RATAN TATA - Inspiration to future leaders

A business tycoon, a noteworthy industrialist and a philanthropist, Ratan Tata played a prominent role in making TATA a global brand where people place their trust upon. Born on 28th December 1937, Ratan Naval Tata honored with highest civilian awards from countries like Australia and Britain as well as Padma Bhushan (2000) and Padma Vibhushan (2008).

The leadership qualities of Ratan Tata are widely recognized across the globe. Counted amongst the most influential and inspirational leaders. Some of the leadership lessons from Ratan Tata are as mentioned below:

Authenticity: Lead with example

“Fifteen days after I became the chairman, we had a huge union eruption in Tata Motors," Ratan Tata said in the video, shared in 2015, came up again as it was posted by Columbia Business School. There was an outsider, a gangster, who decided there was a considerable amount of wealth in union and wanted to take over control of that. He had about 200 followers who were disruptive, violent, and intimidating followers and the rest of the 4,000 people in that plant were uninterested. ??

Even after getting a lot of advice to do something that could please the gangster, Ratan Tata chose the other way round and decided to confront him. The gangster, in order to assert more control, called for a strike. Ratan Tata then personally stayed at the plant for several days to persuade staff to continue their responsibilities and production to resume. Tata's perseverance was key to his success in this situation. He refused to give in to the gangster's threats, and he continued to stand up for what he believed in. He also showed great courage by staying at the plant and encouraging the workers to resume their duties.

?Learning: Continuous learning helps you to grow

Chairman of TATA group, RATAN TATA joined TATA steel in 1962 and worked at factory floor for nearly 8 years. He also got offer from IBM, but the visionary leader chooses to work with TATA Steel as a normal employee. As quoted by him in an interview “those 8 years of training and learning were his best life decision”.

As a industry leader of India, Ratan Tat has always supported continuous learning and believes listening and learning to be the keys to success. In one of his speeches he mentioned that “Just because you got a degree doesn’t mean that you should stop learning. If you want to be successful in life you should never stop learning.”

Resilience: Setbacks are Just an opportunity for doing better in life.

When Ratan Tata made the first Indica car, it didn’t work well, and he had to face losses. He unwillingly had to accept the advice of his company shareholder and experts and went to America to sell his car division to FORD. Getting insulted by the owner of FORD company, Bill Ford said “We will be doing great favour on you by buying this company.”

Refusing the deal, Ratan Tata came back to INDIA and started on TATA Motors and made it a huge success. Nine years later FORD company wants to sell their two-loss making iconic brands Jaguar and Land Rover. Ratan Tata decides to buy those brands and Bill Ford said to Ratan Tata, “You are doing a great favour on us by buying the car brands”.

Relation-oriented: Trust and Commitment.

In 2016 Ratan Tata removed Cyrus Mistry from the chairman position, one of the major reason behind Ratan Tata removing Cyrus Mistry was majorly because of the values and commitment of the Tata group.

When the Japanese company NTT Docomo arrived in the Indian market in 2009, they bought 26% stakes from Tata group with the promise that they can leave the alliance whenever they want, and they will be refunded as per the current market value of that time. Due to some problems Tata teleservices couldn’t function properly, as a result of which, Docomo decided to leave.

During this scenario Cyrus Mistry was the chairman, and using RBI guidelines against Docomo, he not only refused to give the money back but also started legal cases against Docomo. For Ratan Tata this business deal was unacceptable, as Docomo felt disappointed because they trusted Tata company, and this made him remove Cyrus Mistry from the chairman position of the Tata group.

Ethics and Integrity

Tata’s towering reputation as a?business luminary?owes much to his unwavering commitment to integrity and ethical values. Under his leadership, the Tata Group has been a shining beacon of transparency, fairness, and ethical conduct, which has been instrumental in building trust with stakeholders. This commitment is not mere rhetoric; it’s exemplified by concrete actions. For instance, during the 2008 financial crisis, Tata Motors honored its contractual commitments, repaying a government loan ahead of schedule, setting a sterling example of corporate responsibility. Moreover, Tata’s involvement in philanthropic ventures, like the?Tata Trusts, showcases his dedication to social welfare. His ethical leadership isn’t just admirable — it’s a blueprint for fostering trust and sustainability in the business world.

Long term Focus: Profit for greater goods

Ratan Tata’s unwavering commitment to long-term sustainability and growth stands as a hallmark of his exceptional leadership. In a business landscape often dominated by short-term gains, Tata defied convention by prioritizing investments and decisions that would sow the seeds of lasting prosperity.

A prime example of this farsightedness is the Nano project, which aimed to provide affordable transportation to millions of Indians. While it faced initial setbacks, Tata’s determination to create a safe and economical car prevailed, reflecting his dedication to the greater good. Moreover, his patient approach to acquisitions, such as the purchase of Jaguar Land Rover and Corus, showcased a profound understanding of the enduring value they could bring to the Tata Group.

This commitment to the long game has cemented Tata’s legacy as a?visionary leader, underlining the significance of sustainable growth in a world too often preoccupied with immediate returns. Instead of pursuing short-term gains, Tata’s focus on long-term sustainability and growth has been key to the Tata Group’s enduring success. He prioritized investments and decisions that would have a positive impact over the years.

?In conclusion, Ratan Tata’s journey as a leader provides us with invaluable insights into the art of effective leadership. From leading by example to continuous learning throughout life, showing Resilience during setbacks in life, and emphasize on relation building, Ratan Tata’s leadership principles serve as a guide for leaders across industries. Let us embrace these lessons and incorporate them into our own leadership journeys, aiming for excellence and inspiring greatness in those we lead.

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