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A History of Organizational Change: The Case of Fédération Internationale de L'automobile (FIA), 1946-2020 1st Ed. Edition Hans Erik Næss
A History of Organizational Change: The Case of Fédération Internationale de L'automobile (FIA), 1946-2020 1st Ed. Edition Hans Erik Næss
A History of Organizational Change: The Case of Fédération Internationale de L'automobile (FIA), 1946-2020 1st Ed. Edition Hans Erik Næss
A History of
Organizational Change
The case of Fédération
Internationale de
l’Automobile (FIA),
1946–2020
A History of Organizational Change
“Jean Todt, President of FIA, the world governing body of motorsport has said
that much as many love the sport a worldwide health pandemic reminds us that “it
is not essential for society”, that “a new deal” is needed for the future. This study,
combining historical sociology with organizational analysis and theories of institu-
tional logics, explains how the FIA has developed since its formation in 1904 as a
special hybrid entity characterised by what Hans Erik Næss calls “organisational
emulsion”, a previously unidentified model or process of organisational change. If
you want to understand how SGBs (Sport Governing Bodies) have survived, some
with an adaptive potential promising positive change, read this case study.”
—Alan Tomlinson, Professor of Leisure Studies,
University of Brighton UK
Hans Erik Næss
A History
of Organizational
Change
The case of Fédération Internationale de
l’Automobile (FIA), 1946–2020
Hans Erik Næss
Oslo, Norway
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer
Nature Switzerland AG 2020
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Acknowledgements
Thanks to
Olivier Fisch, Jean Todt, Pierre de Coninck, Michel Mathys, Børre
Skiaker, and Delphine Challande.
v
Contents
7 On Method277
Index289
vii
Abbreviations
ix
List of Figures
xi
List of Tables
xiii
CHAPTER 1
Vignette 1
All the FIA seniors were there, at Formula One’s 1000th race in Shanghai,
China, or the ‘the FORMULA 1 HEINEKEN CHINESE GRAND PRIX
2019’ as it was officially known. Although it is debatable whether it actu-
ally was the thousandth race since the inauguration of the world champi-
onship in 1950, the event was definitively a milestone, according to Ross
Brawn. An F1 veteran since the late 1980s with many roles on his curricu-
lum vitae (CV), and currently sporting director of the entire champion-
ship, he reflected upon the achievement like this:
Similarly, FIA president Jean Todt commented that the race on the track
which cost EUR 370 million to build, and that included teams like
Mercedes and Ferrari, each of which has an annual budget of around
USD 400 million,2 symbolised how ‘F1 is like a thriller (…) I have been
discussing it with friends recently, with Luc Besson and Michael Mann,
the directors, and I said: “You know, if you want to make a real movie
about F1 there is no point, because each race is a thriller.”’3
Vignette 2
Four hundred and seventy delegates from all around the world gathered in
Sun City, South Africa, for the 2019 FIA Conference. According to the
FIA’s newsletters, it was the first time in the institution’s history, that the
FIA had brought together the Sport and Mobility Conferences, the Region
I Spring Meeting and the FIA Sport Regional Congress Africa. As a result,
a large group of membership clubs and stakeholders were gathered under
the same roof to ‘discuss latest trends, build synergies and unite FIA mem-
ber organisations while celebrating the achievements of our Members
around the world’. Among the numerous sessions and plenaries, one of
them was called ‘Developing Nations’, which according to the conference
newsletter, ‘provided the ideal platform for the FIA to announce an exciting
new innovation: an international, multi-disciplinary FIA Motorsport
Games’. In essence, the Games brought together drivers from five racing
disciplines into a single event in which drivers—in contrast to the historically
transnational norm of motorsport—competed under their national flag.4
Despite being promoted by SRO Motorsports Group (run by motors-
port PR guru Stéphane Ratel, who we will return to in Chap. 4), the
participation of 49 countries, great hype and the inclusion of the Gran
Turismo PlayStation 4 game as one of the disciplines (!) it received little
attention on, for example, social media. On the Facebook account of
@fiamotorsportgames, on 26 February 2020 only 15 people had reviewed
the 2019 event, albeit those reviews were positive.5 At the opposite
extreme, the idea of motorsport Olympics—although it had been sug-
gested at one FIA General Assembly in the early 1950s, that motorsports
should become part of the ‘real’ Olympics—was applauded by several
national motorsport clubs (such as Russia and Italy) and seen as showing
