This book is about a special case of corporate turnaround – the revival of Satyam Computers. It narrates the events through the lived experience of one of the authors who was at the board then.
The case of Satyam Computers is well-known. It is the one that shook the country and the IT services industry of India. Ramalinga Raju founded Satyam Computers in 1987 and was the Chairman and CEO until its downfall in 2009. The race to shoring up performance, led to one of the worst disasters in the modern corporate history of India.
Eruption of a scam is unique. Corporate affairs professionals must get to the bottom of the issue, to understand what germinates in a scamster, to sway the path from glory to ignominy. Authored by T N Manoharan and V Pattabhiraman, Tech Phoenix – Satyam’s 100-day turnaround, deliberates how temptations lead to losing the purpose of building a meaningful and respectable IT service provider to becoming a greedy number-propelled firm. The key takeaway from the book would be the internal challenge to take the right call. As professionals, many face such dilemmatic situations, especially accountants.
One of the authors, T N Manoharan, was part of the board, that ensured a quick recovery. This revival assumes importance, as it involved multifarious people from government and several other industries. Though it was government initiated, after appointing the right personnel, the government stepped aside and allowed them to do what they were best at.
A quick turnaround
The book details the crisis from different angles – promoter, top management professionals, employees and their families, customers, and the government. As a reader, one is made to feel the heat of crisis as the events are well-articulated through facts, figures and emotions.
When the size of the scam got bigger, Raju tried to square off the fudged numbers by bringing real assets. It was at this point that all hell broke loose and Raju himself confessed to have committed the fraud. The book details how the non-executive and Independent directors of the board faced a dilemma and raised the issue. But can the Board have acted differently, is a question to ponder.
Riding the tiger is deadly and that is what Raju said in his statement, he did not how to get off without being bitten. Part 7 in the book, emphasises why one should avoid, even thinking about it. Intrinsic worth gets recognized appropriately, and there is space for doing good work. Fudging the accounts spoils the good. It requires an extraordinary team to revive and hand it over to another professional set up to move on. The Takeaway section in this part is a recommended read for any aspiring professional. “Character is built through values and beliefs system, and it should not be traded for monetizing wealth or riding one’s ego,” is one of the best contributions, the book gives, as part of the turnaround of events for revival.
The Denouncement part highlights how author Manoharan, enjoys professionalism, values, and commitment to purpose. Several anecdotes of his audit and accounting professionalism would inspire young professionals.
At one stage, as a reader, one may wonder how the authors look at valuation. But in Part VII, when they demonstrate the CAGR of 18 per cent received by the investors (retail) helps to realise the hard work the turnaround specialists have done. The book in its presentation is absorbing and it is a must-read for those in business and governance. – The author is a Professor at IFMR Graduate School of Business, Krea University.
