Tata Group

Strategies for effective Succession Planning and Internal Leadership Training

Chennai 5th July 2007

December 8, 2021
 India’s Largest Business Group

India’s Best Known and Most Respected Business House

Diverse Business in 7 Sectors

Revenues Equivalent to 2.7% of India’s GDP

Largest Employer in the Private Sector

International Income 30% of Group Revenue
Products and Services Exported to 85 Countries
Operations in Over 80 Countries
Group revenue FY 2006: $27.5 bn

Group Profit FY 2006 : $ 3.8 bn

Historical Overview Businesses Entered

Businesses Exited

1880-1925 1925-1950 1950-1975 1975-2000 2000 onwards

Textiles Printing Cosmetics Pharmaceuticals Insurance

Hospitality Airlines Air-conditioning Control Systems Home Entertainment

Steel Chemicals Commercial Vehicles Financial Services Drug Discovery

Consumer
Power International Trade Watches Realty
Electronics
Property
Cement Development Tea & Coffee Oil Drilling Financial Services

Soaps and Toiletries Locomotives Information Technology Telecommunications

Passenger Cars

Auto-components

Retailing
Group Today - 7 Business Sectors
Materials Energy
 Tata Power
 Tata Steel
 Tata BP Solar
 Advance Materials

Services
Chemicals
 Taj Hotels
 Tata AIG Life &
 Tata Chemicals
General Insurance  Rallis
Companies

Consumer Products IT and Communications Engineering

 Tata Tea  Tata Motors

 Tata Consultancy
 Titan Services  TACO Group
 Trent  Tata Teleservices  Voltas
 VSNL

28 Listed Companies ; 280,000 employees

Group Revenue
Rs. Cr
1,20,000

96,723

79,912

65,424

54,227
49,457
41,290
38,607
34,30034,59134,291
29,100
24,702
18,953
14,08715,995

91- 92- 93- 94- 95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05 06
92 03 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Group PAT
Rs. Cr
11,500
9,461
7,945

5,714

3,893
3,431
2,706
2,365
1,831 1,956 1,861 1,987
1,132 1,098
773 724

91- 92- 93- 94- 95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05 06
92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Growth Agenda

1. Domestic Leadership

2. Globally Competitive

3. Internationalisation

4. Expand Addressable Market

 Going Global

2000-05 2005-06
2005-06 Green
Green Fields
Fields

Tata Motors – Daewoo HV

Tata Chem – Brunner Mond Tata Tech - INCAT

IHCL - The Pierre Tata Tea - Tetley Tata Tech - Cedis

TACO – Wundsch Weidinger

VSNL - Tyco Global Network
Tata Chem - IMACID
Tata Interactive – Tertia Edusoft

Tata Steel – Millennium Steel

Tata Tea- Good Earth Tata Motors – Hispano Carrocera
VSNL - Teleglobe
IHCL – Blue
Zambia:
Zambia: Bus
Bus body
body building
building plant:
plant: Tata
Tata Zambia
Zambia

South
South Africa:
Africa: Ferro
Ferro Chrome
Chrome Plant:
Plant: Tata
Tata Steel
Steel
TCS - Comicrom Second
Second National
National Operator:
Operator: VSNL
VSNL
Tata Steel – NatSteel
Uganda:
Uganda: Coffee
Coffee
plant:
plant: Tata
Tata Coffee
Coffee Tata Steel – AMCI

Bangladesh:
Bangladesh: Steel
Steel Plant;
Plant; Tata
Tata Steel
Steel TCS- Financial Network Services
Fertiliser
Fertiliser Plant:
Plant: Tata
Tata Chemical
Chemical
Power:
Power: Tata
Tata Power
Power
Global Acquisitions

2000 – 2004 2005 - 2006

Tata Tea Tetley Group, UK Tata Motors Hispano Carrocera, Spain
VSNL Gemplex, US Tata Steel NatSteel Asia, Singapore
Tata Motors Daewoo Commercial Vehicles Tata Chemicals Imacid
VSNL Tyco Global Network, US VSNL Teleglobe, US
TACO Wundsch Weidinger, Germany
Tata Technologies INCAT International, UK
Tata Tea Good Earth Corporation, US
TCS FNS, Australia
TCS Comicrom, Chile
Tata Steel Millennium Steel, Thailand
Indian Hotels W, Sydney , Pierre NY
Tata Chemicals Brunner Mond
Tata Interactive Tertia Edusoft GmbH, Germany
& Tertia Edusoft AG,
Tata Coffee Eight ‘oClock Coffee, US
Tata Tea Energy Drinks

