1. Indra Nooyi
The Full Range of Leadership
aftina - Alfin – Ali – Azhar
Ferry – Iman – Indri
2. Case Overview
Indra Krishnamurthy Nooyi born in India on Oct. 28, 1955 (57 years old)
Her breakthrough Leadership as Chairman and CEO of PepsiCo
“Performance with Purpose”
Balancing Profit motive with healthier snack, zero impact on environment, taking care
of workforce
PepsiCo's multi-year strategy to invest in a healthier future for people and the planet,
more health-conscious by adding healthier brands and products through acquisitions.
Characteristics:
Strategic thinker - Set high standard - Likes to challenge the team - Good art of suasion -
Full dedicated when working - People first (celebrate birthday, give dinner) - Appreciate
support from families
3. What Shaped Her
Family Background
• She grew up in Chennai formerly Madras, India
• Her father is an accountant and stay at home mother
• Every night Her mother like to present world problem to solve by Nooyi and her
sister and play as a competition
• Her grand father is a retired judge like to teach Nooyi with homework and Geometri
Education
• MBA from the Indian Institute of Management in Calcutta in 1976,
• Master's in Public and Private Management from Yale University in 1980.
Work Experience :
• Product manager for Johnson & Johnson – India
• Mettur Beardsell
• International corporate strategy director - Boston Consulting Group
• Motorola's automotive and industrial electronic group
• SVP of strategy and strategic marketing for Asea Brown Boveri
• SVP of corporate strategy and development – PepsiCo in 1994
• president and chief financial officer – PepsiCo
• CEO PepsiCo in 2007
4. Question #1
Which characteristic Indra Nooyi displayed, associated with
being a good leader and good manager?
Leadership is…
Process whereby an individual influences others to achieve a
common goal (Kreitner-Kinicki)
Leader is a someone who…
Creating and communicating a vision
Influencing others through use of power
Motivating task behavior in pursuit of shared objectives
Establishing and maintaining group culture
Empowering others
Clarifying roles and niche in marketplace
Making tough decisions with limited information
5. Question #1
Which characteristic Indra Nooyi displayed, associated with
being a good leader and good manager?
6. Question #1
Which characteristic Indra Nooyi displayed, associated with
being a good leader and good manager?
Indra Krishnamurthy Nooyi :
A strategic thinker (L - Visionary)
Organized PepsiCo to make it less fixated on the U.S. (L - Inspiring)
Created Motto “Performance with Purpose” (L – Changing Behavior)
The most stunning talents it’s the art of suasion (L - Influence)
Sells idea with famous intensity (L/M – Charismatic/Conscientious)
Expects everyone around her to measure up (M - Controlling)
Always challenge her team members (L - Motivating)
With her team, there is nothing remote (L – Managing People)
Really care about the team and their families (L – People First)
7. Question #1
Which characteristic Indra Nooyi displayed, associated with
being a good leader and good manager?
Organizational success requires a combination
of effective leadership and management. This in
turn leads to the realization that today’s leaders need to be
effective at both leading and managing. (Kreitner – Kinicki)
8. Question #1
Which characteristic Indra Nooyi displayed, associated with
being a good leader and good manager?
Leaders Managers
• Inspire & Motivate
• Manage People
• Are Decisive
• Create a Vision
• Are Accountable
• Execute
• Manage Resources
• Plan, organize, direct,
control
Managers who are also leaders
9. Question #2
Which different positive and negatif leadership traits and styles
were displayed by Ms. Nooyi? Cite examples
A leader trait is a physical or personality characteristic that can be used to
differentiate leaders from followers.
Trait theorists believed that they weren’t innate but could be developed
through experience and learning.
