‘Performance With Purpose’: Indra Nooyi Imparts Wisdom To USC MBAs

‘PERFORMANCE WITH PURPOSE’

Not only did Nooyi rise to the top of PepsiCo, but she helped to transform the company by spearheading multiple new, healthier product lines and running the business on the principle of ‘performance with purpose.’

The performance with purpose movement had four goals: Deliver financial returns, shift to healthier products, limit the company’s environmental impact, and empower women and families – both inside of the company and in the world at-large. “Performance with purpose was a new way to make money,” she explains. “If we delivered performance, we could fund purpose. If we delivered our purpose, we could deliver more performance. It was a virtuous cycle.”

“I think using the word purpose around private sector enterprises was pretty unusual back then,” USC dean Geoff Garrett comments. “Today, it’s much more commonplace, but I think we should acknowledge the true role that PepsiCo and Indra played in expanding our understanding of the purpose of companies and people in the audience today.”

TAKING RISKS FOR THE GREATER GOOD

Not only would performance with purpose make a meaningful impact, Nooyi thought of it as a way to future-proof the company.

When she first became CEO, she was determined to bring these changes to PepsiCo – so much so that if the board didn’t agree with the direction she was proposing, she was prepared to leave. “I told the board, this is what I’m going to do, and this is the only way I know how to run the company. So, if you don’t agree with what I’m talking about, you have to find a different CEO.”

In Nooyi’s career, she wasn’t afraid to take risks for the greater good. During the 2008 financial crisis – and only two years into being chairman and CEO – she created the Pepsi Refresh Project. This project had the purpose of giving out grants ranging from $500 – $10K to individuals, businesses, and non-profits that were positively impacting their communities. Although she was criticized by business professors for launching a project that some thought didn’t align with the Pepsi brand, Nooyi is confident that it was one of the most impactful projects that Pepsi launched. “In a period of extreme financial crisis, I thought it was money well-spent.”

THE POWER OF MENTORSHIP

Along her journey to becoming CEO, Nooyi recounts having a few hard knocks in her career; many of which came in the form of tough feedback from her mentors. “People gave me brutal feedback, and I think I matured over time in terms of what I said and how to say it,” she explains.

She says that she improved and evolved her communication style by watching the ways in which people two levels above her interacted and provided feedback with others. “You’ll learn from the people who do it well by watching and listening,” Nooyi continues.

“I honestly believe that mentors select you,” she adds. “A mentor picks you to be a mentee because they see something in you that makes them want to hedge their reputation on you. Mentorship isn’t just about occasional advice. Real mentors promote you and push you, as opposed to hiding you.”

ADVICE TO MBAs

While many MBA grads choose jobs with a high salary over a job with purpose in order to pay off their business school loans, Nooyi says that once MBAs are managing people – and once they reach a certain level of financial stability – it’s important to focus on making an impact and delivering purpose.

Delivering purpose starts with being willing to understand all parts of the company. “In today’s world, if CEOs don’t have insatiable curiosity, they’re going to fall behind in massive ways,” she says. “I don’t think you can be a real player if you don’t have an insatiable curiosity. If you want to move ahead, that’s what it’s going to take.”

She recalls speaking with investors who cared more about the bottomline than in reducing the company’s footprint and making healthier products. She says that MBAs may find themselves in similar situations, where they are trying to find alignment between moral and financial success. She advises that in these situations, MBAs learn how to stand in their power and speak their truth. “Communicate authentically,” she says. “Speak honestly and openly and don’t be afraid about giving your point of view. Be consistent with your message.”

EMBRACING INCLUSIVITY

Nooyi believes that her story could have only happened because of America. “There’s an anti-immigrant feeling in many countries, but the U.S. still remains open,” she says.

While adjusting to a new country posed unique challenges, Nooyi is grateful for the opportunities that the US has given her. “If you define yourself based on the large proportion of people that make you feel welcome and included, you’re going to be better off than focusing on the small group that makes you feel like you’re different,” she explains.

DON’T MISS EXECUTIVE Q&A: PEPSICO CEO INDRA NOOYI