Introduction

Module 5 Team project on leadership Indra Nooyi

Joshua TrujilloKyle KemptonTheresa FlynnJeannie DalrympleJerry MitchellHelen Robinson

Colorado State University Global Campus

Decision Making and Leadership ORG 550

Dr. Stephen LawIntroduction Indra Nooyi is the President and Chief Executive Officer of PepsiCo (Advameg Inc., 2011). Ms. Nooyi is one of the top female executives in the United States and the highest-ranking woman of Indian heritage in corporate environments (Advameg, Inc., 2011). Ms. Nooyis achievements along with occupational successes in leading PepsiCo show her entrepreneurial spirit and dedication. Ms. Nooyi was born in Madras India in 1955 into a conservative, middle-class environment (Advameg Inc., 2011). She is a graduate of Madras Christian College where she earned her undergraduate degree in Chemistry, Physics and Mathematics and graduated with an MBA from the Indian Institute of Management in Calcutta (Advameg Inc., 2011). Ms.Nooyi was accepted into and enrolled in Yale Universitys Graduate School of Management (Advameg Inc., 2011). Ms. Nooyis family supported her decision and move to the United States though actions such as these were unheard of for a good conservative south Indian Brahmin girl (Advameg Inc., 2011). Ms Nooyi holds a Masters of Public and Private Management from Yale University completed in 1980.Indra Nooyi Values.Values of Indra Nooyi External ConditionsSustainabilityGlobal Impact Environment Diversity

Indra Nooyi has many great ideas, values and ethical thoughts as the CEO for a large corporation like PepsicCo. She has a vision that the values of the company should be reflected to help the community and other areas instead of being focused on the bottom line. Her idea is called, Performance with Purpose. Indra Nooyi states, We believed then, as we do now, that there is more to business than the earnings cycle. Our basic idea was that a company had to marry its performance with its ethical concerns. Its performance and its purpose are not separate entities. They merge. They feed off each other. They need one another. This is a particularly important idea against the backdrop of economic troubles we are in today.(NOOYI, I. K. (2009). Leading to the Future. Vital Speeches of the Day, 75(9), 404).

Other key aspects of her Performance with Purpose are to, tackle the obesity epidemic by improving the nutritional status of PepsiCo products and making PepsiCo an environmentally sustainable company. (http://www.flatworldknowledge.com/pub/principles-management-v1.1/198692). To help the environment even further, PepsiCo launched a partnership with Waste Management Inc. to create innovative public recycling kiosks offering incentives for consumers to deposit empty bottles and cans http://blogs.hbr.org/imagining-the-future-of-leadership/2010/05/adding-values-to-valuations-in.html).

Sticking with this agenda, since she received her title of CEO she has implemented the Pepsi Refresh Program. This program was developed by Indra Nooyi because she values the communities in which the company works in and supports. Pepsi, took marketing funds generally used for expensive Super Bowl TV commercials and has used them instead for the "Pepsi Refresh" challenge, a competition to find the best not-for-profit organizations whose social innovations can solve significant world problems. (http://blogs.hbr.org/imagining-the-future-of-leadership/2010/05/adding-values-to-valuations-in.html)

Indra is a forward thinker that values hard work and talented individuals. She does not want PepsiCo to become just another organization, she wants to leave a footprint on PepsiCos legacy as not only a major corporation but one that is driven by being sustainable, being environmental friendly, having a diverse environment that feels like a family. For instance, Indra states, The company of the future has to be guided by the fact that it owes an obligation back to society. The company of the future has to do better by doing. But I do think that we need to think again about the legacy we leave. I think we need to embed a culture of long-term thinking.(NOOYI, I. K. (2009). Leading to the Future. Vital Speeches of the Day, 75(9), 404)

When it comes to diversity with Indra, it is meant not only in the sense of people but also in product. PepsiCo along with other organizations are involved in what are considered unhealthy products. Some of which, some politicians are trying to tax to prevent obesity. However, since Indra Nooyi has arrived as CEO, PepsiCo has merged with Tropicana to help diversify PepsiCo and incorporate healthy beverages for everyone. Other companies that are now part of PepsiCo are Quaker Oats and Gatorade.

5Values Internal ConditionsRespectLoyaltyDiversity Open-minded

When it comes to Indra Nooyi and her values for the internal workings of PepsiCo, she is very fair and just. She likes to promote a family atmosphere within the company. She is open to new ideas and finding new talent to help propel the company to new heights, not only in business transactions but its contribution to society. An example of her respect for employees, states, Those who work with her feel challenged by her high-performance standards and expectation of excellence. She is not afraid to give people negative feedbackand with humor, too. She pushes people until they come up with a solution to a problem and does not take I dont know for an answer. For example, she insisted that her team find an alternative to the expensive palm oil and did not stop urging them forward until the alternative arrived: rice bran oil. (http://www.flatworldknowledge.com/pub/principles-management-v1.1/198692)

Indra is also well respect because of her leadership qualities and the values she portrays. Nooyi is well liked and respected because she listens to those around her, even when they disagree with her. Her background cuts across national boundaries, which gives her a true appreciation for diversity, and she expects those around her to bring their values to work.(http://www.flatworldknowledge.com/pub/principles-management-v1.1/198692). Indra knows how valuable all employees are. She recognizes that even herself is not perfect. She is constantly picking the brains of past CEOs and executives to get their inputs as she values their knowledge, experience and what they have contributed to the company.

