Many startups are coming but within 5 to 10 Years almost 90 percent startup went to shut down but Tata company are rising and sustainable from 150 years.
How this is possible, how their leaders implement their ideas to make it succeed for a long time.
Ratan Tata, chairman of Tata group of companies during his 21 years leadership, he makes a profit 50 times and turnover 40 times. During his leadership, he also expands Tata Group abroad also.
How Ratan Tata achieved so much success, here are the 7 lessons you will learn from him by which you apply in your company.
- TVC (Trust Values Commitment) Rule
Ratan Tata always follows this principle inside the company. He selected Cyrus Mistry as chairman after 2 years of searching for the best people from industries. After one-year controversies occur between Cyrus and Ratan Tata. Due to this Ratan Tata fired Cyrus from chairman position. Many people said it was the wrong decision he made without knowing why this happened. During 2009 Japanese company DoCoMo bought 26 percent share cost Of 15000 crore on mutual condition that whenever DoCoMo wants to break the partnership then Tata Company will give the amount equals to the number of share price according to the market rate. When Tata Teleservice company going through the bad phase then DoCoMo company wants to sell their shares and want to go outside of India, that time Cyrus Mistry didn’t pay it and say we can’t give your company shares. He thought about only profit, not on the “Trust Value and Commitment” rule which many companies were already learned from the Tata company. Because of that Ratan Tata fired Cyrus Mistry from chairman position. Ratan Tata always believes that you should think about profit but not giving up Your “Trust Value Commitment” rule because for the long-term growth you have to build great trust with your partner and shareholders.
- Art of Listening and Learning
During the early phase of the Tata Company, he had done everything from bottom to top work. When he attended the convocation of college, he said students should not think that when you graduated it doesn’t mean that you have learned everything. For the success in long-term, you have to think about how is your listening and learning skills and how you implement in the company. So Ratan Tata learns that thing from bottom to top work and applies to his company.
- Use Emotion for success
When Tata launch their car Tata Indica, it didn’t work and company went under loss. Many people advised him to sell the Tata motors so he went to America to meet the owner of the Ford Company. He said, Ratan Tata if you don’t know to manufacture car why you make it and I am buying it to favor you for what you had done this bad work. Ratan Tata didn’t sell the company, and use his emotion to success and make it Tata motors a huge success. Time passed and the day came when Ford Company wanted to sell Jaguar and Landover car because of loss. Ratan Tata wants to buy those companies. Therefore he went to the Ford company and bought both. The owner of Ford said to Ratan Tata that you are favoring me for this. So always use your emotion and use it as a motivation for success. Never ever waste your emotion.
- Teamwork and Care
Teamwork always plays a crucial role to make your company to huge success. For that, you have to build the best team and you will get the best results. Tata is the first company which came with 8 hours of work per day during 1912 after that many companies applied this rule. Even the Ford Company also applied this rule. So to make the company huge success you have to give values and care toward your employee. Without teamwork, you will not get success.
- Believe in Your Decisions
Many people criticized Ratan Tata that he is not selling those company in which he is getting the loss. In fact, he bought Tetley Tea for about 450 million Dollars. Due to this, many criticized him. But on his belief and workability, he made Tata Tea to the world’s second largest tea company. We took the bad decision but when you are believing in your decisions and believe in your ability you will achieve success. If you are thinking that you are taking the right decisions then don’t think about being criticized by the others. Just do your best.
- Take Chances
During the early days, many companies like Apple, Facebook, and Amazon started their work in the home basement or garage. Their leaders took chances whether they have not so much money. They believe in their ideas and work hard to implement it, so always dare to take chances and believe in your ability.
- Give to Receive
During an interview when somebody asked Ratan Tata you have more companies than Mukesh Ambani. Then why you are not richer than Ambani. He said, I am an industrialist and he is a businessman. Being wealthiest, it does not mean that you have achieved more success than others. What are you learning and getting from society, you also have to payback values to society. When Tata launch Nano car he thought how the middle class will get the affordable car. He got the loss but didn’t shut the manufacturing of Nano, because he wants to give something to society. Tata Company gives 65 percent of revenue to charity for society. Thus if you can give something valuable to society it leads to success and always aim values over profit in the company.