Why Ratan Tata is a role model for India Inc

By Santhosh Babu

Who all could be role models when it comes to Organizational Leadership in this country? Is the leader’s capability measured only within the context of the financial performance of his or her organization?

Enough is written and known when it comes to the business success of Tata Group, the global acquisitions and Ratan Tata’s role in it. Let’s look at Ratan Tata not just as a successful business leader but an ideal role model for Responsible, Authentic and Integral (Integrating inner values and outer actions) leadership.

Ratan Tata is example of a leader who is committed to Triple Bottom line. In my opinion he is the most prominent Indian leader whose inner values and outer actions demonstrate an evolved higher level of responsible leadership.  Triple bottom line suggests that companies should be preparing three different (and quite separate) bottom lines.

One is the traditional measure of corporate profit—the bottom line of the “P&L Account”. The second is the bottom line of a company's “People Account” —a measure in some shape or form of how the organization contributes and deals with people inside and outside the organization. The third is the bottom line of the company's “Planet Account”—a measure of how environmentally and socially responsible has the company been.

Most leadership theories in a number of leadership books and programs focus on three outer aspects of leaders, that are: Leaders - 1. Have a powerful Vision, 2. Align every stakeholder around the vision 3. Execution excellence. While Ratan Tata did all the three things, what makes him different and superior is his inner qualities that I call the being part of leadership.

While launching Tata Nano, Ratan Tata and his group held their bigger purpose; Nation building and employment close to their heart, while driving operational efficiency and profitability.  The purpose statement of Tata says “At the Tata group we are committed to improving the quality of life of the communities we serve”.  Anyone who visits Jamshedpur will know the meaning of this purpose statement and how well this statement is expressed and executed there.

There are three characteristics that I have noticed among leaders that make them conscious, responsible and effective leaders. Ratan Tata demonstrates all the three characteristics.

1.           Leader has a bigger, higher purpose for you and your organization that expresses responsiveness to community. While some organizations do create the higher purpose, they do not operationalize that. In the absence of translating the higher purpose into actions, these statements become static and meaningless, limited to websites and decorating boardrooms. Individuals and organizations that have imbibed their higher purpose experience more meaning in their life and fulfillment.

An organisation that has a well articulated and operationalized higher purpose would create sustainable business success, employee loyalty, satisfaction and a sense of pride. Tata group is an ideal example of all that.

2.           Leader uses creative tendencies than reactive tendencies to get results. Some people achieve results using reactive competencies and tendencies like controlling, manipulating, pleasing and complying. While some others would achieve similar or better results using creative tendencies like relating, self awareness, purposeful actions, and authenticity.  If an organization is only interested in driving financial results, they might be doing this by using reactive competencies. We all know that results can be achieved using multiple motivational drivers. Someone who is extremely insecure and controlling will use those tendencies to drive results.

While most competency mapping assessments and exercises measure behavior and competencies to get results, the intent behind the behaviour is often missed out. When we go beyond the visible behaviors and understand the intent and internal drivers of the individual, we would know whether they are using reactive competencies or creative competencies to win. Ratan Tata used more creative competencies to lead the organization.

3.           Leaders operate from higher order values.  Robert Kegan, a professor at Harvard Graduate School proposed a range of “orders” of the mind and of the need for leaders to scale their abilities to the higher orders so they can solve complex problems and create personal transformation. Richard Barret, author and expert on values talks about seven levels of consciousness–a model he developed as an extension of Abraham Maslow’s hierarchy of human needs.  While survival, selfish wealth creation, power, greed, status, being liked can be considered as lower order values; self actualization, service, trust, honesty and Integrity can be considered as higher end values.

Because of the above three leadership qualities, it is evident that India needs more Ratan Tatas and Indian organizations that follow the Tata’s footsteps for social responsibility and conscious capitalism. We need a movement involving the senior corporate leaders of this country to align businesses with long term sustainable practices and social contribution. There is none other than Ratan Tata who could drive this. Ratan Tata’s retirement from active business role should lead to his spending more time on helping organization’s articulating and operationalising a higher purpose.