‘potential’ according to Motorsport Magazine, arguably one of the most
influential publications on motoring history and journalism.6 Ratel, more-
over, who got his inspiration from the Beijing Olympics, plans to make
this a global phenomenon by taking it ‘around the world’.7
1 INTRODUCTION: A WORLD IN MOTION 3
Vignette 3
In connection with Formula E races, which are part of a marketing-savvy
championship for all-electric cars and given full world championship status
by the FIA from 2020 onwards (see Chap. 6), the FIA has introduced
Smart Cities Forum. Since 2017, its aim has been to encourage stakehold-
ers to address urban issues and discuss the future of modern mobility sys-
tems. In April 2019, this forum coincided with the Rome E Prix, leading
Jean Todt to write in the programme’s foreword: ‘Along with experts
from the German Marshall Fund, the International Transport Forum, and
Airbus, the Mayors of Rome and Brussels had a dedicated session, sharing
their vision on how to make the mobility transition in cities faster and
more inclusive.’ Alejandro Agag, founder and chief executive officer
(CEO) of Formula E, said:
I am proud that together with the governing body and our partners we are
celebrating those who are creating new technologies in the fight against
climate change. As the automotive industry is moving toward electrification,
Formula E is a platform that can accelerate and promote the change to sus-
tainable mobility.8
* * *
4 H. E. NÆSS
The three vignettes above illustrate some of the diversity and scope of
today’s FIA, which holds, in its own words, ‘the exclusive right to take all
decisions concerning the organisation, direction and management of
International Motor Sport’ (FIA Activity Report, 2016, p. 1). Located in
three cities—Geneva, Valleiry, and Paris (its headquarters)—it consists in
2020 of 240 member clubs from 144 countries. Those represent in total
about 80 million members, and host together, with the FIA, a network of
stakeholders and engage in activities that the organisation’s first members
would probably have found unimaginable. More than half a century ago,
when everybody was picking up the pieces after World War II, the situa-
tion was quite different. By then, the Association Internationale des
Automobile Clubs Reconnus (AIACR) had already been active for some
time. At a meeting at Bad Homburg in Germany on 20 June 1904, hosted
by Duke Victor of Ratibor, it was proposed to form ‘an international asso-
ciation of automobile clubs’ (Hutton, 2004, p. 23). It was a private asso-
ciation whose statutes emphasised that member clubs should deal with ‘all
questions related to motoring’ (Hutton, 2004, p. 32), and in which a
group of idealistic and wealthy people came together through their fasci-
nation for cars, road travel, and motorsports. Unpaid and in the service of
their national clubs, these individuals hailed from upper-class backgrounds
across Europe and the US. Politically and religiously neutral, not profit-
oriented and with membership responsibilities enshrined in its statutes, it
began to promote a form of transport which came to transform societies
more than any other in the coming century.
As car use (and not only car production) in France grew more than
tenfold between 1921 to 1939, from 1640 to 18,080 vehicle-kilometres a
year (Mom, 2015, p. 289), the infrastructure needed to promote the car
industry developed, albeit a bit later on. Historian Göran Sjöblom (2014)
claims that ‘the choice of a motorised society was made in the interwar
period, rather than after the Second World War’. In Europe, Sjöblom
argues, political facilitation was key to understanding why the car outcom-
peted the railway, most notably in the form of eschewed taxation that
benefited the former. When the German Allgemeiner Deutscher
Automobil-Club eV (ADAC—which today is an FIA member on mobility
issues), worried about the stagnation of the car industry in the late 1920s,
it ‘radicalized into a fighting club’ (Mom, 2015, p. 291). According to
Gijs Mom, it started ‘an aggressive campaign (Abwehrkampf, a defensive
struggle) against further tax increases, demanding attention to the “cata-
strophic condition of the car industry”’. Two years later, Adolf Hitler
started his automotive revolution as a tool for gaining popular support by
envisioning the Autobahn and improved conditions for the car industry
(Mom, 2015, p. 291; see also Vahrenkamp, 2010).
Better cars and roads, along with a democratisation of ownership, made
travel by car a life-enhancing experience. Although actual ownership was
small, focus on ‘conspicuous consumption’ as a way to secure economic
growth on both sides of the Atlantic, combined with a flourishing adver-
tising industry and creative instalment plans, made the car a dream object.
