New Tata Sons CEO Chandrasekaran’s tasks
Natarajan Chandrasekaran has his work cut out and he needs to hit the ground running. The managing director and chief executive officer (CEO) of Tata Consultancy Services (TCS) has been appointed to a post that has been in the news over the last few weeks for the wrong reasons. Now, as the new chairman of Tata Sons, he will have to erase the bitterness of the recent past, get people of the business conglomerate to work unitedly, solidify the brand, and take the Tata Group to newer heights. Besides, he has to ensure a sound working relationship with outgoing interim chairman Ratan Tata and blend with the core ideals of the business group. The last one should not be difficult for Chandrasekaran, as he is a Tata veteran and has played a key role in shaping the group's business and ethical philosophies. He joined TCS three decades ago and worked his way up to become the CEO in 2009. His was among the prominent names that were doing the rounds after Cyrus Mistry was unceremoniously ousted from the post and Ratan Tata stepped in as interim chief. Chandrasekaran has doubtlessly followed the acrimony that erupted since Mistry's removal, just as he must be aware of the many issues that the latter has flagged. It cannot be that Mistry is wrong on every matter that he has raised, and it would be the new CEO's responsibility to address the contentious ones on merit. At the same time, he must bear in mind that Mistry lost out because he had frittered away the trust of many seniors in the Tata Group and was seen as wavering from the core principles of the hallowed conglomerate. But Chandrasekaran is, unlike Mistry was, the ultimate insider (though in one respect he is an outsider: He is the first non-Parsi to be anointed to the position), and he understands the working of the group like the back of his palm. Moreover, he brings to the table a reputation of solid performance. During his tenure as TCS chief, the company's revenue ballooned from a mere six billion dollars to $16 billion in eight years. According to reports, the firm's net revenue has grown more than 260 per cent since 2009-10 — and net profit, over 240 per cent. These are mind-boggling numbers, but then Chandrasekaran has a reputation for mind-boggling performances.
An avid athlete at the age of 53, he commented after his elevation that he was a “long distance runner” — a quality that will stand him in good stead. His new job demands enormous patience and a high level of inter-personal skills. His outreach to members of the group, from top all the way down, should come easily to him, as he is known to be informal, charming (though rather strict when it comes to performance-evaluation) and accessible. If Chandrasekaran can keep his humility — he said that he would “grow into the job over time” — intact, there is no reason to believe that he will not live up to the expectations the Tata Group has of him.