BENGALURU: The appointment of non-Indian CEOs at Indian IT companies has presented a curious case of cultural misalignment, as evidenced by the departures of former Wipro CEO Thierry Delaporte and former Cognizant CEO Brian Humphries.
Both leaders faced challenges in blending into the cultural fabric of their respective firms. Both CEOs were based in Europe – Delaporte in Paris and Humphries in London – rather than in the US, their primary customer market, or in India, where the delivery engine is located. Their occasional visits to India were insufficient in helping them understand the leadership role-modelling expected by their colleagues, which includes discussing shared goals, commitments to employee well-being and growth, and breaking down invisible barriers.
Delaporte said he de-complicated Wipro’s complex structure, reduced hierarchies, and energised teams – but he started as remote CEO and resigned as one. Under Delaporte, many Wipro lifers who spent nearly three decades building the company quit in quick succession. It wiped out a generation of leaders who thrived in its entrepreneurial culture and spirit – former CFO Jatin Dalal, former president Rajan Kohli, Angan Guha, and many more. However, the leadership failed to rally its troops to address this exodus and instead brought in outsiders to steer the course, which was perceived to have drifted away from meritocracy. The stress and strain in the culture began to show.
“Culture is amorphous, but it should resonate with the newest hire as much as with others in the firm. The organisational fabric is meant to be steeped in a culture of responsive leadership that venerates two-way feedback. Global CEOs ought to have confidence in their India-based leadership teams. They should foster a spirit of belonging by blurring the lines between onsite and offshore custodians to fire up as the power of one,” said Venkat Shastry, founder of gig consulting platform QuantumV.
Vijay Govindarajan, Coxe Distinguished professor at the Tuck School of Business at Dartmouth College, said, “Organisations consist of people. IT firms are embedded within a social context. That is why culture is important. The success of a CEO in IT firms depends on cultural fit.”
In the case of former Cognizant CEO Brian Humphries, his initial statements created perception issues and lacked sensitivity in handling huge layoffs, which still have a stigma attached in India. “I do not believe in death by a thousand cuts. I would rather pull the band-aid off, get it behind us, and set the context as to why this is critical and fast forward to the future,” Humphries had said in an investor call. Humphries tried to instil a renewed culture at Cognizant and move key leadership away from India and closer to the firm’s clients in the US and UK. In fact, at one point, the Cognizant executive committee barely had Indian leaders who were part of its growth story.