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Welcome to my blog - The People Factor!

I am both fascinated by and passionate about matters of change, leadership and personal freedom and growth - so here are some of my thoughts on the topics! I would love to hear yours!

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Performance with Purpose - How PepsiCo uses its People Factor To Deliver Success

7/30/2013

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PepsiCo dates back to 1898. It employs about 285,000 worldwide (~550 in Ireland) and is the second largest food and beverage company in the world. PepsiCo Ireland has been consistently ranked in the top tier of the best places to work in Ireland for the past 5 years at the annual Great Place to Work Awards. With a pedigree like that, they have got to be doing something extraordinarily right in relation to their People Factor and I met with Lisa Schembri, their Organisation Capability Director based here in Ireland to find out what.

The first thing that strikes me after talking to Lisa is that there is nothing accidental or random about PepsiCo's successful People Factor. It is carefully researched and thought out and is inextricably linked with their overall business strategy. They recognise that people are a key part of their business strategy so much so that 50% of performance measurement in PepsiCo is focused on achieving what they call "people goals" (see performance measurement criteria below).

When I am working with leaders in organisations there are a few key things that I impress on them that they have to get right. They are…

  1. You have got to have a strong purpose and vision for your organisation.  It has got to be attractive and inspiring to your people.
  2. You have got to be able to communicate that vision clearly, consistently and regularly
  3. You have got to have a clear strategy to allow you achieve that vision. 
  4. You have got to consistently measure performance against that strategy. There is no point in stating something is important to the business, such as morale or engagement and then not measure how you are performing against it. 
  5. Develop your people and shine a light on the positive behaviours and attitudes that you want to grow and encourage in your business.

PepsiCo model how to do all of this exceptionally well for us. Here's a brief outline of how:

Picture

Strong Purpose and Vision


PepsiCo's promise to the world and to its employees is simple and clear, to deliver performance with purpose. This performance refers to delivering business and financial success while the purpose refers to the three strands of

Human sustainability

Environmental sustainability and

Talent sustainability

 If you are an employee of PepsiCo you want them to deliver on this promise and you will want to be part of the story of making it happen.

Communicate Clearly, Consistently and Regularly

PepsiCo have crafted very clear messages for both its employees and the external world using a variety of media such as the Internet, intranet, video, posters, spoken word and written word. There is a consistent thread throughout all their communications and the messages are reinforced by being constantly and regularly accessible to people.

Click here to see a great example of how PepsiCO can deliver their message in a  clear, accessible and attractive manner. 

Clear Strategy

PepsiCo breaks down its strategy into six clear business imperatives and again they communicate these openly and in accessible language. Click here to see how these are communicated online for the benefit of shareholders and the general public.

Consistently Measure Performance

PepsiCo measure their overall performance as a company against their promise of performance with purpose and publish their results for the world to see here.

Across the globe, each business unit of PepsiCo has aligned to six pre-defined categories of performance that they measure against. They are
Business (50%)
Deliver Growth
Create Efficiency
Drive Future Success
People (50%)
Drive Cultural Change
Develop Others
Develop Self
As well as measuring their business performance, PepsiCo measure their how engaged their workforce is with a biannual Organisational Health Survey in which they score 11 percentage points above the average. And they measure how their associates or employees rate their managers with a Manager Quality Performance Index.  

Develop your people and shine a light on the positive behaviours and attitudes

Hand in hand with performance measurement comes development and growth. There is no point in measuring someone's performance if you are not going to use that data to help the person and the business grow. PepsiCo have a standard performance management process that is rolled out right across the globe. These processes involve the use of some structured online tools but critical to the processes are a series of development conversations between managers and employees and the identification and execution of key development actions.

The model of career development within in PepsiCo is one of "pull" rather than "push". The staff member is invited to identify where they would like to develop their career themselves and after some sense checking is done (a desire to move from the laboratory to head of Finance in 2 years might need some re-thought!) a plan of action and measurement is put in place which is revisited several times throughout the year. 

The Payoff...

The result of all of this is that as a leader or employee in PepsiCo you can have a sense of purpose about your work and a sense of clarity in how you are performing and developing. This leads to motivation, engagement and increased productivity. It ultimately leads to success for the organisation.

Does your organisation deliver performance with purpose? Do your people know what that performance or purpose is? Is your strategy clear to everyone in your business or is it just inside your own head? To learn more about how you might deliver performance with purpose in your business contact Miriam at mailto:[email protected]

A heartfelt thanks to Lisa Schembri for sharing with me how the PepsiCo's People Factor works in practice.

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    Author

    Miriam O'Connell is an experienced change management consultant and leadership coach. She has worked across many industries both as an internal and external consultant. She is passionate about everything to do with creating thriving organisations and with enabling leaders to tap into their own wisdom and values to lead effectively and courageously.
    You can contact Miriam by email at [email protected]

    View my profile on LinkedIn

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