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

  • Rock-bottom rates creates fiscal space for G20 - OECD

    The world's leading economies have discussed how to take advantage of their lower debt costs to spend more on investment as a way to boost weak economic growth, the head of the Organisation for Economic Co-operation and Development said. "Already lower interest rates create more fiscal space," OECD Secretary General Angel Gurria told Reuters on Sunday on the sidelines of a meeting of finance ministers and central bank governors from the Group of 20 economies. The G20 is trying to find new …

  • EXCLUSIVE: Tesla, SolarCity close to merger agreement - sources
    EXCLUSIVE: Tesla, SolarCity close to merger agreement - sources

    Tesla Motors Inc and SolarCity Corp have made progress in putting together a deal that will merge the electric car maker and the solar panel installer, people familiar with the matter said. The two companies, which count billionaire Elon Musk as a major shareholder, are in the final stages of carrying out due diligence on each other, and could agree on the terms of a deal in the coming days, though it is still possible that their negotiations end unsuccessfully, the people said on Saturday. …

  • GST bill will continue to rule market sentiments

    Mumbai, July 24 (IANS) The markets may have taken a breather in the past week following the gains made during the preceding sessions but analysts maintain that the near-term outlook for Indian equities depends on three main factors -- movement forward in the goods and services tax bill, first quarter results and signals from central banks including the Reserve Bank of India. As foreign funds returned as net buyers of Indian equities, two key market indices -- the sensitive index (Sensex) of …

  • China's growth sucks in more debt bucks for less bang

    As China's economy notches up another quarter of steady growth, the pace of credit creation grows ever more frantic for every extra unit of production, as inefficient state firms swallow an increasing share of lending. "The amount of debt that China has taken in the last 5-7 years is unprecedented," said Morgan Stanley's head of emerging markets, Ruchir Sharma, at a book launch in Singapore. While Beijing can take comfort that loose money and more deficit spending are averting a more painful …

  • Bottom line: brands chase China's high-end lingerie market
    Bottom line: brands chase China's high-end lingerie market

    High-end lingerie sales are outpacing China's generally downbeat luxury market, and heating up competition between international brands and local rivals looking to go upmarket. U.S. brand Victoria's Secret will open its first store, and companies including Italy's ultra-luxury La Perla and Germany's Triumph are adding stores and moving beyond China's mega-cities to tap a lingerie market that has more than doubled in five years to $18 billion, according to Mintel Group. "Luxury is ... not …

  • G20 nations pledge to bolster defences against Brexit headwinds

    The world's leading economies will do more to lift global growth and share the benefits more broadly, top policymakers said on Saturday as they sought to deal with fallout from Britain's Brexit vote and counter dissatisfaction with globalisation. Finance ministers and central bankers from the Group of 20 nation are huddling in China's southwestern city of Chengdu this weekend to discuss how to confront global challenges exacerbated by Britain's decision to leave the European Union. The …

  • CEO says Audi plans three electric car models by 2020 - paper

    Audi aims to have three electric car models by 2020 and for electric vehicles to account for 25 to 30 percent of its sales by 2025, Chief Executive Rupert Stadler told a German newspaper. Audi's electric cars push, reported by Reuters earlier this week, is part of a strategic overhaul following the emissions scandal at parent Volkswagen. Under the plan, which Stadler presented to Audi managers this week, the group will focus more resources on electric cars, digital services and autonomous …

  • All of British retailer BHS's stores to close in next four weeks - Sky
    All of British retailer BHS's stores to close in next four weeks - Sky

    The remaining shops belonging to Britain's collapsed department store chain BHS will close down in the next four weeks at a potential cost of 5,000 jobs, Sky News said on Saturday. BHS's demise left its pension fund with a deficit of 571 million pounds ($809 million) and came a little more than a year after retail tycoon Philip Green sold it to Dominic Chappell's Retail Acquisitions Ltd for a nominal sum. Green has faced widespread criticism for his role in the demise of BHS and in June was …

DON'T MISS

  • Droom has made auto trade a breeze

    Its website lists everything that has a wheel and a motor - from bicycles and super bikes to luxury cars, planes and yachts. …

  • How Hike has taken on global competitors

    The messaging app company had zero users around January 2013. It crossed 35 million users in August 2014 and in January this year claimed over 100 million users. That is a mind-boggling number for any ... …

  • "Internet retailing of books is a wonderful development"

    Richard Charkin, Executive Director, Bloomsbury Publishing, talks to Sapna Nair Purohit about the changing publishing landscape globally. …

  • "India has a competent enough system to check quality standards"

    The $25-billion Indian pharma industry is going through intense regulatory scrutiny. Foreign drug regulators such as the US Food and Drug Adminis-tration (FDA) and EU's European Medicines Agency have increased ... …

  • Final Push

    GST infrastructure is a work in Progress. The government will have to burn the midnight oil if it wants to meet the April 2017 deadline. …

  • TRAI'S Web of Confusion

    The telecom regulator must first simplify its processes before dealing with net neutrality. …

  • Shop Till You Drop

    Once the model shops and establishments act comes into force, shops, malls and cinemas will be allowed to remain open 24x7. But does it make business sense? …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    12.55+0.03+0.24%
    JPASSOCIAT.BO
    63.05+0.70+1.12%
    SPICEJET.BO
    168.95+11.70+7.44%
    VEDL.BO
    592.05+40.00+7.25%
    UFO.BO
    18.00-0.10-0.55%
    SUZLON.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    57.60+9.60+20.00%
    NTCIND.BO
    70.70+11.75+19.93%
    METALFORGE.BO
    30.45+4.95+19.41%
    RDBRL.BO
    11.99+1.89+18.71%
    NFIL.BO
    81.80+12.50+18.04%
    EMKAY.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    10.04-1.33-11.70%
    RATHIGRA.BO
    16.40-1.50-8.38%
    FILTRA.BO
    51.50-4.25-7.62%
    LOTUSCHO.BO
    48.10-3.95-7.59%
    COROENGG.BO
    158.35-12.90-7.53%
    GNFC.BO

QUOTES

 
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.
 
Sign-in to view quotes in your portfolios.

Yahoo Cricket