N Chandrasekaran, new Tata chairman, must restore trust in group cos and value of brand “Tata”

By: | Published: January 12, 2017 7:26 PM

Chandrasekaran will have a tough task of restoring Tata group’s credibility as a large professionally managed organisation. The unexpected ouster of Cyrus Mistry, an outsider leading the group, and the ensuing bitter public feud has resulted in erosion of the “Tata” brand.

New head of Tata Sons Natarajan Chandrasekaran. (Express Photo)New head of Tata Sons Natarajan Chandrasekaran. (Express Photo)

Chandrasekaran will have a tough task of restoring Tata group’s credibility as a large professionally managed organisation. The unexpected ouster of Cyrus Mistry, an outsider leading the group, and the ensuing bitter public feud has resulted in erosion of the “Tata” brand. The public spat, the war of words between Mistry and Ratan Tata, and the legal battles have raised questions in the mind of investors and stakeholders about the ability of the group to be run as a professionally managed organisation and independent of the influence of its patriarch Ratan Tata.

The new chairman will not only need to successfully keep the group leaders focussed on the normal work and natural growth path, away from distractions that are most likely to crop up from an impending legal battle with the ousted Chairman Cyrus Mistry, he will also need to demonstrate an ability to let the litigations run their natural course.

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While it goes without saying that managing a $100 billion group requires exceptional leadership skills, in case of a conglomerate as diversified as Tata, an understanding of its various businesses and challenges might also come in handy. It is here that Chandrasekaran’s nearly 30-year stint with the group will prove to be an asset, as he is a thorough insider who knows the group companies well.

The new boss will immediately need get to work to repair any damages to the relationships with various government agencies or regulators that may have caused as a result of Mistry’s ouster.

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