Leading by Example

In this edition of ‘CEO Insights’ we have?Mr. N R Narayana Murthy, founder of Infosys. He served as the Chairman, CEO and President of Infosys before he retired and took the title chairman emeritus. It was our pleasure to have Mr. Murthy as part of?‘The Great Manager Awards ceremony for 2020’?He is a living legend and an epitome of honesty, credibility, and knowledge. In his conversation with my colleague,?Dr. Sandeep Krishnan, Chief Operating Officer, People Business and Author of Making of a CEO and Mind of a Consultant, he shares with us the values and principles he follows as a leader.?

Sandeep: What skills do you think leaders should learn to grow in this new environment?

Mr. Murthy:?Because of the uncertainties, the market has shrunk, and the disposable income of people has lowered. So, it’s important to enthuse and enhance people with Hope, confidence, productivity, and quality of work. The most powerful way to do this is through leading with example. With millions of people losing their jobs and salaries being cut, the need of the hour is to work hard, innovate and lower the costs to improve sales.?

‘For managers to become leaders, they have to demonstrate by their own actions’

Speed of action, decision making, austerity, hard work, creativity, innovation, customer focus, transparency and treating employees with dignity and respect are the most important attributes leaders should exhibit to succeed during these difficult times. They should also ensure that their confidence level is high enough to motivate their colleagues.?

Sandeep: What is your view on Diversity and Inclusion at the workplace?

Mr. Murthy:?With more than 50% of the population being women, society has to work towards using this potential for the betterment of families, corporations, and societies. The creation of Support services to handle the needs, and online services to enhance the comfort of working parents about their children and elders are few of the initiatives that they could implement.

However, Diversity and Inclusion means the inclusion of minorities like people from the economically weaker sections of the society, LGBTQ community, backward classes and so on. In India, I believe associations like CII and NASSCOM are in the best position to evolve pan industry practices to be followed by every company in a given industry.?

Sandeep: How can managers add more value to the organisation especially during the pandemic?

Mr. Murthy:?I believe managers can add value by the time-tested method of?‘leadership by example’?Mahatma Gandhi enthused the entire nation to make a sacrifice and achieve freedom through non-violence by leading through example. He wanted to identify himself with the poorest Indian, so he ate simple food, wore a loincloth, and travelled by third class trains. Through his actions he was trying to demonstrate the power of leadership by example.

So, I would say, demonstrate your commitment to discipline, hard work, sacrifice, productivity, honesty, transparency, stakeholder orientation and fairness. Show people you’re open to new ideas and discuss and debate respect for others’ opinions. You have to show excellence in execution of everything you do. If you as a leader follow these principles, your managers will start embracing these values and your problems will disappear.

Sandeep: What do you think is the most critical competency of a manager of the future?

Mr. Murthy:?We now live in an era of globalization which requires two factors to succeed and grow– a distinct competitive advantage and a reasonable current account balance. Most conflicts arise when one country creates a huge surplus against another whose current account deficit is hard against all countries. In this scenario,?

‘Managers have to learn two important competencies – to benchmark ourselves with the best competitors and to become multicultural’

Be it in the design of the product, selling or finance they have to benchmark every dimension of the corporation with the best global company in their field and should make that their path. This will not only help them become the best globally but will help create new practices as well. To succeed in this, you need to be multicultural. You should be able to interact, share and learn with people from different cultures.?

Sandeep: How can managers thrive in this new normal, especially with everything revolving around digital?

Mr. Murthy:?At this point our managers should think about how to bring more value to their stakeholders in the digital world. The challenge lies in how to ensure that the ratio of business value per rupee received is higher compared to the competitors so that you will become the biggest market shareholder. Managers need to figure out how to utilize the digital world to innovate even further to reduce costs and improve productivity, value, and quality of services to stakeholders especially to customers. And without exception, everyone has to worry about society, which is our biggest stakeholder, as it contributes to customers, employees, investors, bureaucrats, and politicians.?

‘Are we providing a better business value to stakeholders per rupee received by us, better compared to the competitors on a global basis’- is the question managers have to keep in their mind to survive in the new normal

Sandeep: From your experience, what role does credibility and integrity play for managers?

Mr. Murthy:?Any aspirational project or initiative requires a lot of hard work, sacrifice, mental peace, hope and enthusiasm. The success always looks like a distant mirage. The ability to make your team put in hard work and reach that desired destination requires a lot of trust and confidence in the words of a leader. And the best way to gain trust and confidence is through leadership by example. It is what brings credibility and integrity to managers and leaders.

‘Integrity sees that your words and action follow the same values while credibility ensures that you walk the talk’

For example, if you want employees to come to the office on time, instead of telling them on repeat, being their boss you should reach before your employees and this action of yours will spread faster than words.?

‘The only way you earn the credibility and integrity of your employees is through leading by example’

Sandeep: What is your advice for the younger generation, who’s taking up leadership roles in the organisation?

Mr. Murthy:?I believe that the future belongs to the youth. A country like India has a tremendous advantage in terms of youth, and no doubt they will make this country a better place.?

Courage?is the first attribute of a worthwhile human being. So I would request my younger leagues to practice an array of conviction and honesty. They should be able to stand up for their beliefs and admit their mistakes while at the same time having the courage to work with an undrawn path.?

‘Always remember that respect from your stakeholders and society is more important and enduring than wealth and power’

Every day when you make a decision, ask yourself whether this will bring respect for you. You also need to follow?valueslike honesty, leadership by example, fairness, transparency and respect for all classes and cultural groups.?

‘Competition is your best management guru’

I learned this from my leader, Shri Rahul Bajaj when he asked me to embrace global competition, and benchmark with the best competitors in every function. When you make efforts to follow best practices it will eventually improve your company. So try to embrace global competition in everything you do. No leader will succeed in a vacuum. You need your employees. So work hard to create a climate of fairness?and share the glory and success with your employees.?

‘Finally, remember that the surest way to get respect from everyone is through performance’

Nobody is interested in listening to your stories, what matters is how well you perform in the global bizarre. Words simply don’t mean anything. Bogus boasting makes us become laughing stocks. So the most valued leader tender in the global bizarre of respect and power is performance.

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