The heroism of the employees of the Taj Mahal Palace & Tower hotel was one of the few

heartening stories that came out of the 26/11 Mumbai terror attacks that took place exactly two years ago today. Less than three weeks ahead of the anniversary, U.S. President Barack Obama and his wife Michele, on their first trip to the country, expressed their solidarity with the people of India by staying at the historic hotel, and Mr. Obama noted the many acts of bravery of the hotels employees in his first speech in India. Rohit Deshpande, professor of marketing and branding at Harvard Business School, has studied that selflessness and written a case study on his findings: Terror at the Taj Bombay: CustomerCentric Leadership. India Real Time spoke to Mr. Deshpande via phone and e-mail about the case study, his experience interacting with the hotels employees and the effect this study had on his students. Edited excerpts: IRT: How did the case study come about?

AFP/Getty Images

Mumbaikars left candles near the Taj hotel a few days after the attacks as paramilitary troops still stood on guard.

Deshpande: A year and a half ago, I was writing another case on the Taj hotels, which was about branding. The Indian Hotels Company Ltd., as we all know, has so many brands within itselflike Vivanta and Gingerand has been growing in their global presence. In Boston, where I live, The Ritz was taken over by the Taj group and is now Taj Boston.

During the process of writing this case, I spoke to numerous people and the issue of 26/11 constantly came up. While I came across the issue of has our brand been irreparably damaged after 26/11, I also heard numerous stories about the exceptional courage of the employees of the Taj Mahal Palace & Hotel and thought to myself, this is a leadership case study that must be written about and that the world needs to know about. So, I sought permission from Mr. Ratan Tata to come back to work on this case study. IRT: Tell us about the case study. Deshpande: We at Harvard treat cases as learning points. But they are also a kind of a puzzle that students need to think about to solve. The subtitle of this particular case study is CustomerCentric Leadership and how the employees of a company went beyond their call of duty. The learning point in this was the incredible customer-centricity of all the Tajs employees, which far exceeds the best cases documented earlier, for example, the famed Singapore Airlines service. My case looks at what happens when employees of a company have such amazing focus on their customers. Not necessarily guest-focused or planned or what they train for, but a selfless service. The puzzle, for students to think about in this case, is what explains such behavior. Even when I was talking to top management people from within the organization, they could not understand why the employees did what they did. It was as challenging a puzzle for them. I remember speaking to R.K. Krishna Kumar, Indian Hotels vice-chairman, and he said he didnt quite understand that at a time like that, how come the hotels employees didnt flee. They knew the secret routes and could have saved themselves, but, they instead helped guests escape and then came back into the hotel to rescue more guests. Students studying the case need to try to understand what explains this behavior. The case Terror at the Taj Bombay: Customer-Centric Leadership is set against backdrop of the Taj terror attack on 26/11 and shows how leadership displayed by those from the lowest to the top levels in the organizational hierarchy helped in saving lives. It explores the issue of organizational culture and how that culture can be distilled into each and every employee. IRT: What can governments and corporations learn from this case study? Deshpande: The notion that governments and corporates can learn from has to do with governance, values and the way great organizations are governed. So, whether it is an A. Raja in the telecom ministry or a chief minister having something to do with an Adarsh scam or graft in the

banking sector, I dont think people have thought through the notion of governance and values. And, I also dont think this is only an Indian situation. It may be in a different context, but it happens across the globe. If there could be one positive of scams, it is that these sorts of crises will get the leaders of organizations to focus on good governance because of public out cry and the constant media spot light. (Mr. Raja recently resigned as telecom minister under pressure over the allocation of second-generation spectrum to phone companies in 2008; the Adarsh scam refers to allegations that flats in a housing complex intended for war veterans and widows in Mumbai were diverted to other beneficiariesIRT) I think a good rule book to follow would be the Tata code of conduct. I think, its something companies and organizations all over the world should look at. They have a very unusual governance mechanism where they care about shareholders, but they are also very concerned about their employees and giving back to society. IRT: What was your experience interacting with the subjects of the Taj leadership case study? Deshpande: The case study is based on taped interviews with the banquet staff, kitchen staff, security, reception people and all the way up to the senior management of the Tata Group. Theres not just one single thing that struck me about them as a collective group during my interactions with themthere are numerous things. But, if I had to point out a couple, I saw this amazing heroism in employees in all levels of the hierarchy. A banquet manager whom I interviewed was just 23 and she was also helping rescue guests. And its not like they were doing just what they were trained for, they were going beyond and being extremely smartwith a presence of mind even during the crisis. The telephone operators could have left, but they stayed on the job the whole night, calling guests and asking them to switch off lights, turn off mobiles, block keyholes with the rooms key so that nobody from outside could look into the room. It was an inspiring and amazing experience for me just listening to them. IRT: How did your students respond to the case study? Deshpande: have taught this case at Harvard University in Boston just once so fara month agoat an executive program for entrepreneurs of family-owned businesses. Non-Indian participants were just awed to learn about the corporate governance of an Indian conglomerate like the Tata group, of the tenure of many employees running into decades and donating two-thirds of their profits to social causes. And while people abroad may know that Tata

