Mr N R Narayana Murthy, Founder of Infosys addresses students at the 58th Convocation

Summary

The speaker reminisces about the transformative power of education and entrepreneurship, drawing from personal experiences and lessons learned as the founder of Infosys. He emphasizes the importance of meritocracy, values, and compassionate capitalism in building a prosperous and equitable society. The speech serves as an inspiration for the graduating class of 2023, urging them to carry forward these ideals for societal betterment and to lead with integrity and innovation.

Takeaways

• 🌟 The speaker emphasizes the beauty of the environment and the intellectual density of the area, hinting at the importance of setting and surroundings in shaping one's aspirations.
• 🏆 Congratulating the graduating class of 2023, the speaker highlights the importance of the skills and values they have acquired, which are essential for transforming the country and the world.
• 📚 The speaker's journey from a lower middle-class background to a compassionate capitalist is outlined, showing how experiences and learning can redefine one's destiny.
• 💡 Three key lessons from the speaker's experiences are identified: the power of entrepreneurship, the beauty of corporate democracy, and the role of compassionate capitalism in nation-building.
• 🚀 The founding of Infosys is described as an experiment based on the speaker's beliefs, aiming to create a company that embodies fairness, justice, and meritocracy.
• 🌱 The speaker's vision for Infosys was to be a professional haven where individuals from all backgrounds could succeed based on competence and values, free from societal injustices.
• 🛠️ The importance of a culture of meritocracy and values in a company's success is underscored, with the reminder that culture is stronger than strategy.
• 💼 Leadership by example is highlighted as a powerful tool, with traits like courage, sacrifice, and transparency being essential for a leader's effectiveness.
• 🤝 The speaker stresses the significance of respect and trust in building long-term relationships with stakeholders, which is crucial for a company's sustainability.
• 💰 The speaker notes that while profit is important, cash flow is the true measure of a company's success, emphasizing the practicality of financial health over perceived success.
• 🌐 Transparency is presented as a counterintuitive competitive advantage, suggesting that honesty and openness in all dealings can enhance a company's reputation and success.

Q & A

What is the significance of the view described in the opening of the transcript?

The view signifies a place of intellectual density and beauty, possibly an educational institution, which is a setting for the speaker's commencement address and also a place where the speaker started their career.

Who are Alia Bhatt and Arjun Kapoor, and why are they mentioned in the script?

Alia Bhatt and Arjun Kapoor are Indian film actors who appeared in the movie 'Two States'. They are mentioned as a reference to the movie, which also featured a similar view as described in the commencement speech.

What is the speaker's connection to the institution where the event is taking place?

The speaker has a deep connection as they started their career at this institution and served as its chairman from 2002 to 2007.

What is the speaker's background and how did it influence their perspective on entrepreneurship?

The speaker grew up in a large family with limited prospects, influenced by a mindset of limited opportunities due to birth circumstances. Their perspective changed after working in a French company and learning about the power of entrepreneurship, enlightened corporate democracy, and compassionate capitalism.

What were the three important ideas the speaker learned from their experiences in Europe?

The three ideas were the power of entrepreneurship in a free market, the beauty of an enlightened corporate democracy, and the role of compassionate capitalism in building a prosperous and happy country.

What was the speaker's vision for Infosys when they founded it?

The speaker's vision for Infosys was to create a company that was professional, for the professional, and by the professional, where success was based on competence and values, and where fairness and justice were the norm.

What does the speaker mean by 'corporate democracy'?

Corporate democracy refers to a system within a company where decisions are made through a participatory process, often involving stakeholders, and is guided by principles of fairness and transparency.

What is the speaker's definition of success in a company?

Success, according to the speaker, is not just about profits but also about creating a culture of meritocracy and values, demonstrating leadership by example, and ensuring fairness and justice in all company practices.

How does the speaker emphasize the importance of transparency in a company?

The speaker states that transparency is a competitive advantage and is essential in all aspects of a company's operations, from governance to transactions, to build trust and respect among stakeholders.

What advice does the speaker give to the graduating students about their future careers?

The speaker advises the students to uphold the ideals of meritocracy, competence, character, leadership by example, fairness, and transparency in their future careers, and to use these principles as a guide for success.

