Module 5 Team project on leadership Indra Nooyi, CEO PepsiCo Joshua Trujillo Kyle Kempton Theresa Flynn Jeannie Dalrymple Jerry Mitchell Helen Robinson Colorado State University — Global Campus Decision Making and Leadership –ORG 550 Dr. Stephen Law

Introduction Indra Nooyi is the President and Chief Executive Officer of PepsiCo. Ms. Nooyi is one of the top female executives in the United States and the highest-ranking woman of Indian heritage in corporate environments. Ms. Nooyi’s achievements along with occupational successes in leading PepsiCo show her entrepreneurial spirit and dedication. Ms. Nooyi was born in Madras India in 1955 into a conservative, middle-class environment. She is a graduate of Madras Christian College where she earned her undergraduate degree in Chemistry, Physics and Mathematics and graduated with an MBA from the Indian Institute of Management in Calcutta. Ms. Nooyi was accepted into and enrolled in Yale University’s Graduate School of Management. Ms. Nooyi’s family supported her decision and move to the United States though actions such as these were “unheard of for a good conservative south Indian Brahmin girl.” Ms. Nooyi holds a Masters of Public and Private Management from Yale University completed in 1980.

Indra Nooyi Value’s. Values of Indra Nooyi External Conditions o Sustainability o Global Impact o Environment o Diversity

Value’s Internal Conditions o Respect o Loyalty o Diversity o Open-minded

Personality Charismatic o Magnetic Personality that people want to be around and follow Great Leaders Make you Want to be a Better Person Vision o Clarity o Concise Communication o Drawing Tangible Connections History o Maintains a stellar rapport with individuals Confidence o Not Pompous There is a big Difference

Decision Making Skills Performance With Purpose o Make as Much Profit as Possible Be Responsible in Doing so Transformational Leadership o Change in Individuals and Social Systems o Valuable Positive Change Focus on Conceptual Ideas o Development of Concept o Implementation of Concepts

Leadership of Organizational Culture Innovation & risk taking o Strategic focus on health & nutrition o 2000: 11% of $20B annual sales “Good for you” (Mellentin, 2011) o 2010: 21% of $62B annual sales “Good for you” (Mellentin, 2011) “Good for you” Sales increased 600% in decade (Mellentin, 2011) Primary Catalyst o Strategic focus on health & nutrition; aggressive acquisitions o Acquired Wim-Bill-Dam Russia’s largest dairy company o Paid $5.4B—nearly double value (Mellentin, 2011) o Joint venture with Almarai Saudi Arabia’s largest dairy firm (Mellentin, 2011) Nooyi’s insights “Nutrition offers the potential of a large fast-growing platform“ (Mellentin, 2011) Dairy "the next frontier in food and beverage convenience.“ (Mellentin, 2011)

Leadership of Organizational Culture Outcome Orientation o Marrying performance with purpose to ethical concerns (Nooyi, 2009) o Understanding partnerships within the community (Nooyi, 2009) o A firms bottom-line is not the only measure of success Primary Catalyst o Economic downturn o Lack of public trust in corporate America o The world is a smaller Nooyi’s insights “Companies of the future have an obligation to give back to society” (Nooyi, 2009) “Imbed a culture of long-term thinking” (Nooyi, 2009)

Robbins and Judge (2011) suggest transformational leaders inspire or motivate followers to transcend their own self-interests and are capable of having a profound and extraordinary effect on followers. Dr. Martin Luther King Jr’s abilities to express his moralistic approach to civil rights led followers to a sense of intrinsic motivation which they developed into a movement that peacefully became his vision of an effectual nonviolent direct- action program (King, 1963) (Northouse, 2007). Dr. King provides one example of an effective transformational leader. Robbins and Judge (2011) suggest transactional leaders guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

