Indra Nooyi

The Full Range of Leadership

aftina - Alfin – Ali – Azhar

Ferry – Iman – Indri

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

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

Which characteristic Indra Nooyi displayed, associated with being a good leader and good manager?

Question #1

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

Which characteristic Indra Nooyi displayed, associated with being a good leader and good manager?

Question #1

Which characteristic Indra Nooyi displayed, associated with being a good leader and good manager?

Question #1

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)

Which characteristic Indra Nooyi displayed, associated with being a good leader and good manager?

Question #1

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)

Which characteristic Indra Nooyi displayed, associated with being a good leader and good manager?

Question #1

• Inspire & Motivate

• Manage People

• Are Decisive

• Create a Vision

Managers who are also leaders

Leaders Managers

• Are Accountable

• Execute

• Manage Resources

• Plan, organize, direct,

control

Which different positive and negatif leadership traits and styles were displayed by Ms. Nooyi? Cite examples

Question #2

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

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 :

• The credibility is then enhanced by :

Honesty Forward-looking Inspiring

Competent

Honestly communicating with others

Taking responsibility for one’s mistakes or problems

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

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”

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”

To what extent does Indra display situational approaches toward leadership?

Question #3

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

To what extent does Indra display situational approaches toward leadership?

Question #3

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.

Which of the four types of transformational leadership behavior were displayed by Ms. Nooyi?

Question #4

Transformational Model of Leadership

Leader behaviorInd. & Org. 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 intrinsicinterest in goal accomplishment

Task meaningfulness and satisfaction

Increased role-modeling of transformation leadership

Increased individual group, and organizational performance

Inspirational Motivation Idealized Influence

Individualized Consideration Intelectual Stimulation

Transformational

Which of the four types of transformational leadership behavior were displayed by Ms. Nooyi?

Question #4

• Performance with Purpose

• We are engines of efficiency.

• Boston Consulting Group

• “She challenges you”

• Doubling executive team to 29

• Taking care of workforce

• Striving for a net zero impact on the environment

• Sell ideas with famous intensity

• Expects everyone around her to measure up

Would you like to work for Indra Nooyi? Explain why or why not

Question #5

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

What did you learn about leadership from this case

Question #6

• 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

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)

IndraNooyi«If you want something said, ask a man; if you

want something done, ask a woman».Margareth Tatcher