Two and a half years as a graduate business student gave me a new cast of superstars. Now I understand the wit of a cameo by Jack Welch in the comedy series “30 Rock”; I am thoroughly impressed by Sony’s British CEO Howard Stringer; and, I even have respect for Austin’s hometown hero, Michael Dell. However, throughout my degree, the dearth of women top executives surprised me.
Meg Whitman of ebay,
Carol Bartz of Yahoo and
Indra Nooyi of PepsiCo were three women that I learned about outside of my degree. When I heard that one of these women would be speaking in Austin, I had to attend!
Gracefully taking the stage in a classic black dress with iridescent silver jacket, Indra Nooyi looked smaller than I imagined. However, she captured the audience of mostly UT business students with her engaging manner. As part of UT’s VIP Distinguished Speaker Series, Dean Tom Gilligan interviewed Nooyi for the first half hour. Then, the floor was open for student questions.
She spoke of her first job. Hired as a brand manager, Nooyi was given a desk and a cabinet stuffed with information from her predecessor. “Figure it out yourself.” She took charge, organizing that cabinet, cataloging the brands she was managing, and learning about the jobs of all the people making those products. From this experience, Nooyi encouraged us to (1) sweat the details; and, (2) learn to go deep in knowledge.
Nooyi provided many tidbits for these students going out into the business world:
- “Focus on the job you’re doing; don’t run for office.” Nooyi’s grandfather
- Instill confidence in the people for whom you work. Confidence that your work has been so perfected and checked that they do not need to check it.
- Investigate how your position impacts others and build those linkages. “Together we can do better by the company.”
- Learn from your mistakes.
- Provide appropriate feedback to your direct reports so that they know where they stand. It is a direct reflection of your own leadership skills.
- The 5 C’s that she’s looking for: Competence (raw intelligence – “damn good at something”); Confidence (tell me your point of view); Communication; Consistency (do you defend your beliefs? Or, are you wishy-washy?); moral Compass (integrity).
Regarding PepsiCo, Nooyi reminisced on her interview process. When she started looking at other opportunities in 1994, several companies wanted Nooyi, including PepsiCo and GE. PepsiCo’s chairman/CEO, Wayne Calloway, was also on the board of directors at GE. The day Jack Welch announced to the board that Nooyi would probably be joining GE, Wayne Calloway called to convince her otherwise. He said that GE was a wonderful company; but, PepsiCo needed Nooyi more because she was a foreign born woman from a completely different industry.
Today, Nooyi proudly promotes the PepsiCo company culture as a “can do spirit coupled with must do responsibility”. As CEO, “I am PepsiCo, the company, so, if I don’t like something, I change it!” Nooyi expounded on the relationship between big companies and countries. Companies, as limited liabilities, owe society a duty of care. Toward this end, PepsiCo’s purpose is “Performance with Purpose”. The three main tenets of this purpose are (1) human sustainability, (2) environmental sustainability, and (3) talent sustainability.
In the area of human sustainability, PepsiCo has branched into healthier foods and beverages. The acquisitions of Tropicana and Quaker Oats has significantly increased PepsiCo’s nutritious portfolio. In the case of Tropicana, PepsiCo also expanded into a different daily segment – beverages consumed before 10 a.m.
Nooyi’s own childhood in water starved Madras has influenced PepsiCo’s environmental sustainability. PepsiCo plants strive to be water neutral.
Sustaining talent at PepsiCo is part of a long term development program. By looking out ten years with their employees, PepsiCo can plan backward to make sure their employees meet their professional and personal goals.
One student asked about the Pepsi Refresh program. In 2010, PepsiCo pulled their Super Bowl advertising and used that money toward grants. Each month, seventeen grants are awarded for grassroots projects. The funding ranges from $5000 to $250,000. PepsiCo will return to advertising during Super Bowl 2011.
Nooyi closed by answering a question regarding leadership qualities. She spoke of feeling PepsiCo everyday, of running it intellectually but with a human touch. In an endearing illustration, Nooyi related writing to the parents of her direct reports to tell them what a wonderful job their children were doing and to thank them. Yet, pragmatically, Nooyi now has advocates in those parents to keep their children on the job. ;)