Narayan Murthy and Strategic Leadership

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Strategic Leadership Amazing Story of Birth and Growth of Infosys in the hands of Narayan Murthy

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Leadership Qualities of : Narayan Murthy Co-founder of:

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Group 7 Team Members Vishal Agarwal 01 Karan Mehta 15 Neeta Pai 18 Kavita Shetty 27 Kishori Sawant 38

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" A true leader is one who leads by example and sacrifices more than anyone else, in his or her pursuit of excellence." - N. R. Narayana Murthy, Chairman, Infosys

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Profile Born into a Kannada family in Mysore, India on August 20, 1946. B . E. Electrical from University of Mysore (1967) and M.Tech from IIT Kanpur (1969). Narayan Murthy began his career with Patni Computer Systems in Pune .

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Year Name Awarding Organization 2011 Forbes Lifetime Achievement Award Forbes 2011 NDTV Indian of the Year's Icon of India NDTV 2010 IEEE Honorary Membership Institute of Electrical and Electronics Engineers. 2010 Man of the Year GQ Magazine. 2010 Foreign Associate Member United States National Academy of Engineering. 2009 Woodrow Wilson Award for Corporate Citizenship Woodrow Wilson International Center for Scholars. 2008 Padma Vibhushan President of India. 2008 Officer of the Legion of Honor Government of France. 2007 Commander of the Order of the British Empire (CBE) Government of United Kingdom. 2007 IEEE Ernst Weber Engineering Leadership Recognition Institute of Electrical and Electronics Engineers. 2003 Indo-French Forum Medal Indo-French Forum. 2003 World Entrepreneur of the Year Ernst and Young. 2002 Asia's Businessman of the Year Fortune Magazine 2001 Wharton Business School Dean's Medal University of Pennsylvania 2001 Max Schmidheiny Freedom Prize Switzerland. 2001 Nikkei Asia Prize Nikkei Inc. 2000 Padma Shri President of India. 1998 Distinguished Alumnus Award Indian Institute of Technology Kanpur. 1996 JRD Tata Corporate Leadership Award All India Management Association (AIMA). Awards Won by Narayan Murthy

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Narayan Murthy a Visionary……

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Infosys started on 2 nd July 1981 from a loan of Rs. 10000 from Sudha Murthy (Equity Capital).It was registered as pvt. Ltd. Company with its regd. Office in matunga (N S Raghavans house) The office was started in Pune which was actually the house of Narayan Murthy In 1983 Infosys moved to Bangalore when it got its 1 st client Data Basics Corporation from the United States as a 'body-shop' or on-site developer of software for US customers The first mini computer arrived at Infosys in 1983. It was a Data General 32-bit MV8000. The very next year Infosys switched from mini to main frames with a CAMP application for a Data Basics customer. First joint venture partners in Kurt Salmon Associates in 1987 which collapsed in 1989 led to its first crisis

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It is said that Infosys began getting big breakthroughs from the US market. Even today, Infosys derives about two-thirds of its revenue from the United States, serving corporate clients like Reebok,(1988-89) ,Digital Equipment (1988-89),1995 Yantra Corp-Satyam-DCM,Visa, Boeing, Cisco Systems, Nordstrom and New York Life. Infosys is the largest publicly traded IT services exporter in India, providing services to 315 large corporations, such as GE and Nortel, predominantly in the USA.

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Narayan Murthy as a Strategist……

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Global strategy comprised of 3 features: 1.Global delivery Model-producing where it is more cost effective to produce and selling where it is profitable to sell 2.Moving Up the Value Chain-getting involved in the software development cycle in the earliest stage of its life cycle. 3.PSPD- Predictability of revenues Sustainability of predictions Profitability of revenues Good de-risking model

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Narayan Murthy as a Pioneer……

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There were many firsts to Narayana Murthy's credit. Infosys was the first company to push for off–shore software development 3 as against body shopping 4 that was coming during the 1980s. He championed corporate governance in India. which were better than those of many other companies in India. Infosys was the first Indian company to follow the US Generally Accepted Accounting Principles (GAAP) disclosure norms before going for a Nasdaq listing in 1999. Narayana Murthy's move to adhere to the best global practices was driven by his vision to become a global player. In December 2006, Infosys became the first Indian company to be added to the NASDAQ-100 index .

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Narayana Murthy was a real communist in terms of sharing his wealth with his co-workers. It was Murthy's business strategy to give employees stock options as a means of retaining talent.. It was a gamble that has indeed paid in real terms and has indeed benchmarked Infosys in corporate India.

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Narayan Murthy as Transformational Leader……

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Infosys has also been voted the "Most Admired Indian Company" in The Wall Street Journal Asia 200 for 10 years in a row since 2000. Narayana Murthy, currently the company’s Chairman and Chief Mentor, has become recognized as one of the world‘s most admired business leaders.  These are the principles that got him there: Adversity Values Enhancing trust Governance

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Managerial remuneration Managerial remuneration should be based on three principles: • Fairness with respect to the compensation of other employees • Transparency with respect to shareholders and employees • Accountability with respect to linking compensation with corporate performance I ntegrity Strong leadership in adverse times helps win the trust of the stakeholders, making it more likely that they will stand by you in your hour of need. As leaders who dream of growth and progress, integrity is your most wanted attribute.  Lead your teams to fight for the truth and never compromise on your values.

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Narayan Murthy as Authentic Leader……

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Narayan Murthy said “Ethics and values form the protocol for conduct and behaviour in a community for each of its members. So that enhances the confidence, the enthusiasm, the energy, the joy of everyone else in the community. If I conduct myself as per that protocol of behaviour , it enhances the confidence, the enthusiasm, the energy and joy of everyone else in the company.” Earned trust 141882 people in Infosys to commit to hard work, then they have to trust the leader. Analysts felt that one factor which helped Infosys to grow at a faster pace than others was the low employee turnover. The turnover rate at Infosys was around 11% as opposed to industry average for software companies' of over 25% during the 1990s.

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Narayan Murthy as Employee Oriented Leader……

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Infosys had low employee turnover Infosys provided both professional and personal needs such as ticketing, credit cards, creche, gymnasium fro its employees First company to adopt ESOP and by 2001 it had about 2000 millionaires in its staff Employees are paid high salaries by industry standards Employees encouraged to communicate with each other and also with higher management Appreciation in the form of Chairman’s List and an annual excellence award Infosys current employee strength alongwith its subsidiaries is 109882

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Awards won for people management 2011 Infosys is India's most respected company: Businessworld 2010 Infosys ranked among 'Best Companies for Leaders' Infosys wins American Society for Training & Development (ASTD) award for excellence in inclusivity 2009 Infosys BPO Bags Excellence Award for Diversity Hiring Initiatives 2008 Infosys wins the NASSCOM gender inclusivity award 2006 Infosys is the Best Company to work for in India 2006 says the BT-Mercer-TNS survey published by Business Today

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In August 2001, Narayana Murthy set up a Leadership Institute in Mysore, India, to manage the future growth of Infosys. The institute aimed at preparing Infosys employees to face the complexities of a rapidly changing marketplace and to bring about a change in work culture by instilling leadership qualities. Commenting on the institute, Narayana Murthy said, “It is our vision at Infosys, to create world-class leaders who will be at the forefront of business and technology in today's competitive marketplace...

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