Happy New Year!  Sayonara 2008, and bienvenue, 2009!  Should auld acquaintance be forgot and all of that good stuff.  Tradition holds that with the incoming new year, we should try to stave off old, bad habits and resolve to form new, good ones in their place.  To that end, here are some of my resolutions for 2009:

1.    I  will attend at least one race this year..., checkbook willing.

2.    I will stop secretly wishing for Carl Edwards to miscalculate one of his back-flips and land on his head.




3.    I will say something nice about Brian France and Mike Helton, this year.




4.    I will try not to renege on resolution number 3.

5.    I will not accidentally, on purpose, pour beer down the back of a Dale Jr. fan at Martinsville.




6.    I will stop hawking "Danica Can Kick Kyle Busch's A$$" t-shirts at the Brickyard 400.

7.    I will stop telling cops I am Tony Stewart's cousin, twice-removed, when I get pulled over for speeding violations.




8.    I will, reverently, surpass the speed limit, every time I travel through Level Cross or Randleman, NC.




9.    I will write more positive blog entries concerning the state of affairs in NASCAR, this year.

10.   I will try not to renege on resolution number 9.




Now, keep in mind, New Year's resolutions are made to be broken, but these are ten I think I can live with.  Happy New Year!!!

There has been a lot of clamor, lately, concerning fans' opinions over NASCAR decisions about the future of racing and changes, that may or may not be needed, within the corporate structure that is, NASCAR.  While some folks embrace ideas that are floated to the surface for public examination, others chastise and remand the "thinkers" for "griping" too much and are all too willing to remind them that NASCAR is a huge conglomerate with bigger fish to fry, without having to deal with fan admonition.


All that being said, I decided to examine the practice of promoting ideology versus suffering with the status quo.  Keep in mind that I have lots of education and training in organizational psychology and total quality management, so if I start getting too technical, it's the passion for the subject, not me trying to lord my knowledge or myself over everyone who reads my dribble.

One of the biggest fallacies in the general population is that those folks who make decision don't care about public opinion.  Think about this axiom for second.  If that was actually the case, would we be among the world's leaders in innovation and business, or would we be a third-world nation destined to remain mundane and status quo?  Some of the biggest innovations and inventions have been created in America's garages and basements.

Among inventions and innovations emanating from American garages, basements, and tool sheds are:  bifocals, the cotton gin, the sewing machine, the phonograph, the zipper, air conditioners, the airplane, the windproof lighter (Zippo), the windshield wiper, liquid fueled rockets, sunglasses, radio astronomy, photocopier, the gas chamber, cell phones, the laser, the electric chair, the artificial heart, fiber optics, WD-40, and the personal computer.  So, where would we be without these and more?  Would we all be living like the Amish?



So, what would it be like if some of these ideas had been nixed, or the inventors had listened to others telling them they were living a pipe dream?  Well, if we could, we might ask the seniors executives at Warner Brothers, who originally rejected producing movies with sound (talkies) in 1927.  Thankfully, they go on board later on, so they could remain in business.  And, although all of these companies eventually went on to other glories, IBM, GM, and DuPont originally turned down photocopying technology in 1938.

Oh, and then there is Decca records, which refused to sign the Beatles to a recording contract in 1962.  In 1975 Sony decided not to license its Betamax technology, which allowed Matsushita to dominate the home video market with VHS.  And lets not forget all those companies that we grew up with which are now defunct:  Woolworth's, Rexall, Revco, Big A Autoparts, Montgomery Wards, Service Merchandise, Bugle Boy clothes, Kinney shoes, Thom McAnn, Brooks Pharmacy, Eckerd's, Computer City, Crazy Eddie, McDuff's, The Wiz, TG&Y, Two Guys, Value Mart, Woolco, Heilig Meyers, Levitz, Seamans, Pantry Pride, and Builder's Square.


Now, let's examine the perception that just because NASCAR is a huge conglomerate and that they have been around for so long, that they most assuredly, must know what they're doing.  Organizational cultures have been responsible for some of the worst decisions in business history.  When cultures clash, organizations suffer.  Consider AOL-Time Warner; when the conservative Time Warner execs realized how much money the freewheeling execs from AOL were spending, it didn't take long to drop the "AOL" part of the name.