What is the speaker's hope for the future of India and its corporate leaders?

The speaker hopes that future corporate leaders, academicians, and entrepreneurs will lead the country by the ideals of meritocracy, fairness, and justice, making India a better place for all.

Outlines

00:00

🏛️ Commencement Address and Entrepreneurial Journey

The speaker begins by praising the beauty of the surroundings and the intellectual environment. They reminisce about a similar view from the movie 'Two States' and express confidence in the graduating batch's potential. The speaker thanks the audience for inviting them to the ceremony and congratulates the graduates on their achievements. They reflect on their own career start in 1969 at the same institution and share their experiences that led to the founding of Infosys. The speaker emphasizes the importance of entrepreneurship, corporate democracy, and compassionate capitalism, influenced by their time in France and the writings of various philosophers.

05:00

🌏 Transformative Travels and the Birth of Compassionate Capitalism

The speaker narrates their transformative journey across different regions, which shifted their perspective from a confused leftist to a compassionate capitalist. Upon returning to India, they launched Infosys with the intent to create a company that embodies fairness, justice, and meritocracy. The company aimed to be an inclusive environment where individuals from all backgrounds could succeed based on their competence and values. The speaker outlines their vision for Infosys as a reflection of the best of corporate and societal values, emphasizing the importance of creating a just and equitable workplace.

10:01

🛠️ Pillars of Infosys: Values, Meritocracy, and Leadership

The speaker outlines the foundational principles that have guided Infosys' growth over the decades. They stress the importance of a culture based on meritocracy and values, the necessity of competence, commitment, and character, and the power of leadership by example. The speaker also discusses the significance of behaving with grace when in positions of power and wealth, and the role of questioning and innovation in driving progress. They highlight the interconnectedness of performance, recognition, respect, and power, as well as the importance of respect in building trust among stakeholders.

15:03

💼 Business Philosophy and Ethical Governance

The speaker delves into the business philosophy that has shaped Infosys, discussing the critical role of market access, talent access, and the differentiation of value in products and services. They emphasize the importance of free cash flow as a true measure of success and the competitive advantage of transparency. The speaker also addresses the balance of performance and luck in achieving success, the necessity of fairness in decision-making, and the ethical responsibilities of corporate leaders, particularly in a country with widespread poverty.

20:05

🌟 Charge to the Future Generation: Upholding Ideals and Integrity

In the final paragraph, the speaker issues a charge to the graduating students and the audience, urging them to carry forward the ideals discussed. They express hope for India's future led by corporate leaders, academicians, and entrepreneurs who will adhere to these principles. The speaker encourages originality, daring, and unreasonableness in the pursuit of integrity and purpose. They conclude with a powerful message about the importance of leaving the world a better place and the eternal impact of living by these timeless ideals.

Keywords

💡Intellectuals

Intellectuals are individuals with deep knowledge in one or more fields and the ability to apply critical thinking. In the script, the speaker refers to the high density of intellectuals as a valuable asset, suggesting that the presence of such individuals contributes to the environment's richness and potential for innovation and progress.

💡Meritocracy

Meritocracy is a system where individuals are rewarded based on their abilities and achievements rather than factors like social status or connections. The speaker emphasizes the importance of meritocracy in shaping the culture of a company, as it ensures that the best ideas and talents rise to the top, which is a core principle in the success of the company he founded.

💡Entrepreneurship

Entrepreneurship is the process of designing, launching, and running a new business, which typically involves risk-taking and innovation. The speaker learned about the power of entrepreneurship in creating jobs and prosperity for a nation, which was a pivotal idea that led him to start his own company and contribute to India's economic growth.

💡Compassionate Capitalism

Compassionate capitalism is an economic system that balances the pursuit of profit with social responsibility and ethical practices. The speaker was influenced by this concept and aimed to build a company that not only succeeded financially but also contributed positively to society and the nation's well-being.

💡Corporate Democracy

Corporate democracy refers to a system where a company is managed in a democratic manner, with stakeholders having a say in decision-making processes. The speaker learned about the beauty of corporate democracy and its role in building a prosperous and happy country, which influenced the governance structure of the company he founded.

