From,From,Life and Career ofLife and Career ofN R N R NN M hM hN R N R NarayanaNarayana MurthyMurthyFounder & Mentor, Infosys Founder & Mentor, Infosys yy

Seize Your Gandhi MomentSeize Your Gandhi Moment11

Murthy, a self proclaimed socialist in the mid ‘70s was jailed for 72 hours in jBulgaria. The experience taught him that entrepreneurship and job creation is the p p jway to alleviate poverty.

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You might fail, but get startedYou might fail, but get started2 g , gg , g2

Learn from mistakes and move on. In 1976, M h f d d S f i h Murthy founded Softronics, a company that lasted a year and a half. When he realized that hi fi ’ ki ff h d his first venture wasn’t taking off, he moved on.

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Think Big. Don’t Hesitate to Think Big. Don’t Hesitate to SSt t S llt t S ll3 SStart Smalltart Small3

In 1981 a determined Murthy started Infosys 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 few years, Infosys went on to become one of the largest wealth creators in the country.

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Cut Yourself a Slice, Not a Large Cut Yourself a Slice, Not a Large One AlwaysOne Always4 One AlwaysOne Always4

When Infosys was set up, Murthy took a pay W y p, y p ycut while salaries of other co-founder’s were increased by 10 percent. According to Murthy, y p g y,a leader needs to show his or her sacrifice and commitment.

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Lend a Hand and Throw in a Foot Lend a Hand and Throw in a Foot TT5 TooToo5

After Murthy convinced seven of his colleagues there was a problem Nandan’s colleagues, there was a problem. Nandan s future in-laws were not sure about him. Murthy met Nandan’s uncle and convinced Murthy met Nandan s uncle and convinced him.

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Own Up, and Then Clean UpOwn Up, and Then Clean Up66

In the ‘80s Infosys developed an application for a German client. Murthy noticed a single for a German client. Murthy noticed a single character error and informed the client immediately.immediately.

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Trust in God, But Verify with Trust in God, But Verify with DD7 DataData7

In God we trust, the rest must come with data, is perhaps Murthy’s favorite statement. When confronted decisions, he tends to rely on data.

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Keep the FaithKeep the Faith8

I f l t d i M th did

8Infosys almost wound up in 1990. Murthy did not want to sell the company. He asked co-f d if th t d t d ff d t b founders if they wanted out and offered to buy their shares. All of them stuck together.

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Get InvolvedGet Involved9

f f b k h

9

Infosys won a contract from Reebok in the early ‘90s. Seeing the founders involvement, h f k d h hthe software, was nick named ‘Dinesh, Murthy

and Prahlad.’ Infy veterans still recall those ddays.

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Sharing is CaringSharing is Caring1010

After the IPO, Infosys decided to share a portion of its equity with employees. This p q y p yhelped them retain talent and gave employees a sense of ownership. Murthy is proud of having p y p ggiven away stocks worth over Rs 50,000 crore to employees.p y

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T P l G d b T P l G d b Treat your People Good, but Treat your People Good, but Your Best BetterYour Best Better11 Your Best BetterYour Best Better11

Murthy always had a thing for good f A d h d d h ll Wh performers. And he rewarded them well. When

Infosys decided to give its employees stock i M h i i d h h b options, Murthy insisted that some shares be

given to good performers through the ‘Ch i ’ ’‘Chairman’s quota.’

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Hire a Good Accountant Even Hire a Good Accountant Even Hire a Good Accountant, Even Hire a Good Accountant, Even if he is Argumentativeif he is Argumentative12 gg12

A young, argumentative Indian, was asking too many questions at an annual general body many questions at an annual general body meeting of Infosys. More impressed than irritated he hired Mohandas Pai who went on to irritated, he hired Mohandas Pai, who went on to help Infosys list on Nasdaq.

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When is Doubt, DiscloseWhen is Doubt, Disclose13

b k l d l h k

13

Keep your books clean and leave the cooking to the chef. Murthy‘s philosophy about being open

d h h l fand transparent has given the company a lot of credibility. He often says, “When in doubt,

l d lplease disclose.”