is the company that took over Corus or bought Jaguar, they do not necessarily know much about the company. Indian participants were more intrigued by the notion of how employees have this kind of loyalty and how the Tata group retains and commands that loyalty. The class received a very good response and most students termed it inspirational. This is not just a case for study at Harvard and it is my hope that universities and educators around the globe pick this up as an example of exemplary leadership behavior from the bottom of the hierarchy upwards. While the case is a timely reminder of the heroic efforts of ordinary citizens at a time of terror, there is also broader learning from the case for audiences around the world on issues of customer-centricity, creating organizational culture, creating exemplary employee commitment and leadership.

Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. It is one of the largest conglomerates in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. It comprises 114 companies and subsidiaries in eight business sectors, Tata Group is held in charitable trusts.
[5] [4] [3]

27 of which are publicly listed. 65.8% of the ownership of

Companies which form a major part of the group include Tata

Steel (including Tata Steel Europe), Tata Motors(including Jaguar and Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea(including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Sons, Tata Teleservices and the Taj Hotels. The group takes the name of its founder, Jamsedji Tata, a member of whose family has almost invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata, who took over from J. R. D. Tata in 1991. The company is currently in its fifth generation of family stewardship.
[6]

The

group has more than 100 companies and Tata Sons is the promoter of all key Tata companies and holds the bulk of shareholding in these companies. The chairman of Tata Sons has traditionally been the chairman of the Tata group. About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family.

The 2009, annual survey by the Reputation Institute ranked Tata Group as the 11th most reputable company in the world.
[7]

The survey included 600 global companies. The Tata Group has helped establish
[8][9]

and finance numerous quality research, educational and cultural institutes in India.
[10] [11]

The group was

awarded the Carnegie Medal of Philanthropy in 2007 in recognition of its long history of philanthropic activities. Tata gets more than 2/3 of its revenue from outside India. In June 2011, based on market
[12]

value Tata Group has become India's wealthiest group with $98.7 billion.
Contents
[hide]

1 History 2 Tata Group of Companies 3 Philanthropy 4 Controversies, and Environmental record

o o o o o o o

4.1 Munnar, Kerala 4.2 Kalinganagar, Orissa 4.3 Dow Chemical, Bhopal Gas Disaster 4.4 Supplies to Burmas military regime 4.5 Land acquisition in Singur 4.6 Dhamra Port 4.7 Soda extraction plant in Tanzania

5 2G Spectrum controversy 6 Acquisitions 7 Recognition 8 See also 9 References 10 External links

[edit]History The beginning of the Tata Group can be traced back to 1868,
[13]

when Jamsetji Nusserwanji

Tata established a trading company dealing in cotton in Bombay (now Mumbai), British India.

This was

followed by the installation of 'Empress Mills' in Nagpur in 1877. Taj Mahal Hotelin Bombay (now Mumbai) was opened for business in 1903. Sir Dorab Tata, the eldest son of Jamsetji Tata became the chairman of the group after his father's death in 1904. Under him, the group ventured into steel production (1905) and hydroelectric power generation(1910). After the death of Dorab Tata in 1934, Nowroji

Saklatwala headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The group expanded significantly under him with the establishment of Tata Chemicals (1939), Tata Motors, Tata Industries (both 1945),Voltas (1954), Tata Tea (1962), Tata Consultancy Services (1968) and Titan Industries (1984). Ratan Tata, the incumbent chairman of the group succeeded JRD Tata in 1991.
[15]

Tata Group

Type

Privately held company

Industry

Conglomerate

Founded

1868

Founder(s)

Jamsedji Tata

Headquarters Mumbai, Maharashtra, India

Area served

Worldwide

Key people

Ratan Tata
(Chairman)

Cyrus Pallonji Mistry

Products

Automotive, steel, telecommunications, metals,financial services, hotels, property development, energy, engineering products,consumer products,chemicals, information technology, retailing

Revenue

US$ 83.3 billion (2010-11)[2]

Profit

US$ 5.8 billion (2010-11)[2]

Total assets

US$ 68.9 billion (2010-11)[2]

Owner(s)

Tata Sons

Employees

424,365 (2010-11)[2]

Subsidiaries

List of subsidiaries

Website

www.tata.com

On November 26, 2008, 175 people died in Mumbai, India, when 10 terrorists simultaneously struck sites. Of
the five locationsall well-known landmarksthe beautiful domes of the hotel known as the Taj Mahal Palace and Tower would become most closely associated with the horrific attacks in the world's collective conscience.

