Ratan Tata’s legacy has many lessons for business leaders: Narayana Murthy

Economic Times: Ratan Tata is leaving behind “lessons enough for ages” after leading the Tata group for over two decades, Infosys cofounder N R Narayana Murthy said.

The legacy of Tata, who retires as chairman of the group on Friday, is not just about the numbers but also the manner in which he has grown the business with a strong underpinning of values, he said. Murthy, the prime mover behind the growth of Infosys into a $7 billion (Rs 38,000 crore) software exporter, told ET NOW’s Chandra R. Srikanth in an interview that the governments in New Delhi and Mumbai should seek Tata’s counsel on accelerating economic reforms. Here are edited excerpts:

Q: Ratan Tata is retiring from the Tata group after over two decades at the helm of one of the most respected business houses in India. Can you give us a sense of what you think is his biggest legacy not just for the Tata group but India Inc?

A: The biggest legacy of Ratan is that he has demonstrated extraordinary growth. He has grown the group from $2 billion to $100 billion or something in a factor of 50 times. All of this he has done legally and ethically. All of this he has done demonstrating the highest level of integrity and with courtesy, grace and humility. These are lessons enough for ages. These are lessons enough for business people all over the world.

Q: What are your fondest memories from your interaction with Tata?

A: When we inaugurated our management council room, which I believe is the most advanced council room with perhaps the finest technology in Asia, I had a discussion with my colleagues and we decided to name it after Jamsetji Tata. Jamsetji Tata, as you know, was an extraordinary businessman. He donated one-third of his wealth to start the Indian Institute of Science.

So, when we decided to name the management council room, I decided to invite Ratan to inaugurate that. He was a little bit surprised that we were naming our number one conference room after Jamsetji Tata. I told him, ‘Jamsetji is a beacon and an example on how businesses should be conducted.’ He came and inaugurated it, he had lunch with us, interacted with youngsters. And every one of my colleagues was so impressed with his grace, courtesy and humility.

Q: As he steps down today, he’s leaving a group that’s huge and also very diversified. What are the challenges in the transition?

A: As you become larger and larger, you confront bigger and more complex issues. As companies become larger you also have resources to handle these. So while there will be bigger challenges, many of them international, because Tatas have a huge international presence, given the fact that Cyrus is a smart person, he is youngish, he is dynamic and he has the support of Ratan and others, I have no doubt that he will perform and be worthy of the name of the house of Tatas.

Q: Have you had a chance to interact with Cyrus Mistry?

A: No, unfortunately I haven’t had. I should go one of these days. Of course, he’s very busy now but certainly I will do that.

Q: Post-retirement, what would you like Ratan Tata to do?

A: I only hope the government of India and the government of Maharashtra would involve him in important decisions, take his view on how India should accelerate its economic reforms and growth. He has wonderful ideas. I have sat with him at so many of the PM Council on Trade and Industry meetings. He is a clear thinker, very courteous but firm in his views. He’s a patriot par excellence. And therefore, there is so much where the country can depend on him to take it forward.

Q: So can we expect Tata and Murthy to collaborate a lot more now in the process of nation-building?

A: I think it is really for the Prime Minister to leverage his strengths. I’m involved in a few initiatives and I’ll continue to add value. But I do think that Ratan should be able to add value at a strategic level and I hope the country will leverage that.