English Test
Ratan Tata
The old order changeth
In many ways, the successors task will be easier than Ratans. It begins with the selection process itself. When Ratan took over from JRD, it was a succession fraught with intrigue, suspense and bad blood.Resentment from established camps within the group at what was seen as an arbitrary decision was only compounded by Ratans own admission of surprise at the announcement. The ongoing selection process may be equally opaque at least, at present but there is some logic and purpose behind it, which should make the panels decision easier to accept.The new chairman is also not likely to be battling cliques and fiefdoms within the group his predecessor has already taken care of that. Instead of the corporate commonwealth that Ratan inherited, the Tata Group now operates more or less as a cohesive unit, which will work to the successors advantage.Besides, there is now frequent churn at the board level as senior members attain retirement age most Tata Sons board members are nearing 75, when non executive directors have to retire. The heads of the three biggest companies in the group also retired last year theres fresh blood at the top at Tata Motors, Tata Steel and Tata Consultancy Services.Also, when Ratan took over, the Tata family had neither financial nor managerial control over many group companies. Indeed, at one point in the 1980s, the Birlas owned more stock in Tisco than the Tatas (through Tata Sons) did. That vulnerability to outside interference is now greatly reduced Tata Sons holding in most group companies is now around 26%, sometimes more.Clearly, the old order has changed. But some things will remain constant Tata stepped into the shoes of a giant in 1991. His successor will do likewise.