Pepsico

“In times of change, Learners Inherit the Earth.

While the Learned find themselves equipped to

deal with a world that no longer exists”

Eric Hoffer Social Writer (1902-83)

Adding Value through Leadership Development

Anurag Kumar CPO & VP Human Resources

PepsiCo

Key Questions for the session

Why Leadership Development ?

Why a Systematic Approach ?

Who are the Leaders we need to Lead Change ?

Do leaders shape organizations or do organizations shape leaders ?

What are the implications of a leadership strategy to your – talent acquisition, – talent sustainability, – leadership practice

Who am I?

Roller-coaster of Experiences – Danfoss, ICI & Times of India – PepsiCo’s 7+ jobs in 17 years

Lived & Breathed development

– 66% related assignments – Exposed to more than half the

world’s practices

PepsiCo Team & Family – Pepsi-fied all the way – Through thick & thin

PepsiCo Page

A Company with Purpose With 22 Billion $ brands

Why Leadership Development ?

Why Leadership Development?

• The hierarchical model ‘simply doesn't work anymore’.

• ‘Leading from Behind’ requires a change in mindset and

different set of skills

• Innovation will drive our future: We need leaders who

build communities that have innovative agility.

• Breeding the Best Learners to breed the Best Leaders.

Why Leadership Development?

Leadership Quality

Only 38 percent of the 12,423 leaders

reported that the quality of leadership in their organization is very good or

excellent.

100% 4% 7%

80%

22%

31%

60%

40%

20%

0%

43%

28%

3%

HR LDR

39%

21%

3%

Excellent

Very Good

Good

Fair

Poor

Leadership Quality Related to Organizational Performance

Organizations with the highest quality leaders were 13 times more likely to outperform their competition in key

bottom-line metrics

100%

80%

78%

60% 53%

40% 27%

20%

6% 9%

0%

Poor

Fair

Good

Very Good

Excellent

Leadership Quality

Pe

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nta

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f Le

ade

rs R

atin

g Th

eir

Org

aniz

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n’s

O

vera

ll P

erf

orm

ance

Aga

inst

Th

eir

Co

mp

eti

tors

Source: 2011 Center for Leadership Council

Why A Systematic Approach?

We run the risk

Source: 2011 CLC Global Leadership Survey.

Process is King

• Global Economy & new rules mandate the ‘right’

way of doing business to succeed/ sustain in the

long run.

• Excellence requires running Talent processes like

Business processes.

• If you can’t measure it; how will you sustain it.

Developing Future Leaders (PepsiCo’s Example)

• Creating robust processes around each key leadership transition

• Provide access to the heightened self awareness and tools to

help assess and address gaps.

Integrated Talent Management

• Driving Synergies is old school -> Move to integrating our approach as 1 talent management.

• The chain is as weak as its

weakest link (silos).

• PepsiCo Example: Holistic Talent Sustainability means clear linkage from Objectives to measures and from rewards to career opportunities.

Organizational Insights & Measures (PepsiCo’s Example)

Values Bench 360

System Wide

Governance Development Hogan

EOC Org Planning MQPI

Org Level Individual Level

Are we delivering on our

promise to shareholders?

Are we playing the business

partner role?

Are we getting right inputs

for development?

Who are the Leaders we need to Lead Change ?

Who are they?

• Investors having increasing interest in the integrity

and ethics of leaders.

• PepsiCo’s Perspective:

– Cultivate Authentic Leadership

– Build Organization Savvy leaders

– Global & Glocal ( Strategic, Learning & Cultural Agility)

– Leading Change is half the leadership battle

Find or Develop? (PepsiCo’s Example)

Assisted Assessment

People Planning

70% - Critical Experiences

On the job learning

20% - Coaching,

feedback, mentoring

10% - Formal training

Based on

Developmental Needs

Accumulate Experience

Talent pool for

Senior Most Roles

Optimizes Future Leader development by moving talents into stretching assignments that develop multiple critical experiences

IDENTIFY DEVELOP MOVE

Do leaders shape organizations or do organizations shape leaders?

CHARACTER

VALUES

MOTIVATIONS

PERSONALITY

11

A Contagious, Virtuous Cycle

PERSONAL ABILITY (IQ, EQ…)

INTENT & BEHAVIOR

CHARACTER

VALUES

MOTIVATIONS

PERSONALITY

12

A Contagious, Virtuous Cycle

13

A Contagious, Virtuous Cycle

CHARACTER

VALUES

MOTIVATIONS

PERSONALITY

PURPOSE

LEADERSHIP LEGACY

“SHADOW” OF THE LEADER

PERSONAL ABILITY (IQ, EQ…)

INTENT & BEHAVIOR

PURPOSE

LEADERSHIP LEGACY

“SHADOW” OF THE LEADER

ORGANIZATION WIDE IMPACT

14

A Contagious, Virtuous Cycle

CHARACTER

VALUES

MOTIVATIONS

PERSONALITY

PERSONAL ABILITY (IQ, EQ…)

INTENT & BEHAVIOR

The implications of Leadership Strategy

Key for Global Leaders

• Strengthening the core

while ensuring future-

proof plans

• Identifying high potential

leaders while developing

the right processes for

succession, performance

and experiences

‘Educating the individual is the most valuable investment.

It represents the foundation for progress

and development.’