Corporate governance issue: Narayana Murthy is not alone found wanting
Anil Agashe 07 June 2013

Is this move (by Narayana Murthy) an admission about his failure in choosing Infosys leaders? If so why does he not admit it in public for the sake of corporate governance and transparency that he talks about all the time? Is trying to make comeback part of culture to cling on?

So NR Narayana Murthy is back to Infosys and he is being asked to save the company that seems to be slowing down. This time around he has even got his own son with him to help him save the sinking ship. What makes anyone think that he can save the company that he left as per his own resolve at the age of 65? Had he not said time and again that my children have no interest in running the company? What has changed for him to go back on his words? Was he not instrumental in putting place the management team at the time of his departure? Is this move an admission about his failure in choosing Kamat and Shibu Lal? If so why does he not admit it in public for the sake of corporate governance and transparency that he talks about all the time? Why this announcement was kept under wraps?
 

Of course, those in the know seem to have benefitted from this inside information as Moneylife has hinted here. He also never told us publicly why Mohandas Pai left abruptly? Will he tell us why he and other founders have sold most of their holdings in the company? Did they do that because they were aware that the Infy business model had run its course and there was no future in the company anymore?
 

Murthy was made into an icon and he was one, but is no more one! The problem with us is that we think good people never made bad mistakes. Actually great people make great mistakes. But we seem to either overlook those or tend to justify those mistakes by not acknowledging them.
 

But he is not alone who thinks that his company can only be rescued by him! We have other examples, as well’
 

Ratan Tata postponed his own retirement by 10 years! He kept saying that a successor was not in sight! The truth is he was reluctant to leave. A successor can be groomed or searched, but he did not do that till he was left with no choice. In the mean time Raadia tapes took some gloss off his persona as did his letter to Karunanidhi praising Raja! Had he retired at the self appointed time he could have avoided both!!
 

Another example is that of AM Naik of Larsen & Toubro (L&T). He says there is no one who can handle the complicated businesses that L&T runs except him! A very pompous argument!
 

In cricket we have Sachin who believes the nation still needs him and his devotees keep goading their God to go on! It would have been most fitting were he to quit the day India won the World Cup.
 

In politics we have Manmohan Singh. He could have gone on a high had he refused to continue post 2009 elections! Now Advani is willing to make a fool of himself for the second time. Earlier Nehru should have stuck to his stand that he wanted to quit in 1957 he was persuaded by the party, he did not quit in ’62 when he had another chance and died a broken man! In films look at the pathetic effort made by Madhuri Dixit to find past glory! So it is in our culture to do this. Most comebacks end in disaster! Here is wishing NRN luck!
 

(Prof Agashe teaches at Symbiosis and other management schools in Pune).

Comments
Sathish Chandran
1 decade ago
Nice observation Prof. Anil Agashe. Seriously wish NRN good luck because Infosys is not just another company, it is India's pride.
Govind
1 decade ago
Wow, nice angle of looking at the current situation in Corporate as well as Politics. Keep us feeding, Indeed nice article
huma arora
1 decade ago
terrific and meticulously written article.. keen observation
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