Natarajan Chandrasekaran, affectionately known as Chandra, recently shared profound insights into the future of business and leadership as he concluded his tenure as Chairman of Tata Sons. Speaking at BT Mindrush 2023, Chandrasekaran detailed six crucial lessons that he believes will shape the path forward for large conglomerates like Tata Group, focusing on artificial intelligence, energy transition, supply chain evolution, and talent development.
Six Key Lessons from Chandrasekaran
1. Build on Institutional Strengths While Renewing Talent
Chandrasekaran highlighted Tata Group's long-standing strength in its dedicated workforce. However, he stressed the importance of injecting new talent and upskilling existing employees in emerging technologies, particularly AI. He noted that while the group has been historically 'inbred,' a continuous influx of fresh perspectives and training in new competencies is vital for future relevance.
2. Prepare Early for Disruption, Embrace AI as a Real Business Shift
Underscoring AI's transformative power, Chandrasekaran stated it would enhance productivity by an 'order of magnitude.' He urged businesses to recognize AI's profound implications for jobs, skill requirements, and regulatory landscapes. For Tata Group, this translates into a comprehensive transformation across all businesses, addressing AI, energy transition, supply chain shifts, and talent development.
3. Back Transformation at Scale, Even with Evolving Economics
The former Chairman emphasized the necessity of committing to large-scale transformations, even when the immediate economic returns are not fully clear. He cited Tata's significant pivot towards electric vehicles, including commercial and hydrogen buses, as an example. In the power sector, Tata is aggressively moving towards renewables, anticipating its capacity to surpass coal by 2025 and double it by 2027-28, reaching 65-70% of total capacity.
4. Accept Problems Directly and Utilize Feedback for Improved Execution
Chandrasekaran openly addressed the challenges faced by Air India since its acquisition. He acknowledged receiving daily complaints regarding issues like faulty seats, poor interiors, and cleanliness. Despite these hurdles, he noted visible improvements in on-time performance and customer service, reaffirming the ambition to deliver a world-class airline that makes every Indian proud.
5. Strengthen the Core First, Simplify Next, Then Leverage Synergies
Reflecting on the group's vast and diverse operations, Chandrasekaran outlined a three-phase strategy. The initial focus was on 'strengthening the core' by improving balance sheets and financial health across companies. This was followed by simplification of structures, business portfolios, market focus, and management levels. The final phase involves strategically leveraging synergies across Tata's extensive network of businesses.
6. Stay Bold, but Combine Ambition with Discipline and Patience
Chandrasekaran encouraged continued boldness in pursuing opportunities across various sectors, from AI and energy to materials and the intersection of technology and biology. He cautioned that ambition must be tempered with discipline and patience, as building successful businesses takes time. He termed this approach 'inspiration with rigour,' emphasizing the need for aspiration to be matched by diligent execution.
Chandrasekaran's insights provide a roadmap for navigating an increasingly complex global business environment, highlighting the critical role of adaptability, strategic investment, and a disciplined approach to growth.