I am a big fan of family run business … When the values of the company are owned by the promoters …. Somehow the promoters are best placed to ensure maximum ownership. BUT it is very important that when business moves to the next generation … The generation is equally capable to lead.
Somehow Infosys was always promoted as a professionally managed / run company and as per an understanding …none of the children of the founders will work in the company …perhaps so that their is no eyebrows raised and talent alone determines success. However – I believe it had no meaning if it was decided that the CEO post will be in succession for the founder – CAPABLE or not. Definitely Shibulal found the task challenging and is not cut out for it. BUT this structure is no less superior to a family run business. So why the rule of KIDS not working in INFY anyways???
From my experience in looking at equity markets have definitely found family run business like – Jagran Prakashan, DB corp, Havells , TTK prestige, Page industries , ZEE entertainment , Dish tv have done well. However, one may argue that when companies are small they are family run and once u are big …one needs to give way to professionals and family should step aside. BUT is this a good thing ??? Mixed opinion.
Employee / companies needs heros and they are more likely to come from the founding members or promoter family ….as they have earned years of respect in building the brand/ company. While – Bharti Airtel and WIPRO are finding means to give space to the promoter kids …It is actually not a bad thing. So is the return of Narayan murthy and his son at INFY.
While- I have read people raising eyebrows that what happened to the professionalism and the rules laid down by the promoters. Well Rules are to be broken and most of the times rules lose significance with time .
The Street is going to watch Narayan murthy and his kid closely and the onus is on them to perform. BUT I think they have already won as INFY has got it’s hero back…. Time to get to work …and yes ” under promise and over deliver “.
( may be the promise is high this time already … But I am betting on my hero )