More than a year after Cyrus Mistry took charge at Bombay House, the media and employees of Tata Group were still starved to hear what exactly Mistry wants the future of Tata Group to achieve, until recently when Mistry came out of the shadow of former Chairman Ratan Tata and put across his vision for the 600,000 employees of the USD 100 billion group.
Nearly 2000 employees who were present at NCPA on July 29th, were impressed by the articulation of the youngest chairman of the Tata Group, when he presented the Vision 2025.
Employees who heard the Chairman at AGLC 2014 were enthused by the vision that will take the group to be counted amongst top 25 group globally.
My takeaway from those who heard the Cyrus Mistry face-to-face allows me draw a rough sketch of how Cyrus Mistry thinks. Mistry came across many as a confident group leader who knows what the group needs to achieve.
With 70% of groups' revenues now coming from global markets! Mistry wants Tata group to be compared to global peers. His attempt to compare the group to Pepsico, Ford Motors, Bank of China is nothing but benchmarking group's thinking process 'Global'.
(Also Read: Tata Motors at 'inflexion point', portfolio revamp underway )
Mistry may be the first Tata Group Chairman who has his eyes on profitability, not to say others didn't. But he articulated this very clearly to the group leaders. The fact that Mistry want to revert to 8.5% of operating margins is significant. He says a successful achievement of the 2008 margins will add USD 2.5 bn in cash flows. Something which is needed if the group wants to invest USD 35 billion in the next 3 years. Remember this investment equals group's current networth. Clearly as one of the largest shareholder of the group, he wants shareholder return to run parallel to groups' philanthropic philosophy.
Mistry wants the group to transform into a young organisation, wants to bring in more women in the group and boardrooms, including getting them into the GEC.
Tata Sons invested USD 4.6 billion in the last decade in group companies, but that was primarily for inorganic growth and acquisitions. This would continue but it will also bring in sharper focus. And that's why when he says companies and geographies may see consolidation, he means 'perform or perish'.
My guess is, under Cyrus Mistry the Tata Group will see more aggression and decisiveness in terms of sectors they would like to be present.
And that's evident when Tata Sons withdrew itself from banking foray, Mistry says the group can leverage technology and many touch points through various business it runs to create a global financial services business, but if the risk weigh very high for the group's entry into the banking sector, then it is willing to let go the opportunities it dreamt of for decades.
Tata Group also created clusters to focus on - financial services, consumer and retail, defence and aerospace and realty and infrastructure. Though of the USD 138 billion market cap, TCS accounted for over USD 100 billion, he clearly sees the next TCS emerge from this cluster. Mistry may not know who will be the next TCS within the group, he has narrowed it down to these four clusters. And these clusters don't include telecom, steel or automobiles. Not that these last three sectors aren't important, it may be that he knows it may be difficult get another TCS from these three sectors.
Mistry has articulated customer centric approach, scale, prospects and shareholder value at the same time profitability as a key metrics to watch out for. He says market cap and growth has to walk in tandem to achieve Vision 2025 - which will allow 25% of the world population to experience Tata products and count Tata Group to be amongst the top 25 globally amongst market cap.
And though the top leadership of Tata Group got a glimpse of what their relatively Young Chairman wants from them, the Media is yet to get a face to face interaction to decode Cyrus Mistry.
Anda sedang membaca artikel tentang
Decoding Tata Group's Cyrus Mistry
Dengan url
https://kesehatanda.blogspot.com/2014/07/decoding-tata-groups-cyrus-mistry.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Decoding Tata Group's Cyrus Mistry
namun jangan lupa untuk meletakkan link
Decoding Tata Group's Cyrus Mistry
sebagai sumbernya
0 komentar:
Posting Komentar