Tony Fernandes CEO Blog

I've been reflecting on a lot on the Lotus journey; the highs and lows, the setbacks and the sweet victories. It has been quite and emotional journey for CEO Riad Asmat as well so I've asked him to share his thoughts here.

When two worlds collide

It’s funny that this is what it seems like at this moment. Don’t worry it’s not depression setting in nor is it a depressing story that I am about to tell but more of what is going around me as an individual with some form of benefit of experiencing two similar working worlds within a span of six years. The first five being in an aspiring national automotive car producer and the last year in an aspiring formula one team.

Let’s dial back a bit to when it all began. Sometime in July 2009, I landed on a very peculiar but interesting project when I was with Proton. I guess with my little bit of know how and as a solution provider in my role there, my then leader decided that I should play a part a little project. Lo and behold, this little project was called the Malaysian F1 Project and the people behind were Tony, Kamarudin and Nasa.

An interesting project at that point as I was at the time, already contemplating leaving Proton as I believed that as part of the turn-around team we had done all we could (two of my closest team members had already left by then as well). Anyway, the brief given to me was work with them, and assist where possible in their attempt to get the final entry into the F1 world championship. I then had the taste of working with true entrepreneurs, and with Tony to boot, “can we get it done – yesterday”, “let’s go for it”, “I’ll make the call”, “its not over till its over”, etc. etc. Hahaha…A huge departure from the culture of a GLC – not an entrepreneur’s favorite word – but I was where I was.

So we plodded on, worked on the entry, submitted the entry and waited. I wasn't sure if we had done enough. The waiting period then allowed me to go back into my GLC mode, quite safe I must say with multi-level approvals, numerous papers to be done, run through, etc. Yes, some peace at last only to be broken when I received a call whilst I was out with my kids for dinner one night.

This I recall clearly and fondly to a certain degree of course, “Yo my man, its Tony.”

I replied in my most gracious GLC way, “Yes, Dato’ Sri”.

“We freakin’ got it! We’re in, we’re in F1, we’ve got the final slot.” Needless to say, he was estatic.

I immediately congratulated him and his team but one thing that always stuck to me during that conversation was that Dato’ Sri thanked me too. Now, I’ll be honest getting a thank you from where I came from was a rarity especially from the leaders (sorry, it’s the truth and if any of the leaders are reading, ask everyone around you to verify especially the ones who were closest to me over there) so as unnatural as it may have been, I actually felt quite good and happy at the same time.

A couple of days past and I was invited to attend the official announcement by the Prime Minister. There was now a team in the world championship with about four people then. A huge task at hand but nevertheless in my very short experience of working with them, anything seemed possible. I wished them the best and headed back into my little world. Quite serene I must say, we were re-strategising plans as well as focus, a new Chairman at helm, some launches in foreign markets, the usual stuff and yes, not to forget my family vacation.

Weeks passed, and during my vacation I received a call from Tune’s corporate communications asking me for my attendance at the Singapore GP. “Huh?” was my thought, then the insistence that I should be there came and my then leader said the same to me to see what was happening, etc. So, I accepted the invite and found myself in a hospitality area in the Singapore GP where I was greeted by Tony, Din and Nasa. It was a good celebration of sorts with them making a statement of being there the following season. Eyebrows rose, queries all around, curious thoughts, predictions, etc. Welcome to the world of F1!

Fast forward, I then was offered the CEO role from the shareholders and the first hurdle I faced was my own self to be honest. Choice then, GLC comfort zone or into the unknown? I didn’t take long though and made the jump. Looking back at it all, I have no regrets. Work quadrupled overnight, stress levels tested on a daily basis, learning curve as steep as it could be but again no regrets. Continually I am still learning but with guidance from the shareholders it’s been an eye-opener, challenging (ups and downs) but a fun ride thus far. Well, enough with my start but I had to share with you all that I was in a Proton, worked on its turn-around with the Leader, experienced the ups and downs but had the opportunity to move on.

Where the worlds collide

Firstly, the similarities, both dealt with cars. One you build over a minimum of 24 or 36 months (re-badging you can do within 18 months at the most) while the other in 6 months. Both have consumer related wants and needs although one more on expectations (the F1 one of course). So actually, it’s not much different except for the speed of things that needs to occur. I have now seen it all and I would like to focus on what happens next for us and although I had thought my ties were long gone when I left Proton then, theirs.

These last couple of months has probably been the most challenging in my role as the CEO of the team due to the sudden decision of my former company deciding to end the licensing agreement (on very trivial grounds I must say), the external attempts to destabilise our team’s well-being, the rumour mill continuously being fed by irresponsible people (we were going bust and will stop racing by Singapore). Nevertheless, true to our spirit, numerous stairs were climbed, doors went through, lifts taken to the highest levels there were and all in the name of truth and fairness.

What have I learnt? That success breeds uneasiness and at times jealousy. You guys may think I’m crazy but it’s the truth and the truth sometimes hurt. My favourite is this one in the maze of things “they’re not successful, they’re at the back, we can do better than that”. News flash! We went in with set expectations, else even I would not have risked my comfortable GLC job if I didn’t think so. It was a very simple, straightforward and transparent set of objectives; this will be everyone’s favourite bit (well almost) - “KPIs” were there.

