When Infosys founders sat in a small room in Mumbai in 1981 discussing the vision for their new company, N.R. Narayana Murthy suggested, “Why don’t we build India’s most respected company?”

And that is just what they went on to do, making Infosys the most respected name evoking strong positive values.

Murthy’s vision and values built a powerful culture in the organisation. This culture was a ‘clan culture’ (like a family), where the organisation concentrates on internal maintenance with concern for people and sensitivity for customers. This type of culture is different from others — market, hierarchy and adhocrasy. While no culture is superior, it needs to be aligned with the organisation strategy at all times.

For Infosys, the ‘clan culture’ was a catalyst for growth but the underlying fact is that most of the company’s values were linked to Murthy’s personal values — of integrity, equity and sharing of wealth among employees.

These values remain unmatched as was clear when he said “Shibu is the CEO (Chief Executive Officer) and I am there to add value to him.”

So, the pertinent question is whether the current culture is helping Infosys grow? If not, would Narayana Muthy drive a culture change in Infosys?

The recall of the legendary founder, hailed by media, analysts, industry peers as well as critics, bets on his leadership skills, which, unfortunately, few of his successors displayed since he turned 65 and quit in 2011 to be the Chairman Emeritus.

The hero coming back to support his organisation and his country is a myth often seen in movies and recounted in storybooks. And the hero understands that the times have changed, organisation has changed and, so, he also understands that the cosmetic shifts and transactional changes will not put the organisation in the new trajectory of growth.

Emotional appeal and credibility

For a statesman as principled as Murthy it must have been exceptionally troubling to see the company he founded at the receiving end of an internal and external bashing, that he chose to break two self imposed rules — of retirement age of 65 and that involving founders’ family members in Infosys.

No doubt Murthy’s global credibility and esteem will further strengthen Infosys’ sales and delivery machinery. With limited information, I see the retreat of K.V. Kamath, one of the finest managers, and his admission that Murthy is better equipped to lead Infosys, a sign of his strength.

Kamath, the man who thought of getting the master blaster back on the pitch, understood that besides restoring confidence among clients it will re-energise and motivate the 150,000-strong Infosians.

Sixty-six year old Murthy’s view that software industry entrepreneurs should not shy away from sharing the gains with the Government (in the form of taxes) could keep occasional barbs, in the form of compliance notices from the Income Tax authorities, at bay.

The respect and trust of global peers and heads of Governments, could help ease the stings Infosys gets on account of visa issues in the US, Infosys’ largest revenue earning geography.

People development and leadership

By setting up a Leadership Institute in 2001, Infosys showed learning and development was an important function.

But I am not sure how effectively the leadership development helped with complex business situations that require risk-taking and bold decisions.

The nature of the ‘clan culture’ is such that it may take more time to react to external changes, as it puts emphasis on internal stability. As the architect of the Infosys value system CLIFE — Customer focus, Leadership by example, Integrity and Transparency, Fairness and Excellence — Murthy needs to deliberate on niggling questions around people and leadership development.

By following the policy of promoting founders to the CEO positions, Infosys created fewer opportunities for high performers among board members, leading to high profile exits. For a truly global business that Infosys represents it is surprising that none of the four business heads, who serve Infosys board as whole time directors, is a non-Indian. The other two whole time directors are founders.

Now that the internal pipeline of founders for CEO positions is exhausted, media reports indicate that Infosys has started scouting for an external CEO to take over from the incumbent S.D. Shibulal, when his term ends in March 2015. That Infosys’ is not looking at its own funnel of four business heads on the board of directors reveals that a second-tier management pipeline is not ready.

According to Ronald Heifetz, Senior Lecturer in public leadership and founder of the Center for Public Leadership at Harvard Kennedy School, leaders are confronted by two types of problems: technical problems, which can be solved by expertise and good management; and “adaptive” problems, that are complex and there are no right or wrong answers. Heifetz argues that only leaders evolving their thinking and values to a new, higher level can address the new century’s many adaptive challenges. How is Narayana Murthy, an evolved leader in his thinking, going to solve this adaptive challenge?

So, the vision that resonated well with everyone “to be the most respected Indian company” was an ambitious statement in 1981 but would that take Infosys to the next orbit?

Organisations constantly need to reinvent, and create internal energy that helps in transformation. One of the insurance companies reworked their vision from “to be the most respected insurance company” to “to be most respected and to make every middle class Indian financially secure,” thus, giving an external focus.

How would Infosys create external orientation, risk-taking and “quick to see possibility” mindset? The tougher questions await the hero who returns but I am sure the charisma, values and wisdom of Narayana Murthy will help Infosys learn from the emerging future and possibilities not just from past experiences. Because learning from the past is outdated.

(The author is a celebrity coach and founder MD of leadership and development firm OD Alternatives.)

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