And, Chrysler execs were none too happy when they were forced to arrive at corporate meeting by mini-van, while Daimler execs showed up in Mercedes sedans and flew first class.  Sometimes it works in reverse, too, as RJ Reynolds execs found out when their hardworking values clashed with those of Nabisco execs.  A bitter feud resulted in the former Nabisco boss firing the RJR execs.  Group-think can drive organizations to making decisions that look good on paper, until the actual dynamics of the organizations come into focus.

Enron, Tyco, Adelphia, and NASA are all examples of group think resulting in poor decisions made at the upper echelons of management.  Enron put many of its employees in the poorhouse, Tyco and Adelphia execs are in jail, and NASA lost two space shuttles and their crews.  When organizations have one or two very influential people guiding the rest of the organization, its very easy to lose whole corporations as they tend to surround themselves with like-minded individuals.  

The experience can be likened to a flight demonstration team following their leader into the ground.  Once the organization gets momentum, it's hard for any one individual to slow it down or stop it.  That's why its good to have a steering committee or an advisory board to help drive important decisions regarding the rest of the organization.

Hopefully, this post has been beneficial in explaining why its so important to keep an open mind when others float ideas for improvement.  Yes, there might be a lot of griping and consternation about the state of affairs of an organization, but when people reflect intuitively and offer up lucid and logical answers, it is imperative that people look, read, and listen with an open mind.  As you can see, some notable corporations and organizations are no longer in existence because culture and group think drove them into oblivion. 



NASCAR is an organization, and at one time a very good one.  In some respects, it still is...but, many think that group think has pervaded NASCAR's cadre of decision makers and that is driving some poor decisions.  Sometimes, the greatest ideas come from an outsider looking in; it wouldn't hurt for NASCAR execs to reflect on some of those ideas from outsiders as a way to improve the current state of affairs.

Petty Enterprises is in distress.  It's an unfortunate sign of the times, but an all too real depiction of who really pays the bills.  No sponsorship, no racing.  Or, at the best, very limited racing for as long as the owner's money holds out.  And, Jeff Hammond is right in his analogy to the New York Yankees quitting baseball.  What would a NASCAR race be like without a Petty-blue car making laps on the track?

                               

But, despite all the things that are happening to the sport, right now, NASCAR and those loyal to the sport can't say that they weren't warned.  Thee have been several people, including a few of us bloggers, who have tried, in vain, to get NASCAR's attention back when they started closing popular tracks and alienating their fan base, about five years ago.



We tried telling NASCAR that they were alienating their fan base and the time might come when they might have to rely on that fan base to help support the sport that we all love so much.  Their answer?  Screw the fans, we only care about sponsors!  Oh, they would throw fans a bone, every now and then, just to keep from garnering bad press, and to promote a more "fan friendly" persona, but one doesn't have to dig too far to find out that NASCAR's true friends only come with deep pockets.



So, fast-forward to 2008, and here we are seeing NASCAR and race teams laying off personnel, selling race cars, parts, and other paraphernalia, in vain efforts to try and remain solvent in an expensive and foundering sport.  Whole teams are collapsing or talking about merging to avoid collapse.  NASCAR has stopped all testing and is considering shortening races, reducing personnel, taking other measures to keep the sport alive for the 2009 season.  But, make no mistake, race fans, this is a sport currently on life support.

                  

Brian France has lifted the sport to new heights, but on what support system?  Well, I think now we are seeing just how fragile the bracings of NASCAR really are.  Driver and Crew Chief salaries are astronomical, the cars and parts cost hundreds of thousands of dollars to piece together, and testing these beasts would pay the tuition for two students to attend Harvard University through Grad school, per team, per year.  Every other red cent is poured back into R&D in the eternal search for speed, speed, and more speed.  So, where is the rainy-day money?  And, trust me, race fans, its just sprinkling, now...the deluge is yet to come!



Those of us old enough to remember tougher financial times back in the 70's and early 80's know that layoffs and pink slips always come in the days around Christmas.  Merry Christmas employees, you're out of a job!  Companies do this to reduce labor costs and raise their bottom line going into the next year.  This practice hasn't happened en masse in a long, long time, but this year has seen much more than has been reported, even to date.  Companies are still readying pink slips to come in the next week, that has yet to be a cover story for CNN, MSNBC, or ABC news.  And that's just the tip of the iceberg; more companies will be filing for bankruptcy in the coming months, including some major players in the corporate blue chip sector.



