Paul is an outsider (a non-TCS), and sometimes it is safer to hire a top executive from outside
In technology, IBM holds the gold standard on how to undertake succession planning. Potential candidates were selected early on in their careers and then fast tracked through jobs, so that there was always a deep pool to choose from whenever an executive spot became available. From these top executive spots the new CEO was generally chosen with the exception of Louis Gerstner, who was brought in to turn the company around in the late 80s. While not as robust a process, Tata Consultancy Services does appear to show some similarity in the apparent grooming of Ramadorai into the role, which is now followed by N. Chandrasekaran, who now appears competently capable of taking on the mantle as the chief executive of TCS. You look for consistency in a process like this because you can draw conclusions from prior successes to anticipate future results. Ramadorai’s success implies that Chandrasekaran will be successful as well in this role.
This is a sustaining transition. In other words, TCS is in a relatively good shape in an ugly market and this typically means that the management wants a sustaining manager, who will continue with what has been a successful strategy and not a disruptive change agent.
In technology, IBM holds the gold standard on how to undertake succession planning. Potential candidates were selected early on in their careers and then fast tracked through jobs, so that there was always a deep pool to choose from whenever an executive spot became available. From these top executive spots the new CEO was generally chosen with the exception of Louis Gerstner, who was brought in to turn the company around in the late 80s. While not as robust a process, Tata Consultancy Services does appear to show some similarity in the apparent grooming of Ramadorai into the role, which is now followed by N. Chandrasekaran, who now appears competently capable of taking on the mantle as the chief executive of TCS. You look for consistency in a process like this because you can draw conclusions from prior successes to anticipate future results. Ramadorai’s success implies that Chandrasekaran will be successful as well in this role.
This is a sustaining transition. In other words, TCS is in a relatively good shape in an ugly market and this typically means that the management wants a sustaining manager, who will continue with what has been a successful strategy and not a disruptive change agent.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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