Tata Trusts Streamlines Operations, Phases Out Key Roles
As part of this reorganisation, the roles of CFO and COO are being phased out, and the organisation is aiming to lessen its reliance on external consultants
Tata Trusts is currently undertaking a major restructuring to reduce its operational and management expenses. As part of this reorganisation, the roles of Chief Financial Officer (CFO) and Chief Operating Officer (COO) are being phased out, and the organisation is aiming to lessen its reliance on external consultants.
This cost-saving strategy began prior to the appointment of Noel Tata as chairman. An internal audit and financial assessment by trustees had reportedly revealed a substantial rise in staffing expenses, which had reached approximately Rs 180 crore. The workforce costs associated with direct implementation projects—initiatives executed directly by the trust through contractors as part of its donations—also contributed to an overall expenditure of Rs 400 crore by 2022.
According to media reports, Tata Trusts plans to scale back these direct implementation projects significantly, retaining only those necessary to meet essential commitments. CEO Siddharth Sharma is reportedly ensuring that strong governance measures and consistent oversight are integrated into the restructuring process.
The reorganisation aims to streamline management, allowing Tata Trusts to direct more resources toward its philanthropic initiatives while keeping administrative expenses in check. Future decision-making and governance will rely on a lean executive committee, with Tata Trusts drawing on capable internal finance professionals to maintain operational efficiency.
Anand Desai, managing partner at DSK Legal, commented that fiscal prudence is crucial for philanthropic entities. He emphasised that accountability is fundamental, highlighting that cost pooling and selective use of domain experts could further enhance operational efficiency.
On October 11, Noel Tata was appointed chairman, adding this role to his previous position as trustee for the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, positioning him to lead Tata Trusts through this new phase of streamlined operations.