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Leave the Family OutLeave the Family Out1414

Murthy told his wife that only one of them could be with the company. Murthy, along with p y y, gother founders, said that none of their children would work for Infosys. This left no room for ynepotism at Infosys.

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Don’t be a PushoverDon’t be a Pushover1515

In 1994, when General Electric wanted to re negotiate rates Murthy said no to selling negotiate rates, Murthy said no to selling services any cheaper. This helped Infosys not to be overly dependent on any one clientto be overly dependent on any one client.

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Make hay While the Sun ShinesMake hay While the Sun Shines16

I l t ’ I di ’ T h i d f

16

In late 90’s, India’s Tech companies made use of the Y2K opportunity to make themselves known i th l b l k t F I f it i in the global market. For Infosys, it was in a great opportunity to enter into long-term

l ti hi ith th i t relationships with their customers.

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BrandBrand--aid First, Get Clinicalaid First, Get Clinical17

h l h f

17

When sexual harassment case against Infosys’ top sales guy Phaneesh Murthy threatened to tarnish h b d h d d d klthe company’s brand, Murthy decided to quickly

react. He let go of Phaneesh, and settled the case f d h h f hout of court despite Phaneesh wanting to fight it

out.

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d lld llMind your Business, you’ll See Mind your Business, you’ll See Things ComingThings Coming18 Things ComingThings Coming18

Murthy carries and updates a mental model of Infosys’ business all the time According to Infosys business all the time. According to him, every leader must have a model, consisting of six to seven parameters that consisting of six to seven parameters that might affect business.

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Keep it Simple, Not SillyKeep it Simple, Not Silly1919

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.

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Founders Keepers, but Not ForeverFounders Keepers, but Not Forever20 p ,p ,20

Murthy’s decision to not allow founders to continue with the company after the age of 65 continue with the company after the age of 65 set another standard for the company. This way, younger leaders at Infosys had a greater way, younger leaders at Infosys had a greater chance at the top positions.

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Talent Spotting and Division of Talent Spotting and Division of L bL b21 LabourLabour21

Murthy is known to have an eye for dividing labour. Nandan was given sales responsibilities g pwhile Krish and Shibu did the tech stuff. N S Raghavan was asked to handle people and g p pDinesh was assigned quality.

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ld l b dld l b dHold on to Your People but don’t Hold on to Your People but don’t ClingCling22 ClingCling22

Letting go is never easy but its not good to cling on your colleagues either. Amongst the on your colleagues either. Amongst the founders, Ashok Arora, Nandan Nilekani and K Dinesh have quit Infosys. Infy veteran K Dinesh have quit Infosys. Infy veteran Mohandas Pai has also left Infosys.

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Give, it only gets you moreGive, it only gets you more23

I th M th ’ d t d $ illi USD

23

In 2010, the Murthy’s donated $ 5.2 million USD to Harvard University Press for a Project that i t k I di ’ l i l h it il bl aims to make India’s classical heritage available

for generations to come. He is also supporter of th Ak h P t F d ti the Akshaya Patra Foundation.

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Do it First and Do it RightDo it First and Do it Right24Infosys did many things First And most

24Infosys did many things First. And most things right. For example, it was the first Indian company to list on Nasdaq It was the 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 100 list and it was the first Indian company to attain the highest level of quality certification.

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Perils of Being a Poster ChildPerils of Being a Poster Child25

B i th t hild f I di IT i d t

25

Being the poster child of Indian IT industry, Infosys and Murthy have been at the receiving

d f iti i Th h b end of many criticisms. The company has been accused of taking away American jobs and been

ll d “ h h ” called a “chop shop.”

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Get Rich. Honestly Get Rich. Honestly 26

Rich businesses were considered to be dirty in

26y

the days when the country had a socialist bent. Infy was a company which got rid of this y p y gsentiment. Murthy, with his ‘no compromise’ policy on greasing palms and doing ethical p y g g p gbusiness, set the standards.

