N. R. Narayan Murthy: Do As You Say to Gain Credibility | Summary and Q&A

Transcript

Read and summarize the transcript of this video on Glasp Reader (beta).

Summary

In this video, the CEO and executive chairman of Infosys shares the lessons he has learned from running the company for the past 25 years. He discusses the opportunities and challenges of globalization, the growth of the company, and the importance of people and transformation in achieving progress. He emphasizes the need for leaders to raise aspirations, overcome naysayers, see constraints as opportunities, and lead by example to instill trust in others. He also highlights the importance of being relevant to customers and making a greater impact to ensure longevity and success in the marketplace.

Questions & Answers

Q: How did the PC revolution and availability of software applications impact the founding of Infosys?

The PC revolution, with the availability of word processors and spreadsheets on inexpensive computers, signaled a growing demand for software applications. Knowing that the demand for customized software development would explode, the founders of Infosys recognized the opportunity to specialize in this area and started the company in 1981.

Q: What is globalization, and how did it create opportunities for Infosys?

Globalization, as defined by the CEO, involves sourcing capital from where it is cheapest, sourcing talent from where it is best available, producing in the most cost-effective locations, and selling where the market is profitable, without being constrained by national boundaries. Infosys realized that India had a clear competitive advantage in customized software development due to the availability of a large number of English-speaking technical talent. This advantage allowed them to offer value in the global market.

Q: What were the inhibitors of growth for Infosys in its first 10 years?

The growth of Infosys in its first 10 years was inhibited by excessive friction to business in India. However, thanks to the economic reforms of 1991, the company experienced a positive change that facilitated its growth.

Q: What are some key achievements and statistics of Infosys today?

Infosys closed the previous year with $2.15 billion in revenue and a net income of over $550 million. The company currently has a market capitalization of approximately $20 billion. It specializes in various industries such as banking and capital markets, retail, and high-tech manufacturing, operating in 38 countries with development centers in seven countries. Infosys has experienced a growth rate of over 40% in the last ten years and has been recognized for its leadership in innovation, employee orientation, and corporate governance.

Q: What are the major innovations of Infosys?

Two major innovations of Infosys are the 24-hour productive day and the global delivery model. The 24-hour productive day allows Infosys to combine the prime time of customers in the US with their own prime time, providing a 24-hour workday and compressed cycle time for customers. The global delivery model involves splitting a large software development task into two groups: customer-facing tasks that require physical presence and non-customer-facing tasks that can be done from cost-effective, talent-rich development centers in countries like India. This model allows Infosys to provide customers with quality software on time and within budget.

Q: How does a leader's perspective shape their success?

The CEO believes that a leader's perspective is shaped to a large extent by how people at the bottom of the organization view the world. Success for a leader is defined by their ability to synthesize both the bird's eye view and the worm's eye view. In other words, a leader must combine a high-level understanding of the organization with an understanding of the daily experiences and perspectives of individuals within it.

Q: What are the primary resources of a corporation, according to the CEO?

The CEO believes that the primary resource of a corporation is its people. He places great importance on the role of employees in driving progress and transformation within an organization. A leader's job is to bring about team or organizational transformation, which requires changing the mindset of people and instilling positive, confident, enthusiastic, daring, and open-minded attitudes towards change and great aspirations.

Q: Why are aspirations important for progress?

Aspirations serve as the main fuel for progress. They help people overcome obstacles, work hard, make personal sacrifices, and prioritize the interests of the organization above their own. Aspirations enable individuals to embrace the idea that a plausible impossibility is better than a convincing possibility. The CEO gives the example of how, despite starting as a small company with limited revenues, Infosys aspired to become the most respected corporation among thousands of listed companies in India, and through their aspirations, they achieved this goal.

Q: How can leaders overcome naysayers and pessimism within the organization?

When proposing something innovative or dramatic, leaders often face opposition from naysayers who cite the context and limitations as constraints. However, a leader must overcome this pessimism and encourage others to give it a try. By emphasizing opportunities within the constraints, a leader can change the narrative and inspire their team to see beyond immediate challenges.

Q: Why is credibility and trustworthiness important for a leader?

Credibility and trustworthiness are crucial for a leader because they make a leader more enduring in the marketplace. A leader must lead by example and demonstrate a commitment to the values and attributes that define the organization. People watch leaders closely and imitate their behavior, so it's essential for leaders to display credibility in all aspects of their work, from cost control to customer excellence. By being the change they want to see in the world, leaders build trust among their teams and stakeholders.

Takeaways

In this talk, the CEO and executive chairman of Infosys highlights the importance of people, transformation, and mindset in achieving progress. He discusses how leaders can raise aspirations, overcome naysayers, and see constraints as opportunities. He emphasizes the significance of credibility and trustworthiness in leadership and the need for leaders to be relevant to customers and make a greater impact. These lessons serve as valuable insights for any corporation navigating the challenges and opportunities of a global marketplace.