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PepsiCo Case of Study
Building Gender Balanced Leadership Teams
2012 CONFIDENTIAL
PepsiCo

  Within PepsiCo, our commitment to diversity
    and inclusion encompasses the goal of
achieving parity between women and men in our
       management and leadership ranks
Gender Balanced Leadership Teams


     Build a leadership pipeline that reflects the Consumer
 1   and Talent demographics



     Creating a competitive advantage through Gender
 2   Balanced teams in PepsiCo



     PepsiCo South East Europe and Turkey Journey, key
 3   insights and cultural implications
Build a leadership pipeline that reflects the
Consumer and Talent demographics
                       ! Studies show that companies with significant
                         number of women in Senior Roles perform better
                         than others

                       ! Women worldwide control about $20 trillion in
                         consumer spending each year

                       ! Women are the driving force behind more than
                         70% of purchasing decisions

                       ! Sixty percent of university graduates in Europe
                         and North America are women

                                          !"#$%&'()*"+(+",&-(,&.-(/#01-&0023(4515.6(7188&-/&$9-Cox



In Europe, only 7% of the total number of Executive Committee
   members of the top 101 European companies are women
                                                            4
                                                 Source: 2010 WOMENOMICS101, 20-first
A few women at Senior levels...


  In Europe, 44% of
 companies have at
least one woman on
    their Executive
     Committees.




  The US leads the
way, well ahead with
  87% of American
 companies having
at least one woman
 on their Executive
     Committee.

                                      Source: 2010 WOMENOMICS101, 20-first
The problem is not only at the top: women
are increasingly outnumbered as they rise
through the ranks
...the most important issues
: !"#$%&'()*#$)(+&#,-$./,&+'0#$
  ; Combination of work and domestic responsibilities
: The linear career path
  ; No space for career breaks or the rejection of a geographical mobility option
: Dual career couples
  ; Couples need to find better ways of balancing life and work during their careers
: Lack of role models
  ; Few women in senior roles, to build role models
: Need for promotions and development
  ; Women perceive that males are getting most of the promotions and development
    opportunities
: Lack of flexibility
  ; Work life balance
: The talent gap
  ; The female representations drops at almost every management layer
Creating a competitive advantage through
     Gender Balanced teams in PepsiCo
PepsiCo Europe holistic approach to increase female representation management
                             and leadership ranks

       Commitment             Development                Enablers
Our Commitment started with the top of the
organization and today:
                                Commitment

                : Diversity and inclusion are a key part of who we
                  are and firmly anchored in our core values
                : Behaviours that support diversity and inclusion
                  are embedded in our Leadership Model
                : All people managers have a diversity and
                  inclusion objective as part of our Performance
                  Management Process and Senior Leaders
                  have targets for women representation
                : In 2012, Europe Regional Leads developed an
                  action plan to ensure gender balanced
                  management and leadership teams as part of
                  our Talent Review process
Key initiatives to increase female
development in PepsiCo:
                                   Development
               : Talent Review: Detailed plans to drive female
                 representation at executive levels with strong focus on
                 Select, Develop and Retain
               : Career Conversations: Conversations to explore factors
                 influencing mobility, life stage and any issues impacting
                 Work Life Balance as part of the Talent Review Process
               : Mentoring: Formal and informal mentoring programs
               : D&I Scorecard: 2 year aspirational goal to ensure
                 gender balanced management and leadership teams
               : Communities'(<-9"1-9(0="-0"$061=(">(7",&-?0(
                 International Networking, Global Summit of Women,
                 Empowering Women and other high profile conferences
               : Communities: Support to Trestle foundation to help
                 female entrepreneurs in emerging markets, while
                 providing development opportunities to our internal talent
Video




   !"#$%&'()&%)*)'(+$*,-)./*.)
  always offer really challenging
tasks for people, and at the same
     time is growing people,
     developing people, and
 understanding their motivators
           *,0)0#%&1#%2

Kristina Rossova, R&D Manager
            Europe
Retaining focus on evolving our culture &
environment
                                         Enablers
            : PepsiCo have various practices around work life balance:
                : FlexiCo Program
                   ! Flex Place - Work from another location one day a week
                   ! Flex Time - Adjust on-going schedule around core work hours
                   ! Flex Day - Summer hours - Compress 5 days of work into 4 ! day

