Greeting Cyrus Mistry with fingers crossed!

Effectuating a smooth succession at the summit is always a tricky business. Succeeding a legendary personality whose very name has become a global brand and whom it is near-impossible to surpass in terms of stature, qualities and achievements is more tricky. If the succession has to do with the leadership of a sprawling, flourishing industrial empire, it becomes the trickiest business of all!

In the initial stages, the successor to such an empire has to tread warily, since he will be under continuous appraisal. He cannot afford to make abrupt or drastic changes in policy, strategy or approach. He has to overcome the undercurrent of resistance of the insiders, accustomed to a particular style of leadership and a particular set of policies, with reference to a particular vision of the future laid down by the predecessor.

There will be need for a lot of finesse on his part in handling those among the insiders who are also power-centres in their own right, and had taken part in the formulation of policies and launching of major initiatives of the earlier period.

Even re-deployment of senior-grade executives and operatives will call for a great measure of tact. Any attempt by him to make the customary splash during the first 100 days may misfire. In short, the successor to a long-standing business empire should have the dexterity to describe a circle which at every point looks like a straight line.

GENERALISED COMPLIMENTS

Does Mr Cyrus Mistry, the newly designated successor to Ratan Tata, have it in him to steer the huge Tata conglomerate through an unstable and unpredictable global business environment in directions marked by variety, versatility and volume? Will he be capable of riding out the changes being brought about by the impact of the simultaneous revolutions in the fields of knowledge, communications, technology, social engineering and corporate management?

Will he be equal to the revolution of the rising expectations of the people who have woken up to their right and power to demand the highest standards of efficiency and ethics from persons holding public responsibility?

We shall put aside (for they do not clinch the issue of his suitability for the job) the generalised compliments paid by observers to his youth, intelligence, fresh look, humility, “profound vision”, “intellectual power”, “impressive personality”, his being a “soft-spoken and thorough gentleman”, and “very lovely person to talk to”.

Coming to the one specific related to his selection, he has been on the Board of Tata Sons from 2006. Mr Tata, whom he will be under-studying during the coming year, mentions his “quality of participation and astute observations” in that capacity. It is a moot question whether these alone qualify to vest him with “rich business experience”, “global perspective”, “excellent business acumen” and “high strategic thinking”.

UNDERSTANDABLY CONCERNED

The only business experience Mr Mistry has so far had is that of the Managing Director, and that too under the guidance of his father, of a $2.5-billion (as against the $83-billion Tata Group he will be heading) Pallonji Shapoorji business group with 23,000 employees (as against 450,000 of 130 subsidiaries of Tata Sons), whose global exposure and nature and scale of business interests are not on par with the Tata's. The only concrete achievement that his CV attributes to him is the setting up of a small 106 MW power plant in Tamil Nadu.

The Financial Times in its commentary darkly states: “Tata insiders and analysts are understandably concerned whether Cyrus Mistry, 43, the little known son of a reclusive billionaire, has the experience necessary to eventually step into the shoes of Mr Tata”.

Pallonji Group's shareholding of 18 per cent in Tata Sons being the largest might give Mr Mistry a good start, but he cannot bank on this long, nor can he hold together, leave alone expand and diversify, a vibrant group like the Tata's and make it into a top-notch multinational by simply coasting along.

I would have personally wished for someone of a more convincingly tested calibre and experience who would also have had the advantage of instant name recognition world-wide, preferably reminiscent of the traditional Tata banner in addition.

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