Ramalinga Raju…

The rise & fall of

a leader.

Know the leader

Born in year 1954 in a family of farmers.

B.Com from Andhra Loyola College, Vijayawada.

MBA from Ohio University, USA.

A short stint with Harvard also.

Returned to India in 1977.

Moved away from the traditional agriculture business.

Set up a spinning & weaving mill named Sri Satyam.

Shifted to Real Estate Business in 1982 – set up Satyam Constructions.

Founded Satyam Computer Services in 1987.

Satyam Computer Services went public in 1992.

Satyam – the ultimate creation of a leader.

Founded in 1987, with 20 employees Satyam obtained contracts for IT projects, mostly from US companies.

From a humble beginning Satyam rose to become one of India’s topmost IT companies.

Apart from Hyderabad, it had development centres in India at Bangalore, Chennai, Pune, Mumbai, Nagpur, Delhi, Kolkata, Bhubaneswar, and Visakhapatnam.

Satyam offered IT services for various sectors.

Satyam served over 654 global companies,185 of which are Fortune 500 corporations.

Satyam’s network covered 67 countries across six continents.

….. the vision of the leader …..

……showed the way to Satyam.

Satyam – the ultimate creation of the leader. (contd.)

Satyam employed 53,000 IT professionals across various countries.

Satyam set up development centres in USA, UAE, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia.

Satyam had strategic technology and marketing alliances with over 50 companies.

Satyam got listed on the New York Stock Exchange (2001) & Euronext.

Satyam became the first to enter Indian internet service market With the launch of Satyam Infoway (Sify).

Satyam hit the international headlines last year as it was chosen to provide information technology services for the World Cup 2010 and 2014.

The world recognized the leaderMr. Raju’s leadership abilities, his vision for Satyam & his charisma was acknowledged world wide.

Ernst & Young Entrepreneur of the Year (Services) Award 1999.

Dataquest IT Man of the Year Award 2000.

CNBC Asian Business Leader Award 2002.

Life Time Achievement Award by Hyderabad Management Association (HMA), 2005.

Ernst & Young Entrepreneur of the Year 2007.

Partner Innovation Award for Anti-Money Laundering (AML) Solutions, 2007.

Golden Peacock Award for Corporate Governance 2008.

Asian MAKE (Most Admired Knowledge Enterprise) Award, 2008.

The world recognized the leader

Last November, he co-chaired the World Economic Forum summit in New Delhi.

He appeared on almost every panel and talked about the need for a paradigm change on how the outsourcing industry is run.

Raju was a member of the National Executive Councils of CII and FICCI.

He served as Member of the International Advisory Panel of Malaysia’s Multimedia Super-Corridor.

Chandrababu Naidu presented him before President Clinton as the “face of the modern & progressive Andhra Pradesh”.

Byrraju Foundation – the activities.

The foundation runs –

A drinking water project for 200 villages,

A health centre for the benefit of people in 15 villages

Several schools in the West Godavari, East Godavari & Vishakhapatnam districts of Andhra Pradesh.

Social Orientation of the leader:

Mr. Raju furthered the cause of social transformation through Byrraju Foundation and EMRI.

EMRI – Emergency Medical & Research Institute:

Operating in the Public Private Partnership  (PPP) mode, it is the only professional Emergency Service Provider in India today.

EMRI handles medical, police and fire emergencies through the “1-0-8” Emergency service.

It’s a free service delivered through state- of -art emergency call response centres. and has

Over 1400 ambulances run across Andhra Pradesh, Gujarat, Uttarakhand, Goa, Chennai, Rajasthan , Karnataka and Assam.

Social Orientation of the leader:

EMRI Received Wide Adulations.

 

EMRI received the NASSCOM-CNBC TV 18 IT User Award for innovative use of IT in saving lives.

The Computer World Honours Leadership Award for having been instrumental in revolutionizing the use of information technology.

Were the welfare projects a way to kill the guilt of his wrongdoings?

A Philanthropist or a crook, which one is the true face of the leader?

Ramalinga Raju – the leader as a person.

As a child he seems to have been ambitious and wanted to be "in the sky and among the stars".

Science was his favourite with Jack Welch and Albert Einstein his role models.

He was Clannish, Feudal & Dynastic – Sugata Srinivasaraju, (The Outlook)

He had a special preference for family, caste and those who could speak Telugu.

Analysts say that even his work of charity in his ancestral village was feeding his “primitive ideas of clannish clout and dynastic rule”.

At home, with his family, he could be imperious - he traded freely in shares held by his mother, brother and sister-in-law.

The leader disgraced …..

“ … it was a great fall, a horrifying turn for a man long considered one of India’s self made success stories and active philanthropists”.

- Forbes Magazine, January 2009 issue

Ramalinga Raju – the Charismatic Leader.

A Visionary - he had a vision for Satyam & for the Indian IT industry.

A keen strategist , a job creator and an entrepreneur par excellence.

He used simple, yet an extensive management model to create value.

He articulated his vision to the employees of Satyam as well as to others.

He was a risk taker - he chose to enter the relatively new business of providing software services to international customers from India.

He set examples for others - worked very hard to get orders from US customers.

He was sensitive to the needs of his followers.

Ramalinga Raju – the Charismatic Leader (contd.)

The Business Mantras as espoused by the leader:

Execution at Satyam – Ordinary people doing extraordinary things.

Ideas at Satyam – Uncommon ideas, they can come from any quarter & in numerous forms.

Success – It’s about having an eye on the outcome all the time.

Business Transformation – It’s not alchemy but Chemistry

“Satyam, meaning “Truth” is an entrepreneurial company where there is no concept of a boss . I wish to call myself a strategic investor in the businesses Satyam is in”.

- Mr. Raju in an interview with Financial Times.

“ I take pride in the fact that Satyam is known for its corporate governance and has won many awards including the Golden Peacock Award for Corporate Governance”.

Mr. Raju in an interview with Veer Sanghvi on the program “Star Talk”.

Leader’s take on Satyam :

Charismatic leaders are prone to fail owing to their enlarged ego. Same happened with Mr. Raju and Satyam suffered badly.

The leader still rules on the hearts of followers

Many people still worship Raju & they don’t feel he has done anything wrong.

Bhimavaram town witnessed a public rally on Jan 23 in support of Raju.

Similar rallies were held in Garagaparru, Raju's village, and in the surrounding villages and towns.

What do followers think about Raju.

A Charismatic leader, Raju created immense trust for himself among his

followers.

What forced the leader to tread on a wrong path?

Was it his love for land & real estate ?

Was it his sheer urge to become number one in the IT sector?

Did the “father” prevailed upon the “leader”?

"Satyam, for all its glitter, was a firm whose owner ran his software company in the manner his forefathers did land deals. It failed to make the jump between the two centuries."

- Far Eastern Economic Review, in January 2009.

“…However seemingly modern and multinational Satyam became since the 1990s, some primitive qualities never left him and his company. He was somewhat clannish, feudal and also dynastic. Qualities that one usually identifies with agrarian Andhra Pradesh. He was an inveterate gambler of sorts with a deep sense of destiny. “

- Outlook Magazine.

What caused the fall of Mr. Raju

“…..it was like riding a tiger, not knowing how to get off without being eaten.”

THANK YOU

We traced the rise & fall of Satyam & Mr. Ramalinga Raju…..

Amit Anand Anindya

AnjaniHemanth Prateek Puneet

Santosh Babu