When a dying Alexander was asked who he wanted his successor to be, he is said to have whispered “the best.” His terse succession policy wasn’t exactly clear-cut, and the kingdom ended in disarray. He could have learnt a lesson or two from Cognizant Technologies. When Lakshmi Narayanan, who took over the reins from Kumar Mahadeva, describes the process as “cakewalk,” we know there must be something about the process that a few latter day CEOs—besides the young Emperor Alex—could pick up pointers from.

Succeeding successors
When we quizzed the Cognizant leader about this he informs us quite enthusiastically that it was a range of factors that made the whole process easy. For one, thorny issues like organizational changes—no matter at what level—are discussed quite openly and without any feeling of unease. It is quite common at board meetings for someone to suggest, “Let’s talk about succession planning.” Someone else at the table might wonder aloud about the external talent that the company is planning to bring in. Such discussions are so much a part of the routine, Narayanan says, that what appears quite ordinary to the insiders is quite remarkable from an outside perspective.

All this wouldn’t be so cakewalk-like without a good team. The Cognizant team—Narayan emphasizes—rates quite high on the dedication index. Everyone is expected to deliver, but it is not so much an autocratic as a democratic set-up. The members are there because they want to accomplish something. Everyone knows what he has to do.

A Culture solution: 90% concentration
One thing that Cognizant cannot emphasize enough is something they call “organizational culture.” The team spirit makes up a large part of this. So do the openness and the clear-headed ambition do something worthwhile. And an initiative to believe in something and go after it. “What [the employee] knows is important, but less than what he thinks. We need someone who can unlearn and relearn very fast,” avers Narayanan.

Indeed, this culture thing is so precious to them that, in order to preserve it, they make sure that, at any point of time, not more than 35-40 people in the organization have been working in Cognizant for less than a year. This is one of the measures that are consciously implemented to prevent the organizational culture from becoming, as Narayanan puts it, “diluted.”

And how is this culture inculcated in the team? “Well, there are two stages in this: the formal induction program, and the regular activities,” says Larry Gordan, VP of Marketing. The company veterans, needless to say, play an important role in both. In the first—which is on the lines of an orientation program—the initial interaction with the freshers occurs. The company philosophy is explained and the mission evaluated. The work ethic is highlighted, as is the openness. The second stage, as is quite obvious from what it is termed, happens on a daily basis. It involves the execution of routine and new tasks and projects under the guidance of the older employees.

“It is business-as-usual, but the emphasis on ensuring the culture percolation is absolute,” says the leader. “We cannot be where we are without this strength. It is powerful than the company itself.”

Rolling up his sleeves
Lakshminarayanan took over from a CEO who was bigger than life—Kumar Mahadeva. The incredibly smooth transition, says Gordon, helped the company miss not one beat. As the man on top now, Narayanan has his work cut out. The first thing, he says, would be to spend time with key customers. Clients have retained the service provider, says the leader, for its key deliverable—the Cognizant experience. He would like to tell them that the strategy remains the same—in fact, the business is not so much about strategy as about flawless execution. And this flawless execution is what he’d like to continue, a vital element in the comfort level of the customers, one that gives them a pleasing sense of continuity, with no drastic changes to unsettle them.

Next on the ‘To do’ list would be interaction with analysts and investors. Cognizant being a public company that has seen a, well, regime change, the curious analysts would like to meet the new CEO. For the company it is important because, for one, when “these guys” come to India, now a necessity for anyone in the IT industry, they meet up with the company executives. Through these contacts more useful ones can be made, especially with those who haven’t been to India yet. “More of an opportunity for them to get the feel of the new CEO: what is this guy all about?” says Narayanan.

Last but, as usual, not the least, are the employees. He has elaborate plans talk to them. “Tell them about what all are the opportunities for the taking, what this kind of change means to them.” There are people moving up and around, and several of the employees would be not a little impatient about when they would get their turn. He would like to explain what it is that they need to do to get there.

This shouldn’t be too tough. Nudged towards a little introspection, he reveals that he is more of a people person. He likes to work with people at all levels across the board. “One of the things I can reasonably claim is that I’m one of the key architects of the culture in the organization, but that’s something I plan to go through before I go further,” he tells us. “I’m a great believer that people have so much capability and potential, and that not even half of them are provided with the right type of opportunities. That’s a key area that will see a lot of me.”

In terms of the business perspective, what the customers would expect is the ability to tackle even more complex problems. That means taking on larger assignments bigger projects. The company should be able to handle any new technology transformation that the customers are planning to do.

Time of Reckoning
As the CEO tells us—with a suspicion of a steely glint in his eye, “Today we are going forward to bid for the large projects. We may not win all of them, but how do we get the capability if we do not compete in those areas? It’ll be difficult for us to even know what is required in order to tackle those types of projects. We’d like to make some investments, take some aggressive postures to bid for those larger complex types of projects. Also hire some people who would be able to tackle these.”

More than a question of branding, which works in favor of the likes of IBM and Accenture (and is quite important), it is the capability that Cognizant will focus on. After one or two large projects have been executed well, Narayanan is confident that the rest would follow. Equally significant are the relationships that the big boys on the field have cultivated, all the way up to senior levels of management.

To establish their services as a viable alternative, there are two requisites: a “relationship capability” backed by an executive capability. “Without these”, he quips, “you don’t even have a ticket to get through the gate.”