Leading with Head, Heart and Hands
A Conversation with PepsiCo CEO Emeritus Steve Reinemund
Teresa Greenlees, '09
Issue date: 3/13/08 Section: GSB News
On February 13, the Christian Business Students Association at the GSB hosted a conversation with Steve Reinemund, CEO Emeritus of PepsiCo, who shared his philosophy on values-based leadership with students at the GSB. At the core of his message was an invocation to develop our own model for authentic leadership, one that is based on our individual values.
"There has never been a time," the soft-spoken Reinemund suggested, "when the public has been more cynical or more skeptical of leaders. And there has never been a time in which there has been the same opportunity for business to make a real difference in society."
Reinemund cited the growing divergence between the "haves" and the "have-nots," the rising incidence of obesity, access to supplies of drinking water in developing nations and diversity challenges in more developed countries as areas of societal significance in which today's business leaders could hope to have an impact.
This sense of responsibility to society is the foundation of Reinemund's model for values-based leadership, but it is really just a starting point. At PepsiCo, he put those values into practice, not only setting a standard for integrity that permeated the organization, but making product portfolio and marketing decisions that were a reflection of the corporation's social responsibility. Note the introduction of additional non-carbonated and healthy snacking options to the company's product line. Reinemund also made diversity a priority at PepsiCo, by cultivating a workforce that was representative of the population it served. He even attributes 25 percent of the company's growth during his tenure to diversity initiatives.
"Don't get me wrong," he said in a private conversation with this reporter, "I wanted to beat Coke every day, and every resource at PepsiCo was aligned to do so. In business, winning is critical, but I believe that's only if you do it the right way." At PepsiCo, Reinemund's motto was "growth with integrity," and ethics were deeply rooted in the firm's culture.
He cited as an example, an incident when confidential documents from Coca-Cola were, by some error, delivered to PepsiCo. The administrative assistant who intercepted the package didn't even hesitate, but took it directly to the offices of the firm's legal counsel. She and the head attorney's assistant immediately returned the package to Coca-Cola headquarters. No one in a management role at Pepsi ever even saw the contents of that package and Reinemund himself was unaware of the incident until he received a call from the CEO of Coke the next day, to thank him for his employees' act of integrity. The administrative employees involved were rewarded publicly, further reinforcing the firm's commitment to ethical growth.
The Q&A session that followed his talk naturally led to questions about his recent departure from PepsiCo last year. Reinemund cited family obligations, in particular the call to spend more time with his twin daughters who are entering high school, as the impetus to leave his post at PepsiCo. He says that though he loved his work at PepsiCo, he "needed to be differently focused for that critical time in their lives."
What else is on the horizon for this principled business leader? Besides serving on corporate boards in four different industries, regular speaking engagements and his continued pro-bono consulting work with the Cooper Clinic Institute, Reinemund says he's also "kicking the tires" on some other opportunities, possibl in academics.
VALUES-BASED LEADERSHIP
What gives a leader authenticity in the increasingly complex, high stakes game of business? Reinemund offered U of C students this framework for developing their own model of values-based leadership.
Smart & Experienced Head
Intellect: the mental horsepower to solve problems
Experience: vocational competency derived through hands-on learning
Thoughtful & Caring Heart
Moral compass: knowing what's important
Compassion: the ability to put yourself in other's shoes
Passion: can inspire others to follow
Self-confidence: strength of one's convictions without arrogance
Balance: minimize the pendulum Swing
Effective & Committed Hands
Ability to motivate others: enjoy the journey so that others may enjoy it with you
Pragmatism: prepare for "Plan B"
Perseverance: knowing that life is a marathon and not a sprint
Focus on the goal: knowing the desired outcome and using that as measuring stick for success
Tested: having a high batting average (expect to fail sometimes)
"There has never been a time," the soft-spoken Reinemund suggested, "when the public has been more cynical or more skeptical of leaders. And there has never been a time in which there has been the same opportunity for business to make a real difference in society."
Reinemund cited the growing divergence between the "haves" and the "have-nots," the rising incidence of obesity, access to supplies of drinking water in developing nations and diversity challenges in more developed countries as areas of societal significance in which today's business leaders could hope to have an impact.
This sense of responsibility to society is the foundation of Reinemund's model for values-based leadership, but it is really just a starting point. At PepsiCo, he put those values into practice, not only setting a standard for integrity that permeated the organization, but making product portfolio and marketing decisions that were a reflection of the corporation's social responsibility. Note the introduction of additional non-carbonated and healthy snacking options to the company's product line. Reinemund also made diversity a priority at PepsiCo, by cultivating a workforce that was representative of the population it served. He even attributes 25 percent of the company's growth during his tenure to diversity initiatives.
"Don't get me wrong," he said in a private conversation with this reporter, "I wanted to beat Coke every day, and every resource at PepsiCo was aligned to do so. In business, winning is critical, but I believe that's only if you do it the right way." At PepsiCo, Reinemund's motto was "growth with integrity," and ethics were deeply rooted in the firm's culture.
He cited as an example, an incident when confidential documents from Coca-Cola were, by some error, delivered to PepsiCo. The administrative assistant who intercepted the package didn't even hesitate, but took it directly to the offices of the firm's legal counsel. She and the head attorney's assistant immediately returned the package to Coca-Cola headquarters. No one in a management role at Pepsi ever even saw the contents of that package and Reinemund himself was unaware of the incident until he received a call from the CEO of Coke the next day, to thank him for his employees' act of integrity. The administrative employees involved were rewarded publicly, further reinforcing the firm's commitment to ethical growth.
The Q&A session that followed his talk naturally led to questions about his recent departure from PepsiCo last year. Reinemund cited family obligations, in particular the call to spend more time with his twin daughters who are entering high school, as the impetus to leave his post at PepsiCo. He says that though he loved his work at PepsiCo, he "needed to be differently focused for that critical time in their lives."
What else is on the horizon for this principled business leader? Besides serving on corporate boards in four different industries, regular speaking engagements and his continued pro-bono consulting work with the Cooper Clinic Institute, Reinemund says he's also "kicking the tires" on some other opportunities, possibl in academics.
VALUES-BASED LEADERSHIP
What gives a leader authenticity in the increasingly complex, high stakes game of business? Reinemund offered U of C students this framework for developing their own model of values-based leadership.
Smart & Experienced Head
Intellect: the mental horsepower to solve problems
Experience: vocational competency derived through hands-on learning
Thoughtful & Caring Heart
Moral compass: knowing what's important
Compassion: the ability to put yourself in other's shoes
Passion: can inspire others to follow
Self-confidence: strength of one's convictions without arrogance
Balance: minimize the pendulum Swing
Effective & Committed Hands
Ability to motivate others: enjoy the journey so that others may enjoy it with you
Pragmatism: prepare for "Plan B"
Perseverance: knowing that life is a marathon and not a sprint
Focus on the goal: knowing the desired outcome and using that as measuring stick for success
Tested: having a high batting average (expect to fail sometimes)
Viewing Comments 1 - 2 of 2
Wanda Purves
posted 3/14/09 @ 7:25 AM CST
I thought this debate was about them, as opposed to featuring them. Whoops.
Susan Laforest
posted 4/16/09 @ 11:46 AM CST
Hello! I am glad that I'v joined your community! See ya!
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