Murthy, one of the highly respected corporate captain''s around the globe, gave this piece of advice to the entrepreneurs assembled at the India Global Innovation Connect 2022 event in the city. He shared a couple of inspirational anecdotes about how safe it is to disclose bad news about the company." />
Tuesday, Mar 5 2024 | Time 15:38 Hrs(IST)
image
Business Economy


Disclosing bad news is transparency: Infosys Founder Narayana Murthy

Bengaluru, June 3 (UNI) Talking about life lessons as a top-notch corporate captain, Infosys Founder NR Narayana Murthy on Friday said "disclosing bad news (about a company) is transparency, not hiding it."
Murthy, one of the highly respected corporate captain's around the globe, gave this piece of advice to the entrepreneurs assembled at the India Global Innovation Connect 2022 event in the city. He shared a couple of inspirational anecdotes about how safe it is to disclose bad news about the company.
Murthy brought to life one of his toughest decisions to severe business tieup of Infosys with a highly respected top ten corporations of the world which his partners including Nandan Nilekani and Shibulal, opposed, which was bad news.
Disclosure of this bad news did not do great damage to Infosys, instead it benefited the company, Infosys Founder said. He also shared a similar conversation between him and Ex-Infosys CFO TA Mohandas Pai.
"We had kept aside a certain amount of money to start our office in Boston. Those days RBI took its own time. So finally Mohan (TA Mohandas Pai) said why don't we invest in the secondary market. I have tremendous respect for Mohan because he is one of the brightest that I have come across. I said okay. And we lost some money," Murthy said.
"So, there was a discussion on whether to disclose it. I said friend. Disclosure transparency means disclosing bad news. Transparency is not disclosing good news. So I said we have to disclose and we disclosed. We did not suffer," he added.
Sharing yet another experience of seeking benefits out of disclosing bad news, Murthy spoke about discontinuing business with a highly respected company which was among the top ten corporations in the world in 1995.
He said, "It is always best to bring bad news early and proactively. If you don't do that you will not be able to sleep well and there is always an anxiety in other parties' minds because they also have sources to get some access to information. It is not like you are the only one to have access to information, right!"
"So, my view is that always bring bad news early and proactively. Let me give you one example. In 1995, I made a very tough decision. I was the only person who made that decision. There was Mohan. There was Nandan, Kris (Gopalakrishnan), Shibu (Lal) and Phanish (Murthy)," he said.
"Everybody was against it, respectfully declining to continue with a highly respected top ten corporations in the world. I thought it was not there. I thought we wouldn't be fair to our employees. Other customers ... etc etc. But once we made that decision. Nandan (Nilekani) and I went to Mumbai and we held an analyst meet on our own. Nobody expected us. It was totally voluntary," Murthy said.
"We told them that look, we have taken this decision not to continue with this highly respected company. They formed 25 per cent of our revenue. We went public in 1993 and this was 1995 May, and we laid out a plan on how we would bridge that gap and grow fast. Our share price didn't suffer. Because so many people told us at that time that you are the first company in India that brought bad news to the team," he said.
"So, my request to all of you is, it is better to be known as a respected individual than a very smart individual. So even if people say that you're not that smart, it is okay but if people say we can trust you. We can trust this man, I can tell you that it has much bigger value than being the smartest guy. So my request to the wonderful entrepreneurs is to let the bad news take the elevator and let the good news take the stairs.
"When in doubt, disclose, and that principle is very enduring and will not hurt the entrepreneurs. It is like going to the doctor at an early stage. Doctor will find a solution for you. If you hide it, then it will be ... we also have experienced it," Murthy said with a laugh.
UNI BDN SY
More News

Roche Pharma launches Vabysmo to treat eye diseases

05 Mar 2024 | 2:46 PM

Bengaluru, Mar 5 (UNI) Roche Pharma India on Tuesday forayed into the Ophthalmology space by launching Vabysmo (faricimab) for the treatment of eye diseases.

see more..
Kerala CM to open beach-side startup festival Huddle Global

Kerala CM to open beach-side startup festival Huddle Global

05 Mar 2024 | 2:45 PM

Thiruvananthapuram, Mar 5 (UNI) Having firmly positioned Kerala in India’s startup landscape through the iconic beach-side startup festival Huddle Global since 2018, the sixth edition of the event organised by Kerala Startup Mission (KSUM) will be held at the famed beach destination Kovalam near the state capital from November 28 to 30, 2024.

see more..

StoxBox launches India’s 1st AI-Powered Trading Platform on WhatsApp

05 Mar 2024 | 1:13 PM

Mumbai, Mar 5 (UNI) StoxBox, a leading Value Broker on Tuesday said that it has launched one of India’s first-ever AI-powered trading platforms on WhatsApp, StoxBox WhatsApp Trader (SWT).

see more..

L&T Technology Services collaborates with Intel to scale Edge-AI solutions

05 Mar 2024 | 1:08 PM

Mumbai, Mar 5 (UNI) L&T Technology Services (LTTS), a prominent global digital engineering and R&D services company, on Tuesday announced a collaboration with Intel Corporation aimed at developing and providing scalable edge-AI solutions for a range of use cases, including Cellular Vehicle-to-Everything (CV2X) applications.

see more..

Adani Power's proposal to takeover Lanco Amarkantak gets go ahead

05 Mar 2024 | 1:02 PM

New Delhi, Mar 5 (UNI) Resolution Plan of Adani Power has been approved by the Committee of Creditors of Lanco Amarkantak Power Limited, a company undergoing the Corporate Insolvency Resolution Process.

see more..
image