                : As part of the annual objective setting process,
                  &,=@"A&&0(B10%#00(+186(86&1$(,.-.9&$0(+6.8(Cone simple
                  thing?(+"#@B(6&@=(86&,(.%61&5&(.(/&88&$(+"$D-home
                  balance
            : Being more effective at work - Less is More and Simplicity
            : Encouraging our employees to lead a healthier lifestyle - Fit
              for Life, Vive Saludable and Vielife
            : Maternity Management an innovative, holistic approach
              which meets the needs of our women through all stages of
              their pregnancy
Video




 !34)*)'(+$*,-)%5$$(1.%)-(5)&,)
such a great way, it just gives you
     ./#)#6.1*)$5%/)-(5),##02

Helen Hofstede, Project Manager
         Quaker Oats
Building Gender Balanced Leadership
Teams

Key success factors
 : Leadership commitment and
   accountability
 : Focus on our Culture and Environment
 : Career Conversations to understand
   aspirations and explore factors influencing
   mobility and life stage
 : Career development tracked by Talent
   Management
 : Transparency by implementing gender
   diversity scorecard and goals
 : Measures to facilitate the work-life
   balance
South East Europe and Turkey Journey




 Umran Beba, formerly President of South East Europe and now President of Asia
Pacific, achieve nearly 40% female representation in her leadership team in Turkey
!(+1#/2.$3+#45#.5$(,5466#&$6'5#,574*8$
Women...

    Many women in Turkey would like to work but they face a
     number of difficulties that prevent them from doing so


Women with poor levels of education, especially in urban areas:

   : Have access to jobs that offer low wages and harsh
     working conditions

   : The cost of hiring someone else to help working
     women with childcare and domestic work is too high
                                                  Source: WorldBank
Some factors affecting women to join the
        labour force...
        Social and Cultural Constrains           Economic Constrains

    :   Family would not allow           :   Low wages (high informality)
    :   Safety                           :   Long working hours
    :   Mistrust                         :   Economic crisis
    :   What would others say            :   Insufficient education
    :   Care giving                      :   Lack of affordable childcare




Source: WorldBank
9'(+:#8$!;<=>?@$>9!A!>9!>=$=B<BCB$D!(+17."$95457.57:4*$E,.575(5#



Women are disadvantaged
                                             !"
   Schooling ratio, 2010-2011
                                                  Mean age at first marriage by sex




    Employment status 2011                     Reasons of not being in labour force 2011
9'(+:#8$!;<=>?@$>9!A!>9!>=$=B<BCB$D!(+17."$95457.57:4*$E,.575(5#



Women are disadvantaged
   Distribution of Employment by agriculture and non-agriculture, 2004-2011
PepsiCo has done a good progress in
Gender Balance over the years in Turkey
 Turkey Female Population in       PepsiCo Executive Female
          Business                      Representation
Turkey   Emp     Mgrs       Exe   Global   Europe    SEE   Turkey
                        32%                         33%    32%

                26%                 26%     27%


 19%     20%




    Female Representation             Female Representation
...So, how our journey begun?
The Journey started with our Leadership
Team..
                : A Task force was established and led by
                  Umran Beba (Region President)
                : Our target group: Female executives and
                  managers
                : Quantitative survey and focus groups to
                  understand:
                     : WLB
                     : Culture
                     : Communication
                     : Development

                : Opportunities, challenges and issues
                  identified
                : Actions defined in workshops
Actions defined:
Targets given for Female executive
representation

 To Region President

              To Functional VPs

                       To Business Unit GMs

                                    To Market Unit GMs

                                                 To HRDs
Flexibility to facilitate the work-life
balance...


                           Work from another location one day a week




                        Summer hours - Compress 5 days of work into 4 1/2 days




                Adjust on-going schedule around core work hours of 10:00-3:00
... And ONE Simple Thing as part of our
A,,(4*$F)G#:57H#.IJ




                        Because Work Life
                        Balance is different
                           for everyone
...followed by cultural change.....

 : Leadership meetings
    "

! Regular updates about D&I in quarterly Leadership
 Meetings


 : Mentoring Programs
 Diverse and High Potential Executives has been matched
 with VPs and GMs


 : D&I Local councils in Business Units
...and strong communication campaigns
We organized
internal networks....



                        I$&#H#*'60#,5al
                               meetings




 ... And distributed
 developmental books
...then we decided to invest more
Being a role model with consistent
communication...
....and promoting gender equality in
management
PepsiCo was among 30 local and international companies that signed
      Turkish Society for Quality's gender-equality declaration

"Women have the Right to Govern - Gender Equality in Management"
declaration, showing their support for equality, diversity and inclusion
                          in the workplace.
In 2012 our journey requires a new focus...

