“In times of change, Learners Inherit the Earth.While the Learned find themselves equipped to deal with a world that no longer exists” Eric Hoffer Social Writer (1902-83)
Adding Value through Leadership Development Anurag Kumar CPO & VP Human Resources PepsiCo
Key Questions for the session Why Leadership Development ? Why a Systematic Approach ? Who are the Leaders we need to Lead Change ? Do leaders shape organizations or do organizations shape leaders ? What are the implications of a leadership strategy to your – talent acquisition, – talent sustainability, – leadership practice
Who am I?Roller-coaster of Experiences – Danfoss, ICI & Times of India – PepsiCo’s 7+ jobs in 17 yearsLived & Breathed development – 66% related assignments – Exposed to more than half the world’s practicesPepsiCo Team & Family – Pepsi-fied all the way – Through thick & thin
PepsiCo PageA Company with Purpose With 22 Billion $ brands
Why Leadership Development?• The hierarchical model ‘simply doesnt work anymore’.• ‘Leading from Behind’ requires a change in mindset and different set of skills• Innovation will drive our future: We need leaders who build communities that have innovative agility.• Breeding the Best Learners to breed the Best Leaders.
Why Leadership Development? Leadership Quality Related to Leadership Quality Organizational Performance 100% 100% 4% 7% Percentage of Leaders Rating Their Organization’s Overall Performance Against Their Competitors 22% 80% 78% 80% 31% 60% 60% 53% Excellent 43% Very Good 39% 40% Good 40% 27% Fair 20% 28% Poor 20% 21% 6% 9% 3% 3% 0% 0% HR LDR Poor Fair Good Very Good Excellent Leadership Quality Organizations with the highest quality Only 38 percent of the 12,423 leaders leaders were 13 times more likely to reported that the quality of leadership in outperform their competition in key their organization is very good or bottom-line metrics excellent.Source: 2011 Center for Leadership Council
We run the riskSource: 2011 CLC Global Leadership Survey.
Process is King• Global Economy & new rules mandate the ‘right’ way of doing business to succeed/ sustain in the long run.• Excellence requires running Talent processes like Business processes.• If you can’t measure it; how will you sustain it.
Developing Future Leaders (PepsiCo’s Example)• Creating robust processes around each key leadership transition• Provide access to the heightened self awareness and tools to help assess and address gaps.
Integrated Talent Management• Driving Synergies is old school -> Move to integrating our approach as 1 talent management.• The chain is as weak as its weakest link (silos).• PepsiCo Example: Holistic Talent Sustainability means clear linkage from Objectives to measures and from rewards to career opportunities.
Organizational Insights & Measures (PepsiCo’s Example) System Wide Org Level Individual Level Values Bench 360 Governance Development Hogan EOC Org Planning MQPIAre we delivering on our Are we playing the business Are we getting right inputspromise to shareholders? partner role? for development?
Who are they?• Investors having increasing interest in the integrity and ethics of leaders.• PepsiCo’s Perspective: – Cultivate Authentic Leadership – Build Organization Savvy leaders – Global & Glocal ( Strategic, Learning & Cultural Agility) – Leading Change is half the leadership battle
Find or Develop? (PepsiCo’s Example) IDENTIFY DEVELOP MOVE 70% - Critical Assisted Based on Experiences Assessment On the job learning Developmental Needs 20% - Coaching, Accumulate Experience feedback, mentoring People Planning Talent pool for 10% - Formal training Senior Most Roles Optimizes Future Leader development by moving talentsinto stretching assignments that develop multiple critical experiences
Do leaders shape organizations or do organizations shape leaders?
A Contagious, Virtuous Cycle CHARACTER VALUESMOTIVATIONSPERSONALITY 11
A Contagious, Virtuous CyclePERSONAL ABILITY (IQ, EQ…) INTENT & BEHAVIOR CHARACTER VALUES MOTIVATIONS PERSONALITY 12
A Contagious, Virtuous Cycle PURPOSE LEADERSHIP LEGACY“SHADOW” OF THE LEADER PERSONAL ABILITY (IQ, EQ…) INTENT & BEHAVIOR CHARACTER VALUES MOTIVATIONS PERSONALITY 13
A Contagious, Virtuous Cycle PURPOSE LEADERSHIP LEGACY“SHADOW” OF THE LEADERORGANIZATION WIDE IMPACT PERSONAL ABILITY (IQ, EQ…) INTENT & BEHAVIOR CHARACTER VALUES MOTIVATIONS PERSONALITY 14
Key for Global Leaders• Strengthening the core while ensuring future- proof plans• Identifying high potential leaders while developing the right processes for succession, performance and experiences
‘Educating the individual is the most valuable investment. It represents thefoundation for progress and development.’