Evaluating Success Against the Original Goals
Lesson time 05:12 min
In this lesson, Indra assesses the successes and failures of "Performance With Purpose" to demonstrate how she exercised her 7 Cs. She also discusses the resulting transformation, supply chain changes, and environmental sustainability achieved.
Students give MasterClass an average rating of 4.7 out of 5 stars
Topics include: In this chapter, Indra assesses the successes and failures of PwP to demonstrate how she exercised her 7C’s to lead PepsiCo to achieve a portfolio transformation, environmental sustainability, and uplifting of people throughout the supply chain.
[MUSIC PLAYING] - Integrity in reporting on purpose was as important to us as integrity of reporting on performance. The first few years of launching PWP, I had more critics than supporters. Later on, around 2010, 2012, they said, boy, she's prescient. She was right in what she was doing. By 2014, 2015, they were giving me lots of awards for doing PWP. But the evolution was painful because I would have loved all the support in the early days of being CEO. But c'est la vie. It was early. Performance With Purpose was ahead of its time. You know, it feels great, because at the end of the day, it's about the company, it's not about me. CEOs come and go. Has the company evolved and is it successful? The answer is yes. [MUSIC PLAYING] PWP delivered results. We outperformed the S&P over the decade and delivered great revenue growth in shareholder value. But more importantly, the portfolio shifted. We became 50% fun for you versus better for you, good for you. We reduced substantial amount of water from our plants. 2 and 1/2 liters went down to, I think, 1.4 1.5, on its way down to 1.2. We took out about 20% of plastics from all of our bottles. We developed a range of programs for our employees that increase the loyalty factor that they had for the company, reduced our turnover rates. When it came to things like using renewables, hybrids, electric trucks, we were one of the people that placed the largest order for electric trucks in the US. Most of Frito-Lay's fleet is on hybrid vehicles. Pepsi would have been on hybrid, except that hybrid vehicles couldn't take the weight. So we had to think about a new solution for that. And we are incorporating a large amount of recycled plastic in our products. And we had teams of people who worked on the reporting. And then we had people to check the reporting to make sure we were not fudging anything at any point. [MUSIC PLAYING] We tracked it on a quarterly basis and we published our sustainability report, which was reflected in the Dow Jones Sustainability Index and the Global Reporting Initiative. Very important, because they ask you for progress on all your social responsibilities, environmental product portfolio. So in each of these, we had to report in great detail what progress we were making, including where we were not making progress. When we delivered on the goal, we talked about it. When we missed the goal, we talked about why and how we were going to fix it. And every time we went to a shareholders meeting, there was somebody who said we protest PepsiCo using too much water, we could pull out the water savings work that we were doing. And we built a lot of credibility in doing that. It was integrated into the fabric of our business. And lastly, I'm so proud of what we did for our employees. So when we opened PepSmart in the corporate headquarters, for kids all the way from three months to five years-- the best day of my life. Just watch...
About the Instructor
Ever wonder what it takes to be the CEO of a Fortune 50 company? Indra Nooyi didn’t set out to become the first woman of color to do so. She simply (and tenaciously) focused on big ideas. As the former CEO of PepsiCo, Indra transformed a global industry. Now she’s teaching you her transformational approach to leadership. Learn to simplify complex problems, persuade others to buy into your vision, and discover how leading with purpose can improve your life beyond the boardroom.
Featured Masterclass Instructor
Indra Nooyi, former CEO of PepsiCo, teaches you to think big, be brave, and make purpose-driven changes at work.Explore the Class