Five Stogdill’s leader traits :
Intelligence
Dominance
Self-confidence
Level of energy and activity
Task-relevant knowledge
10. Question #2
Which different positive and negatif leadership traits and styles
were displayed by Ms. Nooyi? Cite examples
• Kouzes and Posner’s Leadership Traits that constitute leader’s credibility :
Honesty Forward-looking Inspiring
• The credibility is then enhanced by :
Competent
Honestly communicating with others
Taking responsibility for one’s mistakes or problems
11. Question #2
Which different positive and negatif leadership traits and styles
were displayed by Ms. Nooyi? Cite examples
• Kellerman’s Research on Traits possessed by bad leaders :
Incompetent
Rigid
Intemperate
Callous
Corrupt
Insular
Evil
12. Question #2
Which different positive and negatif leadership traits and styles
were displayed by Ms. Nooyi? Cite examples
Ms. Nooyi’s Positive Traits :
Task Competence
“She’s cosmopolitan, rigorously educated, and a strategic thinker ”
Intelligence, knowledge, problem solving skills
Interpersonal Competence
“One of Nooyi’s most stunning talents is the art of suasion”
“She insists that everybody’s birthday is celebrated with a cake … and everyone is
forever 35”
Organize family-oriented dinners
“She talks about being mother”
Self efficacy
A confident woman capable of leading a large organization to attain several goals (net zero
environmental impact, healthier snacks)
Ethical
Societal concerns (striving for a net zero impact on the environment)
“if all you want is to screw this company down tight and get double degree earnings growth
and nothing else, then I am the wrong person”
13. Question #2
Which different positive and negatif leadership traits and styles
were displayed by Ms. Nooyi? Cite examples
Ms. Nooyi’s Negative Traits :
Overly demanding and unrealistic standards
“Just as she was held to very high standards in her youth, she expects everyone around her
to measure up”
“she kept pushing and pushing”
14. Question #3
To what extent does Indra display situational approaches toward
leadership?
Fiedler suggests that leaders must learn to manipulate or influence leadership situation in
order to create match between their leadership style and amount of control within
situation at hand.
Situational Control High Control Situations Moderate Control Situations Low
Control
Situations
Leader-member
relations
Good Good Good Good Poor Poor Poor Poor
Task Structure High High Low Low High High Low Low
Position Power Strong Weak Strong Weak Strong Weak Strong Weak
Situation I II III IV V VI VII VIII
Optimal
Leadership
Style
Task-motivated
Leadership
Relationship-Motivated
Leadership
Task-Motivated
Leadership
16-14
15. Question #3
To what extent does Indra display situational approaches toward
leadership?
16-15
Leadership Style Stuation
Task-Motivated
Leadership
When his team couldn’t find an inexpensive alternative
alternative to palm oil for its product in Thailand last year, she
kept pushing and pushing saying : “I hear you, I hear you so
what’s the solution ?” until they came up with one : rice bran
oil.
Relationship-Motivated
Leadership
Her colleagues say she “brings her whole self” to the office. She
insists that everybody ‘s birthday is celebrated with a cake .. And
everyone is forever 35.
16. Question #4
Which of the four types of transformational leadership behavior
were displayed by Ms. Nooyi?
Transformational Model of Leadership
Ind. & Org. Leader behavior
characteristics
Effects on followers and
work groups
Outcomes
Traits Inspirational motivation Increased intrinsic
motivation, achievement
orientation, and goal
pursuit
Personal commitment to
leader and vision
Life experience Idealized influence Increased identification
and trust with the leader
Self – sacrificial behafior
Organizational culture Individualized
consideration
Increased identification
and cohesion with work
group members
Organizational
commitment
Intelectual stimulation Increased self-esteem, self-efficacy,
and intrinsic
interest in goal
accomplishment
Task meaningfulness and
satisfaction
Increased role-modeling of
transformation leadership
Increased individual group,
and organizational
performance
17. Question #4
Which of the four types of transformational leadership behavior
were displayed by Ms. Nooyi?
Inspirational Motivation Idealized Influence
• Striving for a net zero impact on the
environment
• Sell ideas with famous intensity
Transformational
• Performance with Purpose
• We are engines of efficiency.
• Expects everyone around
her to measure up
• Boston Consulting Group
• “She challenges you”
• Doubling executive team to 29
• Taking care of workforce
Individualized Consideration Intelectual Stimulation
18. Question #5
Would you like to work for Indra Nooyi? Explain why or why not
Positive leadership traits :
intelligence,
self-confidence,
determination
sociability
Behavioral styles :
displays a high degree of consideration
by fostering effective interpersonal relationships at work
displays a high degree of initiating structure
by establishing goals for PepsiCo to produce healthier snacks and to
have net-zero environmental impact
19. Question #6
What did you learn about leadership from this case
• Nooyi has leadership behavior :
• Inspirational motivation
• Idealized influence
• Individualized consideration
• Intellectual stimulation
• Have a strong personality, she is a very charismatic and humble leader, art of
suasion
• Leadership style:
• Risk taking and concrete decision making big shift and change business
plan
• Promoting the Company mission “Performance with Purpose”
• Emotional Intelligent Precept employee as people first, create fun and
heartfelt environment (waking barefoot and singing)
• Nurturing employee family oriented employee, send postcard, cake for
birthday
• Motivating personality and blended with the team put target, nothing
remote about Nooyi
• Straightforward Clear defined target and measurement, concised
message to employee
20. Conclusions
• Leaders are made, not born (University of
Michigan).
• Good leadership depends on personal traits
like background, capability, personality, etc.
