Resourcing Turns A Dream Into A Reality

Indra Nooyi

Lesson time 09:36 min

Indra provides a lesson on resource segmentation, shares her advice on how to allocate resources, and highlights the importance of effectively delegating responsibility on a project.

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Topics include: Indra provides a lesson on the resource segmentation process as she knows it, shares her advice on how to allocate resources by zooming out and simplifying an issue, and highlighting the importance of effectively delegating responsibility on a project.


[MUSIC PLAYING] - Strategy becomes strategy only when you translate the strategy to tangible plans, and then you put the resources against it. Because sometimes you say, my strategy is to conquer x, y, and z. And if that requires 50 people and five years of investment, and you put five people and three years of investment, you're not going to fulfill whatever your ambitions are. Then, your strategy is going to be for naught. So when you think about strategy, it's a dream as long as you articulate it. It's a reality only if you put the plan and the resources behind it. The wonderful thing about performance with purpose was, I was the CEO. I was articulating the broad strategy. I was working with my senior team to decide exactly what we needed to invest behind to build the capabilities, to transform the portfolio, to work on environmental initiatives. And I had the ability to allocate resources the way I thought it should be allocated for the company. So that's a luxury you have as a CEO or a senior executive of the company. And I was very careful to say, if we don't allocate the resources, we cannot accomplish what we said we would do. And performance with purpose becomes more of a slogan, as opposed to a real direction. So I was very careful to make sure that I understood what resources were needed and what it was going to cost the company before I publicly talked about performance with purpose, which leaves me with a very important message for everybody. Do not announce something unless you're willing to go the entire way to line up your entire business and resources against what you promised to do. Because if you don't do that, you become just empty slogans, and nobody is going to believe you going forward. The first thing I had to show was that I was willing to put money behind R&D. Because a lot of what we had to do required reformulation of products-- thinking about new ways to reduce the salt, fat, and sugar without destroying taste, new ways to formulate new nutritious products, new ways to produce Pepsi without using so much water, new ways to reduce the plastic and not have the bottles crushed in transit. So there's so much we had to do-- how to use recycled plastic in soda bottles. Because when you use recycled plastic in soda bottles, the soda can leak out. So how do you create a dual layer of plastic? So a lot of technical challenges, which very few people understand, but we had to think about all this. And how do we fundamentally change the relationship between PepsiCo and our consumers, so that they're not just dealing with us as a transaction, but falling in love with our products? That's where I met Steve Jobs, and he told me I needed to bring in design thinking into PepsiCo. So I did two things. I went out and hired the best R&D guy I could find-- Mehmood Khan from Takeda-- came from pharmaceuticals, but I told him that he could make change on a large basis if he came to PepsiCo and tast...

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.

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Indra Nooyi

Indra Nooyi, former CEO of PepsiCo, teaches you to think big, be brave, and make purpose-driven changes at work.

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