In God we trust, the rest must come with data, is perhaps Murthy's favorite statement. When confronted with difficult decisions, he tends
to rely on data.
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.
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.
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.
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.
Perils of Being a Poster Child
Being the poster child of Indian IT industry, Infosys and Murthy have
been at the receiving end of many criticisms. The company has been
accused of taking away American jobs and been called a "chop shop."
Get Rich. Honestly
Rich businesses were considered to be dirty in the days when the
country had a socialist bent. Infy was a company which got rid of this
sentiment. Murthy, with his 'no compromise' policy on greasing palms and
doing ethical business, set the standards.
Do Not be Afraid to Court Controversy
Ever since Infosys became a success, Murthy was under constant public
glare. This did not deter the straight talking Murthy from courting
controversy or voicing his opinions openly.
Invest in Learning
With big investments in training, development and building facilities,
India's IT bell-weather has always been keen on grooming the younger
generation. Murthy drove the culture of learning in the company in its
early days.
Never Lose 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.
Do Good, Look Good
Murthy knew the importance of creating an image for Infosys. He
invested in creating a sprawling, world class campuses early on, bigger
than any other company's headquarters in the country, that would make
his global customers feel like they were in a global office.
