Ratan Tata believed Noel needed more experience to succeed him
What's the story
Former Tata Sons Chairman Emeritus Ratan Tata thought his half-brother Noel Tata needed more exposure and experience to succeed him. This revelation has been made in a new book "Ratan Tata A Life," written by Thomas Mathew and published by HarperCollins Publishers. The book delves deep into Ratan's mind about the succession process at the helm of India's largest business conglomerate.
Succession approach
Stance on successor selection process
Ratan Tata opted out of the selection committee that was to find his successor, a decision he later regretted. The book reveals one reason for it was his wish to ensure a fair and unbiased selection process. He wanted candidates to be confident that their selection would be based on a unanimous or majority decision by a group of equals, and not his personal preference.
Successor speculation
Noel Tata was seen as 'default candidate'
The book also reveals that there was rampant speculation within the company and community, especially among Parsis and traditionalists, that Noel would be the "default candidate" to succeed. But for Ratan himself, religion or regional background of the contenders didn't matter. He believed in choosing a successor based only on their talent and values.
Successor potential
Ratan Tata on Noel's potential as successor
Ratan was quoted in the book saying, "Perhaps, if Noel had had the experience of handling difficult assignments, he could have established his credentials more forcefully." He further said for Noel to successfully compete for the top post, "he should have greater exposure than he has had." These statements highlight Ratan's belief in meritocracy and his emphasis on experience as a key factor in determining a suitable successor.
Anti-nepotism stance
Views on nepotism and succession
The book also emphasizes Ratan's anti-nepotism stance. In an interview with The Times, he had said that he had worked his way up in the business, and wouldn't have let even his own son automatically become his successor. This only further reiterates his belief in merit-based leadership succession within the Tata Group.