"Ratan Tata Had Early Doubts on Cyrus Mistry's Leadership, New Book Reveals Deep Rift"

A new biography, Ratan Tata: A Life by Thomas Mathew, unveils Ratan Tata’s initial doubts about Cyrus Mistry’s ability to lead Tata Sons, even before Mistry officially took over as Chairman. The book reveals that by the end of Mistry's first year as "Chairman-designate," Tata was already questioning if Mistry was the right fit for the position. Although Tata backed Mistry’s selection in 2011 after a global search by a special committee, he soon noticed differences that led to concerns.

Mistry became Chairman-designate in 2011, officially stepping into the role after Tata's retirement in December 2012. At the time of Mistry’s appointment, Tata made two important conditions: Mistry had to cut all ties with his previous role at Shapoorji Pallonji Group and complete a year of "parallel running" with Tata to gain firsthand knowledge of managing the conglomerate. This detail, the biography reveals, came from interviews with Tata, family members, and colleagues.

The book highlights how Tata began to see "sharp interventions" from Mistry that didn’t align with the Tata Group’s values. While Tata acknowledged that Mistry was quick to point out strategic issues, he grew uncertain if these skills would truly benefit Tata Sons. Tata later regretted not fully assessing Mistry before his appointment, though some critics say this was due to Tata’s own withdrawal from the selection committee.

The Contentious Dismissal of Cyrus Mistry

On December 28, 2012, Mistry took over as Chairman, but four years later, in October 2016, he was removed from the role after the Tata Trusts lost confidence in him. This led to a major public fallout with legal disputes and boardroom conflicts. According to the book, Nitin Nohria, a former dean of Harvard Business School, described Mistry’s removal as one of Tata's hardest decisions. Venu Srinivasan, a director at Tata Sons, said the move took a toll on Tata’s principles.

The book adds that Tata hoped Mistry would voluntarily step down when it became evident he no longer had the board’s confidence. Tata remarked, “Even for me, firing him this way was not our style of doing things.” Legal advisors, however, had cautioned that if Mistry was not removed decisively, it could lead to prolonged court battles.

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