By Oluwole Dada
Indra Nooyi was the former CEO of PepsiCo, and she happened to be the first woman of Indian descent to lead a Fortune 500 company. At the time she was CEO, she was the youngest CEO in PepsiCo’s history and one of the few women CEOs in the Fortune 500. She served as CEO for 12 years (2006 – 2018) and stepped down as CEO in 2018 at the age of 62, but she remained Chairman until 2019. Indra Nooyi is known for her ethical leadership and commitment to sustainability. Her “Performance with Purpose” initiative not only drove PepsiCo’s financial success but also inspired employees to think beyond short-term gains. Under her leadership, PepsiCo’s revenue increased from $35 billion in 2006 to $63.5 billion in 2017 and annual net profit rose from $2.7 billion to $6.5 billion. Years after her departure, her ethical approach continues to influence PepsiCo’s corporate culture, demonstrating how a leader’s integrity can have a lasting positive impact.
This article will highlight the leadership attributes she demonstrated while she held sway at the company’s helm of affairs and the lessons gleaned from it for the next generation. It is of note that Indra expanded the global presence of PepsiCo by entering new markets and doubling international revenue during her time as CEO.
Leading with a Purpose and Vision
Indra’s 12-year tenure stands as a masterclass in visionary leadership. She was a strategic thinker with innovative strategies. She demonstrated courage by challenging the status quo. She could have continued the trajectory of the company’s focus on snacks and sugary beverages however, she introduced “Performance with Purpose,” a radical vision that would later transform the company’s portfolio toward healthier options. This led to PepsiCo’s market value soaring by 78% to $155 billion while shareholders enjoyed a remarkable 162% total return. More impressively, the company’s healthier product portfolio grew from about 38% of revenue in 2006 to nearly 50% by the time she stepped down in 2018
Empathy with a Heart for the People
Indra would occasionally sing in the corporate hallways, wore her native Indian saris to board meetings, and maintained a desk photo of her daughters with a note saying “No TV until homework is done” – a reminder of her dual roles as CEO and mother. Her practice of writing letters to the parents of her senior executives became legendary. One executive’s father called her in tears, saying it was the proudest moment of his life. This personal touch extended to over 400 executives’ families during her tenure.
Communicates with Emotional Intelligence
Nooyi’s communication style combined analytical precision with emotional intelligence. During town hall meetings, she would often share personal stories, like how she used to practice presentations in front of her daughters, who would grade her performance. “If you can’t explain your strategy to a child,” she would say, “you need to simplify it.” During the 2008 financial crisis, while other companies cut jobs, PepsiCo maintained its workforce and even increased training budgets. Nooyi personally held weekly video conferences with global teams, sharing both challenges and successes. Employee engagement scores rose by 6% during this period, despite market turbulence.
. Collaborative Leader: Fosters inclusivity, teamwork and partnerships.
Beyond the numbers, Nooyi championed workplace equality. When she became CEO, women held only 13% of senior management roles at PepsiCo. By 2018, that number had risen to 27%. The company’s paid parental leave policy expanded to 12 weeks, and on-site childcare facilities saved countless careers. A personal anecdote illustrates her commitment: When a senior female executive was considering resigning due to childcare challenges, Nooyi arranged for a company car to pick up the executive’s child from school and bring them to the office playground she had installed. “Sometimes,” she said, “leadership is about finding creative solutions to keep your best talent.” Indra’s collaborative spirit extended beyond PepsiCo’s walls. In 2007, she formed an unprecedented partnership with direct competitor Coca-Cola to develop climate-friendly refrigerant technologies.
Ended Silo Working
When Indra Nooyi noticed silo working between different departments in 2012 especially in product development, she created cross-functional teams combining marketing, R&D, and design professionals. She also built design studios in multiple global locations where teams can collaborate. She participated in brainstorming sessions with diverse teams and this led to increased innovation among teams.
Thinks Globally and Acts Locally
Unlike many multinationals that do not pay attention to the cultural and local nuances of different locations, Indra Nooyi was sensitive to the culture of any environment where they operated. Her approach to global expansion was distinctly collaborative. For instance, when entering the Indian market, she partnered with local farmers through the “Partnership with Farmers” program and the result was 24,000 Indian farmers becoming part of the PepsiCo’s network, with their income increasing by up to 40%.
Indra Nooyi’s legacy inspires future generation of leaders, demonstrating the power of integrity, resilience, and strategic vision. Her achievements demonstrate her commitment to business excellence, social responsibility, and empowering future leaders. She is a leader whose impact still resonates many years after she has left PepsiCo.
Oluwole Dada is the General Manager at SecureID Limited, Africa’s largest smart card manufacturing plant in Lagos, Nigeria.