Being diversified with the employees is very important to Indra and the company. She even implements cultural practice to her everyday tasks. For example, she sends letters to the parents of her key executives thanking them for their children and telling them what a great job they do. The idea came to Nooyi after a return trip to her native India when her mother received guests praising her for raising such a successful daughter.(Quaratiello, F. (2011, May 13). PepsiCo boss Indra Nooyi blasts crackdown on soda, snacks. Boston Herald (MA).

As a very successful leader, Indra Nooyi values many important qualities that a company like PepsiCo requires. She has implemented many programs to help make PepsiCo more sustainable for years to come. She has PepsiCo contributing more to society and surrounding communities because she understands the contribution they make to her companys success. She is continually trying to reduce their environmental footprint by reducing cardboard packaging and using more recycle products in new products. Family is very important to Indra and this goes to show as PepsiCo continues to make great strives in business and the community. She is always open for new ideas and hearing people speak out on new topics. She has a way of getting her employees to thing outside the box without making them uncomfortable. Overall, Indra Nooyi is a very important leader and her key values have made a instant impact on PepsiCo and how the organization conducts business.

6PersonalityCharismaticMagnetic Personality that people want to be around and followGreat Leaders Make you Want to be a Better PersonVisionClarityConcise CommunicationDrawing Tangible Connections

HistoryMaintains a stellar rapport with individuals ConfidenceNot PompousThere is a big Difference

Indra Nooys knows that leadership is hard to define and that good leadership is even harder. Indra has a nact for rallying people and getting them to follow her. As a leader she is tough on herself and in doing so it raises the bar for all of her employees. There is a fine line here and Indra walks it well. She is a charismatic leader that exudes a magnetic personality. Using this charisma, Indra is able to communicate her clear vision to stakeholders. She has a long history with a stellar record of proven success. Indra walks with a good confidence that is typical of strong leaders.

7Decision Making SkillsPerformance With PurposeMake as Much Profit as PossibleBe Responsible in Doing so

Transformational LeadershipChange in Individuals and Social SystemsValuable Positive Change

Focus on Conceptual IdeasDevelopment of ConceptImplementation of Concepts

Indra Nooyi has been one of if not the most successful female CEOs we have seen in todays industry. After becoming CEO of PepsiCo in 2006, she capitalizes her style of leadership on a simple phrase Performance With Purpose. Performance with purpose simply means to genertate as much profit as possible, but to remain responsible at the same time. The effort she used to employ this concept can be highly related to transformational leadership. Through this she was able to not only inspire her workers, but the public as well. One very important aspect of Indras leadership style is the fact that she enables others. Indra encompasses many genuine and empathetic characteristics that shine through and give her employees a sense that she cares. She has a great ability to be able to utilize concepts and relate them to key individuals for implementation.

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Leadership of follower motivationTransformational vs transactional leadership(Northouse, 2007)

Transformational leadership factors include:1. Idealized influence and charisma2. Inspirational motivation3. Intellectual stimulation4. Individualized consideration

Robbins and Judge (2011) suggest transformational leaders inspire or motivate followers to transcend their own self-interests and are capable of having a profound and extraordinary effect on followers. Dr. Martin Luther King Jrs abilities to express his moralistic approach to civil rights led followers to a sense of intrinsic motivation which they developed into a movement that peacefully became his vision of an effectual nonviolent direct-action program (King, 1963) (Northouse, 2007). Dr. King provides one example of an effective transformational leader.

Robbins and Judge (2011) suggest transactional leaders guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

Indra Nooyi Pepsicos CEO and her transactional leadership role that works towards providing transformational leadership qualities. The Forbes.com list of the 100 most powerful women rates Ms. Nooyi at number 3 in 2009 (Forbes.com, 2010b) and at number 6 in 2010 (Forbes.com, 2010a). Her work at PepsiCo involves a strong commitment to diversity and inclusion goals for her company (PepsiCo, 2010). Ms. Nooyis and PepsiCos goals associated with the programs Performance with Purpose and Promise of PepsiCo have achieved success and are listed as ways to make significant progress towards sustainable growth (PepsiCo, 2010). These programs include goals of investing in a healthier future for people and the planet as significant ingredients in PepsiCos business plan (PepsiCo, 2010).

