THE Tatas have a really serious matter to tackle. Quite expectedly, a high-calibre contest has arisen about the decision of who should lead the Tata Sons as its Chairman. Though the situation may have all the trappings of a high-voltage board-room drama, a strong belief also persists that the Tatas would be able to find an amicable way out of the tricky challenge. That belief, of course, stands on the shoulders of the robust institutional culture of the Tatas -- built carefully over the Group’s existence of well over one hundred years. Previously, too, such issues have confronted the Tatas, but were sorted out amicably because of the cultural maturity of the Group and the sense of dignity of the persons working at the highest layers of management. This time, too, similar approach will prevail in the end. The decision will, of course, belong to the top layer of the Tata management. Those persons of high calibre corporate wisdom will carve a path out of the tangle, all right.

 

There will always be some who would favour Mr. Natarajan Chandrasekaran -- who appears to have been convinced to reconsider his own decision to say quits. There also will be some who will stand by Tata Trusts Chairman Mr. Noel Tata who has disagreed with the Board. Yet, out in the markets and in the society, Mr. Chandrasekaran promises to find greater popular favour. It is clear that Tatas’ own history will have a lesson or two to offer while sorting out the issue. For, when Mr. Jehangir Ratanji Dadabhoy Tata -- JRD for simple -- decided to step down after decades at the helm, the Group was confronted with a similar issue -- of making the hardest choice between Mr. Ratan Tata and Mr. Russi Modi, the feisty chief of Tata Steel and a Tata Director of long and high standing. Strong but separate arguments favoured both. Both had strong claims of success during their respective careers. Both knew the Tata ethos very well. Both had the Tata philosophy fully ingrained in their personalities -- of money being the by-product of work which must be conducted in the interest of larger society, but not for profits alone.

 

Who was then to be the next chief? JRD took one of the toughest calls of his illustrious life -- of backing Mr. Ratan Tata. Mr. Russi Modi was certainly unhappy, but accepted the decision in tune with the high-calibre Tata dignity. Though the nature of the present issue is slightly different, the Tata top brass knows what lessons to derive from that part of the history. Mr. Chandrasekaran or anybody, the change over will be smooth -- in line with the Tata culture of smooth leadership transition. Yet Chandra appears to be the favoured name, thanks to his high leadership quotient. Of course, Mr. Noel Tata, who has opposed the majority move, may become another choice -- though he may not be gunning for that. He, too, knows the Tata ethos well and has been part of the highest layers of management for long. His being a Tata, however, may not tilt the decision in his favour. Yet, if he happens to be the chosen one, then he also has promise to be a good leader of the Tata Group. The reason why the majority of Board has favoured Chandra as the chief is his deep and almost spiritual association with the Tatas. Starting as a Management Trainee, he rose to the top spending all his life with the Tatas.

 

So, many Board members treat him as a signature of the institutional memory of the Tata Group. When the Tatas are at the crossroads deciding about whether to go for public listing or not, the majority of Board members feel that Chandra would be an appropriate leader. There always is an abiding public interest in such developments in the corporate world. People keep a close watch on who is moving, why and where. Ye, their interest in the Tatas is because of the typical personality of the Tatas -- corporate yet philanthropic, professional yet missionary, global in thought yet patriotic in core. There is a halo around the Tatas -- and the people sense that. Now also, as the Tatas grapple with the issue, the markets and the society will accept whosoever comes in as the next boss of the Tata Sons -- in some more time !