A good number of Infrastructure companies in India are based out of Andhra Pradesh. Most of their promoters started business as small contractors, and over a period of time as they grew in size, they converted into Pvt Ltd or Public Ltd companies. The opinion expressed here pertains to such companies based out of Andhra Pradesh, in particular; and to all such companies in other Indian states, in general.
The general belief among the Directors/Promoters of Infrastructure companies (including the company where I work, www.vishwainfra.in) is that its CEO has to be a TECHNICALLY qualified person. I have heard this opinion umpteen times in various discussions where the stress on the ‘technical’ aspect is emphatically made, explicitly or implicitly.
I too believed in this general opinion until a couple of years ago. Recently, I did articulate my opinion in a discussion with a Director that the ‘technical qualification’ should not be among the non-negotiable qualification criteria in CEO selection. I also quoted few successful and big names in our industry where the CEOs are non-technical persons. My purpose was to convince my directors to consider non-technical professionals also when they scout for the CEO position.
Last week, I read the book “Who Says Elephants Can’t Dance” authored by Louis Gerstner Jr, who was the Chairman-CEO of IBM from 1993 to 2002. IBM was heading towards a collapse when he took over as CEO in 1993. He was asked by the Board of Directors to ‘save the company’. Over a period of nine years, he successfully turned around the company. And, in 2002, he relinquished the CEO position to Mr Sam Palmisano. The book is about how he turned around that huge organization. A wonderful book. I would unhesitatingly recommend all managers and leaders to read it.
Mr Louis Gerstner was an outsider in IBM; I mean, he had not served in IBM before he took up the CEO’s position. His was a lateral placement. After graduating from Harward, he joined McKinsey and worked there for almost a decade. At the age of 35, he joined American Express and served there for almost a decade. And, in 1993, he joined IBM as its Chairman and CEO. He had a successful career in all these reputed organisations.
But why am I talking about Louis Gerstner in this blog? I have a reason. He was NOT tech/IT savvy person but he headed one of the largest and oldest IT organisations in USA. Not only he took over the reins of IBM during difficult times, but also successfully turned around the organization.
Louis Gerstner’s story further cemented my belief that a CEO need not necessarily be a tech savvy person in an Infrastructure organization. Hence, his reference here. Well, a CEO has to understand the business processes, its revenue model and the industry dynamics.
Jaikishan
23rd Oct 2011
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