Recruitment and retention involve strategies represented by these PepsiCo (2010) programs. Training and mentoring provide significant employee retention strategies that motivate workers while assisting with PepsiCos success under Indra Nooyis successful and continued leadership role (Caas & Sondak, 2010). Proposed growth at PepsiCo can be achieved with incentives such as training as one form of reward that may reduce costs by reducing turnover (Robbins & Coulter, 2009). Transactional Leadership factors include Northouse, 2007):1. Contingent reward2. Constructive transactions3. Management by exception involving negative feedback and corrective criticism. 4. Active and passive leadership5. Corrective transactions

Nooyi, Defined as a LeaderSuccessful Leadership Qualities Integrity, competence, consistency, loyalty Charisma, knowledge, expertise, judgmentMotivational abilityVisioning ability

Transformational Leadership Incorporates charismatic and visionary leadership Adapts well to the needs of todays work groupsRaising people toward collective goals, intrinsic reward and higher levels of morality

Kouzes and Posner Strategies for Practicing Exemplary LeadershipChallenge the Process Inspire a Shared VisionEncourage the HeartEnable Others to ActModel the Way

Successful Leadership Qualities Integrity, competence, consistency, loyalty (Robbins & Judge, 2011)Charisma, knowledge, expertise, judgmentMotivational ability persuasion, ability to influence followers competence, confidence, communicationVisioning ability to unite people with a sense of purpose, unity and a common direction (Pierce & Newstrom, 2011)

Integration with Nooyis 5 CsCompetence, Courage & Confidence, Communication, Compass, Coaching

Transformational Leadership Incorporates charismatic and visionary leadership (Northouse, 2010)Adapts well to the needs of todays work groupsEmphasis on intrinsic motivation, follower development and empowerment (Bass & Riggio, 2006)Occurs when people raise one another to higher levels of motivation and morality, (Bass as cited by Kouzes & Posner, 2002)

As the name implies, transformational leadership is a process that moves and changes people, raising the level of motivation of an entire group, challenging a status quo, raising awareness and values, and causing great change. Indra Nooyi demonstrates transformational leadership motivating people to embracing her business, diversity and sustainability goals.. , transcending individual interests for a greater collective purpose and to establish a strong legacy.

Kouzes and Posner Strategies for Practicing Exemplary Leadership (Northouse, 2011)Challenge the Process = Successful business goal for renewed customer service models Healthy consumers are consumers for longer lives.

Inspire a Shared Vision = Sustainability Initiatives for sustained performance. Half business providing healthier options.

Encourage the Heart = Corporate Responsibility, community, green, healthy

Enable Others to Act = Motivating people, bringing to a higher level of performance, contribution and morality

Model the Way = Clarifying Personal and Professional Goals, Promoting her 5 Cs Competence, Courage & Confidence, Communication, Compass, CoachingMentoring others, knowing they will seek her out as their mentor if she maintains commitment to the 1st 4 Cs

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ReferencesAdvameg, Inc. (2011). Encyclopedia of World Biography: Nooyi, Indra K. Retrieved from: http://www.notablebiographies.com/news/Li-Ou/Nooyi-Indra-K.html Bass, B.M., and Riggio, R.E. (2006). Transformational leadership (2nd ed.). Mahwah, NJ: Lawrence ErlbaumBerkun, S. (2010) The Myths of Innovation (1st ed.). Gravenstein Highway North, Sebastopol, CA: OReilly Media, IncDeitsch, R. (2008). Performance with a purpose. The Costco Connection, June 2008, p. 21-23, Retrieved from http://www.costcoconnection.com/connection/200806/?pg=23#pg23Diversity Award (2008). Retrieved from http://www.siliconindia.com/shownews/Indra_Nooyi_wins_leadership_award_for_advancing_diversity-nid-48617.htmlEpstein, M. J. (2008). Making Sustainability Work (1st ed.). San Francisco CA: Berrett-Koehler.Forbes.com (2010b). Worlds most powerful women (2010): Indra Nooyi. Retrieve from: http://www.forbes.com/lists/2009/11/power-women-09_Indra-Nooyi_1S5D.htmlFortunes Powerful Women (2011). Retrieved from http://money.cnn.com/galleries/2010/fortune/1009/gallery.most_powerful_women.fortune/index.html

References ContKing, Dr Martin Luther JR. (1963, 1991). Letter from Birmingham Jail. Oneonta, NY: The Hartwick Humanities in Management Institute.Kouzes, J.M. and Posner, B.Z. (2002). The leadership challenge (3rd ed.) San Francisco, CA: John Wiley & Sons, Inc.Northouse, P.G. (2010). Leadership: Theory and practice. (5th ed.). Thousand Oaks, CA: Sage Publications.(NOOYI, I. K. (2009). Leading to the Future. Vital Speeches of the Day, 75(9), 404).ORourke, J. S. (2010). Management communication a case-analysis approach (4th ed.). Upper Saddle River, NJ:Pearson Prentice Hall.Pierce, J. L. & Newstrom, J.W. (2011). Leaders and the leadership process. (6th ed.). New York, NY: McGraw Hill. (Quaratiello, F. (2011, May 13). PepsiCo boss Indra Nooyi blasts crackdown on soda, snacks. Boston Herald (MA). River, NJ: Pearson Education, Inc.References ContRobbins, S. & Judge T. (2011). Organizational Behavior 14th edition. New York, NY, Prentice Hall.