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N R Narayana Murthy is a legend in the world of business - a shining example of what entrepreneurship, leadership, excellence and integrity is all about. The Infosys Chairman is clearly one of the tallest business leaders this country has seen, a shining example of how business can be conducted profitably, the right way. To any cynic who believes that business in India can only be done by bending rules or circumventing them, Narayana Murthy's life represents the best example to silence them.
There are many lessons one can learn from Mr. Murthy's life. There is in fact a dedicated website which discusses the life and times of Mr. Murthy, and which also shares 30 lessons of Narayana Murthy. We will, in the next article, look at these 30 famous lessons and what we can learn from them in the financial advisory business. In this article, we will discuss two lesser known real life stories from Mr. Murthy's life and try and understand how we can perhaps imbibe some lessons that can be applied in our own business.
I. No job should ever be seen as demeaning
As Chairman of Infosys, NR Narayana Murthy is one of the richest and most respected business leaders in the country. He is a busy man, perhaps busier than most in the country. But, despite all this, Mr Murthy says there is one thing he does without fail every night when he returns home: he cleans the lavatory.
It is a habit instilled by his father. "We have a caste system in India where the so-called lowest class… is a set of people who clean the toilets," he explains. "My father believed that the caste system is a wrong one and therefore he made all of us clean our toilets… and that habit has continued, and I want my children to do that. And the best way to make them do it, is if you did it yourself."
What's the task in your office you hate most to do yourself?
Every job in your office is important, but there are some that you personally dislike doing. Some of us may hate doing portfolio statement reconciliations, though providing accurate portfolio statements is an important service to your clients. Some may hate taking service calls where you are dealing with and resolving complaints of irate clients, which only consume time and give no incremental revenue. But, that job is critical anyway to ensure that your clients are happy and continue doing business with you. Some may hate the prospect of doing cold calls after being in this business for over 10-20 years, and would happily leave that to youngsters - let them face doors slammed on their face, let me get involved when the door is opened. These youngsters are doing a critical job - they are identifying warm leads for you to convert, and thus help you grow your business.
Think of what goes on in the minds of those who you task with doing these jobs that you hate doing yourself - how motivated and enthused will they be? Whichever is the job you hate most in your office - why not decide that you will spend at least 1 day in a month doing it anyway? Sit with your back office staff once a month and complete portfolio statement reconciliations with them. Become the service executive for one day in a month, and take all client queries and complaints and solve them. Go out with your sales person one day in a month on cold calls. Demonstrate that no job is too small or too distasteful in your office, by doing it yourself, at least one day in a month. Mr. Murthy cleans his own toilet every day - to set an example to his children that no job is demeaning. We are not talking about cleaning the toilets, and we are not talking about doing it everyday - but why not start with doing what we dislike most in our office, at least once a month? Why not show empathy to our team members, by becoming one of them at least once a month?
II. Are you willing to pay the price for your values?
Mr. Murthy and Infosys are upheld as the best examples of business integrity, of running a highly values-based organization. Some might say that you can always demonstrate ethics and integrity once you are successful, but that the road to success is often littered with compromises you made to get there in the first place. Mr. Murthy says that if you are truly committed to your values, it implies that you are willing to pay the price to uphold your values. Without that, its meaningless to say that your's is a values driven firm. This is the story Mr. Murthy related when he was asked by a reporter to give an example of what he meant.
"Let me tell you a story that I often tell our people. In February 1984, Infosys decided to import a super minicomputer so that we could start developing software for overseas clients. When the machine landed at Bangalore Airport, the local customs official refused to clear it unless we "took care of him"-the Indian euphemism for demanding a bribe. A delay could have meant the end for us before we had even started. When an Infosys manager informed me about the problem, my only question was, "What is the alternative to paying a bribe?" The manager hesitantly replied that we could pay a customs duty of 135% and then appeal for a refund. I told him: "Do that."
We didn't have enough money to pay the duty and had to borrow it. However, because we had decided to do business ethically, we didn't have a choice. We would not pay bribes. We effectively paid twice for the machine and had only a slim chance of recovering our money. But a clear conscience is the softest pillow on which you can lay your head down at night."
How do we react when the chips are down?
In the financial advisory business, there are numerous occasions which can potentially test our values and beliefs. Every financial advisor who takes a long term view of his business will only want to do what is right for his clients. Nobody who cares about the sustainability of his business would want to willfully do something that harms his clients' interests. Yet, we are often presented with many situations which are not always black or white, but are various shades of grey. Do we accept that grey is ok or do we force ourselves to consider whether it should only be either black or white?
Lets say its been a very tough period for the last few months and you are struggling to pay salaries and overheads from dwindling commissions. Here comes an NFO with a 5% upfront commission in a product category you normally do not like recommending to your clients. You know that with the huge advertising campaign that the company is running, there are some client enquiries coming in. It would be easy to get some quick sales through and get some much needed revenue into the firm. What would you do when your back is against the wall and a window of opportunity is available? You have a choice of rationalizing that the client asked for it and that you did not go out of your way to vigourously promote it. You can live in the grey zone or force every situation into black or white. Ultimately, as Mr. Murthy says, a clear conscience is the softest pillow on which you can lay your head down, at night.
Content is created by Wealth Forum and should not be construed as an opinion of Axis Mutual Fund.
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