2007
Tata Steel Corus
IHCL Boston, San Francisco
India - Changing Demographics will significantly affect
Industry.

Demographic Structure Population

（ millions 、 2005 ） （ 100million ）
80+
M 70-74 F
18
60-64
India

50-54 16 India
40-44
Total
30-34 14 China
20-24
10-14 12
0-4
10
80 40 0 0 40 80
8
80+
70-74 6
60-64
India
China

50-54 4 Age
40-44 China between
30-34 2 15-34
20-24
10-14 0
0-4 2000 2010 2020 2030 2040 2050
80 40 0 0 40 80
Source ： World Population Prospect (United Nations)
Talent Management @ Tata
Tata Talent Pipeline

Initial Feed Lateral Feed Performance and Training Mobility

GET, MT’s Potential Filters

F E ED
HPM
e e d
F

HPM
Initial Feed Identification
TAS Process
GCAT
HRDP , Legal Leadership
Training Mobility
International Development
Interns
 Introduction to PPM

Systematic and periodic discussions held for identifying and calibrating

capability of managerial employees to build leadership depth and talent
in the organization.

The focus of PPM’s

 Identification
 Calibration / Classification
 Development
PPM Building Blocks

 Individual Development Profiles

 PPM Panel

 PPM Schedule
 Individual Development Profile

 IDP is a fact sheet about the individual.

 Is prepared by the manager of the employee.

 Is endorsed by the Function/SBU Head and finally signed off by the CEO of the company.

Personal Details: Age, Work & Career

Education Details

Development Plan Performance

IDP
Data

Tata Work
Tata Leadership
Level & MCPA
Practices Data
Assessment
 Tata Leadership Practices

Leadership of Results Leadership of Business Leadership of People

Drive for Results Managing Vision & Purpose Taking Ownership

Timely Decision Making Strategic Capability People Development

Customer Focus Dealing with Ambiguity Interpersonal Effectiveness

Innovation Management Business Acumen Withstanding Pressure

Functional Excellence Building Effective Teams

The PPM Panel

Co 1 Co 2 Co 3 Co 4 Co 5 Co 6

GCC 1

GCC 2

GCC 3

GCC 4

Peer MD 1

Peer MD 2

Peer MD 3

Peer MD 4

EVP Group
HR

MD/CEO

HR HEAD

Typical Panel consist of at least 1 GCC member , 1 Peer MD , Co MD ,

Co. Head HR and EVP Group HR
 Talent Management Schedule

1 Annual Performance 2 Talent Review within 3 Presentation of Talent

Review & Development Business Unit/Function Review by BU /
need discussions with Functional Leaders to
individual employees MD/CEO
Manager / Employee BU Leadership Team & CEO
BU Leadership Team Jul - Aug
Apr - Jun Jun - Jul

5 4 Talent Review at Company

Implement Development & Movement level
plans
•In Company Identification of HPMs and
•Cross Company / Group Level their Development and
Movement Plans
CEO & HR Head
7&8 Sep - Mar CEO & HR Head
Aug

6
Implement agreed cross Group PPM discussions
company Movement
Agree on Development &
plans & Group level
Movement plans
Development programs
CEO & Head HR and CEO & Head HR and
Group HR GCC / Peer MD / Group HR
Oct – Sep Sep – Feb
 HPM - Classification

X Cross Company Cross Company

In Function Cross Function
C
o
m
p
a
In Company In Company
n In Function Cross Function
y

IN Function X
 PPM – Outputs

Identification / Classification

Development Plans

Company Initiated Training

Assignments
Mobility
Training
Assignments
Mobilty
Group Initiated
Development of Talent
How Does Development take place?

• 10 % Training Courses

• 20 % Interaction with People

• Coaching, Mentoring, Experts, Colleagues

• 70 % Challenging Jobs
Tata Leadership Development Programme

International
Consortium TGSLS
Program
Level C+

TGELS
Level D and C
Functional
Leadership
Programs

TGYLS
Level F and E

Over 800 managers covered in last 5 years and over 65%

are from HPM list
Thank You