The biography also noted that Ratan Tata was even open to the possibility of a foreign candidate if their qualifications aligned with the company’s needs.
In a recently released biography titled Ratan Tata: A Life by Thomas Mathew, published by HarperCollins Publishers, insights into Ratan Tata’s thoughts on leadership and succession planning within the Tata Group are revealed. The biography sheds light on Tata’s views regarding his half-brother, Noel Tata, and the process that influenced his succession plans during 2011.
Ratan Tata On Noel Tata As His Successor
According to the book, Ratan Tata, the former Chairman Emeritus of Tata Sons, believed that Noel Tata would have benefited from more exposure and experience with challenging assignments before stepping up to the top role. “Perhaps, if Noel had had the experience of handling difficult assignments, he could have established his credentials more forcefully,” the book quoted Ratan Tata as saying.
The late industrialist expressed that such experience could have helped Noel to demonstrate his credentials more effectively, as reported by Outlook Business.
Noel Tata Among Candidates for Successor
In March 2011, the Tata Group began its search for a successor to Ratan Tata. Several candidates were considered, including Noel Tata, who was recently appointed Chairman of Tata Trusts after Ratan Tata’s death. The Tata Trusts, is a conglomerate of charitable organizations, which indirectly controls the USD 165 billion Tata Group.
Ratan Tata Not Part Of Selection Committee
Ratan Tata chose not to participate in the selection committee that would decide his successor. He decided to ensure that candidates would be chosen by a collective, neutral body without undue influence. He believed that this would give all aspirants a fair chance and allow the committee to make a decision based on a majority vote, rather than favoritism from the Chairman.
The book outlines two reasons for Tata’s decision to remain away in the selection process. Firstly, Tata wanted to allow the contenders the confidence of a fair selection process by a group of equals. Secondly, he was aware of the view within the Parsi community that Noel Tata, considered by many Parsis and traditionalists to be the “default successor,” of him.
Ratan Tata Didn’t Back Noel Tata
Ratan Tata’s conscious decision not to back Noel Tata for succession was not due to personal preference but to avoid perceptions of bias. The book reveals that Tata did not want his detachment from the committee to be seen as against Noel, but to show the impartiality of the process.
In retrospect, Ratan Tata reflected that had Noel been exposed to more challenging roles, he might have established himself as a stronger candidate for the leadership position.
For Ratan Tata, the essential qualities in a successor were talent and values, not community or religious background. Ratan Tata sought to keep the selection committee impartial, not wanting to steer it or push it toward a specific outcome.