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“The BOLDER We Can Be, The BETTER!” – Indra Nooyi (@IndraNooyi) – Top 10 Rules


the boulder we can be the better the
more we can break the rules the better
off we’re going to be I think every
issue we are facing today is long-term
in nature and requires systemic
solutions and if you are willing to make
all the trade-offs that you need to make
you can’t have it all
what’s that believe nation it’s Evan my
one word is believe and I believe in you
and I want to see that great thing that
you have inside of you come out so you
can help change the world so to help you
in your journey today we’re going to
learn from the CEO of PepsiCo Indra
Nooyi and my take on her top ten rules
of success rule number six is my
personal favorite and I’d love to know
which one you guys like the best and as
always guys as you’re watching if you
hear something that really resonates
with you please leave it down the
comments below and put quotes around it
so other people can be inspired and when
you write it down it’s much more likely
to stick with yourself as well enjoy
the boulder we can be the better the
more we can break the rules the better
off you’re going to be because you know
the world is full of ideas today and if
we don’t do it somebody else is gonna do
it in fact I’d say little startups are
capturing a lot of the growths today
even in our space even in the food and
beverage space so in many ways in our
company we have to act as if we’re a
bunch of little startups and that’s what
we are a bunch of little startups so in
order to do that we’ve got to allow
people to be bold you know write the
rules any way they want and that’s what
they’re doing in our company what advice
do you have for women running small
businesses look running a small business
is as difficult as running a large
company because you still have to get
growth you’ve still gotta meet payroll
you’ve still got to worry about all the
constituencies I think the advantage
that us big company CEOs have that we
have a network of people we can talk to
and get advice I think it’s important
that people who run small businesses
rely even more on blogging networks or
the digital world to seek other people
who are also running small companies to
get advice because at the end of the day
you can’t rewrite the book on every
issue that you have you’ve got to seek
people who’ve been through that and then
learn from all of the experiences they
haven’t built from that and so I think
it’s very very important people run
small businesses I reach out and get
advice I remember very clearly six or
seven years ago when you started pushing
Pepsi in the direction of healthy foods
and you got hammered by some of your
shareholders saying you know focus on
profits if you’re making more money off
of the off of the sugary soft drinks
don’t get caught up in political
correctness that was a pretty tough time
for you yeah I mean what would they say
today well now it looks okay but that
requires a seven-year focus yeah I know
if they were looking quarter to quarter
no you’re right
I think every issue we are facing today
is long-term in nature and requires
systemic solutions when we have
political cycles that are short-term in
nature and investors who are short-term
in nature so the question is who is
going to address these issues we’re
looking at everything through a
microscope and we’ve got to look at a
microscope and a telescope from my
perspective that is the only strategy I
knew and that’s the only strategy I know
if my board my investors didn’t like
that I wouldn’t be sitting here with you
today but I was very comfortable that
that was the only way the company should
go because I was looking at the consumer
data I was looking at you know societal
data and I realized that our strategy to
shift the portfolio becoming more
environmentally conscious and creating
an environment that was good for our
employees was the only shareholder value
creating strategy in the long term let
me ask you this before he passed away
you spent some time with Steve Jobs yep
and I was hoping you could share with us
a little bit of what that conversation
was like and its impact on the way you
managed the organization you know he was
very very gracious to agreed to see me
when I first became CEO I didn’t know
him but I knew somebody who knew him and
he said come on down to the Apple
offices and I meant by to see him and he
said he’d give me a half hour and gave
me a couple of hours and he taught me a
lot in those two hours first we talked
about our mutual love for vegetarianism
because I’m a vegetarian he was a
vegetarian but once we crossed those
basic introductory topics he asked me
what I was interested in making a mark
on in PepsiCo which included things like
design transforming the portfolio and
this is what he said to me if design is
important to you it has to report to you
because it’s a new skill you have to
build in the company if you don’t show
CEO support for that function don’t even
get started on the journey the other
thing he told me which was unusual for
me because it was just not in my
personality to do that he said if you
really feel strongly about something you
don’t like something people are doing
throw a temper tantrum throw things
around because people have got to know
that you feel strongly about it
and I talked to his agency partners Miss
that if you showed Steve a campaign or
showed him a design for a product and if
he didn’t like it he would throw the
papers across the room and make them
work all night now I haven’t gone that
far but I’m beginning to use certain
words a little bit more freely and I
have I am screaming a bit more when I
say screaming and I’m pounding the table
and saying you know this is a piece of
something go redo it but you know was
really not the way I was but it is
effective because it shows the that the
passion that I have for what I’m doing
the one big lesson I’ve learned Doug is