Two scholars argue that the political and technological push for the car-
centred society enabled drivers ‘to develop their own timetabling of social
life’ (Dennis & Urry, 2009, p. 28). According to John Urry, this develop-
ment resulted in an extremely positive view of automobility:
Motor touring was thought of as ‘a voyage through the life and history of
the land’. There was an increasing emphasis upon slower means of finding
such pleasures. To tour, to stop, to drive slowly, to take the longer route, to
emphasise process rather than destination, all became part of the performed
art of motor touring as ownership of cars became far more widespread.
(Urry, 2000, p. 61)
The AIACR was well aware of this, and its creation of a carnet de pas-
sage en douen in 1913 would prove to be a masterstroke in terms of easing
international travel. Previously, crossing national borders with a car relied
on a triptyque. This was a document issued by European touring and
8 H. E. NÆSS
automobile clubs, which ‘basically guaranteed that the vehicle for which it
was issued would not be imported permanently, but re-exported within a
certain lapse of time. The time limit for re-exportation gradually extended
to one year. If the vehicle did not return in time, the clubs would cover the
costs’ (Schipper, 2008, p. 60). A carnet, however, was valid throughout
Europe, enabling the passage of multiple borders in a single trip through,
moreover, a Europe well furnished with national initiatives to encouraging
motoring. One example of the latter is the Austrian Grossglockner High
Alpine Road, opened in 1936, which in 2018 entered the United Nations
Educational, Scientific, and Cultural Organization’s (UNESCO’s) candi-
date list of world heritage sites. Prior to its opening, extensive comparative
studies were made by engineers and visual developers in order to construct
what would become the country’s contribution to the World’s Fair in
1935 (and 1937!). Its rapidly growing popularity among car manufactur-
ers, tourists, and explorers paved the way for the terms on which UNESCO
later justified its inclusion—it has ‘outstanding universal value’ because its
construction ‘displays high scenic qualities and represents the newly
acquired and increasing vehicular mobility of the 1920s and ’30s’.12
Finally, the media saw the international racing competitions and tour-
ing routes as an opportunity to incorporate at least three levels of com-
mentary at the same time: the current state of Europe (notable in the way
they portrayed foreigners), the spectacle of the race (glitz, glamour, and
drama), and industrial progress (these cars were spearheading societal
transformations). According to automotive historian James Flink, after the
Paris Exposition of 1899, ‘virtually no development of importance in
automotive technology went unreported in one or another of the engi-
neering journals, bicycle periodicals, automobile trade journals, newspa-
pers, and popular magazines of the day’ (Flink, 1988, pp. 12–13). Around
1900, for example, there were some 25 specialised automobile periodicals
published in France (Flink, 1988, p. 29). Two pioneers in this respect
were co-founder of the ACF, Paul Meyan (a journalist who worked on
French dailies Le Matin and Le Figaro) and the American newspaper
mogul Gordon Bennett, whose contribution was manifold. Not only did
Bennett, as an émigré to France create a sports division in his news outlets,
focusing on the topics above, he also became the entrepreneur behind the
AIACR’s first racing series by negotiating with ACF the Gordon Bennett
Cup that ran from 1900 to 1905. In relation to these events, he empha-
sised the benefits of sponsorship as well as heralding the cosmopolitan
dimension of motorsports (Hare & Dauncey, 2008). Besides ACF and
1 INTRODUCTION: A WORLD IN MOTION 9
and technical criteria for participation were agreed upon and a hierarchy of
races in terms of where they were located began to take shape (Borzakian
& Ferez, 2010). Naturally, the AIACR’s key members and automotive
countries were most eager to be the hosts. However, because of the grow-
ing popularity of motorsport, the awarding of races was not unproblem-
atic, and the CSI tried to counter the dominance of Western Europe. At
the same time, internal disagreements made it necessary to rely on the
collaboration of other actors (Borzakian & Ferez, 2010). In other words,
motorsport championships were not merely competitions following a
strict set of rules, they were channels for industrial and political forces in
interwar Europe, and the CSI was becoming their key fixer. Then came
World War II.
At this point the FIA’s predecessor, the AIACR, was already in flux.
First, the founding countries of the organisation were no longer domi-
nant. Although the aristocratic hierarchy which enabled some countries to
preserve a certain management of automobile issues was not really chal-
lenged, it ceased to be taken for granted as the growing inflow of new
member countries altered the dynamics of the organisation. Second, the
structure of the soon-to-be FIA was about to become much more com-
plex, with debates on commissions, alliances, and collaboration with exter-
nal partners. Third, the association’s statutes, and the interpretation of
them in a world that had barely recovered from the wounds of war, would
soon become a matter of decade-long debates as the FIA gradually got
entangled in cases that challenged their reason for being. The questions
this book aims to explore are what created these changes, where did they
take the organisation, and how did the FIA develop as an organisation in
terms of structural transformation and stakeholder relations?