💡Transformation

Transformation in this context refers to the process of fundamentally changing or improving something. The speaker charges the graduating students to be ready to take on the task of transforming the country and the world using the knowledge and skills they have acquired, indicating the potential impact they can have on society.

💡Injustice

Injustice is the unfair treatment or unequal distribution of resources or opportunities. The speaker talks about creating a company that does not suffer from the injustices he experienced growing up, aiming to provide a level playing field where success is based on competence and values.

💡Transparency

Transparency means being open, honest, and clear in communication or actions. The speaker mentions transparency as a key attribute for a company's success, stating that it is a competitive advantage and a cornerstone of good governance, which builds trust among stakeholders.

💡Fairness

Fairness is the quality of being impartial and just. The speaker emphasizes fairness as a crucial attribute for any decision, suggesting that listening to all sides and using data and facts maximizes fairness, which is essential for building a just and equitable society.

💡Values

Values are the principles or standards of behavior that guide actions and decisions. The speaker repeatedly mentions values as the foundation of a company's culture and success, stating that a culture of meritocracy and values is essential for realizing aspirations and converting dreams into reality.

💡Leadership by Example

Leadership by example involves leaders demonstrating the qualities and behaviors they expect from others. The speaker discusses the power of this leadership style, stating that it involves showing courage, sacrifice, and other positive traits, which can inspire and motivate others to achieve excellence.

Highlights

The beauty of the campus with green trees and good architecture, as well as its intellectual density, is highlighted.

Reference to the movie 'Two States' and comparison of the graduating batch of 2023 to Alia Bhatt and Arjun Kapoor.

Congratulates the graduating students and emphasizes their role in transforming the country and the world.

Highlights the importance of the values and skills acquired by students, including analytical thinking, teamwork, and decision-making.

Mentions his return to the institution where he started his career in 1969 and his experience as chairman from 2002 to 2007.

Discusses the inspiration behind starting Infosys and the impact of his family background and early experiences.

Emphasizes the lessons learned from working in a French software company, including the power of entrepreneurship, corporate democracy, and compassionate capitalism.

Describes his transformative journey through Europe, Israel, and West Asia, which shifted his mindset from leftist to compassionate capitalist.

Highlights the 1991 economic reforms in India as a turning point for Infosys and the country.

Expresses his vision for Infosys as a company based on fairness, justice, meritocracy, and professional dignity.

Discusses the cultural and operational principles that made Infosys successful, including transparency, leadership by example, and respect for merit.

Emphasizes the importance of hiring smarter people, fostering innovation, and maintaining humility and grace.

Discusses the significance of prioritizing company interests over personal interests for long-term success.

Stresses that performance leads to recognition, which in turn leads to respect and power, enhancing trust among stakeholders.

Mentions the importance of market access, talent access, and continuous innovation in achieving premium pricing and avoiding commoditization.

Highlights the significance of free cash flow as a measure of a company's success and the value of transparency.

Emphasizes the importance of fairness, listening to all sides, and practicing self-restraint to make capitalism attractive.

Encourages living by timeless ideals and passing them on to future generations for the betterment of society.

Transcripts

well what a beautiful

view this is

green trees in front

unbelievably good architecture on both

sides

and most importantly

probably the country's country's highest

density of intellectuals

what more

what more can anybody ask for it

the last time I saw this wonderful View

was in the movie two states

I Can Tell You Folks

having watched

so many of you pass through this

I am positive

that

batch of 2023

can give

a tough competition to Alia Bhatt and

Urgent Kapoor

chairman

members of the gowning body

director

faculty

staff

students

guests

the graduating students

I thank you for inviting me to be part

of this joyous occasion

congratulations to the graduating

students

on completing this worthy penance

you are now all set to shoulder the

aspirational task of Transforming Our

Country

and the world

with the competence and the values that

you possess

the knowledge wisdom writing skills

modeling analytical thinking Socratic

questioning group discussions teamwork

and decision making skills that you have

acquired here from your Revere teachers

will definitely assist you in your

future

I am happy to come back to your place

where I started my career

well none of you was born it was in

1969.

