Leadership Lessons from PepsiCo CEO, Indra Nooyi

I have long been a fan of PepsiCo CEO Indra Nooyi. Early in her tenure as CEO she announced “Performance with Purpose,” a mantra that would become central to the PepsiCo journey over these past six years.

Today, she spoke at the Carlson School First Tuesday luncheon. Cheered by an enthusiastic and appreciative crowd of nearly 450, Nooyi chronicled five leadership lessons that together form the roadmap for global leaders in the 21^st century.

1. Balance the short-term and long-term. Today’s leaders are, all too often, driven only by short-term quarterly results, yielding decisions that are counterproductive for the longer-term health of the organization and society.  Effective leaders must strike a balance. Yes, they need to produce in the short term. But, their decisions must consider a longer-term horizon as well.
2. Develop a deep understanding of public/private partnerships. Nooyi points out that many private sector leaders treat the public sector (NGOs, governments) as the enemy—and visa versa.  “Stiff arming them is simply not going to work,” Nooyi says. Instead she advocates “walking a mile in their shoes.” She believes that NGO leaders do their jobs as a “labor of love.” Treating them with respect and understanding, as opposed to distain and condescension can go a long way.
3. Think global, act local. Nooyi argues this is not an outdated cliché, but instead, sound advice that can yield innovative, out-of-the box solutions. She showed part of a nine-minute commercial video, produced for the 2012 Chinese New Year.  This video gave voice to three PepsiCo brands—Pepsi, Lay, and Tropicana—none of which had enough critical mass to support a large advertising campaign. But, once the resources were pooled, such a campaign became feasible.  In addition, the commercial captured the yearning, in modern Chinese society, for parents to re-connect with their children during the Chinese New Year, a tradition that has recently become imperiled by busy careers and lives.  The commercial, which has been seen hundreds of millions of times in China, is an example of how corporate silos can be broken and local customs embraced, producing a creative solution that works for everyone.
4. Keep an open mind to adapt to changes. Nooyi cites Socratic learning—the art of asking probing questions to facilitate dialog and exploration. All-too-often, leaders close their minds to dissent, cutting off much needed debate. To lead in an ever-changing world, Nooyi says, leaders must adapt and stay nimble.
5. Lead with your head and your heart. Leaders must develop deep emotional intelligence, and bring “their whole selves to work every day.”  They must continually remind themselves that everyone who works for them is a unique human being and seek to strengthen this human connection and bond.  Nooyi talked about how she wrote letters to the parents of her entire top executive team, telling them how proud they should be about the work of their offspring.  This unconventional act created an outpouring of emotion, and more deeply connected her executive team to the company mission—tapping into their underlying passions and sense of purpose.