“Bring the bad news early and pro-actively to your investors. I always say, let the bad news take the elevator, good news can take the steps”
Indian businessman and the legendary brain behind Infosys Technologies, (a multinational corporation providing business consulting, technology, engineering, and outsourcing services), Narayan Murthy worked as chief systems programmer before starting Infosys. A receiver of several famous prizes like ‘Padma Vibhushan’, and also ‘Legion of the Honour’ (awarded by France), he is regularly on the panel of HSBC, Honda Base and UN Base.
He realised that the best solution for countries like India to solve the problem of poverty, injustice, and system of communism was entrepreneurship and capitalism. Hence, he decided to be an entrepreneur. In 1981 he started Infosys and served as its CEO from 1981 to 2002 and as Chairman from 2002 to 2011. Infosys is an acronym for information systems as he wished to start business in designing information systems. In 2011, he stepped down from the board and became Chairman Emeritus. On 1 June 2013, Murthy was appointed as Additional Director and Executive Chairman of the board for a period of five years.
All he ever wanted was to demonstrate that it was possible to run a legal and ethical business in India. He conducted an experiment in the democratisation of wealth, gave ESOPs to people. Ten to one, he has benchmarked himself on a global scale of productivity and quality. Infosys is truly a multicultural organisation. The company is a place where people from different nationalities, races and religions can come together and work in an environment of intense competition, but of utmost courtesy and dignity.
But all this didn’t come to him in the blink of eye; it was a result of prolonged struggle. The best thing about Infosys is it never utilised its brand reputation and cash reserves to enter other business as they enjoyed doing what they did.
The Golden Words…
Narayan Murthy believes that one must have an idea that has value in the market, a talented team that is ready to work hard for the progress of the company and a good value system for becoming a successful entrepreneur. “So as long as you are willing to be open to bring the bad news to the investors, then they will trust you. If they trust you, then you can take bold and tough decisions,” he said and advised small business owners not to be “hesitant” in updating investors.