7 Lesson We Must Learn From The Indian Industrialist & Philanthropist, “Ratan Naval Tata”.
You must have heard that 90 percent startup in India Fails just within 5 years and only 5 percent of businesses able to survive till 10 years. So, through this, you can understand that there are only a few great companies who able to complete 100 years milestone. Research shows that only 0.01 percent of companies able to survive for 100 years.
Tata company is one of the super rare companies which is working for 150 years. They are not surviving they are working so great that today Tata company handles more than 100 companies in more than 100 different countries, their product and services are used around 150 countries. Their Popular products are Tata Steel, Tata sky, TCS 50, Tata Motors Tata Powers, Titan, Taj Hotel Group, Lakme, etc. As per the march 2018 Data Tata Group, Publicly Listed Enterprises their total capital for more than $150 billion. And out of 100 billion dollar revenue, 60 percent income was from out of India such as from England & the USA. Tata Group comes under the 7th largest private limited company as related to Employees, more than 6 lakh 95 thousand people work with Tata. Tata Group comes as 11th position by Forbes for the most reputable company and Tata has 34th position out of 500 for most valuable companies. and Credit of these successes goes to Tata Group Leaders.
From Jamshed Ji Tata to Ratan Tata many great leaders have managed the Tata group they all have kept certain rules principles and wisdom in their minds and those principles have made Tata Group one of the most valuable brands all across the globe. We can learn many things from all the leaders of Tata Group, but in this story, I specifically share 7 success and business lessons of Ratan Tata with the help of which he expands Tata Groups throughout the globe. In his 21 years of Leadership, Ratan Tata raised 50 percent of Profit and raised 40 percent of Revenue, and also did out of India Expansion.
So, we will learn from Ratan Tata’s book and understand his life lessons and business lessons.
1) TVC (Trust, Values, and Commitment).
If you remember, then you must have heard the news of Tata Groups in 2016, that how Tata Group suddenly removed Cyrus Mistry from his chairman position. This was shocking because Ratan Tata himself searched Cyrus Mistry after year research and efforts for a chairman Position, he believed that Cyrus will be the right person and he is capable of taking his position all had a great hope from Cyrus, hence when he was suddenly removed, the then entire corporate world was talking about him and about why he was removed suddenly by Tata Group. Well many possible reasons were told by many people such as after Cyrus joining Tata has seen Negative growth, there was an increase in company debt, Cyrus bad management, etc. But the Actual Reason as per experts was, that Cyrus was focusing more on Profits instead of Tata group’s values and commitments.
The perfect example was when Japan company NTT Docomo has come to India in 2009, at that time they bought 26 percent stakes from Tata in 13 thousand crores, when this deal happened, at that time Tata promised DOCOMO that they can leave whenever they want and they will be refunded as per the market value, if not that then at least half investment will be refunded. Now due to some problems, when Tata teleservices weren’t working properly, hence Docomo decided to leave. on at that time, Cyrus Mistry was appointed as a Chairman. Docomo asked Tata to search for a good buyer, but when Tata wasn’t able to find, then Docomo asked Tata to buy their shares as per the deal. But experts say, at that time Cyrus used RBI Guidelines against Docomo and refused to give money and started the legal fight against Docomo because he thought giving money wasn’t a good business decision. Now Docomo finds it very unacceptable because they were doing business with Tata, and they trusted Tata’s goodwill because Tata’s name is very famous all across the globe for their values and commitments, and Even Ratan Tata find Cyrus decision unacceptable, hence this unacceptable decision became the biggest reason for Cyrus Mistry termination.
In an Interview, Ratan Tata Said that for him trust is the number one priority. He said that the trust of customers, employees, and shareholders is the main foundation on which any business can survive. You will find many people, who will do anything for their good or their business, they will lie, say anything, do wrong commitments, break trust, just for their short term profit or benefits. But Tata Group and Ratan Tata aren’t like this, they know that people’s trust is the most important thing, and because of this Tata able to stay successful across the globe for so many years. hence you focus on trust and values and commitment compare to profits, then only you can survive in the world.
2) Success in Listening.
Very Few People know that At start Ratan Tata got a job offer from IBM, But he refused to work there. He came to Tata Steel and work on floors just like other Tata Employees, he also did small work. In an interview, he said that in the starting of his career, he spends his life 8 years in training programs in two to three companies’ shop floor, and at that time he used to find it useless, he used to think that it’s just waste of time, but later he realized that those 8 years training program and learning was his life best investment. Ratan Tata says that learning and listening are two things that will take you very long in your life. In fact, in a graduation ceremony, he gave a speech to Graduated youth. Many people don’t understand what they should say to students who just completed their graduation, but the only thing I will say that “you students have a degree doesn’t mean you’ll stop learning, never think that you are completed your studies”.
You should listen and learn from it with humility because people who become successful are those who always keep learning.
3) Emotions for success.
