Friday, August 19, 2011

Lessons from life & career of Narayana Murthy

NR Narayana Murthy , who steps down as Infosys chairman on August 20, is a role model for not just what he achieved but also how he did it. Here are 30 lessons from Murthy, one for each year he spent at company.

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."

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