yrus Mistry discloses the challenges he faced after replacing Ratan Tata
BT Online
New Delhi, Wednesday, September 14, 2016 | 13:09 IST
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Cyrus Mistry discloses the challenges he faced after replacing Ratan Tata
Tata Group Chairman Cyrus Mistry has revealed the challenges he faced after taking over the job of one the biggest and most successful industrialists in India, Ratan Tata.
Mistry reflected on the early days as the chairman of Tata Group and said he understood the significance of his new role in an interview to the company's in-house magazine.
"When I assumed office as the group chairman, I was acutely aware of a few things. I knew I was not leading a single company, but was at the helm of a unique institution with a rich and glorious history," he said.
Mistry was appointed as the chairman of Tata Group on 28 December 2012 . He had to fill the shoes of a man who had helmed the group for 21 years and was credited for transforming the group through bold decisions including large global acquisitions.
"I was very conscious that we had a powerful foundation that had been nurtured over the last fifteen decades, and we now needed to build the capabilities that would allow us to succeed for the next 150 years," Mistry said.
But, it was not just Ratan Tata's retirement, there were many other senior executives in the company who were hanging their boots around the same time.
"For this peerless institution, this was more than a routine change of guard at the leadership level. It was a generational change. Many senior executives who had helped shape the group for decades were retiring around the same time. There was great institutional knowledge with them which I needed to imbibe before they called it a day. Therefore, my initial approach was to adopt a listening mode," he said.
Instead of using his authority as the top boss, Mistry gave more importance to earning the trust of his employees and other stakeholders.
"I also recognised that to successfully lead the group, instead of relying on the position of chairman as the primary basis of my authority, I needed to earn the trust and respect of all our chief executives, the boards of directors and external stakeholders. This meant building enough depth of knowledge about specific domains to ask the right questions, while exposing myself to a variety of views on geopolitics, technology and societal issues. A learning orientation on my part was essential," he said.
Gradually, Mistry developed a strategy that focused on companies that needed more attention and one that put customers at the centre.
"After obtaining a deeper understanding of the group, I focused on identifying areas that needed special attention. Then, several important group-wide initiatives were launched, leveraging the newly formed Group Executive Council (GEC) and other group resources for implementation. On the people side, we initiated interventions to improve engagement and the quality of life. We developed a customer manifesto to enhance customer centricity," he said.
Mistry said that he learnt a lot from watching his predecessor early on.
"During my first year, I had the opportunity to concurrently serve, alongside Mr Tata, on the boards of many of our operating companies. One of the most positive takeaways from these interactions was the ease with which Mr Tata wore two hats. While sitting on the board of the operating company, his first duty was to the company and its board; equally, he represented the promoter company and its interests," he said