Cyrus P Mistry took charge of TATA group on December 28, 2012. There are huge excitements and speculations inside and outside the organization. Profit maximization is the motto of a business organization. But it is not applicable to TATA. This makes it different and international brand? A perusal of Tata’s statement endorsed this difference.
Jamsetji N. Tata (Founder, Tata Group, 1868) said “In a free enterprise, the community is not just another stakeholder in business, but is in fact the very purpose of its existence.” J. R. D. Tata stated “The Tata philosophy of management has always been and is today more than ever, that corporate enterprises must be managed not merely in the interests of their owners, but equally in those of their employees, of the customers of their products, of the local community and finally of the country as a whole.”
In 2005, Ratan Tata, dreamed “One hundred years from now, I expect the Tatas to be much bigger than it is now. More importantly, I hope the Group comes to be regarded as being the best in India — best in the manner in which we operate, best in the products we deliver and best in our value systems and ethics. Having said that, I hope that a hundred years from now we will spread our wings far beyond India…”
We are living in boundary less world. Information is fast flowing with internet as carrier which moves with speed of light. Openness is rule of the day. Now we can get the copy of official note sheets under RTI. In such fast and open environment cut throat competition prevails. What are the strengths which help to flourish business? Is it sole motto of profit maximization? Or maximizing highest turn-over at any cost?
Be it social or business sector, real power and confidence come from its values and ethics? Ethics and values are the foundations of the TATA group unlike others. There two (like RBC and WBC) are in the blood of the organization of TATA. If blood quality is good, naturally body will be stout and productive.
An Assocham survey said $100 billion Tata Group is perceived to be India’s best-known global brand within and outside the country. The survey was conducted not only in Delhi, Mumbai, Kolkata and Hyderabad, but also in London, New York and Singapore. "Ratan Tata occupied the well-deserved iconic status whohad taken the group from largely an Indian family-owned business house into a professionally managed global conglomerate," the survey said.
Now Cyrus a civil engineer with MS in management is in limelight of national and global industry sector. He took the charge from a new big height crated by Ratan. Market is buzz with many speculations and excitements. Some among many which appeared in news recently need perusal.
Mathuradas Morarji, an 84-year-old investor who holds shares of most of the Tata Group companies, some for several decades now, says "Cyrus comes from a business family, unlike the Tatas which is a family of industrialists. The challenge for him personally would be to transform from a businessman to an industrialist because he has to look after not just one or two companies but several and from a large number of industries,"
Tata has Operations in more than 80 countries across six continents with exports to 85 countries. Its Turnover profile has 58 per cent of revenues from overseas. Global economic slowdown is immediate challenge for him to sail through it successfully. Nimesh Kampani, chairman, JM Financial, a key challenge before Mistry would be to identify the core sectors in which the group should see itself as among the top three players in the relevant market - domestic or global - and planning a gradual and profitable exit from the other sectors.
The biggest challenge for him would be to turn around the flagship firm Tata Steel, which is burdened with Rs 60,000 crore of debt after it acquired Corus in 2007. Revisiting Nano and unlocking its potential to the fullest would also be a priority. Mistry's urgent attention is to oversee Indian Hotels' revised offer to acquire British hospitality group Orient-Express.
The Historian Plutarch states that "the sun, which, in the Persian Language is called Cyrus". Cyrus is the given name of a number of Persian kings. An industrialist who knows him well, described as intuitive, incisive, driven and humble, with the right leadership traits. However, there are others who believe Cyrus may have to put in some extra efforts as he makes this transition.
No one doubts his capability and calibre to make a mark. Deepak Parekh, chairman, HDFC said “I have seen and observed Cyrus Mistry since he was a boy. Having seen him grow... grow in stature over the years, I am confident that he will be able to take the Tata Group to a higher level, both domestically and internationally," An Assocham survey concludes that about 77 per cent participants said they are confident that Ratan Tata’s successor Cyrus Mistry will be able to steer the group well.
Cyrus is a simple, focused, silent and down to earth business leader. No negative remark has come against him. His acceptance is good. His timing to accession is on his side. An energetic and experienced leadership provides momentum to any entity to send it to a new higher level. At 44, he is full of energy to move the TATA group. He is well experienced by practicing. Both along with leadership traits will enable him to meet the expectations and challenges. In all probability, beyond any doubt he will come out with flying colours.
Among many challenges, the biggest one before him is how to maintain the dreams of Tata’s- ethics and values. Under present circumstances when scams and corruption are rampant, taking the organisation to new milestones with ethics and values is daunting task for him. Tata is comparable to Bill Gates and Warren Buffet in philanthropist activities. Being international player he needs to strengthen it further.
He has to bring some innovative ideas on ground for the benefit of masses. Here he has to act as visionary. ICT, IT and social media the modern toys of public are the Chariots to ride upon. Political management service industry is a big green field. This is a huge service industry to be tapped with. Rural needs can be another pasture/ green field seeking ICT enabled social marketing concept of Philip Kotlar.
Recent social movements by Anna and others have left lessons for public and private both. Corporate under CSR start programs for developing social leaders at different levels- state, district, booth or village. Old activities are not noticeable and effective. These newly developed leaders will purge our polity and facilitate good governance in society. Hence delivery would improve. Cyrus has to weigh this societal action to start without any delay. This new idea will make him a social engineer and a complete man.
Heeer Lal (Views are personal and based on different sources)
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