leadership qualities of narayan murthy

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Page 2: leadership Qualities of narayan murthy

PROFILE Born : August 20, 1946 Mysore, India

Occupation : Chairman of Infosys Technologies

Salary : $50,000 (Infosys)

Net worth : $1.6 billion (2010)

Spouse : Sudha Murthy

Children : 2

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BRIEF INTRODUCTION N. R. Narayana Murthy is an Indian businessman.

Software engineer & the founder of Infosys Technologies.

Consulting and IT services company based in India.

He is currently the non-executive Chairman of Infosys.

He was the CEO of the company for 21 years (1981 - 2002).

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BRIEF INTRODUCTION After stepping down as CEO in 2002.

He has broadened his scope of activities.

To social services as well as promoting India globally.

His estimated net worth is $1.6 billion as of 2010.

In 2009, his lectures delivered around the world have been published as a book “A Better India: A Better World”.

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EARLY LIFE Graduated in electrical engineering from NIE in 1967.

Received his master's degree from IIT Kanpur in 1969.

His 1st position was at IIM-A as chief systems programmer.

He worked on a time-sharing system.

Designed and implemented a “BASIC” interpreter for ECIL (Electronics Corporation of India Limited).

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EARLY LIFE After IIM-A he then joined Patni Computer Systems in Pune.

Murthy met his wife Sudha Murthy in Pune.

An engineer working at Tata Engg. and Locomotive Co. Ltd.

In 1981, with an investment of Rs.10,000 he founded Infosys.

He served as the president of the National Association of Software and Service Companies (1992 to 1994).

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CORPORATE PROFILE Murthy served as the founder CEO of Infosys for 21 years.

At Infosys he articulated, designed and implemented the Global Delivery Model which has become the foundation for the huge success in IT services outsourcing from India.

Murthy serves as an independent director on the board of the DBS Bank of Singapore.

He also serves as a director on the Central Board of the Reserve Bank of India.

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CORPORATE PROFILE He is also an Independent Director on the board of HSBC.

He also serves on the boards of the Ford Foundation and UN Foundation.

He is the chairman of the governing body of the International Institute of Information Technology –Bangalore.

Chairman of the Governing Body of the Indian Institute of Management, Ahmadabad.

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CORPORATE PROFILE Murthy retired from his executive position at Infosys on

20 August 2006.

However, he continues as the Non-Executive Chairman of the board.

Murthy started a new venture capital fund called Catamaran Venture Fund with the money he got by selling 800,000 Infosys shares worth 174Crores.

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Never giving up

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.

So he got failure in life but he never stopped.

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Adversity Always raising the confidence of followers.

Always making employees understand that tough times are part of life and that they will come out better at the end of it.

sustaining the hope of employees.

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Risk taking ability 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.

According to Murthy, ”Think Big. Don't Hesitate to Start Small.”

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Values For creating a successful organization, it requires creating

trust in people.

And to create trust, the leader has to subscribe to a value system: a protocol for behavior that enhances the confidence, commitment and enthusiasm of the people.

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Narayan Murthy is having following kind of values:

1. When in Doubt, Disclose( Honesty and transperancy) 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.”

2. Do it First and Do it Right Infosys did many things first. And most things right. For

example, it was the first Indian company to list on Nasdaq. It was the first Indian company to make it to the Nasdaq 100 list and it was the first Indian company to attain the highest level of quality certification.

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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.

So as a leader he always believed in employee welfare.

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Enhancing trust He brought transparency at Infosys.

Has created an environment where each person feels secure enough to be able to disclose his or her mistakes, and resolves to improve.

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Governance Good corporate governance is about maximizing

shareholder value on a sustainable basis while ensuring fairness to all stakeholders: customers, vendor-partners, investors, employees, government and society.

At Infosys, he has consistently adopted transparency and disclosure standards even before law mandated it. In 1995, Infosys suffered losses in the secondary market. Under Indian GAAP (generally accepted accounting principles), we were not required to make this information public. Nevertheless, infosys published this information in their annual report.

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Always a Learning Person For a successful leader, a constant learning process

is very important. When due to lack of knowledge, a leader cannot provide solution to the team, he loses respect in their eyes. And sometimes he has to pay a heavy price for that.

Leadership and learning are indispensable.

And Narayan Murthy Was also the such person because when he lost money in his first venture Softronics in 1980, he learned from his mistake and took care of all those things in life.

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Talent Spotting and Division of Labor Murthy is known to have an eye for talent and a

talent for dividing labour.

Narayan Murthy Knows that The success depends on placing right people at right task. And hence he developed an ability to identify the strengths of his team member and utilise to them optimally.

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Getting Rich but Honestly Rich businesses were considered to be dirty in the

days when the country had a socialist bent. Infywas a company which got rid of this sentiment.

Murthy, with his 'no compromise' policy on greasing palms and doing ethical business, set the standards.

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Never Losing the Common Touch The big man of Indian IT kept his personal life

simple. He lives in a simple, middle class house and flies economy till date. Murthy has always been accessible to people around him.

So murthy always believe in simplicity of life.

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POSITIVE STYLE- Mr. Murthi has a positive style of leadership i.e. a

leader promote his follower to work hard by offering them rewards. Mr. Murthi promote his employee as per their ability.He always believe in Honesty and Loyalty.

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Two mottos He always kept in mind two Sanskrit sentences:

1. Sathyannasti Paro Dharma (there is nodharma greater than adherence to truth);

2. Satyameva jayate (truth alone triumphs).

He Let these be his motto for good corporate leadership

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HE WAS.. HE IS.. HE WILL.. He is a living legend and an epitome of the fact

that honesty, transparency, and moral integrity are not at variance with business acumen. He set new standards in corporate governance and morality when he stepped down as the Executive Chairman of Infosys at the age of 60.