Introduction

1. Module 5 Team Project on Leadership IndraNooyi, CEO PepsiCoJoshua TrujilloKyle KemptonTheresa FlynnJeannie DalrympleJerry Mitchell Helen Robinson Colorado State University — Global CampusDecision Making and Leadership – ORG 550 Dr. Stephen Law

2. Introduction IndraNooyi 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, although 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.

3. Leadership of Diversity Practices • IndraNooyi, exemplifies diversity (Frankel, 2008) • Approach to Diversity Management encompasses all that diversity is: • Deeper than biographical characteristics, but not without boundaries (Cañas & Sondak, 2011) • Fluid and dynamic (Cañas & Sondak, 2011) • Grounded in differences and similarities (Cañas & Sondak, 2011) • Rooted in nonessentialist thought (Cañas & Sondak, 2011) • Relevant to one’s approach to work (Cañas & Sondak, 2011)

4. Leadership of Diversity Practices • Ability • Deep Level Abilities (Robbins & Judge, 2011) • Intellectual • Physical • Diversity Management Strategies (Robbins & Judge, 2011) • Retaining diverse employees is key (Bullock, 2010)

5. Indra Nooyi Value’s . Values of IndraNooyi External Conditions • Sustainability • Global Impact • Environment • Diversity

6. Value’s • Internal Conditions • Respect • Loyalty • Diversity • Open-minded

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

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

9. Leadership of Organizational Culture • Innovation & risk taking • Strategic focus on health & nutrition • 2000: 11% of $20B annual sales “Good for you” (Mellentin, 2011) • 2010: 21% of $62B annual sales “Good for you” (Mellentin, 2011) • “Good for you” Sales increased 600% in decade (Mellentin, 2011) • Primary Catalyst • Strategic focus on health & nutrition; aggressive acquisitions • Acquired Wim-Bill-Dam • Russia’s largest dairy company • Paid $5.4B—nearly double value (Mellentin, 2011) • 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)

10. Leadership of Organizational Culture • Outcome Orientation • Marrying performance with purpose to ethical concerns (Nooyi, 2009) • Understanding partnerships within the community (Nooyi, 2009) • A firms bottom-line is not the only measure of success • Primary Catalyst • Economic downturn • Lack of public trust in corporate America • 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)

11. Leadership of follower motivationTransformational vs transactional leadership(Northouse, 2007)Transformational leadership factors include:1. Idealized influence and charisma2. Inspirational motivation3. Intellectual stimulation4. Individualized consideration 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.

12. IndraNooyiPepsico’s CEO and her transactional leadership role that works towards providing transformational leadership qualities. Transactional Leadership factors include Northouse, 2007):1. Contingent reward2. Constructive transactions3. Management by exception involving negative feedback and corrective criticism. 4. Active and passive leadership5. Corrective transactions • 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 IndraNooyi’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).

13. Overall Success as a Leader • IndraNooyi’s Record of Success • Top of Fortune’s list of Most Powerful Women in Business, 2006-2011 • Revenues projected to $60 billion and saving $400 million in costs • Leadership Award for Advancing Diversity • IndraNooyi’s Keys for Successful Leadership • Performance with Purpose • Raised expectations for people, strong organizational culture • International growth, expanded global markets • Sustainability Strategies for Sustained Performance • Healthy Consumers • Social Responsibility • 5 C’s in Success • Competence, Courage & Confidence, Communication, Compass, Coaching

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

15. Conclusion IndraNooyi, 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

16. References • Advameg, Inc. (2011). Encyclopedia of World Biography: Nooyi, Indra K. Retrieved from: http://www.notablebiographies.com/news/Li-Ou/Nooyi-Indra-K.html • Bass, B.M., and Riggio, R.E. (2006). Transformational leadership (2nd ed.). Mahwah, NJ: Lawrence Erlbaum • Berkun, S. (2010) The Myths of Innovation (1st ed.). Gravenstein Highway North, Sebastopol, CA: O’Reilly Media, Inc. • Bullock, D. (2010, May 28). Influential CEOs: PepsiCo's IndraNooyi Pushes For People Power, Diversity. Retrieved June 14, 2011, from Minyanville: http://www.minyanville.com/special-features/articles/influential-ceos-pepsi-indra-nooyi-indian/5/28/2010/id/28099 • Cañas, K. A., & Sondak, H. (2011). Opportunities and Challenges of Workplace Diversity Theory, Cases and Exercises (2nd ed.). Upper Saddle River, New Jersey: Prentice Hall • Deitsch, R. (2008). Performance with a purpose. The Costco Connection, June 2008, p. 21-23, Retrieved from http://www.costcoconnection.com/connection/200806/?pg=23 • Diversity Award (2008). Retrieved from http://www.siliconindia.com/shownews/Indra_Nooyi_wins_leadership_award_for_advancing_diversity-nid-48617.html

17. References Cont. • Epstein, M. J. (2008). Making Sustainability Work (1st ed.). San Francisco CA: Berrett-Koehler. • Forbes.com (2010b). World’s most powerful women (2010): IndraNooyi. Retrieve from: http://www.forbes.com/lists/2009/11/power-women-09_Indra-Nooyi_1S5D.html • Fortune’s Powerful Women (2011). Retrieved from http://money.cnn.com/galleries/2010/fortune/1009/gallery.most_powerful_women.fortune/index.html • Frankel, B. (2008, May). Pepsico'sIndraNooyi "I Am A Walking Example of Diversity". Retrieved June 14, 2011, from DiversityInc.com: http://www.diversityinc-digital.com/diversityincmedia/200805/Download_submit.action?lm=1237948790000&pgs=all • King, Dr Martin Luther JR. (1963, 1991). “Letter from Birmingham Jail”. Oneonta, NY: The HartwickHumanities in Management Institute. • Kouzes, J.M. and Posner, B.Z. (2002). The leadership challenge (3rd 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.

18. References Cont. • Nooyi, I. K. (2009). Leading to the Future. Vital Speeches of the Day, 75(9), 404). • Nooyi, I. K. (2011, April 12). PepsiCo Diversity and Inclusion Awards. Retrieved June 15, 2011, from PepsiCo: http://www.pepsico.com/assets/speeches/IndraNooyiDIAwardsFINAL.pdf • O’Rourke, J. S. (2010). Management communication a case-analysis approach (4th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. • Our Leadership. (2010). Retrieved June 15, 2011, from PepsiCo: http://pepsico.com/Company/Leadership.html#Nooyi_fb • Pierce, J. L. & Newstrom, J.W. (2011). Leaders and the leadership process. (6th ed.). New York, NY: McGraw Hill. • Quaratiello, F. (2011, May 13). PepsiCo boss IndraNooyi blasts crackdown on soda, snacks. Boston Herald (MA). River, NJ: Pearson Education, Inc. • Robbins, S. & Judge T. (2011). Organizational Behavior 14th edition. New York, NY, Prentice Hall.