Dec. 28, 2018 -
Tata Sons Chairman N.
Chandrasekaran has exhorted employees to focus on scale, synergy and simplification to enable the multinational giant realise peak performance.
In his year-end letter to Tata Sons employees, Chandrasekaran said the Group needs to make its management and organisation structures simpler and impactful so as to reduce complexity across businesses, helping it respond and react faster, as well as bring agility and make the decision-making process faster.
"With our diversified global footprint and our presence in the lives of almost a billion consumers, we are uniquely positioned. In order to achieve peak performance, we must focus on three things: simplification, synergy and scale," he wrote in his second letter to the employees since he became Chairman earlier in 2017.
He underlined the need to simplify structures in the context of a rapidly changing world to bring in agility in decision making, as well as on the need to adopt the "One Tata" approach that leverages collaborations between group companies and associates.
"'One Tata', to my mind, is a mindset that brings the best of the Group together for every opportunity. It is a journey that will allow us to discover the art of the possible when we work together," he said.
As a group that has a presence in many sectors presenting significant opportunities for growth, Tata companies need to scale through growth, consolidation and collaboration, the Chairman said.
"These efforts must be unequivocally underpinned by a culture of high performance and accountability," he wrote.
Noting that the Tata Trusts, which have the majority stakeholding in Tata Sons, are working in sustainable and meaningful projects, Chandrasekaran said the company's collaboration will enable the trusts to make a bigger impact.
"The Tata Trusts and the Tata Companies have created an environment beyond the traditional ideas of philanthropy and are working closely on sustainable and meaningful projects, including those related to skill development, women's empowerment, cancer research, healthcare and education.
"Going forward, we can make an even larger impact as we collaborate," he added.
Group companies have already been undertaking simplification and streamlining operations as part of the overall strategy to reduce debt.
Tata Steel has merged its UK business with German steelmaker ThyssenKrupp, while Tata Teleservices has sold its loss-making mobile business to Airtel.
Tata Sons is the promoter of the major operating Tata companies and holds significant shareholdings inthese companies.
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