Remembering Ratan Tata: Gopalakrishnan's Insights On Tata Leadership Lessons
Ratan Tata's legacy of leadership, as highlighted by Gopalakrishnan, continues to inspire the Tata Group with lessons of accountability and forward-thinking leadership.
As we remember Ratan Tata, one of India's leading business magnates, it is important to reflect not only on his work but also on the leadership lessons and principles passed on by the Tata Group. These leadership principles have guided all successors, including Ratan Tata.
One of Ratan Tata’s leadership lessons was his ability to stand by the company, its employees, and customers. During a recent interview with NDTV Profit, R Gopalakrishnan, former executive director of Tata Sons, shared a story about the challenging period faced by Tata Finance Ltd.
He recalled a shareholders' meeting of Tata Chemicals Ltd., where a shareholder expressed concern over his investment, having put his entire savings into the company. Ratan Tata stood up and assured the audience, “We don’t know what the damage is, but not one of you retail investors will suffer.”
When asked why he assured shareholders without knowing the extent of the damage in Tata Finance, Ratan Tata told Gopalakrishnan, "If you want to say the right thing, you need to say it at the right time."
Gopalakrishnan highlighted this as one of the leadership principles of the Tata Group: "own up, clean up, and move ahead." This approach, according to Gopalakrishnan, reflects a similar event from Tata's history.
During a near-bankruptcy of Tata Steel, Dorabji Tata pledged his entire personal wealth to save the company, ensuring that no employees were let go. He later secured a loan from the State Bank of India, but throughout the crisis, he stood by the company and its people.
Gopalakrishnan and Harish Bhat, authors of Jamsetji Tata: Powerful Learnings for Corporate Success, noted that this steadfast leadership has been passed down through generations of Tata leadership.
Gopalakrishnan also remarked that the Tata leadership has consistently shown visionary leadership, which has helped the Tata Group grow into a salt-to-software conglomerate. This forward-thinking attitude ensures that the leadership lessons of Ratan Tata will continue to influence future generations.
