Tata Group Teamwork - Personal Essay

Think about an instance when you or a team which did not work well together, what challenges did you face and what did you learn from this?

In the summer of 2004, I worked in E.J Markey as an MBA consultant intern to help Tata Group identify an acquisition target in Automotive Forging Factory. I led a team of 8, all of whom were smart people, graduated from tier 1 universities of China.  We divided us into 4 groups. Each group would do due diligence for 2 potential targets, build the valuation models, and propose a target for acquisition for Tata Group.

It was a 5 months’ project. We agreed to meet once per month. When we met, each group reported the progress, shared some high level information, and ask questions to other groups’ data or model. After 4 months, 2 targets got into our final list. In discussion, we questioned that some important factors may be ignored in the model. With those factors considered into the model, the valuation can be totally different. But the 2 groups who did due diligence for the 2 targets were so confident of their work as to not willing to discuss too much about their data sources. In order to build a friendly teamwork environment, though having some doubts of the data, we chose to trust the 2 groups and didn’t ask questions. Finally, we simply proposed the target of a higher value to Tata Group. Tata followed our proposal and acquired the target. 2 years later, our proposal was proved to be wrong. The other target expanded quickly, and developed to be the NO. 1 in the forging industry. The factors we ignored were actually critical to valuation.

Reflecting this project, we made two mistakes. First, the 2 groups were overconfident and not willing to hear different voices from other team members. Second, the other team members, including me, were afraid of conflicts and didn’t take action for positive change. In short words, we all missed the goal of our project: collaborate to maximize the value of the customer. If we can keep the team goal on top of individual interests, be more open-minded, and manage conflicts constructively, we would not lose the great opportunity.

With this learning, in the years of running my own investment company, I always emphasize common team goal with my partners and team members. In 2007, we took a project of helping a Chinese list company identify an acquisition target in hydroelectric power industry. My proposal was challenged by one of the partners. I was not angry of being challenged, nor fully accept his idea to avoid conflicts. I reviewed my model with the partner, then consulted a professional who worked for industry research, and finally identify a target based on new valuation model. 4 years later, the ROI was achieved in advance. It was proved to be a successful acquisition years later.