T N Ninan’s “Dealing with a legacy” (October 29) objectively recalls the good leadership provided by both the interim chairman and the erstwhile chairman of Tata Sons during their respective tenures. He has rightly given credit to Cyrus Mistry for substantially toning down the financial drain caused by Corus, Tata Motors, Indian Hotels, Tata Power and Tata Teleservices, and for improved dividend payouts. But one bad news is often accompanied by another. Even as Ratan Tata and Mistry have been meeting the PM, among others, to lobby for their stands, Delhi High Court has dismissed the case against the decision of the New Delhi Municipal Corporation to auction the Taj Mansingh Hotel which Tata Sons have been running as lessees since 1976, putting at risk the investments made in it by Tatas.
Yesteryear management guru Sharu Rangnekar, in his lectures, used to ask why top managers hesitate to delegate, and provide the answer himself. “Because, they fear two consequences: the first that such subordinates to whom they delegate may not be as good or as capable as they themselves have been, or… because they may prove to be even better!” Mistry was perhaps guilty of the second risk!
Decades ago, people used to refer to the business houses of that era, namely, the Tatas which was then under the genial stewardship and vision of JRD Tata and the Birlas. References to the house of Tatas were invariably made against the backdrop of ethics and professionalism. The Tata Airlines, even later as Air India, won laurels in the world for service and efficiency, despite its small fleet. The Morarji Desai government shocked people when it “requested” JRD to step down as chairman, the press note explaining the decision as one taken in the “national interest”. JRD readily obliged and soon thereafter, Air India outlawed the words “profit”, “service”, “courtesy” and “efficiency” from its vocabulary. JRD picked Ratan Tata, without fanfare, to succeed him. The unsavoury developments at the Tata Sons board of directors reflect poorly on most of its members, because they merely appear to be sycophants of Ratan Tata. In the equity markets, where most promoters even now routinely adopt the “devil-may-care” attitude when dealing with their obligation to protect investors’ interests, most Tata companies shone as the beacon light. The manner in which Mistry has been shown the door has put out that light. That is the real loss.
N Narasimhan, Bengaluru
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