that if you just depend on the
traditional strategist strategic
planning cycle or dependent standard set
of consulting reports you actually are
going to do your company a big
disservice and our CEOs and leaders have
to be lifelong students and not just
students in the sense of attending
courses or reading a book or two you’ve
got to learn how to read widely walk the
market look at trends in the marketplace
make connections that don’t seem obvious
and start to paint pictures of what the
future could be and then watch consumer
behavior I’ll give you an example ten
years ago or maybe 15 years ago if you
came to PepsiCo I looked at all the
beverages that were being served on the
side tables when we’re having meetings
most of the people would be consuming
full sugar beverages about ten years ago
the trend shifted or me maybe twenty
years ago they were drinking full sugar
ten years ago they shifted to diet
drinks okay but five years ago they were
drinking more bottled water now the
point that I’d make to my guys is guys
don’t you don’t need to hire a
consultant to tell you where the trends
are you just have to look at our side
table remember the number of facings we
used to have a regular sugar Pepsi
versus Diet Pepsi versus bottled water
now if you’re all drinking bottled water
or drinking zero calorie beverages why
do we think we are not representative of
the consumer very often I think what
happens is we separate out the consumer
out there from the consumer in us we are
the consumer and the more we can bring
the two together and say we two
representative of the consumer outside I
think it would be better we go out and
you know our children play with other
children we see other families and when
they moderate certain products that we
sell in terms of what’s given to kids
that’s a trend okay so we’ve got to
watch all of these things and too often
I think as leaders think what
consultants tell us or what certain
reports say or certain books say is the
gospel it’s really not we have to become
our own data collectors data analyzers
and then shape creators and I think
that’s the toughest thing because people
who are rewriting the rules have to
create the shapes and people don’t like
that because they have a traditional
model of how things work and they hate
people who have to upset status quo and
I think both of us are upsetting status
quo in a big way and you know it’s tough
as Millennials have come into the
workforce in large numbers
their expectations of companies have
changed they no longer look at it as
sort of a paycheck but they look at it
as how can I go to work and make a
difference in society so the notion of
purpose is becoming a much bigger factor
the big difference is that in the past
purpose used to be some sort of a
corporate social responsibility program
and typically those programs were good
people like them but they were at the
whim more fancy of the CEO who was there
so if they see you’re retired that
program got cut so we had to weave
purpose into the core business model of
the company how do you make sure that
the sense of purpose can only be
accomplished if you make profits and the
only way to make profits is through
purpose and that’s why we you know use
the term performance with purpose
linking both together and I think that’s
what’s excited Millennials in particular
and what’s excited the Boomers to even
stay longer in the workforce because
they actually feel they’re contributing
to the future of society as opposed to
walking and picking a paycheck and
leaving my daughter would say to my
daughters would say to you that what
I’ve always told them and what they’ve
told me is to follow my dreams follow
their dreams I remember one particular
incident and my daughter Tara is here so
she’s gonna be embarrassed if I tell you
the story she was at the convent of the
Sacred Heart and Greenwich
all her life she went there when she was
three she just graduated a few months
ago and in Sacred Heart I think the
third Wednesday of every month they have
Mother’s coffee I think that’s a plot
against working women because how can I
show up at a mother’s coffee on
Wednesday morning at nine o’clock so I
didn’t so Tara would say mom you didn’t
show up for Mother’s coffee the first
couple of times I’ve been through guilt
so third time I said we were we’re gonna
come up with some coping mechanism here
so next time she said mommy didn’t come
for class coffee I go yeah but so-and-so
didn’t come so-and-so didn’t come XYZ
didn’t come so it’s my way of saying I’m
not that bad a mom you know they didn’t
show up too it was true many of them
didn’t show up you out it that that was
nice
no it’s a coping mechanism you all have
to find our own coping mechanisms but so
then when she came back home that
evening I said Terry you know you keep
saying I don’t make your class coffees
would you like me to quit my job and
stay home I asked her this question and
I thought she said yeah great idea do
that she looked at me and she said mom
are you nuts you work so hard to get
here follow your dreams mom I’ll be okay
Wow this is curvy road
[Applause]
for boarding that answer I have never
forgotten an answer because both my kids
said to me mom follow your dreams you
came to the United States with nothing
$50 in your pocket and you know you
worked I worked as a receptionist at
Yale from midnight to 5:00 a.m. because
that paid 385 an hour versus 335 which
was the minimum wage and 150 cents more
an hour because if I didn’t have that I
couldn’t buy groceries another month and
so that’s what I did to put myself
through school and I’ve told them these
stories they look at all that and they
go mom you’ve done so much to get here
follow your dreams
so I tell them always below follow your
dreams well on a relative basis yes I’ve
had it all okay on a relative basis I’m
very fortunate to have a wonderful
husband two great kids a very tight-knit
family an awesome job with a great team
but you know to get here and to stay