(Santhosh Babu is the Founder and Managing Director, Organisation Development Alternatives (ODA). The views expressed are his own.)

Latest News

  • Thomson Reuters profit beats but currency weighs on revenue
    Thomson Reuters profit beats but currency weighs on revenue

    Currency weighed on revenues, however, and the news and information company said volatile currencies would have a bigger impact on this year's results than usual. "The quarter and the first half just confirms the momentum that is building inside the business," Chief Executive Jim Smith said in an interview. Analysts, on average, were looking for 50 cents per share, according to Thomson Reuters I/B/E/S. …

  • Microsoft opens Windows 10, free update for one year

    New Delhi, July 29 (IANS) With blue as the theme colour, Microsoft on Wednesday launched with much fanfare its new operating system Windows 10, which will be a free upgrade for existing clients for a year, while priced at $199 as a new package. In a huge hall at the capital's largest exposition ground, the Pragati Maidan, Microsoft India chairman Bhaskar Pramanik and Windows director Vineet Durani opened Windows 10 to the Indian market, with which the Redmond, Washington-based company intends …

  • India's first-ever social polling app is here

    Mumbai, July 29 (IANS) Do you want to create a ripple on a burning topic among your friends on various social media platforms? Called "Whatsay", the app allows users to create and send visual polls (adding an image or video with your post) in 25 categories to their friends via mobile messaging service WhatsApp, social networking site Facebook, micro-blogging site Twitter and Gmail. "Whatsay is the perfect mobile companion for Facebook, Twitter and WhatsApp. …

  • Essar Oil posts best-ever quarterly net profit

    Kolkata, July 29 (IANS) Despite a slump in its net revenue by 34 percent, private oil refiner Essar Oil on Wednesday posted a healthy increase of 54 percent in its net profit at Rs. 1,063 crore for the first quarter of the current fiscal year. Incidentally, this is the company's best ever quarterly performance, with the highest ever net profit - Rs.691 crore. The net revenue during the quarter under review fell by 34 percent to Rs.16,340 crore against the earning of Rs.24,855 crore during …

  • Greece's Tsipras, hounded by left, vows "thus far and no further"

    Greek Prime Minister Alexis Tsipras, struggling to contain a revolt in his left-wing Syriza party, said on Wednesday that his government would not implement reform measures beyond those agreed with lenders at a euro zone summit this month. Tsipras faces a tough Syriza central committee session on Thursday with many activists angered by his acceptance of bailout terms more stringent than those voters rejected in a July 5 referendum. In a clear warning to party rebels, Tsipras said he could be …

  • Nestle India slips into loss as noodle scare hits sales
    Nestle India slips into loss as noodle scare hits sales

    Nestle India Ltd slipped to a second-quarter loss as sales plunged after its hugely popular Maggi noodles were pulled off shelves over safety concerns. "Nestle India is making all efforts and will continue to engage with authorities to bring Maggi Noodles back on the shelves," Suresh Narayanan, due to take over as managing director of the company in August, said in a statement. Nestle has been at the centre of India's worst food scare in a decade after local regulators reported that some …

  • Why Financial Education is the need of the hour

    You could be a onetime investor, an investment professional or a college graduate, you would still need to know how money works in the real world. A proper, methodical financial planning and education is necessary. Read on to find out all you need to know about financial education and what it comprises of. …

  • Gold prices remained steady

    Chennai, July 29 (IANS) Gold prices remained steady on Wednesday after several successive days of slide, said an industry official. "Gold prices today (Wednesday) remained at yesterday's (Tuesday) ... …



  • Most Actives
    Most Actives
    NamePriceChange% Chg
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg


Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
to view quotes in your portfolios.

Yahoo Cricket