New Delhi, Oct. 20 -- Between two big initiatives-the shoring up of Tata Sons' equity stakes in group companies and the BEBP agreement (Brand Equity and Business Promotion agreement, which gave group companies the right to use the unified Tata brand)-Ratan Tata laid the foundations of a cohesive Tata group within the first decade of his tenure as chairman. With the first initiative, Tata Sons reinforced its right to manage its companies and also protected them from possible hostile takeovers. With the second, Tata Sons ensured that the companies knew exactly what obligations they had to discharge and what standards of excellence they had to meet for the privilege of using the Tata name.

There was one more step that Ratan took to ensure a...