Tata to Twitter: Can brand image face the heat when heads roll?

Past few weeks has witnessed an exodus of top management in two diametrically opposite but influential in their own right companies in India--Tata and Twitter. 

The bitter battle at Tata Sons continues two weeks after Cyrus Mistry was ousted as the chairman, followed by NS Rajan, Madhu Kannan and Nirmalya Kumar. Global social media giant Twitter too witnessed top exits of Parminder Singh, Head of India, South-East Asia and Middle East and North Africa and India, and Rishi Jaitly, India Head.

High profile exits at the top have always shaken up companies from within. The question remains whether such issues have a lasting impact on the brand image of a company.

“There is a sense of doubt that has crept into the functioning of these companies. Would you have questioned Tata or Twitter earlier? The exodus from the Tata Group and even Twitter has led to many questions coming up in the mind of people,” says N Chandramouli, CEO of TRA Research. 

Similarly, Ram Gudipati says that it has put a taint on the image of Tata Group which until then had a spotless image. “The shakeup at the top has had a 100% impact on the brand and the multiple brands under it. The valid system of the group has got a dark spot which not there earlier. It also has an impact on the image of Ratan Tata. It brings out the question that did he take an early decision with Mistry?” he says.

Gudipati says that while brand impact in terms of the consumer is far away thing, it has an impact on the whole ecosystem such as the suppliers, vendors, bankers, etc and their image of the company.

However, this is not the first time that an exodus in the top management has had an impact on the brand. Tata Group itself saw a big impact nearly two and half decades ago with another power struggle.

“Russi Mody being booted out of power at Tata Steel in 1992 had an impact on the brand for some time. Mody had a great following within the group,” pointed out K V Sridhar, Founder and Chief Creative Officer of Hypercollective.

The Group at that time witnessed a great upheaval as Mody, who was the one of the best man-manager's in the country, had battled Ratan Tata and JJ Irani, the new management at that time. This all took place during the time when legendary JRD Tata was still alive.

Another instance was when Lee Iacocca was fired as fired as the President of Ford Motor's in 1978, it shocked the whole industry and had an impact on the company. He was subsequently hired by Chrysler, which was facing bankruptcy at that time, and managed to turn their fortunes around.

Even when Steve Jobs was ousted out of Apple, the result had a huge impact on the brand which kept plummeting until he returned once again at the helm.

“It also brings to light that some decisions which were earlier thought of done in wisdom could now be an emotional one,” Gudipati says, adding, that while brand impact in terms of the consumer is far away thing, it has an impact on the whole ecosystem such as the suppliers, vendors, bankers, etc and their image of the company.