I learned

much being the chairman of this

venerable Institution

from 2002 to 2007.

today my talk will be very similar to

the one I gave recently on the 40th Year

celebrations of emphasis the company I

founded

the context is different

but the lessons for both the graduating

class here

and the emphasis out there or the same

I have often been asked

why I started emphasis let me answer

that

I grew up in a family of eight children

a mother a father and a grandmother

my father was a school teacher in a

small town

it was drilled into my Ang mind that my

fate would be limited by the

circumstances that I was born into

the India that I experienced in my youth

was a lower middle class Indian

with small hopes and even smaller dreams

I had simply accepted that there would

be a cloth ceiling to most professional

ladders in corporate India of those days

corruption and Connections in government

were common for success in most

businesses then

that retrogressive mindset mind

changed gradually when I started working

in a French real-time software company

in Paris more than 50 years ago

I learned three important ideas

the power of Entrepreneurship in a free

market in creating jobs and prosperity

for the nation

second the beauty of an enlightened

corporate democracy

and the role of compassionate capitalism

in building a prosperous and happy

country

I was also influenced by the writings of

Mahatma Gandhi

Max Weber

France funnel and called

polani

after learning these lessons

I decided to return to my hometown my

soul

traversing

Western and Eastern Europe Israel

and West Asia hitchhiking and spending

just four to five dollars a day

that Journey

irrevocably transformed me from a

confused leftist to a determined

compassionate capitalist

after I returned to India I decided to

conduct an experiment based on these

three important ideas that I spoke

my first attempts of chronix

failed since there was no domestic

market for software development in India

at that time

I learned my lesson and started my

second attempt emphasis after my stint

as a general manager at patni compute

assistance private Limited I collected a

set of bright and value-based angsters

there to assist me in building infuses

Fortune conspired with us in the form of

the 1991 economic reforms of India

ushered in by late SRI narsimha Rao and

Dr Manmohan Singh the rest my Ang

friends at the same history

while I did not expect to address every

challenge of our society in my emphasis

Journey I hope to create a microcosm

that did not suffer from the Injustice

in equity discrimination and the

unfairness of the society that I had

seen or experienced around me when I was

growing up

I wanted to create a company of the

professional

for the professional and by the

professional as Abe Lincoln defined a

democracy

I wanted this corporate Child of Mine

to be an expression of the best that the

corporate world and the society could

offer I wanted it to be a place where a

person from any race

any religion caste region nationality

and economics Freedom could succeed

based on competence and values

a place where people from The Forgotten

fringes of our society could compete

with confidence perform

earn respect occupy the center stage and

with Luck run the company

a place where fairness and Justice would

be the norm a place where imagination

speed and excellence in execution would

be the watch phrase a place where

a place where there was no apartheid

between the management and the employees

a place where the Dignity of the

professional was sacrosanct a place

where the Merit was revered in every

transaction a place where the CEO

and the janitors shared the same canteen

and the same toilet

a place where the graft would be taboo

a place where people would collab would

celebrate different gratification

would not pilfer from the corporate

Kitty and do what is right for the

entire company

a place where the asymmetry of

information between the management and

the shareholders dissolved like you on a

sunny morning

a place where you could disagree but

could not be disagreeable

a place where the seniors wholeheartedly

and enthusiastically shared wealth with

everyone who participated in generating

it and ultimately a place where the

inner voice exhorted every infusion to

demonstrate the best of Entrepreneurship

compassionate capitalism

enlightened corporate democracy and time

invariant and context invariant values

this to me has been the emphasis I

dreamed from the first day I discussed

with my then friend and today my wife in

1977.