We have a much more diverse workforce

: 14 countries

: Different religions and cultures

: Bottler acquisition and culture integration

: We have much larger population (7,000)

: Leadership Team from 6 different nationalities

: 33% Female executives in South East Europe
...Our journey
will continue...

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Pepsi co case of study building gender balaned leadership team updated

  • 1. PepsiCo Case of Study Building Gender Balanced Leadership Teams 2012 CONFIDENTIAL
  • 2. PepsiCo Within PepsiCo, our commitment to diversity and inclusion encompasses the goal of achieving parity between women and men in our management and leadership ranks
  • 3. Gender Balanced Leadership Teams Build a leadership pipeline that reflects the Consumer 1 and Talent demographics Creating a competitive advantage through Gender 2 Balanced teams in PepsiCo PepsiCo South East Europe and Turkey Journey, key 3 insights and cultural implications
  • 4. Build a leadership pipeline that reflects the Consumer and Talent demographics ! Studies show that companies with significant number of women in Senior Roles perform better than others ! Women worldwide control about $20 trillion in consumer spending each year ! Women are the driving force behind more than 70% of purchasing decisions ! Sixty percent of university graduates in Europe and North America are women !"#$%&'()*"+(+",&-(,&.-(/#01-&0023(4515.6(7188&-/&$9-Cox In Europe, only 7% of the total number of Executive Committee members of the top 101 European companies are women 4 Source: 2010 WOMENOMICS101, 20-first
  • 5. A few women at Senior levels... In Europe, 44% of companies have at least one woman on their Executive Committees. The US leads the way, well ahead with 87% of American companies having at least one woman on their Executive Committee. Source: 2010 WOMENOMICS101, 20-first
  • 6. The problem is not only at the top: women are increasingly outnumbered as they rise through the ranks
  • 7. ...the most important issues : !"#$%&'()*#$)(+&#,-$./,&+'0#$ ; Combination of work and domestic responsibilities : The linear career path ; No space for career breaks or the rejection of a geographical mobility option : Dual career couples ; Couples need to find better ways of balancing life and work during their careers : Lack of role models ; Few women in senior roles, to build role models : Need for promotions and development ; Women perceive that males are getting most of the promotions and development opportunities : Lack of flexibility ; Work life balance : The talent gap ; The female representations drops at almost every management layer
  • 8. Creating a competitive advantage through Gender Balanced teams in PepsiCo PepsiCo Europe holistic approach to increase female representation management and leadership ranks Commitment Development Enablers
  • 9. Our Commitment started with the top of the organization and today: Commitment : Diversity and inclusion are a key part of who we are and firmly anchored in our core values : Behaviours that support diversity and inclusion are embedded in our Leadership Model : All people managers have a diversity and inclusion objective as part of our Performance Management Process and Senior Leaders have targets for women representation : In 2012, Europe Regional Leads developed an action plan to ensure gender balanced management and leadership teams as part of our Talent Review process
  • 10. Key initiatives to increase female development in PepsiCo: Development : Talent Review: Detailed plans to drive female representation at executive levels with strong focus on Select, Develop and Retain : Career Conversations: Conversations to explore factors influencing mobility, life stage and any issues impacting Work Life Balance as part of the Talent Review Process : Mentoring: Formal and informal mentoring programs : D&I Scorecard: 2 year aspirational goal to ensure gender balanced management and leadership teams : Communities'(<-9"1-9(0="-0"$061=(">(7",&-?0( International Networking, Global Summit of Women, Empowering Women and other high profile conferences : Communities: Support to Trestle foundation to help female entrepreneurs in emerging markets, while providing development opportunities to our internal talent
  • 11. Video !"#$%&'()&%)*)'(+$*,-)./*.) always offer really challenging tasks for people, and at the same time is growing people, developing people, and understanding their motivators *,0)0#%&1#%2 Kristina Rossova, R&D Manager Europe
