Narayan murthy


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Narayan murthy

  1. 1. N.R. Narayan MurthiHe was short. He was sharp. He was the brightest boy in his class. His seniors would ask him tosolve their difficulties in Science. He could have gone unnoticed in the crowd, but once youasked him a question related to Physics or Maths, there was a spark in his eyes. He could grasptheories of Science faster than the speed of light.He came from a poor but educated family. His father was a high-school teacher and an avidreader of English literature. He, like all the boys in the class was trying to get admission intosome engineering college. The brighter ones wanted to study in the Indian Institutes ofTechnology or the IITs.There was an entrance test for IIT. This boy, along with his friends applied to appear for the test.They did not have any special books or coaching. All these IIT aspirants would sit below theshade of a stone mantap close to Chamundi hills in the sleepy town of Mysore. He was a guidefor others. While the others struggled to solve problems in the question paper, he would smileshyly and solve them in no time. He sat below a tree and dreamt of studying at IIT. He was thenonly sixteen years old.D-Day came. He came to Bangalore, stayed with some relatives and appeared for the entrancetest. He did very well but would only say “OK” when asked. It was the opposite when it came tofood….”OK” implied bad, “good” implied ok, and “very good” implied good!! His principle wasnever to hurt anyone….The IIT entrance results came. He had passed with flying colors and the highest rank. He wasthrilled! He went to his father who was reading a newspaper. “ANNA, I have passed the exam”.“Well done, My Boy”. “I want to join IIT“.His father stopped reading the paper. He lifted his head, looked at the boy and said with a heavyvoice “You know our financial position, I cannot afford your expenses at IIT. You can stay inMysore and learn as much as you want.”His father was sad that he had to tell the bitter truth, but it could not be helped. The teenager wasdisappointed. He was so near to fulfilling his fondest dream, yet so far. His heart sank in sorrow.He did not reply. He never shared his unhappiness with anyone.He was an introvert by nature. His heart was bleeding but he did not get angry with anyone. Theday came, his classmates were leaving for Madras (Chennai). They had shared good years atschool and he went to wish them good luck for their future. At the station his friends werealready there. They were excited and discussing their new hostels, new courses etc.. So he stoodthere silently.One of his friends noticed and said, “You should have made it”. He did not reply. He just wishedthem. He stood there even after he could no longer see the train or the waving hands.
  2. 2. It was June 1962 in the Mysore city. Yet he stood there motionless. He said to himself, withoutanger or jealousy, “All students from the IITs study well and do big things in life. But it is notthe institution, ultimately it is you and you alone who can change your life by hard work“.This son of a school teacher became a pioneer of India’s software industry. He is none other thanInfosys’ founder, Narayana Murthy. His motto being , “Powered by Intellect, Driven byValues“Read more at TECK.IN: August 20, 1946Achievement: One of the founders of Infosys Technologies Limited; Chosen as the World Entrepreneurof the Year - 2003 by Ernst and YoungNarayana Murthy is the Non-Executive Chairman and Chief Mentor of Infosys Technologies Limited. Heis a living legend and an epitome of the fact that honesty, transparency, and moral integrity are not atvariance with business acumen. He set new standards in corporate governance and morality when hestepped down as the Executive Chairman of Infosys at the age of 60.Born on August 20, 1946, N.R. Narayana Murthy is a B.E. Electrical from University of Mysore (1967) andM.Tech from IIT Kanpur (1969). Narayan Murthy began his career with Patni Computer Systems in Pune.In 1981, Narayana Murthy founded Infosys with six other software professionals. In 1987, Infosysopened its first international office in U.S.A.With the liberalization of Indian economy in 1990s, Infosys grew rapidly. In 1993, the company came upwith its IPO. In 1995, Infosys set up development centers across cities in India and in 1996, it set up itsfirst office in Europe in Milton Keynes, UK. In 1999, Infosys became the first Indian company to be listedon NASDAQ. Today (in 2006), Infosys has a turnover of more than $ 2billion and has employee strengthof over 50,000. In 2002, Infosys was ranked No. 1 in the "Best Employers in India 2002" surveyconducted by Hewitt and in the Business Worlds survey of "Indias Most Respected Company."Conducted in the same year.Along with the growth of Infosys, Narayana Moorthy too has grown in stature. He has received manyhonors and awards. In June 2000, Asiaweek magazine featured him in a list of Asias 50 Most PowerfulPeople. In 2001, Narayana Murthy was named by TIME/CNN as one of the 25 most influential globalexecutives. He was the first recipient of the Indo-French Forum Medal (2003) and was voted the WorldEntrepreneur of the Year - 2003 by Ernst and Young. The Economist ranked Narayana Murthy eighth onthe list of the 15 most admired global leaders (2005) and Narayan Murthy also topped the EconomicTimes Corporate Dossier list of Indias most powerful CEOs for two consecutive years - 2004 and 2005.Impact