even today my undying passion Burns

Pride for these ideas that have made

emphasis special

my dream for emphasis has never been

just that of a profit making machine

but rather an experiment and a

demonstration of social change for the

betterment of my country

Infosys has been a perfect manifestation

of my belief that one's fate need not be

determined solely by one's birth

emphasis has been an umbrella offering

shelter to many who shared the same

belief

I wish to share with you what I have

learned in this extraordinary Journey

and what has made emphasis unique

each one of these precepts has been a

foundational pillar

for building emphasis over the past four

decades Plus

my hope is that every one of you

whether you become corporate leaders

whether you become entrepreneurs or

whether you perceive pursue the academic

line

will find

these ideas

useful and demonstrate them throughout

your career first

a culture of meritocracy and values

should determine the mindset of a

company

culture is the strong foundation on

which the superstructure of aspirations

dreams hopes and their conversion to

reality rest remember that pivot Peter

Drucker once said culture eats strategy

for lunch

second

competence commitment and character or

the essential ingredients for a company

to earn the respect of the stakeholders

and to achieve enduring success

the best management Guru my friend sorry

for saying it is the market competition

fourth the most powerful instrument of a

leader is leadership by example in

demonstrating courage

sacrifice

hope

confidence

Innovation hard work

truth fairness transparency

accountability austerity discipline a

good value system and most importantly

open-mindedness

5. how you behave when you are on top

and have power and wealth is your true

character

in such moments

Your Grace your courtesy and your

humility shown to others will reveal the

real you

sex a confident leader hides people

smarter than himself or herself

such a leader gets the best out of his

or her people by creating an environment

of openness to new ideas

values meritocracy fairness transparency

speed Justice imagination discussion

excellence in execution and questioning

remember that questioning is the prime

World soup of imagination without

questioning my own friends there is

absolutely no progress

seven putting the interest of the

company I had a once personal interest

in the short and medium term results in

the betterments of one's personal

interest in the long term

eight performance leads to recognition

recognition leads to respect and respect

leads to power

ninth respect enhances trust in the

company among stakeholders leading to

repeat business from customers

attracting quality employees and

long-term investors respect also

enhances cooperation from Ender Partners

the government of the land and the

society

10th Market access and talent access

determine the success of a company

11. sales and finance or the live blood

functions of a company

12th price is what you pay and value is

what you expect from what you buy

every customer looks for the best value

for money in every purchase therefore a

company that enhances differentiated

value to the customers using continuous

innovation will obtain premium pricing

competing merely on price will restrict

and restrict the company

to a commodity Market my young friends

such company will eventually atrophy

13.

free cash flow is the best index of

success of a company

you all know that profit is just an

opinion the real thing is cash in the

bank

14

transparency in everything you do is

counter intuitively a competitive

Advantage I want you to remember this

very importantly

respected leaders 15th respected leaders

avoid any symmetry of benefits in their

own favor whether we other stakeholders

particularly the minority shareholders

good governance is enhanced by adhering

to honesty fairness

transparency and accountability in every

transaction

it requires values separation of greed

and fearless governance

16

success mayang friends is half due to

Performance and half due to luck I want

you to remember this very importantly

because

I want every one of you to be humble as

Louis Pastor once said Chance favors the

prepared mind

so we must do you must do everything

possible for Success before you invoke

God

17 fairness is the most important

attribute for any decision

practice the Latin proverb Audi alterm

part-time that means listening to the

other side

fairness my friends is maximized by

listening to the other side and using

data and facts 18 across the world and

particularly in a country like India

where the majority of the people are

poor the best way to make capitalism

attractive is for the corporate leaders

to exercise

self-restraint in their perks in their

profligacy their compensation and their

lifestyle after all remember the words

of Socrates who said The Secret Of

Happiness lies not in seeking more but

in developing the capacity to enjoy less

The Lost One the 19th and the most

important one is remember that the

softest pillow is a clear

conscience therefore when in doubt

disclosed

these ideals my friends I have expressed

are not rhetorical

we at emphasis have lived them

we have fought for them we have

sacrificed for them we have suffered for

them and we have celebrated them

in the future

at a time when there is fog on your

windshield I hope these time in variant

and context in variant ideals will serve

you in gaining clarity living these

ideals has reinforced

the Eternal idea that the purpose of

life is to leave our context a little

better before we leave this world

these ideas my young friends Define the

finish line

until these ideas become your second

nature

my own friends your journey and your

mission will not be over

this is my charge to every one of you

gathered here today particularly the six

is 600 people who obtain their degrees

you will have to leave leave these

ideals and bequeath them to the Future

Generations

My Hope for India of the future is that

you the future corporate leaders the

future academicians the future

entrepreneurs will ensure that for all

ages for all seasons for all regions for

all businesses and for all people our

country will be led by the ideals I have

laid out here today

finally

be original be daring

be unreasonable

be anything that will assert the

Integrity of your person purpose thank

you very much

[Applause]