The Recent exits of The CO-CEOs at Wipro has once again Caused Experts to Critically review Wipro’s ownership-Management Equation. Are these Experts indeed off The Mark?
Wipro’s equation with its CEOs has bordered on the uncanny more than once. It did not make any sense then, it does not make particularly significant sense now. When Wipro’s poster boy CEO Vivek Paul quit the company, it was hard to find people who would want to believe in Wipro’s credentials as a professionally managed company. It was openly speculated what Paul’s decision had to do with his uneasy equation with Azim Premji, Chairman and 76% shareholder in Wipro. People were also compelled to make comparisons with what had transpired between former Ford Chairman Henri Ford II and Lee Iacocca years back at Ford Motor Company in the US. Also, conjectures that claimed that the road was being cleared for Azim’s son Rishad Premji were being made even then.
If these voices were somewhat in the closet then, they have had a field day in the past few weeks; as Wipro said (read marching orders) to its joint-CEOs Girish Paranjpe & Suresh Vaswani on January 21. This time, Premji himself acknowledged that the joint-CEO structure was put in place for the downturn & they need to have a simpler organisational structure post recovery, which has brought T. K. Kurien to the helm.
In later interactions with national dailies, Premji has minced no words in saying that the company had been particularly lacking lustre when it came to leveraging the growth phase of the IT industry post-recession. Indeed, the company has been underperforming its peers in the IT industry to the extent that it has come under the risk of being overtaken by Cognizant, which has been on an aggressive growth trajectory. The company reported a consolidated net profit of Rs.13.19 billion, up by just 3.36%, and a revenue increase by 1.26% sequentially to Rs.78.29 billion (IT services contributed 76% to this figure) for the quarter ending December 2010. Operating margins remained flat at 22.2%. Infosys, in comparison, posted 2.3% growth in revenues to Rs.71.06 billion and net profit increase by 2.5% to Rs.17.8 billion (qoq basis).
Wipro’s equation with its CEOs has bordered on the uncanny more than once. It did not make any sense then, it does not make particularly significant sense now. When Wipro’s poster boy CEO Vivek Paul quit the company, it was hard to find people who would want to believe in Wipro’s credentials as a professionally managed company. It was openly speculated what Paul’s decision had to do with his uneasy equation with Azim Premji, Chairman and 76% shareholder in Wipro. People were also compelled to make comparisons with what had transpired between former Ford Chairman Henri Ford II and Lee Iacocca years back at Ford Motor Company in the US. Also, conjectures that claimed that the road was being cleared for Azim’s son Rishad Premji were being made even then.
If these voices were somewhat in the closet then, they have had a field day in the past few weeks; as Wipro said (read marching orders) to its joint-CEOs Girish Paranjpe & Suresh Vaswani on January 21. This time, Premji himself acknowledged that the joint-CEO structure was put in place for the downturn & they need to have a simpler organisational structure post recovery, which has brought T. K. Kurien to the helm.
In later interactions with national dailies, Premji has minced no words in saying that the company had been particularly lacking lustre when it came to leveraging the growth phase of the IT industry post-recession. Indeed, the company has been underperforming its peers in the IT industry to the extent that it has come under the risk of being overtaken by Cognizant, which has been on an aggressive growth trajectory. The company reported a consolidated net profit of Rs.13.19 billion, up by just 3.36%, and a revenue increase by 1.26% sequentially to Rs.78.29 billion (IT services contributed 76% to this figure) for the quarter ending December 2010. Operating margins remained flat at 22.2%. Infosys, in comparison, posted 2.3% growth in revenues to Rs.71.06 billion and net profit increase by 2.5% to Rs.17.8 billion (qoq basis).
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles
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Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)
