Why cultural consistency, values are key to building enduring institutions

From JRD to Ratan Tata to N Chandrasekaran, the Tata story shows how enduring institutions survive turbulence by renewing strategy while staying anchored to core values

Turbulent times may trigger cultural inconsistency in organisations. Long-living institutions need consistent values. In fact, the older the institution, the more crucial consistent values are — the upholding of institutional values and purpose, though individual leadership styles will differ. History teaches us that leaders should not dwell on past glory; rather, they should focus on creating an exceptional future (Paul Kennedy’s The Rise and the Fall of Great Powers). From my world of corporations, I explore three leadership transitions: JRD Tata, Ratan Tata, and N Chandrasekaran. For JRD, I rely on archives and narratives; for Ratan, I rely on my lived experience; for Chandra, I rely on reports. No corporation or leader is perfect.

 

Here are lessons about consistency in institutional culture: 

1. Perform without blaming predecessors: When JRD took over in 1939, he was young (35) and inexperienced. The business faced great stress due to unsuccessful past investments and efforts. JRD never criticised, he did what was needed. In response to new monopoly laws, he reluctantly watched the reduction of Tata shareholding in many key companies and diluted the interconnection among companies. Ratan did the opposite —strengthening Tata shareholding in companies and increasing the interconnectedness of Tata companies, without ever criticising JRD. Ratan unified Tata like Sardar Patel and V P Menon did for India in 1947. Now, Chandra demonstrates institutional continuity by demanding that companies execute three S’s — simplify, synergise, and scale. 

2.  Adopt what is relevant for the times yet keeping the core intact: JRD faced the turbulence of controls, socialism, and the consequent public corruption. JRD emphasised Tata values, which, in hindsight, was exemplary for his times. Ratan grasped shaping up as his theme. He advocated strategic and operational excellence, high ethics, and innovation. Chandra is advancing the game by seeking more boldness and risk-taking in response to turbulent times. Chandra discusses, debates, and then demands disciplined execution, a great way forward for a complex organisation. 

3. Impact the future: JRD created Indian civil aviation with Air India. He supported Darbari Seth to invest in indigenous technology development in Tata Chemicals, which was considered a hopeless investment in early days. JRD trusted Faqir Chand Kohli to seed and nurture Tata Consultancy. Recall Kohli’s legendary plea to Tata Sons in 1971, “Allow TCS to import just one computer for ₹4 crore, and TCS will pay back Tata Sons several times over.” Ratan admitted that Tata Motors occupied a special place in his heart. He trusted a young team of engineers to launch India’s first indigenously engineered Indica. He wagered his own reputation on an imaginative Nano car. Chandra has placed a truly long-term bet on Air India, which we hope may become corporate India’s greatest turnaround story. He has placed a big bet on semiconductors and electronics manufacturing, comparable to Jamsetji’s bet on steel making, and addressing Kohli’s regret that India had missed the microelectronics revolution. 

4.  Be true to who you are: Turbulent environments pressure leaders to be expedient. The challenge is to be practical and yet authentic. JRD was deeply conscious of his lack of technical training and yet he supported Homi Bhabha in setting up the Tata Institute of Fundamental Research (TIFR). He championed the setting up of the National Institute of Advanced Studies (NIAS). He supported Jamshed Bhabha in pioneering the National Centre for the Performing Arts (NCPA). Ratan’s failed attempt in the mid-1990s to set up an airport and airline business is well known because he would not compromise on institutional ethics. Likewise, his decision to move the proposed Nano plant from Singur came with financial cost and reputational risk, but he did what he thought was right. The 1989 JRD Tata response after the Jamshedpur fire, the Ratan response after the 2008 terror attack at the Taj Hotel, and the 2025 Chandra response after the Air India crash all bore a consistent cultural flavour: Calmness, clarity, and conviction. 

This is not a eulogy for Tata leaders, who were, and are, people with faults. Neither is it a prescription for Indian companies, or even for our nation. This narrative exemplifies the four sound pillars for renewal and transformation: (i) Perform without blaming the past, (ii) adopt what is relevant for the times, yet keeping the core intact, (iii) impact something futuristic, (iv) be true to who you are. 

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The author’s book CHANAKYA AND SUN TZU: A Business Lens on Trade, Thought, and Travel between India and China, coauthored with Nirmala Isaac, will be published in February    gopal.mindworks@gmail.com