  3. 3. You might fail, but get startedLearn from mistakes and move on. In 1976, Murthy founded Softronics, a company that lasted ayear and a half. When he realised that his first venture wasnt taking off, he moved on.Think Big. Dont Hesitate to Start SmallIn 1981, a determined Murthy started Infosys with Rs 10,000 he borrowed from his wife. In fewyears, Infosys went on to become one of the largest wealth creators in the country.Cut Yourself a Slice, Not a Large One AlwaysWhen Infosys was set up, Murthy took a pay cut while salaries of other co-founders wereincreased by 10 percent. According to Murthy, a leader needs to show his or her sacrifice andcommitment.Lend a Hand and Throw in a Foot TooAfter Murthy convinced seven of his colleagues, there was a problem. Nandans future inlawswere not sure about him. Murthy met Nandans uncle and convinced him.Own Up, and Then Clean UpIn the 80s Infosys developed an application for a German client. Murthy noticed a singlecharacter error and informed the client immediately.Trust in God, But Verify with DataIn God we trust, the rest must come with data, is perhaps Murthys favourite statement. Whenconfronted with difficult decisions, he tends to rely on data.Keep the FaithInfosys 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 InvolvedInfosys won a contract from Reebok in the early 90s. Seeing the founders involvement, thesoftware, was nick named Dinesh, Murthy and Prahlad. Infy veterans still recall those days.Sharing is CaringAfter the IPO, Infosys decided to share a portion of its equity with employees. This helped themretain talent and gave employees a sense of ownership. Murthy is proud of having given awaystocks worth over Rs 50,000 crore to employees.
  4. 4. Ads by Google • Product SuppliersConnect with over 120,000 suppliers from Hong Kong, China and Taiwan • India’s economyRead more from The Economist. World’s Most Influential Weekly. www.Economist.comTreat your People Good, but Your Best BetterMurthy always had a thing for good performers. And he rewarded them well. When Infosysdecided to give its employees stock options, Murthy insisted that some shares be given to goodperformers through the Chairmans quota.Hire a Good Accountant, Even if he is ArgumentativeA young, argumentative Indian, was asking too many questions at an annual general bodymeeting of Infosys. More impressed than irritated, he hired Mohandas Pai, who went on to helpInfosys list on Nasdaq.When in Doubt, DiscloseKeep your books clean and leave the cooking to the chef. Murthys philosophy about being openand transparent has given the company a lot of credibility. He often says, "When in doubt, pleasedisclose."Leave the Family OutMurthy told his wife that only one of them could be with the company. Murthy, along with otherfounders, said that none of their children would work for Infosys. This left no room for nepotismat Infosys.Dont be a PushoverIn 1994, when General Electric wanted to re-negotiate rates, Murthy said no to selling servicesany cheaper. This helped Infosys not to be overly dependent on any one client.Make hay While the Sun ShinesIn late 90s, Indias tech companies made use of the Y2K opportunity to make themselves knownin the global market. For Infosys, it was a great opportunity to enter into long-term relationshipswith their customers.Brand-aid First, Get ClinicalWhen the sexual harassment case against Infosys top sales guy Phaneesh Murthy threatened totarnish the companys brand, Murthy decided to quickly react. He let go of Phaneesh, and settledthe case out of court despite Phaneesh wanting to fight it out.
  5. 5. Mind your Business, youll See Things ComingMurthy 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 SillyKeep your life simple and straight. That way, you get to work more and worry less. Murthy isknown 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 ForeverMurthys decision to not allow founders to continue with the company after the age of 65 setanother standard for the company. This way, younger leaders at Infosys had a greater chance atthe top positions.An Indian IT chief whos really made it big without dropping his ethical precepts by the wayside isNagawara Ramarao Narayana Murthy, Chairman of Infosys. Born in 1946, Murthys father was aschoolteacher in Kolar district, Karnataka, India. A bright student, Murthy went on to acquire a degree inElectrical Engineering from Mysore University and later studied Computer Science at the IIT, Kanpur,India.The Infosys legend began in 1981 when Narayana Murthy dreamt of forming his own company, alongwith six friends. There was a minor hitch, though-he didnt have any seed money. Luckily, like manyIndian women who save secretly without their husbands knowledge, his wife Sudha-then an engineerwith Tatas-had saved Rs 10,000. This was Murthys first big break.The decade until 1991 was a tough period when the couple lived in a one-room house. The second breakcame in 1991 when Indian doors to liberalization were flung open… Murthy grabbed the opportunitywith both hands and has never looked back ever since. Today, Infosys is the first Indian company to belisted on the US NASDAQ.While working in France in the 1970s, Murthy was strongly influenced by socialism. The bubble waspricked, however, when he was arrested in Bulgaria on espionage charges. Today, he says: "Im acapitalist in mind, a socialist at heart." It was this belief in the distribution of wealth that made Infosysone of the first Indian companies to offer employees stock-option plans. Infosys now has 400 employeeswho are dollar millionaires.In a poll conducted by Asiaweek, the quiet, soft-spoken man was selected one of the 50 most powerfulpeople in Asia for 2000. And 50 per cent of the respondents in an online poll conducted by TheEconomic Times voted him the best CEO of India.