"So, what does that have to do with NASCAR?", you ask.  Well, if I am a CEO of a company that sponsors a race team in NASCAR, I am going to do what it takes to stay solvent, so that means that my sponsorship is going by the wayside.  Advertising is important, but there are cheaper methods than being plastered on the side of a racecar.  And, when a few sponsors get out, more will see what is happening and the effect will be akin to rats leaving a sinking ship.

                 

Now, having said all of this, I am not predicting the demise of NASCAR.  But, I am predicting that without the aid of somebody smacking Brian France and Mike Helton upside the head, dunking their heads under water, and water-boarding their asses to get their attention and show them that restructuring is a complete necessity, NASCAR is going to become a shadow of its former self, and very quickly.  In fact, they might have to combine the Nationwide and Cup series just to make a complete field.



Petty Enterprise's impending merger or demise should be a clarion call to all factions of NASCAR.  The writing is on the wall; now, lets see if Mr. France and Mr. Helton can read.

The New York Times has stated that when the 2009 season starts in February, there are likely to be more empty seats in the stands, fewer cars on the tracks, blank spots on cars where logos used to flash, and smaller crews in the pits. Even Toyota is cutting its NASCAR budget by 10 to 20 percent.  If Toyota is cutting its budget by this much, what kind of cuts are Ford, GM, and Chrysler making?

 

Ganassi Racing has already cut its Nationwide team for next year, Petty Enterprises has let go much of their staff and driver Bobby Labonte, and Watkins Glen has lost Centurian Boats as its sponsor for the 2009 season.  So, what other craziness is in store for Brian France's brainchild in the off-season?

 

The New York Times asserts that, to avert a collapse of the sport, analysts say NASCAR must push through sweeping changes to its business model, like reducing sponsorship rates, cutting back the number of races and trimming the distances of some of them. For example, a handful of premier races would run the traditional 400 or 500 miles, but the rest would become 200- or 300-mile events.  Some analysts say NASCAR should take cues from the N.F.L. and explore placing sponsor dollars in an official pool, with each team receiving an equal share. They also suggest a salary cap.

 

In hindsight, Mr. France's broadcast deal, which brings in about $500 million a year, may be the main thing that saves NASCAR from ruin.  "We've got to work hard and be willing to sacrifice," says Jeff Burton, the driver. "We're going to definitely struggle next year and the following."  But, just what kind of sacrifices are drivers and teams willing to make?  Drivers are used to being pampered with private jets, huge trucks and haulers that act as mobile garages, and houses on wheels in the form of decked out RV's that easily top out at around $250,000 each. 

 

I have been stating for a while now, that unless NASCAR restructures how they do business, the sport may very well go the way of the chariot races of ancient Rome.  If NASCAR is serious about suspending the notion of extinction, there needs to be many concessions and major restructuring, especially in the current state of the national economy.  How are 3+ million people supposed to afford $92 tickets to attend a race, much less all the other expenses incurred along the way?  The last time I attended a race, I slept in my car and still would up spending about $450 for the whole weekend.  It's obscene how much it costs to attend a race.

 

Some have called for a reduction in the number of teams allowed to attend races, or the number of team members.  Testing has been suspended for next season, which is supposed to save $1 million per car, but this does not address the problem of teams building 20 different cars to address each individual track that they race on.  It's gotten to be beyond ridiculous.  Teams should be reduced to a maximum number of cars that they could have on hand at any one time, in an effort to further reduce costs. 

 

Lets face it, folks, next season is not going to be pretty.  And to bank on Brian France's deal with the networks to save the day are not exactly comforting, especially with recent reports of NBC and some other networks looking at making major cuts and concessions themselves.  NASCAR needs to address a number of issues, if they are to remain a sustainable major sports commodity for the foreseeable future.

 

#10 - "Hey, Jeff!  Win much lately?"

 

#9 - "Isn't Denny at the wrong table?"

 

#8 - "No, Tony, there is no buffet line..."

 

#7 -  "JUUUUUUUUNE - YER!!!"

 

#6 - "Hey, Biffle, what the Hell are you doing up here?"

 

#5 - "Kyle, the kids' table is over there..."

 

#4 - "Now let me get this straight..., you mean Jamie's not g-a-y?"

 

#3 - "Umm, DW, I think you're in my seat..."

 

#2 - "Hey, Carl, bet you can't do a double off the end of the table..."

 

#1 - "All hail, King Brian!"