These developments were not unique to the FIA. Its choice as a case to
analyse organisational change in sport is motivated by the consideration
that, compared with other sport governing bodies (SGBs), it is rarely
explored. Alongside Fédération Internationale de Football Association
(FIFA) and the IOC, the FIA is in many circles just as influential as gov-
ernments and large corporations. By establishing itself as a legitimate
source of governance, through membership procedures and voting proto-
cols, the AIACR and the CSI manifested already in the 1920s a way of
managing world motorsports similar to those on the verge of global
expansion in football or the Olympics. Quickly realising the necessity of
collaboration with stakeholders outside the world of motorsport, the CSI
would become a key driver in the FIA’s expansion and governing
1 INTRODUCTION: A WORLD IN MOTION 11
Theoretical Framework
The organisational development of the FIA is examined in this book using
a multi-step framework. The first step is to approach the development of
the FIA through historical sociology. Theda Skocpol (1984) argues that
historical sociology has four characteristics: first, it asks questions about
social structures and processes understood to be concretely situated in
time and space. Second, it addresses processes over time and takes tempo-
ral sequences seriously in accounting for outcomes. Third, these analyses
take account of the interplay of meaningful actions and structural con-
texts, and finally, it highlights the particular and varying features of specific
kinds of social structures and patterns of change (Skocpol, 1984, p. 1).
To analyse these processes, and the relation between structure and
agency, we turn to the second step: how organisational practices and struc-
tures are often either reflections of, or responses to, rules, beliefs, and
conventions built into the wider society (Powell & Colyvas, 2007, p. 975).
1 INTRODUCTION: A WORLD IN MOTION 13
and institutional logics are expressed ‘in terms of the identity, discourse,
and normative framing of its members or stakeholders’ (Skelcher & Smith,
2015, p. 439). Fourth, rather than privileging a certain type of explana-
tion, an institutional logics perspective recognises that institutions develop
and change as a result of the interplay between both material and cultural
explanations (Thornton & Ocasio, 2008, p. 106). There is therefore an
obvious potential for power play as institutional logics ‘shape and create
the rules of the game, the means-ends relationships by which power and
status are gained, maintained, and lost in organizations’ (Thornton &
Ocasio, 2008, p. 112). Finally, the theory emphasises historical contin-
gency—the notion that the core logic is subject to a number of prior
events, circumstances, and choices that are interconnected.
Because of this interplay between parties in operationalising institu-
tional logics, it is possible to replace rational choice behaviour affiliated
with new institutionalism with a refined version of Giddens’ theory of
structuration (Giddens, 1986), as ‘decisions and outcomes are a result of
the interplay between individual agency and institutional structure’
(Thornton & Ocasio, 2008, p. 103). To start an examination of the FIA
based on this framework, the overarching logic is that found in non-profit
organisations. From the beginning, the FIA, like other SGBs, was a non-
commercial, non-political, and autonomous organisation in an institu-
tional space free of transparency claims or business ethics. The mission of
all of them was to create and organise a sporting space freed from political
and religious contention. Much of the reason for this position can be
traced back to the founder of the Olympic Movement, Baron Pierre de
Coubertin, who during World War I, fled to Switzerland because of the
country’s neutral status created by the Treaty of Paris in 1815. Witnessing
a Europe marred by wars, colonial aspirations, and power struggles, de
Coubertin came to idealise the Swiss way of life and saw its neutrality
among aggressive states as a template to ‘democratise and simplify the
machinery of the sporting life’ (Tomlinson, 2005, pp. 83–84). Above all,
members of the IOC should be independent of governments and repre-
sent the Olympic Movement in their country, not the other way around,
and should also be financially self-sufficient. As a result, according to
J-L. Chappelet, ‘keeping sport free from political interference and scrutiny
has been the traditional way for sport organizations to ensure that they
can justify autonomy’ (Chappelet, 2016, p. 20).
