How Infosys began
It was a wintry morning in January 1981 when seven persons sat in N R
Narayana Murthy’s apartment, and created Infosys.
They merged their EGO into an entity called Infosys
They believed in putting the interest of the
company ahead of their own interest.
In mathematics, one plus one is two but when
one human merges his ego with others ego then it becomes eleven.
They were seven , so their combined force was
equaling to 1111111
They were short of one thing, money. They managed to put together just $250
in seed capital.
They never dreamt about size, revenues and
profits. Their dream, right from day one, was to build a corporation that
was, above all things, respected.
The next step, they took was to form a strong
value system (belief) of the company.
From the beginning, their team was unique in their commitment to a strong
value system. They believed in legal and ethical business. They believed in
respect and long-term gratification. And each of them brought complementary
strengths to the company.
A sound value system is what differentiates
long-term players from others. Putting the corporation's interest ahead of
personal interest will advance personal goals in the long term.
No single person is indispensable. It is
important that you give challenging engagements to deserving people, whether
they are young or new in the organization. Youth and empowerment are the
keys to scalability and longevity.
Every situation is what you make it to be.
Confidence is half the battle, and leadership is making the impossible look
possible. Speed, imagination and excellence in execution are the only three
context-invariant and time-invariant attributes for success.
Once their own value system was established,
then they moved on to win the trust of their employs, shareholders and
clients.
Strong value system (belief) ensured a strong emotional bond among
themselves as well as their employees, shareholders and clients.
They have realized that if you want to look
smarter, you must surround yourself with people smarter than you.
Everybody needs incentives to perform. Money
is not the only motivator; respect, dignity, fairness and inclusiveness are
essential to get the best out of employees. Every employee must feel an inch
taller when talking about the company.
Winning the trust of employees is the most
important ingredient for successful leadership. To gain the trust of people,
there is no more powerful leadership style than leadership by example. The
world respects performance and action, not rhetoric.
Out of this strong base came the strong
vision and mission (goals). Plans to turn the company into a bigger,
stronger, and global player.
This is what their chairman once said in a interview to a news paper
“We have realized that we should never take
any decision with the stock price in mind. The day we do this, we will ruin
the company. Finally, we have realized that we can shortchange investors if
we want to make Rs 1 crore (Rs 10 million), but if we want to make Rs 1,000
crore (Rs 10 billion), we have to play the game straight and honest.
We have realized that longevity requires that
we follow every law of the land, even if we do not agree with it. We should
work hard to change laws that hurt the progress of the corporation.
Unless we make a difference to the society
and earn their trust, we cannot be long-term players. Therefore, in
everything we do, we must ask ourselves whether we are adding value to the
society around us, regardless of where we are -- US or India.”
Then they executed the plans based on the
above factor
They believed that the key to a successful corporation is longevity – their
heroes are companies like IBM, Levers, and GE. These firms have shown growth
in earnings quarter after quarter, for a long time.
Infosys itself has seen consistent growth in
revenue and profitability for over 49 quarters, since it got listed in
India. They have institutionalized performance and accountability in their
systems and processes, and through the empowerment of employees.
In 2007 their combined force has scaled it to
a company with a valuation of $28 bn.
The same model can be followed to create any
new company.
In one more interview , the chairman was
asked
What has kept the Infosys team together
through all these years?
How do we stay together? We have unwritten
rules. Everybody knows that if we want to work as a team we have to be
transaction based. We start every transaction on a zero base. It is
perfectly feasible for us to disagree on a transaction but we start the next
transaction without any bias. Only an argument that has merit wins; it has
nothing to do with hierarchy. Disagreeing is in the nature of things. When
you bring a set of people who have respect for each others’ competence in
certain areas and you’re transaction-oriented then it can work as it has in
our case.
Our value system was like the British
Constitution – it was all unwritten but extremely well practiced. If I were
to have another opportunity to found another company, I would never ask for
anyone else – these are truly remarkable people.
Our value system is the true strength of
Infosys. Besides, we have complementary skills. For example, I have an eye
for detail and am comfortable with balance sheets and numbers. Then I can
also get into the big picture. Nandan has a great ability to communicate and
get himself connected to networks; his thinking is very strategic. Raghavan
is a good people manager. Gopal is the best among us in technology. Shibulal
and Dinesh are great on projects – so there’s a complementarily of skills
The fountainhead of their success is power of combined ego into a bigger and
powerful entity.
|