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b f db f dDo Not be Afraid to Court Do Not be Afraid to Court ControversyControversy27 ControversyControversy27

Ever since Infosys became a success, Murthy was under constant public glare This did not was under constant public glare. This did not deter the straight talking Murthy from courting controversy or voicing his opinions courting controversy or voicing his opinions openly.

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Invest in LearningInvest in Learning28

With big investments in training development

28With big investments in training, development building facilities, India’s IT bell-weather has always been keen on grooming the younger always been keen on grooming the younger generation. Murthy drove the culture of learning in the company in its early dayslearning in the company in its early days.

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Never Lose the Common TouchNever Lose the Common Touch2929

The big man of Indian IT kept his personal life simple, middle class house and flies economy till date. Murthy has always been accessible to people around him.

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Do good, look goodDo good, look good30

Murthy knew the importance of creating an

30Murthy knew the importance of creating an image for Infosys. He invested in creating a sprawling world class campuses early on sprawling, world class campuses early on, bigger than any other’s headquarters in the country that would make his global customers country, that would make his global customers feel like they were in a global office.

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NN

He is a visionary, is forthright and resolute in

R R forthright and resolute in action. His contribution to the industry has been

NNAARR to the industry has been

phenomenal and his efforts have been

RRAAYYAA efforts have been

instrumental in putting India on the global map. I

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India on the global map. I wish him the very best for the next phase of

MMUURR for the next phase of

his life. AZIM PREMJICHAIRMAN, WIPRO

TTHHYYYY

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NN

When I was in the US during 1993-94 Murthy

R R during 1993 94, Murthy said the action was shifting to India and

NNAARR shifting to India and

asked me to come back and take charge of the

RRAAYYAA and take charge of the

support functions. I wondered then why, but

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wondered then why, but later realized that it helped me with very

MMUURR helped me with very

good learning. S GOPALAKRISHNANCO FOUNDER, INFOSYS

TTHHYYYY

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NN

After many unpleasant ti ith M

R R

conversations with Mr. Murthy, I finally d id d t t k hi

NNAARR decided to take his

advice and get a diary. Th i t it h d

RRAAYYAA The impact it had on

my professional and l lif

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personal life was phenomenal.

MMUURR

SD SHIBULALCO FOUNDER INFOSYS

TTHHYY CO FOUNDER, INFOSYSYY

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NN

Whenever we got t f i i t

R R

requests from ministers and bureaucrats, M th ld hi

NNAARR Murthy would say hire

only on merit. There i b t

RRAAYYAA were repercussions but

Murthy was always l t t i i t

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clear not to give in to pressure.

MMUURR

NS RAGHAVANCO FOUNDER, INFOSYS

TTHHYYYY

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NN

He always spoke about how he hired his co-

R R

founders and why they were the best because

NNAARR

he had hired them, making us angry and

RRAAYYAA

g g ydespondent. He heard my arguments gladly,

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y g g y,always patient and sparring with him was

MMUURR

the best.MOHANDAS PAIFORMER INFOSYS LEADER

TTHHYY FORMER INFOSYS LEADERYY

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Af i i i hNN

After an interview with Patni, I was waiting in h id h

R R

the corridor when Murthy walked up to me. H ld h h ld

NNAARR He told me that he would

make me the offer but hi h h

RRAAYYAA his concern was whether

I would accept it. He id it ld b i k

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said it would be a risk but it would be worth it. A d h t t i i t

MMUURR

And what a turning point for me. K DINESH

CO FOUNDER INFOSYS

TTHHYY CO FOUNDER, INFOSYSYY

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NN

Th b t d i

R R

The best advice Murthy gave me i t t k h t

NNAARR is to take honest

feedback with d

RRAAYYAA grace and

humility.

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MMUURR

NILEKANICO FOUNDER, INFOSYS

TTHHYYYY

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MR. N R NARAYAN MURTHYMR. N R NARAYAN MURTHYFounder & Mentor, Infosys

Text Courtesy: News Paper, The Economic Times, Dated 19th August 2011