  6. 6. Heading a company with the largest market capitalization hasnt changed Murthys life-style much. Theman still doesnt know how to drive a car! On Saturdays-his drivers weekly off-the Infosys chief is drivento the bus stop by his wife, from where he boards a company bus to work! Incidentally, Sudha Murthy isnow chief of the Infosys Foundation, which channels Rs 50 million into charity every year.Simplicity, humility and maintaining a low profile are the hallmarks of this super-rich Bangalorean. Andthe man is principled to a fault. Murthys unprecedented wealth has catapulted him into the publicglare. After the kidnapping of Dr Rajkumar by forest brigand Veerappan, the Home Ministry has soundedout the local government about providing Z-category security to Murthy and Premji. Bothcharacteristically turned down the offer.In a letter to the police top brass last month, Murthy said he was a simple man who had no intentions ofannoying his neighbors and disturbing traffic with an intrusive entourage of security vehicles andpersonnel.Nagavara Ramarao Narayana Murthy, better known as N. R. Narayana Murthy (Kannada:ನಾರಾಯಣ ಮೂರ್ತಿರ), is an Indian industrialist and software engineer. He and six other engineers co-founded Infosys in 1981. Murthy served as CEO from 1981 to 2002. From 2002 to 2011, heserved as the Chairman. In 2011, he stepped down from the board and became ChairmanEmeritus.Contents • 1 Early life • 2 Career • 3 Personal life • 4 Awards and honours • 5 Books • 6 References • 7 External linksEarly lifeBorn in Mysore, Karnataka on 20 August 1946, Murthy graduated with a degree in electricalengineering from the National Institute of Engineering, University of Mysore in 1967. Hereceived his masters degree from IIT Kanpur in 1969.[3]Career
  7. 7. Murthys first job position was at IIM Ahmedabad, where he worked as the chief systemsprogrammer.[4] After IIM Ahmedabad, he started a company named Softronics in 1976.[5] Whenthat company failed, he joined Patni Computer Systems in Pune.After settling down in Pune, Murthy founded Infosys in 1981[6]with an initial capital injection ofRs 10,000, which was invested by his wife Sudha Murthy.[7] Murthy served as the CEO ofInfosys for 21 years and was succeeded by co-founder Nandan Nilekani in 2002.[7] At Infosys hearticulated, designed and implemented the Global Delivery Model which has become thefoundation for the huge success in IT services outsourcing from India. He held the executiveposition of Chairman of the Board from 2002 to 2006, when he became the "non-executive"Chairman of the Board and Chief Mentor.[7][8] In August 2011, he retired completely from thecompany and taking the title Chairman Emeritus.[9][10]Murthy serves as an independent director on the corporate boards of HSBC and has served as adirector on the boards of DBS Bank, Unilever, ICICI and NDTV[11][1].He also serves as a member of the advisory boards and councils of several educational andphilanthropic institutions[11][1], including Cornell University, INSEAD, Ford Foundation, the UNFoundation, the Indo-British Partnership, a trustee of the Infosys Prize, and as a trustee of theRhodes Trust [12] that manages the Rhodes Scholarship. He is also the Chairman of the Governingboard of Public Health Foundation of India [13] He also serves on the Asia Pacific AdvisoryBoard of British Telecommunications[11][14]. In 2005 he co-chaired the World Economic Forum inDavos.[15]Personal lifeHis wife, Sudha Murthy (née Kulkarni), is an Indian social worker and accomplished author. Sheis known for her philanthropic work through the Infosys Foundation. Her sister, JayashreeDeshpande is wife of enterpreneur and founder of US-based Sycamore Networks, GururajDeshpande. Murthy is the brother-in-law of serial entrepreneur Gururaj "Desh" Deshpande.[16]Awards and honoursYear Name Awarding organization Ref. [17]2011 NDTV Indian of the Years Icon of India NDTV Institute of Electrical and Electronics [18]2010 IEEE Honorary Membership Engineers. Woodrow Wilson Award for Corporate Woodrow Wilson International Center [19]2009 Citizenship for Scholars [20]2008 Padma Vibhushan President of India [21]2008 Officer of the Legion of Honor Government of France Commander of the Order of the British [22]2007 Government of United Kingdom Empire (CBE) [23]2007 IEEE Ernst Weber Engineering Leadership Institute of Electrical and Electronics
  8. 8. Recognition Engineers [24]2000 Padma Shri President of IndiaSpeaking at Horasis Global China Business Meeting 2006 Born 20 August 1946 (age 66)Mysore, Karnataka, India Alma mater University of MysoreIIT Kanpur Occupation Chairman Emeritus, Infosys Net worth $1.7 billion (2012)[1] Spouse Sudha MurthyChildren 2[2]