“Culture eats strategy for breakfast every day”. 

Source: Where did Vishal Sikka go wrong? | Raja Jamalamadaka | Pulse | LinkedIn

IMHO, in both Tata and Infosys cases it seemed like a Search for the Prodigal son against Home grown Timber ( In House CEO groomed) which found worthy Sons.  But, the Worthy sons came into their adulthood very soon and threw away the YOKE of the Prodigal fathers ( founders)  and began to play the game their own way !.  Obviously, the Fathers who expected to run the business by proxy with outsider – prodigal sons felt miserable and a strife resulted.  The Indian mind’s machinations and politics are well known and the Paid media plays in the hands of the best paying party to hype up the things.  The Stock market pays heed to the media hype and many Good Heads have been be-headed in India with this “Strategic Role-Play”  especially in Family businesses.

If the Corporate Governance is weak there are remedies:

A. Fire the Independent Directors and the Compliance Head.

B. Approach the Regulator SEBI pro-actively and begin steps to get the house in order.

If there is an issue of Due Diligence in a M&A Deal – Sack the Team responsible and being Internal and External probe/ fraud investigation/ Integrity investigation.  If there is truth in the whistleblower allegations – Go to the SFIO of the Government and request support in International probe.

But if the issue is Ego and Proxy / Prodigal Son “Not listening ” to the Founders’ Voice having found His Own – Indian style of Management is to demolish the man – and that is very sad.  It shows clearly that there is no EXCELLENCE in such highly regarded groups with no clear succession plans/ proxy independent directors who suck their thumbs and vote at the command of those who appointed them and forget their duty towards minority shareholders and Good Governance.

I just wish the Sad Saga ends as it can kill big businesses, especially family businesses in India as the epidemic is seen spreading fast.

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