April 18, 2008

 

Mr Premji was so right!

Three years ago, when Vivek Paul, the then CEO of Wipro, called it a day at Wipro, he didn't had anything flattering to say about his boss, Mr Premji. He almost claimed that he had taken the company where it was then.

Mr Premji had given a terse reply - "We don't need a CEO."

Three years is a long enough period to validate the statement. Well, the truth is crystal clear. Mr Premji was bang on with his assessment. 3 years later, Wipro's performance speaks for itself. They have doubled their profit from Rs 1600-odd Crores to more than Rs 3200 crores.

So, what's the biggest strength of Wipro?Or of Infosys and TCS, for that matter? Looks like the secret sauce is the organizational structure of the company. There seems to be enough redundancy in place to ensure that the company is not dependent on performance of one individual or a group of star performers. "Nobdoy is indispensable" seems to be the unsaid mantra.

Unrelated trivia. Wipro announced a dividend of Rs 4 (in addition to Rs 2 interim dividend) per share for the last financial year. Mr Premji's share of the total dividend? Rs 696 Crores! Oh, yeah, it's tax free.


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