30 lessons from life and career of NR Narayana Murthy

You might fail, but get started Learn from mistakes and move on. In 1976, Murthy founded Softronics, a company that lasted a year and a half. When he realised that his first venture wasn't taking off, he moved on. Think Big. Don't Hesitate to Start Small In 1981, a determined Murthy started Infosys with Rs 10,000 he borrowed from his wife. In few years, Infosys went on to become one of the largest wealth creators in the country. Cut Yourself a Slice, Not a Large One Always When Infosys was set up, Murthy took a pay cut while salaries of other co-founder's were increased by 10 percent. According to Murthy, a leader needs to show his or her sacrifice and commitment. Lend a Hand and Throw in a Foot Too After Murthy convinced seven of his colleagues, there was a problem. Nandan's future inlaws were not sure about him. Murthy met Nandan's uncle and convinced him. Own Up, and Then Clean Up In the '80s Infosys developed an application for a German client. Murthy noticed a single character error and informed the client immediately. Trust in God, But Verify with Data In God we trust, the rest must come with data, is perhaps Murthy's favourite statement. When confronted with difficult decisions, he tends to rely on data. Keep the Faith Infosys almost wound up in 1990. Murthy did not want to sell the company. He asked cofounders if they wanted out and offered to buy their shares. All of them stuck together. Get Involved Infosys won a contract from Reebok in the early '90s. Seeing the founders involvement, the software, was nick named 'Dinesh, Murthy and Prahlad.' Infy veterans still recall those days. Sharing is Caring

After the IPO, Infosys decided to share a portion of its equity with employees. This helped them retain talent and gave employees a sense of ownership. Murthy is proud of having given away stocks worth over Rs 50,000 crore to employees. Treat your People Good, but Your Best Better Murthy always had a thing for good performers. And he rewarded them well. When Infosys decided to give its employees stock options, Murthy insisted that some shares be given to good performers through the 'Chairman's quota.' Hire a Good Accountant, Even if he is Argumentative A young, argumentative Indian, was asking too many questions at an annual general body meeting of Infosys. More impressed than irritated, he hired Mohandas Pai, who went on to help Infosys list on Nasdaq. When in Doubt, Disclose Keep your books clean and leave the cooking to the chef. Murthy's philosophy about being open and transparent has given the company a lot of credibility. He often says, "When in doubt, please disclose." Leave the Family Out Murthy told his wife that only one of them could be with the company. Murthy, along with other founders, said that none of their children would work for Infosys. This left no room for nepotism at Infosys. Don't be a Pushover In 1994, when General Electric wanted to re-negotiate rates, Murthy said no to selling services any cheaper. This helped Infosys not to be overly dependent on any one client. Make hay While the Sun Shines In late 90's, India's tech companies made use of the Y2K opportunity to make themselves known in the global market. For Infosys, it was a great opportunity to enter into long-term relationships with their customers. Brand-aid First, Get Clinical When the sexual harassment case against Infosys' top sales guy Phaneesh Murthy threatened to tarnish the company's brand, Murthy decided to quickly react. He let go of Phaneesh, and settled the case out of court despite Phaneesh wanting to fight it out. Mind your Business, you'll See Things Coming Murthy 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 Silly Keep your life simple and straight. That way, you get to work more and worry less. Murthy is known 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 Forever Murthy's decision to not allow founders to continue with the company after the age of 65 set another standard for the company. This way, younger leaders at Infosys had a greater chance at the top positions.