One of the famous stories of Ratan Tata, I think you must have heard about it, but still, it’s so great, it teaches such a great life lesson that I will again repeat it. When Ratan Tata created a Tata Indica car, it doesn’t work in the market because of which he faced a great loss, hence to overcome the loss experts and his partners suggested him to sell his company, he unwillingly accepted the suggestion. With the decision of selling, he went to America to sell his company to Ford Company. When he was in the meeting at that time ford company’s owner Insulted Ratan Tata.
Ford Owner said: “WHEN YOU DON’T KNOW HOW TO MAKE CARS, WHY YOU EVEN TRIED. WE ARE DOING A GREAT FAVOUR ON YOU BY BUYING YOUR COMPANY”.
This thing wasn’t liked by Ratan Tata, hence he left from there with his partner and refused to take the deal. He didn’t waste his anger and insult, and he took that insult as a motivation. After which he did a lot of hard work, he did a lot of research, and finally, he took Tata Motors to a huge successful position, things didn’t stop here. A time came when Ford company wasn’t working properly, ford company was facing the loss, because of the loss Ford decided to sell their two brands Jaguar and Land Rover. When Ratan Tata came to know about this, he decided to buy both the brands, as a result, Bill Ford sold both of his cars to Ratan Tata By Saying that YOU ARE DOING FAVOUR ON US BY BUYING THESE TWO BRANDS.
This is the best way to use emotions and taking revenge. Most of the people in anger abuse, say bad things fight and do bad to themselves, But Ratan Tata used his anger as motivation and converted it to a profit. Even you should be like this, instead of getting defeated by the emotions, use your emotions for winning.
4) Teamwork.
Ratan Tata says that a single person can’t achieve great things, a great team is must be needed to achieve great things. Every single employee who is working with you is your team, and you need to take care of your team. Now let’s talk about facts, Tata was the first company who brought an 8-hour working rule in 1912, which was later followed by Henry Ford in 1917. Tata started giving medical health benefits to their Employees which again inspired many companies worldwide and started following it. Tata Group always trusts and values their team members, hence you listen from many people that, “if you want to earn in India then invest in Reliance but want to work, then work for Tata”. Remember that teamwork is very important for your success and your teamwork will be best when you will have a strong team, and your team will become strong when you give value to your team.
5) Believe in Your Decisions.
Many people were doubted Ratan Tata’s decisions many times. For example, when he didn’t sell his company to Ford, when he refused to sell companies that were going through loss when he bought Tetley Tea in 450 million dollars, his decisions were questioned many times. However, he had believed in his decisions, therefore, he took it without listening to others, and he made Tata tea world’s second-largest tea company. it’s not like Ratan Tata never took the wrong decisions, but the most important thing which he again said to students in a speech was:
“THAT YOU MUST DO WHAT YOU BELIEVE IN RIGHT, WHAT YOU THINK IS RIGHT, MANY TIME PEOPLE WILL SAY MANY THINGS TO YOU, THEY WILL SAY WRONG TO YOU. MAXIMUM TIME PEOPLE WILL NOT SUPPORT YOU, VERY FEW WILL SUPPORT YOU, BUT IF YOU BELIEVE THAT WHAT YOU ARE DOING IS RIGHT, THEN YOU MUST GO FOR IT EVEN IF IT IS TOUGH”.
Yes many times you will make the wrong decisions but you must not afraid of it, you must learn from it and be more intelligent with your next decision.
6) Take Chances.
Ratan Tata Says that we must take chances in life just like other creators such as Apple, Amazon, Facebook, Google, etc. All these companies come under the world’s biggest companies, but all these companies started with their small garage, they didn’t have big companies backup, they didn’t have a lot of investment money, but still, these companies are dominating market why? Because they had chances they showed the courage and made their idea a reality. Hence if you want to grow in life then you have to take chances, you must move out of your comfort zone and has to show some daring and have to do something different.
7) Give To Recieve
Many people have a question, that when Tata earns so much more than Reliance in Numbers, then why we don’t hear Tata’s name in the world’s richest people or businessman, whereas Mukesh Ambani name always comes under the richest man list. Well, this is because Tata groups give 65% of its income to charity. That charity amount goes for poor kids education, medicine, and rural development. In an Interview, Ratan Tata Said that Mukesh Ambani is a businessman and I am an industrialist, we have different goals. Since the very beginning, Tata Group Think more about people compare to money, they want India to move forward.
For example, Tata came up with a Nano car because they wanted Indians to experience cars at a low price, therefore even after facing loss, they didn’t close the nano car company or manufacturing. In 2019 Diwali Tata Group Gave thousand crore to Cancer patients as a gift, and for COVED-19 Tata Grup donate $200 million for the making of hospitals and ventilators.
Ratan Tata says that “if you are studying and if you are doing good in your life then it is your duty and responsibility to do for others you have to do something good for your country. You shouldn’t consider yourself successful by comparing to your wealth, you should feel successful when you go to bed and feel satisfied that yes I did something great, I brought some positive changes to the world, to the society, no matter how small the difference it, at least you did it.”
Everyone can bring such difference to the world and society and surely even you can do it.
These powerful lessons I have shared from Business Kohinoor book, and also mixed the knowledge with different sources. I hope you enjoy this story and learned some lessons.
Thanks for reading.
