In periods of crisis, leaders can be tempted to take greater control and drive change from the top. In the year 2006, Nooyi was named the next CEO and White was her competitor. Could you describe this idea? I kept saying to our employees, “The economy’s bad, unemployment is going up, but we’ll do okay. And in today’s environment, people still want to eat healthy foods. She is the current Chairman and Chief Executive Officer of PepsiCo, the second largest food & beverage business in the world (by net revenue). Fifteen years ago Indra Nooyi, then the head of strategy (now the boss) at PepsiCo, was a demanding client for consultants, having been one herself at BCG… We increased R&D through the downturn. Then, you start traveling. When all her guests came in, they ignored me. If we do not become greener than we are today, young people are not going to come to work for us. I kept saying to our employees, “The economy’s bad, unemployment is going up, but we’ll do okay. CEOs have to become learning CEOs. But you also need to be able to look at that person and say, “I value you as a person. Be realistic, but don’t project doom and gloom. And it’s no longer about dealing with the traditional cast of characters—your employees, customers, suppliers, investors. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. Could you elaborate on those five characteristics? Could you briefly describe your personal background and your professional background? You talked about needing to be open to cultures and customs. Was performance with purpose challenged during this last 18 months as the economy worsened? This is a very closely linked ecosystem. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. Longtime PepsiCo CEO Indra Nooyi will step down as the top executive at the world's second-largest food and beverage company. Our businesses in those markets need to tailor products, business models, and people practices to the local market. Western models cannot simply be applied to those markets because they differ culturally. Indra Krishnamurthy Nooyi is an Indian-born American business executive. 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. Now let’s consider India, which has tiny stores. You talk about performance with purpose. Our market capitalization is almost $100 billion. Purpose has three elements. As you reflect on the last couple of years, what have you learned that surprised you? The matrix looks at two dimensions: growth rate of the industry and market share. I’d like that to be the way we do business. Governments have gotten more intrusive. First, you have to focus on the long term. BCG.com will work better for you if you enable JavaScript or switch to a JavaScript supported browser. Was performance with purpose challenged during this last 18 months as the economy worsened? We’re bigger than many countries. 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. 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. Read this post on Forbes >> THE END OF MANAGEMENT AS WE KNOW IT 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. About three years ago, shortly after Indra K. Nooyi became chief executive officer, PepsiCo embarked on a corporate mission—“performance with purpose”—meant to marry financial success and social responsibility. If we do not become greener than we are today, young people are not going to come to work for us. Not only do we have to learn the next leadership principle or the next management practice, but we also have to learn about technology and the younger generations. 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. I’ve been at PepsiCo for 15 years and became chairman and CEO about three years ago. About three years ago, shortly after Indra K. Nooyi became chief executive officer, PepsiCo … You talk about performance with purpose. What were some of the actions that Pepsi took to manage a drop in demand? But the way people live east of the Middle East is vastly different from how they live in the rest of the world. The second element is environmental sustainability. But we cannot be guided purely by the earnings cycle, or we might end up adding costs to society. Rishi said achieving the promise of spending two percent of GDP on R&D by 2017 will require a considerable jump from the current spend of approximately one percent. Indra Nooyi, Former Chairman and CEO of PepsiCo. While attending Yale School of Management, Nooyi completed her summer internship with Booz Allen Hamilton. Our market capitalization is almost $100 billion. Fifth, you must develop emotional intelligence. I know that you have a life beyond PepsiCo, and I’m going to respect you for your entire life, not just treat you as Employee Number 4,567.”. We can’t have an adversarial relationship. In the key markets and cities, you need to make sure you spend quality time. Indra Nooyi, age 58CEO, PepsiCo, United StatesNooyi has, once again, exceeded analyst's expectations and dour forecasts: Despite a global decline in … Second, you need to understand that public-private partnerships are critical for companies to be successful. That’s the new reality. Our businesses in those markets need to tailor products, business models, and people practices to the local market. Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact. And as long as PepsiCo keeps doing well, people will be okay. You cannot just swoop like a seagull into and out of a country or a city. 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. Are you spending more time with the external world now than you were before? So I picked my battles. 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