 The Forbes.com list of the 100 most powerful women rates Ms. Nooyi at number 3 in 2009 (Forbes.com, 2010b) and at number 6 in 2010 (Forbes.com, 2010a). Her work at PepsiCo involves a strong commitment to diversity and inclusion goals for her company (PepsiCo, 2010). Ms. Nooyi’s and PepsiCo’s goals associated with the programs “Performance with Purpose” and “Promise of PepsiCo” have achieved success and are listed as ways to make significant progress towards sustainable growth (PepsiCo, 2010). These programs include goals of investing in a healthier future for people and the planet as significant ingredients in PepsiCo’s business plan (PepsiCo, 2010).  Recruitment and retention involve strategies represented by these PepsiCo (2010) programs. Training and mentoring provide significant employee retention strategies that motivate workers while assisting with PepsiCo’s success under Indra Nooyi’s successful and continued leadership role (Cañas & Sondak, 2010). Proposed growth at PepsiCo can be achieved with incentives such as training as one form of reward that may reduce costs by reducing turnover (Robbins & Coulter, 2009). Transactional Leadership factors include Northouse, 2007): 1. Contingent reward 2. Constructive transactions 3. Management by exception involving negative feedback and corrective criticism. 4. Active and passive leadership 5. Corrective transactions

Overall Success as a Leader Indra Nooyi’s Record of Success o Top of Fortune’s list of Most Powerful Women in Business, o Revenues projected to $60 billion and saving $400 million in costs o Leadership Award for Advancing Diversity Indra Nooyi’s Keys for Successful Leadership o Performance with Purpose Raised expectations for people, strong organizational culture International growth, expanded global markets Sustainability Strategies for Sustained Performance o Healthy Consumers o Social Responsibility o 5 C’s in Success Competence, Courage & Confidence, Communication, Compass, Coaching

Nooyi, Defined as a Leader Successful Leadership Qualities o Integrity, competence, consistency, loyalty o Charisma, knowledge, expertise, judgment o Motivational ability o Visioning ability Transformational Leadership o Incorporates charismatic and visionary leadership o Adapts well to the needs of today’s work groups o Raising people toward collective goals, intrinsic reward and higher levels of morality Kouzes and Posner Strategies for Practicing Exemplary Leadership o Challenge the Process o Inspire a Shared Vision o Encourage the Heart o Enable Others to Act o Model the Way

Conclusion Indra Nooyi, CEO PepsiCo. Leadership of diversity practices Leadership values Personality and decision-making Leadership of organizational culture Leadership of follower motivation Overall success as a leader

References Advameg, Inc. (2011). Encyclopedia of World Biography: Nooyi, Indra K. Retrieved from: Bass, B.M., and Riggio, R.E. (2006). Transformational leadership (2 nd ed.). Mahwah, NJ: Lawrence Erlbaum Berkun, S. (2010) The Myths of Innovation (1 st ed.). Gravenstein Highway North, Sebastopol, CA: O’Reilly Media, Inc Deitsch, R. (2008). Performance with a purpose. The Costco Connection, June 2008, p , Retrieved from Diversity Award (2008). Retrieved from html Epstein, M. J. (2008). Making Sustainability Work (1 st ed.). San Francisco CA: Berrett-Koehler. Forbes.com (2010b). World’s most powerful women (2010): Indra Nooyi. Retrieve from:

References Cont. Fortune’s Powerful Women (2011). Retrieved from King, Dr Martin Luther JR. (1963, 1991). “Letter from Birmingham Jail”. Oneonta, NY: The Hartwick Humanities in Management Institute. Kouzes, J.M. and Posner, B.Z. (2002). The leadership challenge (3 rd ed.) San Francisco, CA: John Wiley & Sons, Inc. Mellentin, J. (2011). PepsiCo enters the dairy fray. Dairy Industries International, 76(5). Northouse, P.G. (2010). Leadership: Theory and practice. (5th ed.). Thousand Oaks, CA: Sage Publications. Nooyi, I. K. (2009). Leading to the Future. Vital Speeches of the Day, 75(9), 404). O’Rourke, J. S. (2010). Management communication a case-analysis approach (4th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Pierce, J. L. & Newstrom, J.W. (2011). Leaders and the leadership process. (6th ed.). New York, NY: McGraw Hill.

References Cont. Quaratiello, F. (2011, May 13). PepsiCo boss Indra Nooyi blasts crackdown on soda, snacks. Boston Herald (MA). River, NJ: Pearson Education, Inc. Robbins, S. & Judge T. (2011). Organizational Behavior 14 th edition. New York, NY, Prentice Hall.