The document summarizes an quote by Eric Hoffer on leadership in times of change. It states: 1) In times of change, those who are open to learning will inherit the future, while those stuck in the past will find themselves ill-equipped to deal with a changing world. 2) Leadership development is important to cultivate leaders who can adapt to changing times and lead innovation. 3) Both leaders and organizations shape each other in a virtuous cycle, where leaders influence organizational culture and values, while the organization also develops the leaders.

1. “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)

2. Adding Value through Leadership
Development
Anurag Kumar
CPO & VP Human Resources
PepsiCo

3. 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

4. Who am I?
Roller-coaster of Experiences
– Danfoss, ICI & Times of India
– PepsiCo’s 7+ jobs in 17 years
Lived & Breathed development
– 66% related assignments
– Exposed to more than half the
world’s practices
PepsiCo Team & Family
– Pepsi-fied all the way
– Through thick & thin

5. PepsiCo Page
A Company with Purpose With 22 Billion $ brands

6. Why Leadership Development ?

7. Why Leadership Development?
• The hierarchical model ‘simply doesn't 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.

8. 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

9. Why A Systematic Approach?

10. We run the risk
Source: 2011 CLC Global Leadership Survey.

11. 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.

12. 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.

13. 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.

14. Organizational Insights & Measures (PepsiCo’s Example)
System Wide Org Level Individual Level
Values Bench 360
Governance Development Hogan
EOC Org Planning MQPI
Are we delivering on our Are we playing the business Are we getting right inputs
promise to shareholders? partner role? for development?

15. Who are the Leaders we need to
Lead Change ?

16. 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

17. 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 talents
into stretching assignments that develop multiple critical experiences

18. Do leaders shape organizations or
do organizations shape leaders?

19. A Contagious, Virtuous Cycle
CHARACTER
VALUES
MOTIVATIONS
PERSONALITY 11

20. A Contagious, Virtuous Cycle
PERSONAL ABILITY (IQ, EQ…)
INTENT & BEHAVIOR
CHARACTER
VALUES
MOTIVATIONS
PERSONALITY 12

21. A Contagious, Virtuous Cycle
PURPOSE
LEADERSHIP LEGACY
“SHADOW” OF THE LEADER
PERSONAL ABILITY (IQ, EQ…)
INTENT & BEHAVIOR
CHARACTER
VALUES
MOTIVATIONS
PERSONALITY 13

22. A Contagious, Virtuous Cycle
PURPOSE
LEADERSHIP LEGACY
“SHADOW” OF THE LEADER
ORGANIZATION WIDE IMPACT
PERSONAL ABILITY (IQ, EQ…)
INTENT & BEHAVIOR
CHARACTER
VALUES
MOTIVATIONS
PERSONALITY 14

23. The implications of Leadership
Strategy

24. 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

25. ‘Educating the
individual is the most
valuable investment.
It represents the
foundation for progress
and development.’