N R Narayanmurthy stepped down as Infosys Chairman on Aug-20. He needs no
introducttion. This weekend, I enclose 30 learning lessons from this sauve
person which came recently in ET.
Seize Your Gandhi Moment
Murthy, a self proclaimed socialist in the mid '70s was jailed for 72 hours
in Bulgaria. The experience taught him that entrepreneurship and job
creation is the way to alleviate poverty.
You might fail, but get started
Learn from mistakes and move on. In 1976, Murthy founded Softronics, a
company that lasted a year and a half. When he realised that his first
venture wasn't taking off, he moved on.
Think Big. Don't Hesitate to Start Small
In 1981, a determined Murthy started Infosys with Rs 10,000 he borrowed
from his wife. In few years, Infosys went on to become one of the largest
wealth creators in the country.
Cut Yourself a Slice, Not a Large One Always
When Infosys was set up, Murthy took a pay cut while salaries of other
co-founder's were increased by 10 percent. According to Murthy, a leader
needs to show his or her sacrifice and commitment.
Lend a Hand and Throw in a Foot Too
After Murthy convinced seven of his colleagues, there was a problem.
Nandan's future inlaws were not sure about him. Murthy met Nandan's uncle
and convinced him.
Own Up, and Then Clean Up
In the '80s Infosys developed an application for a German client. Murthy
noticed a single character error and informed the client immediately.
Trust in God, But Verify with Data
In God we trust, the rest must come with data, is perhaps Murthy's
favourite statement. When confronted with difficult decisions, he tends to
rely on data.
Keep the Faith
Infosys almost wound up in 1990. Murthy did not want to sell the company.
He asked co-founders if they wanted out and offered to buy their shares.
All of them stuck together.
Get Involved
Infosys won a contract from Reebok in the early '90s. Seeing the founders
involvement, the software, was nick named 'Dinesh, Murthy and Prahlad.'
Infy veterans still recall those days.
Sharing is Caring
After the IPO, Infosys decided to share a portion of its equity with
employees. This helped them retain talent and gave employees a sense of
ownership. Murthy is proud of having given away stocks worth over Rs 50,000
crore to employees.
Treat your People Good, but Your Best Better
Murthy always had a thing for good performers. And he rewarded them well.
When Infosys decided to give its employees stock options, Murthy insisted
that some shares be given to good performers through the 'Chairman's
quota.'
Hire a Good Accountant, Even if he is Argumentative
A young, argumentative Indian, was asking too many questions at an annual
general body meeting of Infosys. More impressed than irritated, he hired
Mohandas Pai, who went on to help Infosys list on Nasdaq.
When in Doubt, Disclose
Keep your books clean and leave the cooking to the chef. Murthy's
philosophy about being open and transparent has given the company a lot of
credibility. He often says, "When in doubt, please disclose."
Leave the Family Out
Murthy told his wife that only one of them could be with the company.
Murthy, along with other founders, said that none of their children would
work for Infosys. This left no room for nepotism at Infosys.
Don't be a Pushover
In 1994, when General Electric wanted to re-negotiate rates, Murthy said no
to selling services any cheaper. This helped Infosys not to be overly
dependent on any one client.
Make hay While the Sun Shines
In late 90's, India's tech companies made use of the Y2K opportunity to
make themselves known in the global market. For Infosys, it was a great
opportunity to enter into long-term relationships with their customers.
Brand-aid First, Get Clinical
When the sexual harassment case against Infosys' top sales guy Phaneesh
Murthy threatened to tarnish the company's brand, Murthy decided to quickly
react. He let go of Phaneesh, and settled the case out of court despite
Phaneesh wanting to fight it out.
Mind your Business, you'll See Things Coming
Murthy carries and updates a mental model of Infosys' business all the
time. According to him, every leader must have a model, consisting of six
to seven parameters that might affect business.
Keep it Simple, Not Silly
Keep your life simple and straight. That way, you get to work more and
worry less. Murthy is known to be frugal with money. Despite being one of
the richest Indians, he leads a simple life. However, he does not cut
corners on buying books or brushing up on literature.
Founders Keepers, but Not Forever
Murthy's decision to not allow founders to continue with the company after
the age of 65 set another standard for the company. This way, younger
leaders at Infosys had a greater chance at the top positions.
Talent Spotting and Division of Labour
Murthy is known to have an eye for talent and a talent for dividing labour.
Nandan was given sales responsibilities while Kris and Shibu did the tech
stuff. N S Raghavan was asked to handle people and Dinesh was assigned
quality.
Hold on to Your People but don't Cling
Letting go is never easy but its not good to cling on to your colleagues
either. Amongst the founders, Ashok Arora, Nandan Nilekani and K Dinesh
have quit Infosys. Infy veteran Mohandas Pai has also left Infosys.
Give, it only gets you more
In 2010, the Murthy's donated $ 5.2 million USD to Harvard University Press
for a project that aims to make India's classical heritage available for
generations to come. He is also supporter of the Akshaya Patra Foundation.
As I always say, brickbats and bouquets welcome!
-Sukhi
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