SK BHATTACHARYYA
Late chairman, Warwick Manufacturing Group, University of Warwick
I knew Ratan Tata by reputation for many years, but first met him when he was assuming the chairmanship of Tata Sons. Back then, Tata was a patchwork of Indian businesses, many run by powerful barons in their 70s or 80s, and transforming the business was going to be a major challenge for Tata’s new leader.
When Ratan arrived for our meeting alone, driving himself in a small car made by a Japanese manufacturer, I knew I was dealing with a man uninterested in superficial signs of authority. As I spoke with him, I realised this personal modesty belied a grand vision: the creation of a competitive global business rooted in the historic Tata values of charity and upright conduct.
As he began his chairmanship, Ratan knew that India and the global business environment were changing fast. Globalisation was unstoppable and Tata’s businesses could no longer survive by doing well in Indian markets.
The Tata business portfolio needed greater geographic diversity and strategic focus. There needed to be a huge transformation in innovation and R&D capacity and greater emphasis on high-growth business opportunities. This meant younger managers were needed on the Tata board and at the top of Tata companies.
SK BHATTACHARYYA
Late chairman, Warwick Manufacturing Group, University of Warwick
It was a daunting task to transform Tata from a giant in the slowly waking Indian market to leading competitor in the new global market. Ratan faced a challenge all the greater because the political and regulatory system, as well as Tata’s own corporate structure, meant every small step forward was a struggle that had to be fought for. Making a reality of his vision of global leadership coupled with strong values has been Ratan’s life’s work.
Looked at in facts and figures, the scale of his achievement is astonishing. The acquisition of global businesses, increased profits, numbers of employees, sales of landmark products, becoming a leader in emerging business sectors — all these are the measure of a successful business, and all support of the argument that Ratan is one of the greats of global business.
To take one example, Ratan’s experience in the automotive sector meant he knew that the Indian car market was going to open up to global competition. While many cars were being made in India under licence, not a single car was being made by India. Being who he is, Ratan wanted to make a car in India, by India.
There’s a belief in the importance of technical innovation and design quality, a refusal to take shortcuts, a focus on integrity, and a belief that what really matters is how your decisions and behaviour will be seen in decades still to come.
Perhaps this is Ratan’s true legacy. In an era where so much seems disposable and in a business climate obsessed with the fast buck and flashy opulence, Ratan stands for the value of creating something enduring, the greater worth of hard-won expertise, and the importance of respecting consumers, employees, shareholders and the wider world.
Ratan’s willingness to debate and preference for consensus over conflict has sometimes been mistaken for weakness by those who oppose his decisions. Some managers are brutal, even cruel, in order to achieve their goals. That isn’t Ratan’s way. Perhaps that’s why he’s never been impressed too much by party politics. He knows when change is essential, but believes that how you achieve your aims is as important as the objectives themselves.