The Tata group has several executives in their 60s, this lopsided scenario must change
The Tata Group, in my opinion has done a fairly good job over the years, in terms of succession planning. The various mature businesses of the group, which include steel, automotive and software services have nurtured leaders from within over the years and have groomed them for the top position. Though Ravi Kant himself was an external hire, Tata Motors has built a good leadership pipeline.
One of the areas where the group perhaps could have done a little better is in the area of fast tracking young leaders. In a lot of Tata Group companies, we have a situation now where several business heads are in their mid 60s. So their replacements are now being sought by the company from within.
The Group has also largely struggled to attract good talent for some of the emerging businesses like telecom, where the group has an ‘also ran’ position. Despite the leadership and management depth of the Group, the emerging businesses like telecom have failed to make a big impact. Due to the strong in-house, “bottom up” culture prevalent in the Group, external hires have a difficult task of settling in to the system. V. Sumantran of Tata Motors (he was recruited from GM-Saab) is a case in point. He quit Tata Motors after Ravi Kant was hired to be the Managing Director of the company.
Going forward, with a slew of CEOs and MDs retiring, this should provide opportunities to the next set of talented managers in the Group. Giving timely opportunities to emerging leaders is the key to groom them and keeping them fresh and motivated. The Group currently has several business leaders and MDs who are way past their prime and have to be retired sooner than later. Several of the Groups’ business leaders do not run line jobs and thus they have a choking effect at the top.
The Tata Group, in my opinion has done a fairly good job over the years, in terms of succession planning. The various mature businesses of the group, which include steel, automotive and software services have nurtured leaders from within over the years and have groomed them for the top position. Though Ravi Kant himself was an external hire, Tata Motors has built a good leadership pipeline.
One of the areas where the group perhaps could have done a little better is in the area of fast tracking young leaders. In a lot of Tata Group companies, we have a situation now where several business heads are in their mid 60s. So their replacements are now being sought by the company from within.
The Group has also largely struggled to attract good talent for some of the emerging businesses like telecom, where the group has an ‘also ran’ position. Despite the leadership and management depth of the Group, the emerging businesses like telecom have failed to make a big impact. Due to the strong in-house, “bottom up” culture prevalent in the Group, external hires have a difficult task of settling in to the system. V. Sumantran of Tata Motors (he was recruited from GM-Saab) is a case in point. He quit Tata Motors after Ravi Kant was hired to be the Managing Director of the company.
Going forward, with a slew of CEOs and MDs retiring, this should provide opportunities to the next set of talented managers in the Group. Giving timely opportunities to emerging leaders is the key to groom them and keeping them fresh and motivated. The Group currently has several business leaders and MDs who are way past their prime and have to be retired sooner than later. Several of the Groups’ business leaders do not run line jobs and thus they have a choking effect at the top.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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