"Not even the senior managers could explain the behavior of these employees."

A new multimedia case by HBS professor Rohit Deshpand offers a flip side to the nightmarish scenes that unfolded in real time on television screens around the globe. Produced in collaboration with Ruth Page and David Habeeb of the HBS Educational Technology Group, "Terror at the Taj Bombay: Customer-Centric Leadership" documents the bravery and resourcefulness shown by rank-and-file employees during the siege. (The case is not yet available to the public.)

Video interviews with hotel staff and senior executives, combined with security footage of the attack, create a documentary-like account of events that took place over the course of 59 hours. The case also covers the hotel's history, its approach to training employees, the "guest is God" philosophy inherent in Indian culture, and the question of how the hotel will recover after the attacks.

Underlying this framework is a central conundrum: Why did the Taj employees stay at their posts, jeopardizing their safety in order to save hotel guests? And is this level of loyalty and dedication something that can be replicated and scaled elsewhere?

"Not even the senior managers could explain the behavior of these employees," says Deshpand. "In the interview, the vice chairman of the company says that they knew all the back exitsthe natural human instinct would be to flee. These are people who instinctively did the right thing. And in the process, some of them, unfortunately, gave their lives to save guests." A dozen employees died.

Most difficult case

"The other thing is that I grew up there. So the Taj is part of my memories, too. As one of the interview subjects said, the Taj is their Taj, meaning anyone who has ever walked through its doors. It's a place that means many things to many people."

In one interview, Taj general manager Karambir Singh Kang describes his father, a military man, telling him that his job is like being the captain of a ship. "I think that's the way everyone else felt, too," says Kang. "A sense of loyalty to the hotel, a sense of responsibility to the guests." Several hours into the siege, Kang's wife and two young sons died in a fire that swept through their apartment on the hotel's top floor. Even after receiving the news, he insisted on staying at his post to help direct a response to the ongoing attack. (The battle for control at the Taj would continue a full two days after other locations had been secured.)

Nothing in the employees' training could have prepared them for such an unprecedented situation, Deshpand says. Yet further interviews and text documents from the case provide background on the unique culture of

Tata Sons, the Taj's parent company, while also revealing the exacting process for selecting, training, and rewarding Taj employees for their work.

Mandate to delight
Awards are given for longer terms of service, for example, with Group Chairman Ratan Tata (HBS AMP 71, 1975) personally recognizing those who have served 10 to 35 years and more. Employees who have demonstrated outstanding service are selected for inclusion in the Managing Directors Club and recognized across the organization.

Such incentives aren't so unusual, of course. But interviews with senior management demonstrate how seriously the task of building a customer-centric culture and value system is taken at the Taj and its parent company, Indian Hotels.

"Every time they interact with a guest they should look for an opportunity to delight him," says H.N. Srinivas, senior vice president of human resources. During a 24-hour stay, a guest will have an average of 40 to 42 contacts with employees. "We've mapped it," he explains.

When it comes to selecting employees, Indian Hotels CEO Raymond N. Bickson describes how he first looks for "nice people who are not afraid of serving people." He can teach them to be a bellman, a waiter, or a desk clerk, he continues. "But I can't teach them to be nice. I can't teach that spirit of ownership."

"In India and the developing world, there's a much more paternalistic equation between employer and employee," says Ratan Tata, chairman of Tata Sons. "I think that creates a kinship." Every employee donates a small portion of their salary to a pool that can be drawn on in the event a colleague suffers an accident or other significant personal setback.

To date, Deshpand has taught the case in the School's Owner/President Management Executive Education program; he expects it to be used more widely, particularly since it can also be taught as an example of managing the postcrisis recovery of a flagship corporate brand.

No clear answer
The question of why the Taj employees demonstrated such loyalty elicited a variety of responses from students, Deshpand says.

"For example, some suggested that it has to do with governance of the Tatas; two-thirds of their profits are donated to charitable causes, so the employees feel that they are working for a higher good." But the IT firm Tata Consultancy Services has had many of the same difficulties with employee retention that other Indian IT firms experience. "In that case, the loyalty might be more to self rather than to the organization," he says.

A definitive answer to the question of why the Taj employees behaved as they did may not be possible; but managers who read and view the case will likely come away with a clearer sense of what it takes to build a particular culture and value system and how to recruit, train, and reward employees in nonmonetary ways.

"It's all of those very specific things that build a customer-centric culture in an organization," Deshpand says. "This example far exceeds anything I've seen before."

Julia Hanna is associate editor of the HBS Alumni Bulletin.