Page 107 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 6: Management by Objectives and Styles of Management

mean achievement. Yet, it is extremely difficult to articulate Ram's management style or Notes
identifying any major steps taken by the company or the IT industry to him.

Ramdorai inherited TCS from FCKohli who had already identified and clearly laid down
the building blocks for TCS business in software and IT services. The key presence in
leading markets like US and Europe was already in place. The business model of hiring
engineers and programmers from across India and posting them on projects abroad and
earning profits by wage arbitrage was well established. Servicing foreign clients from
providing offshore centres in India also began in the late'80s.
In a Business India article which came after Ramadorai took over as the CEO from FCKohli,
Mr Kohli had made a terse comment that " Ramadorai had no vision for TCS, but will
acquire it over time."

The strategy and business model of TCS from the FCKohli era was scaled up by Ramadorai
and his team to levels no one ever thought was possible. Year 2000 presented a great
opportunity to scale up this model and create software factories. Even the decision to
leverage Y2K was not really a conscious decision by Ram/TCS but being with the flow.
The entire Indian IT industry was gearing up for it and having had a headstart in this
business TCS and Infosys made the most of it.
There is no clear evidence or information that some of the acquisitions made by TCS were
actually driven by any grand vision of Ramadorai. It appears that the CMC acquisition
which was part of the disinvestment move of the Govt of India, was a decision thrust on
TCS by Bombay House. The merger of Tata Infotech with TCS also appeared to be a
Bombay House decision to strengthen an ailing company. Even the decisions of not
launching an IPO at the height of the dot-com boom of '99-2000 and finally launching an
IPO in 2004 was more a decision of the owners rather than the CEO's.

It has to be said that after TCS ceased to be a division of Tata Sons and became a public
limited company and was declaring results Quarter after quarter, visibility of TCS and
Ramadorai improved considerably.
Inspite of his frequent appearances in media as MD of TCS or as an elder spokesperson of
the IT industry, Ramadorai's statements or quotes had minimal substance and little impact.
Even his favourites would not accuse him of having any charisma. Ramadorai and TCS
always looked pale in front of the well-oiled PR machinery of Infosys.

In the last five years after the IPO, even though Ramadorai was the CEO, it was becoming
increasingly visible that the day-to-day operations and much of the strategic decisions
were being made by the top team particularly the current CEO, Chandra. The recent
acquisition of Citi BPO or the organisational restructuring of 2007/08 were seen as
Chandra's initiatives rather than Ram's.
Ramadorai had a very minimalist style of management. Being at the helm of affairs of
such a large company, yet appearing very aloof. Sometimes he went along with the
decisions and initiatives taken by his bosses in Bombay House and sometimes by his
team. He did not make any grand statements of vision or put his personal prestige behind
any major decision. Yet, he did not do anything silly. He may appear like a bystander, but
he was very much on the ball in terms of facts and figures. He had the wisdom to know he
had a good thing going in TCS.
Ramadorai may not have been anywhere close to the textbook profile of a great corporate
leader, yet he leaves the top job at TCS as an extremely successful manager. As Ramadorai
moves up as the VC, hoping that Chandra and TCS continue to ride on Ram's luck.

Source: businessbaatein

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