In order to do so, SGBs have ‘portrayed themselves generally as “Great
Universals”, analogous to the Roman Catholic Church, representing
1 INTRODUCTION: A WORLD IN MOTION 15
values which pertain to all mankind, which are higher and more general
than the values represented by other organizations, particularly govern-
ments’ (Allison & Tomlinson, 2017, p. ii). There is also a more practical
reason: the Swiss Verein system, its special law on associations, enables any
organisation to register for ‘association’ status and thus lower the require-
ment on them for transparency and disclosure, as well as enabling them to
benefit from liberal tax regulations (Mrkonjic, 2013, pp. 128–132).
Resting on pillars like neutrality and self-regulation, SGBs therefore
thrived on a logic built on their unique genre as organisation. Such views
have been given legal validation throughout the twentieth century by the
European Union and protected by agencies like the European Non-
Governmental Sporting Organisations (ENGSO), which works to pre-
serve the SGBs’ historically conjured privileges when it comes to resisting
external audits and financial regulation. When the SGBs were under pres-
sure from the European Commission, the Organisation for Economic
Co-operation and Development (OECD), and the UN in the 1990s and
2000s for cases of corruption, malpractice, and bending the European
Union’s (EU’s) competition laws, in the latter of which, the FIA was also
implicated, crucial voices came to the rescue.
In 2000, Mario Monti, whom we will meet in later chapters, became
the new European Commissioner for Competition Policy and said in a
speech at a Commission-organised conference on sport that it should ‘take
account of the special characteristics of sport’ (Monti, 2000). In other
words: not all laws relating to businesses or other forms of enterprise were
applicable to sporting bodies. Article 7 of the Nice Declaration of 2000,
furthermore, states that the EU:
stresses its support for the independence of sports organisations and their
right to organise themselves through appropriate associative structures. It
recognises that, with due regard for national and community legislation and
on the basis of a democratic and transparent method of operation, it is the
task of sporting organisations to organise and promote their particular sports
in the way which they think best reflects their objectives. (italics added)
detail in the White Paper on Sport and the accompanying Staff Working
Document, is now recognised by Article 165 TFEU (…) The concept of the
specific nature of sport is taken into account when assessing whether sport-
ing rules comply with the requirements of EU law (fundamental rights, free
movement, prohibition of discrimination, competition, etc.).13
Language: Finnish
Kirj.
Eliza Orzeszko
Suomennos
Oi! hän ei totta tosiaan olisi toivonut, että niin olisi käynyt, mutta ei
auttanut. Halvinkin hame vaati rahaa, ja hänen täytyi kovasti
kamppailla, jotta isän palkka vaan kaikkeen riittäisi. Tähän saakka ei
toki mitään ollut puuttunut, joskin isä sai kieltäymyksiä kestää, sillä
heikko kun terveys oli, olisi ravitsevampi ruoka ollut tarpeellinen,
varsinkin hedelmät…
Ensin hän kulki pää alas painuneena, mutta sitte kohosi katse ja
ihaili puiston puita. Ne seisoivat liikkumattomina hiljaisessa ilmassa,
valossa syysauringon, jonka kultaiset säteet siellä täällä murtautuivat
läpi kellastuneiden tai punettuneiden lehtien. Joskus kahisi kuihtunut
lehti kävelevän jalkojen alla, joka yhä hiljensi askeleitaan, antaen
katseensa liukua puiden latvoista, jotka punakeltaisina hohtivat,
pitkin paksuja runkoja, vihreitten köynnösten kietomia.
Hän teki sen johtopäätöksen, että tämä puisto oli viehättävä, joskin
vain varsin pieni, pikkukaupungin puisto. Mutta ehkäpä se oli
viehättävä juuri siksi, että täällä vallitsi suurkaupungissa mahdoton
hiljaisuus.
Tosin nuo eivät olleet varsin viisaita unelmia, mutta täällä, tässä
ympäristössä, ne vastustamattomat mielikuvitukset kohosivat,
jättäen joksikin aikaa kaihomieltä sydämen sisimpään. Ja mitä sitte
on tässä maailmassa viisasta?
— Me siellä asumme.
— Viisitoista vuotta.
He vaikenivat. Uudelleen hämmennyksissään painoi tyttö päänsä
työhön ja alkoi taas ommella; mies nojasi aitaa vastaan, häntä
katsellen, ollenkaan yrittämättä lähteä. Juuri tuo katseleminen pani
tytön hämilleen.
— Aivan niin.
Mutta näytti siltä kuin lukija samalla olisi jotakin miettinyt, sillä
yht'äkkiä hän sulki kirjan ja kumartaen lausui:
— Tietysti. Kun on niin rikas, tottakai voi tehdä mitä ikinä tahtoo.
Hän nauroi.