The word is substantiveness. That's the difference between a trader who deals in any goods that are in demand and a manufacturer who invests in the product and the market. A trader can also garner substantiveness by investing in a class of goods and in a locality. That's how the retail chains have built their brand identities. In IT industry, if you are doing software development projects, how do you create substantiveness? There is the personal level at which the leader needs to hold substantiveness and also the organizational level.
You have the Fortune 500/1000 companies that are being targeted by all IT majors. You have all got PCMM level 5 certifications. You have the organization structures almost dictated by the clients. So there is hardly anything to distinguish, except the speed with which you move into the markets, rates you quote and the kind of practice (experience) that you build up. The quality-reliability-delivery standards built up by each IT major in India came out of their peculiar organizational capabilities. This capability is the result of the value each major attached to people, processes, systems and results.
Satyam stood out from the others in the emphasis it placed on people and results, while projecting its commitment to processes and systems. This is the peculiar mindset of the construction industry in India, which is yet to start on the professional path. Raju transferred this mindset from his construction industry background. The results were electrifying. His chosen business leaders enjoyed tremendous freedom and moved quickly to take advantage. Business grew, numbers flew and the Board kept the markets happy. Only when the Maytas deal happened, the shareholders rose in protest. When the things came out in the open, the professors beat a hasty retreat.
The question then is: can the stakeholders escape their share of moral responsibility in the Satyam case?
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