  • 12. Retaining focus on evolving our culture & environment Enablers : PepsiCo have various practices around work life balance: : FlexiCo Program ! Flex Place - Work from another location one day a week ! Flex Time - Adjust on-going schedule around core work hours ! Flex Day - Summer hours - Compress 5 days of work into 4 ! day : As part of the annual objective setting process, &,=@"A&&0(B10%#00(+186(86&1$(,.-.9&$0(+6.8(Cone simple thing?(+"#@B(6&@=(86&,(.%61&5&(.(/&88&$(+"$D-home balance : Being more effective at work - Less is More and Simplicity : Encouraging our employees to lead a healthier lifestyle - Fit for Life, Vive Saludable and Vielife : Maternity Management an innovative, holistic approach which meets the needs of our women through all stages of their pregnancy
  • 13. Video !34)*)'(+$*,-)%5$$(1.%)-(5)&,) such a great way, it just gives you ./#)#6.1*)$5%/)-(5),##02 Helen Hofstede, Project Manager Quaker Oats
  • 14. Building Gender Balanced Leadership Teams Key success factors : Leadership commitment and accountability : Focus on our Culture and Environment : Career Conversations to understand aspirations and explore factors influencing mobility and life stage : Career development tracked by Talent Management : Transparency by implementing gender diversity scorecard and goals : Measures to facilitate the work-life balance
  • 15. South East Europe and Turkey Journey Umran Beba, formerly President of South East Europe and now President of Asia Pacific, achieve nearly 40% female representation in her leadership team in Turkey
  • 16. !(+1#/2.$3+#45#.5$(,5466#&$6'5#,574*8$ Women... Many women in Turkey would like to work but they face a number of difficulties that prevent them from doing so Women with poor levels of education, especially in urban areas: : Have access to jobs that offer low wages and harsh working conditions : The cost of hiring someone else to help working women with childcare and domestic work is too high Source: WorldBank
  • 17. Some factors affecting women to join the labour force... Social and Cultural Constrains Economic Constrains : Family would not allow : Low wages (high informality) : Safety : Long working hours : Mistrust : Economic crisis : What would others say : Insufficient education : Care giving : Lack of affordable childcare Source: WorldBank
  • 18. 9'(+:#8$!;<=>?@$>9!A!>9!>=$=B<BCB$D!(+17."$95457.57:4*$E,.575(5# Women are disadvantaged !" Schooling ratio, 2010-2011 Mean age at first marriage by sex Employment status 2011 Reasons of not being in labour force 2011
  • 19. 9'(+:#8$!;<=>?@$>9!A!>9!>=$=B<BCB$D!(+17."$95457.57:4*$E,.575(5# Women are disadvantaged Distribution of Employment by agriculture and non-agriculture, 2004-2011
  • 20. PepsiCo has done a good progress in Gender Balance over the years in Turkey Turkey Female Population in PepsiCo Executive Female Business Representation Turkey Emp Mgrs Exe Global Europe SEE Turkey 32% 33% 32% 26% 26% 27% 19% 20% Female Representation Female Representation
  • 21. ...So, how our journey begun?
  • 22. The Journey started with our Leadership Team.. : A Task force was established and led by Umran Beba (Region President) : Our target group: Female executives and managers : Quantitative survey and focus groups to understand: : WLB : Culture : Communication : Development : Opportunities, challenges and issues identified : Actions defined in workshops
  • 23. Actions defined: Targets given for Female executive representation To Region President To Functional VPs To Business Unit GMs To Market Unit GMs To HRDs
  • 24. Flexibility to facilitate the work-life balance... Work from another location one day a week Summer hours - Compress 5 days of work into 4 1/2 days Adjust on-going schedule around core work hours of 10:00-3:00
  • 25. ... And ONE Simple Thing as part of our A,,(4*$F)G#:57H#.IJ Because Work Life Balance is different for everyone
  • 26. ...followed by cultural change..... : Leadership meetings " ! Regular updates about D&I in quarterly Leadership Meetings : Mentoring Programs Diverse and High Potential Executives has been matched with VPs and GMs : D&I Local councils in Business Units
  • 28. We organized internal networks.... I$&#H#*'60#,5al meetings ... And distributed developmental books
  • 29. ...then we decided to invest more
  • 30. Being a role model with consistent communication...
  • 31. ....and promoting gender equality in management PepsiCo was among 30 local and international companies that signed Turkish Society for Quality's gender-equality declaration "Women have the Right to Govern - Gender Equality in Management" declaration, showing their support for equality, diversity and inclusion in the workplace.
  • 32. In 2012 our journey requires a new focus... We have a much more diverse workforce : 14 countries : Different religions and cultures : Bottler acquisition and culture integration : We have much larger population (7,000) : Leadership Team from 6 different nationalities : 33% Female executives in South East Europe