Ratan Tata's doubts about Cyrus Mistry's suitability as his successor started to emerge during a period of mentorship in 2011. Despite selecting Mistry through a global search process and setting conditions for his succession, Tata became increasingly uneasy as he witnessed what he perceived as Mistry's deviations from Tata Group's principles and values.
Even though Tata initially endorsed Mistry and provided him with hands-on experience in running the Tata Group, the relationship between the two deteriorated as Mistry pursued ventures outside the Group's core businesses. Tata's discomfort heightened when Mistry made decisions without consulting Tata Trusts, eroding the trust between them. Additionally, tensions escalated when Mistry led the Tata conglomerate into sectors susceptible to ethical issues, causing Tata to fear potential damage to the Group's reputation.
As the situation worsened, Tata brought in Nitin Nohria from Harvard Business School in an attempt to mediate the growing differences between himself and Mistry. Despite efforts to bridge the gap, internal rumors of Tata's interference surfaced, adding fuel to the fire. Ultimately, Tata made the challenging decision to remove Mistry as chairman in 2016, citing a loss of confidence and the need to protect the company's interests.