimes than being a doer."

Zak Brown reflects on his evolution as a manager, admitting to past micromanagement when his company was smaller. He explains that as the organization scaled, he had to learn to delegate and trust his team, recognizing that management requires a different skill set than being an individual contributor. Brown emphasizes the necessity of letting go and empowering others as a company grows.

"We want us to be the most... fans, because without fans, we won't have any other audiences. I want fans to feel an attachment to McLaren, our drivers, me, anyone that's in a papaya shirt... Our workplace, that's what drives our culture, that's what drives performance. I don't believe other teams steal employees, steal drivers, steal sponsors, steal fans. I think you lose them. So, I look in the mirror. If someone can get a logo off my shirt and on a competitor's shirt, shame on me. Clearly, I did something wrong."

Zak Brown outlines his strategic vision for McLaren, prioritizing fan engagement as the foundation for all other stakeholder relationships. He believes that fostering a strong emotional connection with fans is paramount, as this loyalty prevents the loss of employees, drivers, and sponsors. Brown takes personal responsibility, stating that losing any of these elements reflects a failure on his part.