Award recipients inspire and move PepsiCo to new levels of achievement in diversity and inclusion through their words and actions. Lessons Learned A task force of 25 business leaders representing PepsiCo regions and business units and outside consultants shared lessons learned, including:. Business One Irwin Ross, H. Building and investing an internal capability primarily is solution to global initiatives. Diversity and Inclusion is a part of the future leader development program. Powered By T3 Framework. Taking a Stand for Equality.
PepsiCo has a strong legacy of leading in diversity practices starting in the s by breaking the color barrier and hiring African American salespeople, in the 50s as the first major company to have a woman on its Board, to the 80s where we pioneered multicultural marketing.
This all too familiar gap between beliefs and behavior needed to be closed if the organization was to accomplish its mission. At more senior levels, it is expected that managers and executives foster an inclusive work environment and one which helps people build a healthy balance between work and personal life.
The eight stages were simplified into a four phase Culture Change Roadmap which has guided the journey since including: Rather than pursuing a traditional, uniform, linear progression, the change process accommodated groups and locations at different stages and different cultures and local and regional leadership styles and communication.
In Phase II, individual awareness and acceptance of cognitive and emotional requirements for change were addressed in two 3-hour sessions. For Phase III-Capability, TMC designed and delivered an Inclusive Leadership workshop to develop skills that enable leaders at every level to build, advance and sustain an inclusive sphere of influence. Internal business leaders representing each of the business units and geographic areas were certified to coach individual leaders, informally track organizational dynamics, assess current and desired state of organizational culture, identify specific opportunities and applications, and facilitate workout sessions and workshops.
Preliminary Results While the process continues, initial results are very promising:. Lessons Learned A task force of 25 business leaders representing PepsiCo regions and business units and outside consultants shared lessons learned, including:. Introduction to a series of TMC podcasts dedicated to the central focus of TMCs work, namely the development of cultural competence at six levels of human organization and interaction. Preliminary Results While the process continues, initial results are very promising: Awareness and understanding of Diversity and Inclusion has grown with the biggest gains in perceived ownership by senior leaders.
Diversity and Inclusion is a part of the future leader development program. Employees are measured on how well they achieved Diversity and Inclusion objectives, affecting their merit increase and bonus payout. Research shows employees have experienced growth in six key competencies related to inclusiveness. This can be attributed to behavior changes by key managers and an emphasis on Diversity and Inclusion throughout the organization. PepsiCo has a number of products that are highly successful, such as their line of soft drinks, sports drinks and snacks.
Though PepsiCo has been highly successful financially, they have also made great strides to constantly improve diversity within the organization. This was essential because the diversification of their products in new markets would demand a great breadth of cross-cultural knowledge.
PepsiCo was one of the first companies to recognize the importance of people of color within the workplace and target market. PepsiCo hired and appointed their first African-American, Hispanic, Asian, and woman executives all before Today PepsiCo operates in over countries, and continues to focus on diversity and inclusion at all levels of the corporation.
Steve Reinemund was the first senior leader at PepsiCo to focus on diversity and inclusion from a perspective of changing the entire culture of PepsiCo. Reinemund recognized that the workforce that PepsiCo had did not successfully represent that demographics that they were marketing their products to. To combat this growing gap, Steve Reinemund appointed a new vice president of human resources to help promote diversity within PepsiCo.
In the year , Steve Reinemund and his vice presidents developed the first Hispanic Advisory Board, and creating new metrics to ensure that diversity goals in terms of hiring were met.
These new metrics were met with great resistance, as diversity of the workforce became part of the forefront of hiring and promotion decisions.
Many people were angered because they viewed the new policies as potentially promoting someone based on the fact that they were diverse, when they could be less qualified.
Resistance was further met when, in , PepsiCo did not meet its diversity goals. It was measured successfully through raw figures of increased diversity in hiring, and through implementation of inclusion training programs. Announcing his retirement and naming Indra Nooyi as his successor raised many questions for the future of diversity in PepsiCo.
Though Indra Nooyi was exceptionally qualified for the position of CEO, holding several other senior positions over her career at PepsiCo, she has yet to find her own voice within the company. Taking her background into account, Nooyi will have to make a number of changes to further push the diversity inclusion strategy, responding to the billions of consumers. One difference that Indra Nooyi brings to the table is her experience with rising to the top as a minority. This knowledge allows her to have a first-hand experience of how her minority status as both a woman, and a person of color plays out in the corporate climate of inclusion.
The fact that Nooyi is Indian-born and a woman also allows for her to have several disadvantages. Both identities have a history of being marginalized in corporations, and at many times, she will be the minority, yet making decisions for the majority.
She will also face the potential stigmas that go along with being a woman. Some people may view her appointment as having to do with the fact that she is a minority.
One way that she could improve on Reinemund’s strategy is by further decoding cultural norms and expectations and making inclusive decisions a crossed all countries that PepsiCo is involved in. Developing successful diversity in all countries and in all areas of the PepsiCo organization will be pivotal for success. This case profiles PepsiCo's diversity journey under the leadership of former chairman and CEO Steve Reinemund who instituted diversity as one of the company's strategic . PepsiCo Business Strategy and Competitive Advantage Posted on May 1, by John Dudovskiy PepsiCo mission statement has been worded by CEO Indra Nooyi as ‘Performance with Purpose’ and this principle is closely integrated with the strategic direction chosen for the company.