This summer, I spent two weeks in China. 62K likes. The findings of the position paper, prepared by Boston Consulting Group for the chamber, are part of interviews conducted with over 50 global thought leaders drawn from the industry, academia and policy makers. Many companies take a global product and send it to Asia painted in a local color or given a local flavor. You cannot just swoop like a seagull into and out of a country or a city. BCG was the pioneer in business strategy when it was founded in 1963. Sadly, this book is just tumbles down. These include the ability to work closely with public officials and to exhibit emotional intelligence toward employees. Second, you need to understand that public-private partnerships are critical for companies to be successful. [Laughter.] I kept saying to our employees, “The economy’s bad, unemployment is going up, but we’ll do okay. Many companies take a global product and send it to Asia painted in a local color or given a local flavor. The Great Recession has only strengthened Nooyi’s belief that performance and purpose mutually reinforce each other. All rights reserved. We’ll come out of this okay.”, Second, we kept on trying to practice what I call realistic optimism. The way that the CEO projects himself or herself on the organization sets the mood for the company. The downturn has reinforced all the elements of performance with purpose. Nooyi is one of the top female executives in the United States and is consistently ranked among the World's 100 Most Powerful Women. This summer, I spent two weeks in China. Among the senior leadership, it is. If we do not transform our portfolio, we cannot sustain performance. But you also need to be able to look at that person and say, “I value you as a person. When I came back from India, I wrote to those parents and told them how much they contributed to the success of PepsiCo through the gift of their son or daughter. And unless you deliver performance, you can’t fund purpose. In the year 2006, Nooyi was named the next CEO and White was her competitor. But the way people live east of the Middle East is vastly different from how they live in the rest of the world. How do we make sure that people who work for PepsiCo are able not just to make a living but also to have a life? Leadership Development, Read this post on Forbes >> THE END OF MANAGEMENT AS WE KNOW IT An Interview with the Chairman and CEO of PepsiCo. The notion of focusing only on short-term earnings is a thing of the past. PepsiCo CEO and Chairman Indra Nooyi is the only Indian origin woman in Fortune's 51 Most Powerful Women list that is topped by Mary Barra, … The couple has two daughters. Look at PepsiCo. Nooyi credits her work at BCG, a notoriously rigorous job, as being an important stepping stone and a “formative experience” in her career. Related Expertise: The matrix looks at two dimensions: growth rate of the industry and market share. They went to my mum and said to her, “You brought up such a good kid.” They complimented my mother and didn’t really focus on me. So I picked my battles. Leaders like Indra Nooyi, former CEO of PepsiCo, have been advocating this for over 10 years. Western models cannot simply be applied to those markets because they differ culturally. And it unleashed emotions that were unbelievable, creating an emotional bond among the executives, their parents, and me. Indra Nooyi. Aspiring CEOs have to understand that they are signing up for a lot more than CEOs did in the 1970s, 1980s, 1990s, and even four or five years ago. We actually thought this might be the right time to make some long-term bets. How can you stay true to the business you’re in while delivering choice in a completely different way—one that’s sensitive to the unique needs of a country? The downturn has reinforced all the elements of performance with purpose. Analysis of Several PepsiCo Brand Using a Boston Consulting Group Matrix Introduction The Boston Consulting Group matrix, also known as the BCG Matrix, divides brands and products into different categories based on their market performance. Unless you focus on purpose, you cannot deliver performance. Third, you must be able to think globally and act locally. You talked about public-private partnerships. But we cannot be guided purely by the earnings cycle, or we might end up adding costs to society. Excerpts follow. We also must give people the opportunity to work in international markets if they’re so inclined and have the capability. I visited a school of traditional Chinese medicine to understand how the Chinese practice prevention and cure and how our products might play a role. She is the current Chairman and Chief Executive Officer of PepsiCo, the second largest food & beverage business in the world (by net revenue). If you look around the world, there’s still growth, but we have to view our portfolio differently. As she pointed out in a recent interview, “The most important part of per-formance with purpose is the use of the word with. In August 2019 the Business Roundtable acknowledged that companies today operate in … I based these observations on my wandering around the world and leading our company. We can’t do it. Fourth, once we gave the line managers their agendas, we let them loose and said, “Go make it happen.” And the only time I got intrusive is when a business needed to be turned around. In the key markets and cities, you need to make sure you spend quality time. Read More. After gaining much prominence as a strategist, she received several job offers from some of the leading firms, including General Electric and PepsiCo. Leadership Development, Fourth, once we gave the line managers their agendas, we let them loose and said, “Go make it happen.” And the only time I got intrusive is when a business needed to be turned around. In fact, I’d say that it was reinforced by the downturn. You cannot just swoop like a seagull into and out of a country or a city. We can’t have an adversarial relationship. This is an old notion, but we must take it to a whole new level. The Great Recession has only strengthened Nooyi’s belief that performance and purpose mutually reinforce each other. Has the recession exacerbated that trend? Today’s young people do not want to be wedded to a job like the people of my generation were. In a conversation with Grant Freeland, senior partner and managing director of The Boston Consulting Group, Nooyi elaborates on her views about the changing nature of leadership. Too many companies have not done right by their shareholders by focusing strictly on the short term. In periods of crisis, leaders can be tempted to take greater control and drive change from the top. We launched a restructuring program in October 2008, and we made some fairly deep cuts to create some breathing room, because we wanted to keep reinvesting in the business through the downturn. Greenwich Historical Society honors former PepsiCo Chairman and CEO Indra Nooyi with History in the Making Award . Let’s take PepsiCo’s beverages. Now let’s consider India, which has tiny stores. During this downturn, people realized that it’s even more important to focus on portfolio transformations and to be green, because being green actually saves you costs. If you look around the world, there’s still growth, but we have to view our portfolio differently. Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact. The world has become much more complex, and the only way companies can function effectively is if we put ourselves in the shoes of lawmakers and nongovernmental organizations (NGOs), and they put themselves in our shoes. How do you keep employees motivated in a slower-growth environment? Too many companies have not done right by their shareholders by focusing strictly on the short term. Within PepsiCo, do you think that the importance of the global market is recognized? How do we make sure that people who work for PepsiCo are able not just to make a living but also to have a life? It appears your browser does not support JavaScript or you have it disabled. What were some of the actions that Pepsi took to manage a drop in demand? If Nooyi says that she has not changed her leadership style during the recent economic turmoil, it is mostly because she has believed for several years that tomorrow’s leaders must have fundamentally different skills from those required of executives in the past. In a recent speech, you talked about five ways in which the role of the CEO will change. So the question is, How do you still give the consumer in India a choice? How do we make sure that we provide products that range from treats to health foods and allow customers to make balanced, sensible choices? I’ve been at PepsiCo for 15 years and became chairman and CEO about three years ago. Early on, we realized that we were going to have a slowdown. When I came back from India, I wrote to those parents and told them how much they contributed to the success of PepsiCo through the gift of their son or daughter. So I picked my battles. Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact. This is an old notion, but we must take it to a whole new level. —Indra Nooyi (chairman and CEO, PepsiCo) “In the end, there are not that many value levers. Fifth, you must develop emotional intelligence. We also must give people the opportunity to work in international markets if they’re so inclined and have the capability. [Laughter.] Tous les candidats qualifiés recevront une considération pour un emploi sans égard à la race, la couleur, l'âge, la religion, le sexe, l'orientation sexuelle, l'identité / expression de genre, la nationalité, le statut d'ancien combattant protégé ou toute autre caractéristique protégée par la loi fédérale, étatique ou locale le cas échéant ; et ceux ayant des antécédents criminels seront considérés d'une manière conforme aux lois nationales et locales applicables. Let’s just focus a little bit more on the last 18 months. I am spending a lot of time with lawmakers, presidents, prime ministers, commerce ministers, health ministers, and NGOs. Before my time at PepsiCo, I was at Asea Brown Boveri and Motorola, and before that, I cut my teeth at BCG. You wrote the parents of your 29 senior executives. They speak different languages, and their religious backgrounds are different. You talk about performance with purpose. Within PepsiCo, do you think that the importance of the global market is recognized? The economy enabled us to hire great people and make investments with external companies at a much lower cost since there were fewer companies competing for those resources. Are you spending more time with the external world now than you were before? Indra Nooyi, Former Chairman and CEO of PepsiCo. First, we were very visible, doing as much walking around as possible. Governments have gotten more intrusive. In a conversation with Grant Freeland, senior partner and managing director of The Boston Consulting Group, Nooyi elaborates on her views about the changing nature of leadership. In a downturn, it’s even harder than usual to turn around a business because the rules are changing, the marketplace is changing, and the consumer value proposition is changing. Indra Krishnamurthy Nooyi is an Indian-born American business executive. Indra Nooyi is an Indian-born American business executive currently serving as the Chairperson and Chief Executive Officer of PepsiCo, one of the largest food and beverage businesses in the world. In the developed markets, we work with large stores. And as long as PepsiCo keeps doing well, people will be okay. Indra Nooyi, chairman and CEO of PepsiCo, has spoken frequently of performance with purpose. We set the agenda very, very carefully. Indra Nooyi, Former Chairman and CEO of PepsiCo. In a recent speech, you talked about five ways in which the role of the CEO will change. Boston Consulting Group est un employeur offrant l'égalité des chances. PepsiCo’s emphasis on environmental sustainability, for example, is more relevant than ever today, because going green can actually save money and, along with other acts of citizenship, attract and retain the talent needed to succeed in difficult times. Then, you start traveling. It’s 24/7. And the reason we’ll do okay is because of A, B, C, and D. And the good news is that we’re a consumer staple company, so we won’t be affected as much.”. Our market capitalization is almost $100 billion. Greenwich Time. How can we introduce lots of new products there? Is that what happened in this situation? We need to think about the needs of a country and the way people live and behave in that country. According to Forbes, she is consistently ranked among World's 100 Most Powerful Women. That’s the new reality. “I … Although developed markets may not grow as fast as they have in the past, developing and emerging markets will grow faster. How can we introduce lots of new products there? I have to go back and explain to you the origins of performance with purpose to explain why it was untouched by the events of the last 18 months. Early on, we realized that we were going to have a slowdown. Half of humanity lives east of the Middle East. Today’s young people do not want to be wedded to a job like the people of my generation were. Indra Nooyi has her unique charisma; her story between Michael D. White, chief executive officer of PepsiCo International and vice chairman of PepsiCo, is very popular in the company. She also stresses the need for leaders to have direct personal understanding of the markets and cultures in China, India, and other growth spots. About three years ago, shortly after Indra K. 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