Simply put: Best of new teams, 10th Placing in the Championship and a Professional Outfit. Oh and by the way, we did all these in our very first year! Sure we’re at the back but if you look at the history of some of the other teams, some didn’t even have finishes in their first ten races when they started. We raced our hearts out at all 19 races with the odd Q2 popping out and the best finish of 12th in one race. We’ve been consistent throughout with numerous milestones achieved.

Furthermore, in the course of the season, we also created another first when we put Nabil Jeffri into our car for an aero test session, making him the youngest F1 driver and the 3rd Malaysian F1 Driver. He more than held his own in completing the full day program for our team. His participation is a clear indication of our stated goal of developing young talent in motor sports. Fairuz Fauzy plied his trade as our third driver in our team, gaining invaluable experience in an F1 car. In addition, we now have seven Malaysian engineers working in our team in various roles such as aerodynamics, CAD design as well as stress analysis. Each of them play a prominent role in the cars’ performances this year, as well as in the cars’ design for next year. Other positions such as finance and marketing are also filled by Malaysians playing prominent roles – in line with our promise to provide talented Malaysians with opportunities on the global stage in a very competitive environment.

We’ve given Malaysia an F1 team to cheer on, we have delivered on our promises – getting a Malaysian-owned team in the Championship, providing opportunities for talented Malaysians, resurrecting a brand and making the nation proud. We have demonstrated our sincerity, our commitment and our professionalism throughout this season. We are even more determined now to continue on this journey that we have started where we are fully committed to make the world sit up and take even more notice of Malaysia – and what Malaysians can achieve.

For next year, with the new Redbull Racing back-end (gearbox & hydraulics) and the Renault engines, we believe we can propel the team into the midfield of the Championship from the beginning and improve further throughout the season.

One year on and more to come, thus, personally I really think it is most unfair when some parties (mostly misinformed) use the lack of performance as the main reason why we shouldn’t be who we are or where we are. But as I’ve learnt again throughout my very short working life is that, it is the way it is sometimes which is very unfortunate. We tend to prefer bringing people down through exposure of flaws rather than supporting or working together. Such is life sometimes.

Now, we find ourselves in the midst of sorting out unnecessary matters but as more news swirl around what our former partners are about to do or have actually done, it made me step back and think a bit on the challenges that they themselves face on their side. I really can’t imagine how hard it can also be over there especially when they were still aspiring to be a ASEAN automotive player, looking for a partner to help achieve that notion (need for knowledge transfer, technology transfer, new market penetration to name a few), turn around their sports car subsidiary, re-positioning their brand, well literally the whole works.

Old habits die hard so I’ve continued to follow them through the news, friends, etc. and since then, they themselves have had missed opportunities with partners, re-starting with former partners, re-kindling possible relationships with once selected partners, new approaches to product developments, quality, etc. That’s a whole lot for one to handle in one go, so I emphatise and at times sympathise with their predicaments. Furthermore, stories on their push for consolidation of the local automotive industry must also be taking a toll especially on the notion of having to prove one’s worth versus the others in the market who seem to be in front and are already doing very well in the market.

How similar it is to my side of the coin? Very much, because everything has to happen at once and time seems never being on one’s side. Of course the trick to it all is to have a plan and objective but more importantly, people to make them happen. I think they can do the same if they put their minds to it, and not get distracted which unfortunately can occur easily when one becomes complacent and rely too much on outside assistance. In analysing what is happening, I hope they don’t get too distracted with being in F1 because as mentioned earlier they have a lot on their plate already. Also, just as a note from my year of experience in F1, it’s a lot of money to invest in, takes up a lot of time, nothing is for free and if you don’t have a clear objective than best to stay clear.

Anyway, there will be people who will claim or state who am I to give advice to them; except that I actually do feel responsible in one sense as I did play a role in the turn around over there (blood, sweat and tears were shared then). At one point, in my view; although a small chance, if they really want to be part of F1, maybe we could have rekindled the relationship and see if we could work together again. It would have been less of a gamble, two Malaysian entities working together to reach greater heights and best of all ‘free’ (well almost – except for the one year sponsorship which was about 1% of our total budget). In addition, we are guaranteeing progression for next year – we won’t be at the back but we’re realistic enough to also say that we won’t be world champions either, yet! Made sense right?

Truth be told, whilst in discussions, they opted otherwise and all I have to hope now is that no one falls into the trap of complacency especially towards convincing promises made by others. People may sound convincing and promise the world but trust me it’s really not everything. We have done our very best in just our first year (some will discount the “best” parts but I really don’t care at this moment) and we are going to do more next year as it was always planned to be so and our duty is to ensure that we stick to the plan and execute it.

Everyone has seen what we’ve done for the brand – there’s nothing negative about it for sure – and the best part, we were actually free for some parties! The true Malaysian way, no? But don’t worry too much about us, we’ll do fine for next year. It’s understandable as described earlier that they themselves have a full plate already. Nevertheless, F1 can be a costly bet for anyone and I think it's always better to hedge one’s bet as I've also learned that failure is not an option in this game especially in the eyes of the people and the world.

I can only assure one thing though, from my point of view, no party will push us around on what needs to happen to us in the next few weeks, months or years. We are in control of our future and plans are in place to push ourselves further. Heck, we hope to spring a few surprises for sure and will again compete with the best there is next year. Either way, we’ll see anyone and everyone on the track and see who is the team to beat.

Call me if anyone likes to chat further and have a free moment, anytime ...