December 26, 2017 6:55:08 pm
Tata Sons Chairman N Chandrasekaran on Tuesday asked employees of the group to focus on simplification, synergy and scale in order to cash in on opportunities emanating from an expected 4 per cent growth of the global economy next year.
In his new year address to over 6.95 lakh employees of the salt-to-software conglomerate, he said globally it is a “time of deep transformation, with many exciting new developments, coupled with a heightened sense of uncertainty”.
“On balance, I am firmly optimistic: the global economy is set to grow at 4 per cent year-on-year in 2018-—the fastest pace since 2011. Global expansion in this coming phase of the cycle will rotate increasingly towards developing markets— especially India,” he said.
Chandrasekaran, who took over as the chief of the Tata group in February this year after the unceremonious ouster of Cyrus Mistry last year, said he was “more convinced than ever before about the future power and potential of the Tata businesses”.
The House of Tata remains a cornerstone of India’s growth story, and will continue to play an influential role on the global stage, he said.
“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,” Chandrasekaran said.
After taking charge at the helm of the over USD 100 billion group, he has been focusing on reducing cross holding among group companies, while also working to exit from businesses where group entities are not significant players.
Reiterating the stand, Chandrasekaran said, “To thrive in a world of rapid change, we need to reduce complexity across businesses and simplify. This will help us respond and react faster.”
It will also bring agility and spur faster decision-making across the group, he said, adding, “We must make our management and organisation structures simpler and impactful”.
Exhorting for synergies among group companies, he stressed on the need for a ‘One TATA’ approach, leveraging collaboration between Group companies and associates, to be a force multiplier.
“‘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,” Chandrasekaran added.
“To grow and innovate consistently, we must anticipate synchronicity,” he added.
With digital revolution “putting technology at the heart of all industry to deliver real time value to an interconnected network of users”, he said Tatas “can distinguish ourselves in this networked world: first by being bold, enthusiastic and early adopters; and second by cultivating an obsessive focus on customer experience”.
“Unlocking the hidden productivity of the Tata ecosystem can catapult us to a new level of sustainability and performance,” he said.
Reminding the employees that the Tata group has presence in many sectors which have potential to scale, he said,”Each of them presents significant opportunity of growth. We need to scale through growth, consolidation and collaboration.”
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