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ET Now: There are two ways to look at it, top level exit in Infosys. On one hand, many people say that there was a team that might not have been performing well and now they are exiting and that will be a positive for the stock in the long run. On the other hand, skeptics would argue that there are a lot of people who are managing the company since last many years and it is not a small sized company but a company of Rs 1 lakh 70 thousand crores. Why are there so many high profile exits in the company?
Mohandas Pie: There is a leadership vacuum in the company, as they wrongly chose the CEO three years ago and that is coming to an end. The company did not perform and in June 2011, they appointed three members to the board and all three of them are now gone and all three are exceptional individuals.
Ashok Vemurik Now the CEO of another company, V Balakrishnan I am told that BG Srinivas had left and started his own fund and will now join another company as CEO.
So obviously, all three CEOs have been content. It’s clear that the chemistry didn’t work, or they weren’t fully empowered. The board needs to sit down and work out a good succession plan and induct a new team place Because the whole layer of people below the executive board is gone and many of them were excellent performers.
Yes, some of them probably weren’t pulling the load, but it’s not likely that all of them weren’t. They were extraordinary people and they are performing elsewhere.
So there is a need for teamwork and people need to come together. They need to forget the past and focus on the future, they need to reorganize the company based on the need of the market.
The market has changed and so its model needs to change, its management structure needs to change and the group of people who ruled the company for 30 years will have to step down and hand over the reins, because they have been around for too long Huh. So, I am hopeful that in the next one or two months the board will come up with NRN and close the issue forever.
ET Now: Where can success come from at this point, because you’ve already said that the board and Mr. Murthy need to take responsibility for the exit. It seems that the exit cycle is not ending. is this Meaning That the company might even have to consider building a completely new team from outside and hiring some expensive resources from outside?
Mohandas Pie: I think the layer beneath BG Srinivas, V Balakrishnan and Ashok Vemuri is an extraordinary layer. You have many good people who have units. But they have run units and they require a year or two to come up with the venture.
The position of the enterprise is very different from the position of the entity. You may be an exceptional unit person, but to run an entire enterprise in a very competitive environment, you need some Advice and some experience.
Now the entire generation of leaders who could handle the enterprise is gone. The next layer of people has done very well and there is very good management, but they need to connect between themselves and NRN who is the acting chairman and will be there for the next three years. That linkage has to be fixed and it is up to the NRN to do it.
Now it can be done by anyone stepping up to the plate as CEO. He will be inexperienced, may not have handled the business, but being very skilled, he can pick it up in three to six months.
However, this requires a different style of functioning by the NRN. It also means that there will be some amount of bloodshed. In fact, this is when the next generation comes, because obviously people who are too senior won’t last and have to be cleaned up. So in the next two or three months we will have to see a radical change.
It is very difficult to predict whether we will have an external team of people coming in, as such a team does not exist in any other company, let’s remember. It is a very large company with 160,000 people, and a market value of $25 billion or $30 billion.
So it requires a certain level of expertise and the board and the chairman have to work with them very carefully. so they have their job finished and it would help if Nandan Nilekani He is asked to come back, as he can provide the link between the Speaker and the next layer of the people and help mentor them for the next few years, as he had an extraordinary connect with the people, His style is very inclusive and he is one person who empowers his team and gives them all the strength to move forward and stand by them. So bringing back Nilekani would be a great strategy.
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