Leadership Takeaways from Ratan Tata

Jacob Peenikaparambil Jacob Peenikaparambil
21 Oct 2024

Following the demise of Ratan Naval Tata, Chairman Emeritus of Tata Sons, on October 9, 2024, numerous tributes appeared in the media, highlighting his "immeasurable contributions" to the business world and to India. These tributes, along with interviews with those who knew Ratan Tata personally, emphasised his unique leadership qualities. Tata led the Tata Group, one of India's largest conglomerates, from 1991 to 2012, transforming it into a global powerhouse. As a global leader, he influenced many others and left a lasting legacy.

A notable tribute from the Tata Steel family on October 13 summarised Tata's leadership qualities and legacy: "His legacy of innovation, integrity, and philanthropy will forever be a beacon for us. Mr Tata's commitment to giving back to the community and his compassionate leadership have left an indelible mark on the fabric of our organisation." Similarly, Prime Minister Narendra Modi echoed these sentiments, tweeting after Tata's demise: "A visionary business leader, a compassionate soul, and an extraordinary human being."

Although Ratan Tata was primarily a business leader, many of his leadership traits are relevant to anyone aspiring to lead in various fields such as politics, professions, NGOs, or religion.

 

Visionary Leadership

Ratan Tata was foremost a visionary leader. Former Indian President Dr APJ Abdul Kalam's famous quotes on vision—"Dreaming small is a crime" and "A dream is not something you see in your sleep; it is something that keeps you awake"—aptly describe Tata's leadership style. Unlike ambitious leaders, visionary leaders pursue broad, inclusive dreams that extend beyond personal gain. Tata's vision was aligned with the founders of the Tata Group, aiming to create wealth for the well-being of people. In fact, 60-80% of Tata Group's profits are dedicated to philanthropy. His broad vision is reflected in his quote: "One day, you will realise that material things mean nothing. All that matters is the well-being of the people you love."

Tata's global vision led to the acquisition of several iconic international brands, including Tetley (2000), Daewoo Motors' commercial vehicle arm (2004), Corus (2007), and Jaguar Land Rover (2008). While not all acquisitions were immediately successful, they established Tata as a global brand. Under his leadership, the Tata Group expanded its presence to over 100 countries.

One project dear to Tata's heart was the Nano car, aimed at making car ownership accessible to ordinary people. In 2009, he launched the Tata Nano, promising to meet the launch date and the 1,00,000-rupee ($2,000) price tag. Although the Nano was ultimately discontinued, it reflected the inclusiveness of Tata's vision. Long after the launch of Nano in March 2009, Tata took to Instagram to share what motivated him to make such a car. "What really motivated me, and sparked a desire to produce such a vehicle, was constantly seeing Indian families on scooters, may be the child sandwiched between the mother and father, riding often on slippery roads," he wrote.

 

Integrity and Ethics

Another hallmark of Ratan Tata's leadership was his unwavering commitment to integrity and ethical values. He famously declared, "Power and wealth are not two of my stakes." During the 1990s, while launching Tata Motors' passenger car business, Tata refused to pay bribes despite facing significant delays and challenges.

Tata was committed to the principles of his predecessor, JRD Tata, who believed that corporations should be managed not only for the benefit of their owners but also for employees, consumers, local communities, and the nation. The Tata Code of Conduct (2015) reflects this commitment, emphasising professionalism, honesty, integrity, and respect for human rights.

Ratan Tata's commitment to ethics and values is reflected in one of his quotes: "I admire people who are very successful. But if that success has been achieved through too much ruthlessness, then I admire that person less."

 

Philanthropy

Philanthropy was another defining feature of Ratan Tata's leadership. He expanded the Tata Group's philanthropic efforts with education, healthcare, and rural development initiatives. For example, Tata Consultancy Services (TCS) worked with school students in Southeast Asia to enhance digital literacy, while the JN Tata Endowment provided scholarships for Indian students pursuing higher education.

In healthcare, Tata focused on cancer care, expanding the Tata Memorial Hospital in Mumbai and establishing cancer hospitals in Varanasi, Kolkata, and Assam. According to Dr Azad Moopen, Tata's approach to cancer care was holistic, addressing not only physical treatment but also emotional and psychological support.

Tata also extended his philanthropic efforts to rural development through the Transforming Rural India Initiative (TRI), which collaborated with governments, NGOs, and civil society groups to combat poverty.

According to Hurun Rich List 2024, India has 334 billionaires, but Ratan Tata was not one among them. He did not create wealth for himself and his family but generously contributed to the well-being of people, especially the needy. He followed Mahatma Gandhi's credo: "When you make a decision, think about how it is beneficial to the poorest person in the country." Before India initiated the CSR policy (Corporate Social Responsibility), Tatas implemented it, and Ratan Tata expanded the scope of CSR.

 

Compassion and Humility

Compassion was another key characteristic of Ratan Tata's leadership. Despite his towering success, Tata was admired for his kindness. After the 2008 terrorist attack on the Taj Mahal Palace Hotel in Mumbai, Tata personally ensured that the families of deceased employees were cared for and established the Taj Public Service Welfare Trust to provide ongoing support for those affected by tragedies.

Tata's compassion extended to animals as well, particularly stray dogs. When the Bombay House was renovated in 2018, he included a kennel for stray dogs, and in 2023, he opened India's first small animal hospital in Mumbai.

Humility was also a hallmark of Ratan Tata's leadership. He treated everyone, from lift operators to dignitaries, with equal respect. Colleagues recalled how he would carry his own luggage at airports and drive himself without a chauffeur.

Saumya Roy, in an article in The Indian Express on October 11, narrated the following incident as an example of Ratan Tata's humility. A greying, slightly bent man asked for a table for two at the Sea Lounge, the iconic coffee shop at the Taj Hotels' flagship hotel in Mumbai, a few years ago. The restaurant was buzzing with customers who sat by the windows to watch the sun melt into the Arabian Sea outside. There were no free tables, could he give his name for the waitlist? The young hostess asked. "Ratan Tata," the man put his name down and disappeared into the hotel's corridors before hotel staff could come looking to find the chairman emeritus of the Tata Group, which also owns Taj Hotels.

 

Teamwork, Innovation, and Adaptability

Ratan Tata believed in building strong teams and surrounding himself with people smarter than himself. He once said, "If you want to walk fast, walk alone. But if you want to walk far, walk together." In his tribute to Ratan Tata, NK Singh wrote, "Delegation of authority and decision-making to senior management does not come naturally in the ethos of several cultures, much less our own. That was where Ratan left his mark. As he once said, leadership is not about being in charge, it is about taking care of those in your charge" (NK Singh: The Self-effacing Visionary, The Indian Express, October 11, 2024).

Organisations ready to adapt and innovate in response to the changes in their surroundings can survive and thrive in a highly competitive business environment. Under the leadership of Ratan Tata, the Tata group of companies embraced modernisation and technological advancements. He encouraged younger leaders to take on key roles, fostering a culture of innovation within the companies. That is why the group's annual revenue, which was $4 billion when Ratan Tata took charge in 1991, rose to $ 100 billion by 2012 when Tata retired. Today, the group's annual revenue is $ 165 billion. Although not a celebrated orator, Tata inspired others through his humility, authenticity, and wisdom.

 

A Leadership Example for Today

In a world where many leaders are arrogant and divisive, Ratan Tata's leadership serves as a shining example of visionary thinking, compassion, humility, and dedication to the well-being of others. His legacy offers valuable lessons for leaders across all fields.

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