here I mean lots of trade-offs lots of
sacrifices you know under the water a
lot of collateral damage but I think
somehow I’ve had the strength to power
through all of that can you have it all
that’s the big question in this
definition I think if you have the right
support system if you have an
understanding spouse if you want to be
married and if you’re willing to make
all the trade-offs that you need to make
you can’t have it all but while you do
all that there will be heartache there
will be pain there will be some
collateral damage underneath the surface
I’ve got to live with it whatever you do
throw yourself into it throw your head
heart and hands into it I look at my job
not as a job I look at it as a calling
as a passion and I don’t care about the
hours I don’t care about the hardship
because to me everything is a joy so
whatever you do please look upon it as a
calling and a passion not as a job not
as something temporary I think the CEO
of today not only has to have leadership
skills and an IQ there’s got to be a
healthy dose of EQ the emotional side
because Millennials today young people
today wanna come to work for a company
that cares about them they want to feel
connected to the company
and I think it’s critically important
that we humanize the CEO the CEO cannot
be this imperialist and sitting there
but a human right the senior we have to
remove the barriers between the CEO and
the front line and that requires a new
skill too so I don’t want to say it’s me
but I think a lot of women CEOs actually
can do pretty well in today’s
environment because by nature we are we
humanize ourselves a lot more because
that’s the way we’ve been brought up and
we listen a lot more I think we stop and
ask for directions
you know there’s so much we do and I
think that today’s world I mean there’s
a new breed of CEOs have come up men and
women who are doing a very very nice job
but all of them I think are a new breed
that’s learning that the world is
completely different and recognizing
that EQ is as important as IQ that’s
what I’m trying to focus on as much as I
can thank you guys so much for watching
I made this video because I knew Shah
asked me to if there’s a famous
entrepreneur that you would like me to
profile next check out the link in the
description and go and cast your vote
I’d also love to know what did you learn
from this video that had the biggest
impact on you what lesson are you going
to take and immediately apply it somehow
in your life or in your business leaving
the comments below I’m really curious to
find out I also want to give a quick
shout out to Krishna Kumar Krishna thank
you so much for painting up a copy of my
book you’re one worth taking a picture
of one of the inside pages and posting
it online I’m always curious to know
what page is really resonates with
people so thank you so much for sharing
that and I’m really glad that you
enjoyed the book thank you guys again
for watching I believe in you hope you
continue to believe in yourself and
whatever your one word is much love I’ll
see you soon
I would love to know what skills or
experiences Indra would suggest as
essential for future leaders oh great
question I’ve always talked about my
five C’s model and let me talk about
them again
the first is competency I think anybody
wants to be a future leader should have
a hip-pocket skill they everybody looks
at and says XYZ is the go-to person for
that skill because unless you’re really
known for something and not just as a
generalist you don’t stand out from the
pack but in order to be competent at
something you’ve got to be a lifelong
student because you’ve got to constantly
refine your knowledge of that subject so
that you remain a head and a breast of
everything that goes on that field first
the second I’d say is courage and
confidence it’s a pair you can be very
very competent but if you’re not willing
to speak out if you’re not willing to
have the confidence based on your
knowledge what’s the point right you
just roll over so courage and confidence
are very important the third is
communication skills you cannot over
invest in communication skills written
and oral communications because as a
leader you constantly have to mobilize
the troops I can tell you when I first
came to the United States
I used to debate the nice to be on
debating teams but I used to speak so
fast because culturally I grew up in an
environment with people spoke very fast
fortunately Yale had a requirement that
unless you pass the communications
course you couldn’t graduate from the
first year the second year in business
school I flunked the first time I took
the communications course so the summer
I took it again which was the best thing
that happened because I learned to sync
my brain with my my output from my mouth
and so I started to slow down what I was
saying huge difference so I encourage
all of you invest in communication
skills critically important the fourth
skill I’d say is consistency it’s
important that leaders are consistent
you can change your mind but change your
mind against a consistent framework
because if you’re not consistent people
are always taking guests
what you’re doing so be consistent and
the last kill is your compass integrity
is critical in this job you can be
competent you can be Courage’s have
confidence be a great communicator be
consistent but if you don’t have
integrity that compass doesn’t point
true north everything comes crashing
down as we’ve seen in recent times so
again it’s the five C model and that’s
what I’ve operated against for all my
life ever if you had to think of one
word that’s most important to you or
that sums your Apple that would be to
like a little beacon hey believe nation
if you want to know what the most
important one word is for Tony Robbins
Gary Vaynerchuk Oprah Winfrey will.i.am
and Howard Schultz I have a very special
secret video for you check the
description for details
[Music]
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