Cyrus Mistry is no longer associated with Tata sons and the reason of his removal is still unknown. Ratan Tata is now active again as an interim Chairman to the conglomerate. Now let’s make an analysis why this might have happened?
The Great Exit of Cyrus Mistry: A Failed Succession?
A guess work which might be like failed succession. According to experts there is a failure in succession experiments done earlier and might be due to huge pressure Mistry was not able to cope up with ground realities. But his father Pallonji Shapoorji Mistry is still acting as the major stake holder. These two things do go hand-in-hand because the Tata sons would never like to have a hitch with such big family.
Sometimes the higher you are, the lonelier you feel and it’s now evident that it is very easy to reach the zenith but to retain the same, is next to impossible. One has to be too versatile which was missed during Mistry’s tenure. He failed to draw massive attraction like Ratan Tata.
Normally these kinds of news should be backed up with sufficient reasons – otherwise it can spoil your good will. Hope with time, Ratan Tata will take the onus of this action and things would be clearer with valid reasons. The whole world would like to ask why Tata group was so much under stress. Probably Mistry could not gel well with this Tata family.
Decision Making Blunders?
Welspun acquisition-the deal went too long which indicates there was little a lack in Mistry while when it comes to decision making. He could have avoided this chaotic and wild goose chase because efforts are never rewarded but results are. He made a blunder by not making the process decentralized and didn’t even bother to consult the Tata sons.
Cyrus Mistry followed the old rule – kingship knows no kinship which bounced back on his heads again since his closing ability was again under doubt fire. The UK steel vertical closed down and the company suffered loss. Thus it shows Mistry failed in the subject called M&A of management.
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Moreover in case of NTT DoCoMo the court cases clearly indicate he lacked in managing partners which is again an art of collaboration, coordination, and control. The management style and orientation went wrong. He could have done more research on this. Indian Hotels managing director Raymond Bickson who was sacked in 2014 for no reasons might have been a major game changer.
More or less, Mistry couldn’t manage the controversy related to fake e-mails demanding lakhs of money on his behalf. He could have taken these issues too seriously because these are all integrity issues.
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Be it good or bad, Ratan Tata was always in news which was not the case with Cyrus Mistry. He never invested in brand building exercises. This shows he was lacking in clear-cut vision and forward leadership activities. In short, self-branding and image management went wrong, above all.