• Transformational model of leadership had
been in place at PepsiCo (compare to
Transactional Model)
21. Indra
Nooyi «If you want something said, ask a man; if you
want something done, ask a woman».
Margareth Tatcher
Notes de l'éditeur
Starting with this basic definition of leadership, let’s go through this list of key aspects of leadership together.
Creating and communicating a vision. A vision is a lofty goal that directs the organization in the future. For example: Palm Inc.’s vision is to be “the leading global provider of handheld computing products and to provide developers with the industry-standard platform for creating world-class mobile solutions.” Another example is Steven Jobs, Apple Computer: “To make computing simple and available to everyone.”
Influencing others through use of power. French & Raven’s five sources of power apply here; remember that a person can use multiple sources depending on the situation and that referent and expert are usually more successful than reward, coercive, or legitimate.
Motivating task behavior in pursuit of shared objectives, rather than personal goals.
Establishing and maintaining group culture by developing the social environment in which people work, an environment that is supportive of teamwork and the free sharing of ideas.
Empowering others by acknowledging their capabilities and granting them responsibility and decision-making ability.
Clarifying roles and niche in marketplace. The kinds of issues leaders can help followers understand are their roles and how they can fulfill them and how their group or organization fits in with the larger competitive marketplace.
Making tough decisions with limited information. Another hallmark of effective leaders is their ability to make good decisions in ambiguous situations with incomplete information.
Starting with this basic definition of leadership, let’s go through this list of key aspects of leadership together.
Creating and communicating a vision. A vision is a lofty goal that directs the organization in the future. For example: Palm Inc.’s vision is to be “the leading global provider of handheld computing products and to provide developers with the industry-standard platform for creating world-class mobile solutions.” Another example is Steven Jobs, Apple Computer: “To make computing simple and available to everyone.”
Influencing others through use of power. French & Raven’s five sources of power apply here; remember that a person can use multiple sources depending on the situation and that referent and expert are usually more successful than reward, coercive, or legitimate.
Motivating task behavior in pursuit of shared objectives, rather than personal goals.
Establishing and maintaining group culture by developing the social environment in which people work, an environment that is supportive of teamwork and the free sharing of ideas.
Empowering others by acknowledging their capabilities and granting them responsibility and decision-making ability.
Clarifying roles and niche in marketplace. The kinds of issues leaders can help followers understand are their roles and how they can fulfill them and how their group or organization fits in with the larger competitive marketplace.
Making tough decisions with limited information. Another hallmark of effective leaders is their ability to make good decisions in ambiguous situations with incomplete information.
I do not want to sound like a male chauvinist pig but the reality is that women are just not given enough space to move about in the corporate world, in fact not even elbow room.
So, in this male dominated world, for a woman to find her own space and leave behind all men and to reach the very top requires a very high degree of tenacity. Which our Indra has in ample measures. And, an Indian to boot!
Participation
The posts she holds besides being the Chairperson and the CEO of Pepsico, a very American institution read like something out a story book. She holds a membership in the Foundation board of the World Economic forum. International Rescue Committee also her name in its roll. The Board of Trustees of Eisenhower fellowships is an organization where she is a member. What is noteworthy is that she is on the board of Lincoln Center for the Performing arts. That in deed shows her caliber in being not just a person steeped in corporate culture but as someone who is equally good at life's good things like arts.
Handling Power
Wall street journal and the Forbes magazine have both named her as one of the most powerful women in business in the world. Time magazine went one step ahead and put her in the top place as number one influential woman in the world. Hard figures reveal that her leadership has caused Pepsico to achieve double the sales after she took over in 2000.
Strength of Conviction
Indra believes in competence. Unless you are an expert in your chosen field, you will get nowhere. You will be known only if you become an expert. In anything, take a decision weighing everything for and against it. Once you have decided, never waver from it. You should send out the message that you are courageous and confident enough to say what is believed to be right by you.
Outstanding Communication Skills
The way you communicate carries a lot of weight. In fact, your communication skills will be in the forefront of your leadership qualities. Indra is all for surrounding herself with mentors. She believes in listening to the mentors' advice and suggestions and incorporate the goods points in what she does. She is not the one to veer away even a little from her moral compass. You must have strength to hold to what you know to be morally right, no matter what.
Take Care of your Employees
It is not enough to plan development assignments and make arrangements to implement them. Strategic building of skills and talent is necessary. An enterprising mindset is called for in this. Succession has to be taken into account at every stage. The experience as necessitated by the particular post needs to be in place. The plan for succession has to include the process as to how it should be done. Once the experience and skill are identified, the people most suitable for the assignment are to be entrusted with the task.