Pepsico: A 40 Year Retrospective on Talent Development

5/29/2014
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A 40-Year Retrospective on Talent Development:
The PepsiCo Story
Presented by:
Dr. Richard Vosburgh, former SVP & CHRO, KEMET Electronics Corporation and current President, RMV Solutions LLC
Dr. Allan Church, VP OD--Global Groups, Functions, Corporate and Executive Assessment & Development, PepsiCo
HANDOUTS
Timeline
25 Years
CEO
&
CHRO Matchups
1971-1985: Andy Pearson & Ed Walsh
1986-1996: Wayne Calloway & Roger King
18 Years
1996-2001: Roger Enrico & Bill Bensyl
2001-2006: Steve Reinemund & Peggy Moore
2006-Present: Indra Nooyi & Cynthia Trudell
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Common Core Issues for 40 Years
Evolution of Systems
Typed
Once/
Year
Color
Coded
Kodaliths
Success
Crowd
Factors,
Sourced,
WorkDay Real Time
Organizational People Planning
Feedback
Individual Development Planning
Performance Appraisal
Rewards
Evolution of Our Role
Frequency
Medium
Type
From Whom (360?)
Recognition
Assignments
Promotion
Money
Labor
Personnel Personnel Human
People/
Relations Admin.
Resources Talent
Amidst all this change and modernization, the fact still remains that it is not
the content of the form (or Ap), it is the quality of the conversation. Has HR
designed processes in a way that improves, not destroys, relationships?
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What is It We Measure and Why?
Measurement/Assessment
Organizational
Individual
Morale
Satisfaction
Culture
Health
Engagement
Diversity & Inclusion
Performance: Accountabilities of the Job
Competencies: Capabilities of the Person
Behaviors: Supporting Company Values
Performance
Appraisal
Quantitative
Vs.
Qualitative
In What
Ratio?
Career
Development
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Success Over Time (aka Good to Great)
Org Design
Centralized
Decentralized
Matrixed
Corporate Role
TACTICS
STRUCTURE
STRATEGY
Rapidly change all else.
Speed
Agility
Competitive Advantage
Organizational Capability
CULTURE
Preserve the CORE. Know what differentiates you. Be Authentic.
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PepsiCo’s Management Philosophy: 19721972-1984
Don Kendall Chairman
Andy Pearson President & CEO
Ed Walsh
SVP-HR
1972
1973
1974
1976
1980
1982
1984
Overall Philosophy
Our Personnel Strategy: 3 Phases
Building a Fine Company into a “Blue Chip”
Personnel Development for 1976 and Beyond
A Look at PepsiCo’s Future
PepsiCo and You
Keeping PepsiCo Dynamic
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Clarifying
the
Conundrum
Note
Differences
in:
Objectives,
Content,
Feedback
Ed Walsh & Richard
Vosburgh Simplified Model
Campbell Soup Company
1997
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1986
Instructions focus on
the role of MRP (HRP)
for organizational
purposes and the
IMD (IDP) for
individual feedback
and growth
Ongoing issue of how
much and what type
of feedback (becomes
a “Dr. Bob” Eichinger
special issue)
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Early Employee
Satisfaction
Measurement:
1983
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1987 Taco Bell Culture Survey Feedback: Open Ended Responses
What can be
done to
improve
PepsiCo’s
Culture?
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Recognition that not everyone understood “PepsiCo Culture” led to Experiencing Pepsico.
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PepsiCo’s Historical Survey Timeline
2000
2001
2002
2003
2004
2005
2006
Org Health
Inclusion
Survey
New
Org Health
Quarterly
Inclusion
Pulse Survey
Org Health
Quarterly
Inclusion
Pulse Survey
Org Health
2013
2012
2011
2010
2009
2008
2007
Org Health
Engagement
Survey
Org Health
Linked with
PBC
Engagement
Survey
Org Health
New
Engagement
Survey
New Pulse
Survey
• 2002 Org Health redesign leveraged content from the Inclusion Survey
• 2003 we introduced a new quarterly pulse survey process which remained through 2005, and
was then replaced with a single pulse survey/engagement survey starting in 2007
• Although content changes somewhat every year (and for every survey) we have always
retained some D&I specific items as well as experimented with new ones as issues emerge
• In 2011 we integrated our survey content with PBC and conducted a full administration
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PepsiCo OMD
The Continuing Road to HR Process Redesign
Pre 1998
1998-2000
Complex &
individualized
annual 360
feedback
program
Standard 360
feedback;
established
alternating year
timing
Different
approaches to
doing
Performance
Management
(PM)
PM process
redesigned:
consistent
method for
setting
objectives, still
one rating
2001-2002
New leadership
competencies;
now used as an
“input” into PM
process
2003-2007
Ongoing
standard 360
process; used as
an “input” into
PM
2008-2011
New leadership
competencies;
Hogan (Dev) &
MQPI (PM)
introduced
PM process
PM process
PM process
tweaked several
revised to focus
shifted to
times to
on both Business
50%/50% People
sharpen People
and People
results emphasis;
results
results; two
need more
emphasis; 360
ratings 67%/33%
“teeth” i.e., MQPI
input used
sporadically
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PepsiCo OMD
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PepsiCo Management Philosophy: 1976
Personnel Development for 1976 and Beyond
We don’t develop for the sake of development;
we develop because it leads to better business
results.
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Color Coded Kodaliths for the 1980 Pearson Review
Other Examples:
Time in Position
Highest Degree
Diversity
Age
Performance
Potential
Name
Chief Executive Officer
Name
Executive Coordinator
Name
Name
Name
Name
Executive VP –XXXX
Business Group
VP - XXXX Business Group
VP –Chief of Staff , Quality
& Chief Compliance Officer
Senior VP Global Sales & Marketing
Name
Name
VP-XXXX Products
VP – Sales,
Asia/Pacific
Name
VP – Sales,
Americas
Name
Name
Executive VP & Chief
Financial Officer
Name
Senior VP & Chief
Technology Officer
Senior VP & Chief
Human Resources Officer
Name
VP & General Counsel
Name
VP & Chief Information
Officer
Name
VP – Sales,
EMEA
Name
VP-HR,
Global Operations
Name
VP - Marketing
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We added the Import/Export list to the Taco Bell MRP in all
group MRP reviews that rolled up to the President—to
provide focus on and credit for if you were a “net exporter”
(providing talent to the company) and to fix-it if you were a
“net importer” (relying on others for a talent supply)
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Pizza Hut’s
Guide to the
HRP
1983
6-Month
Annual
Process
16
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Pizza Hut’s
Guide to the
HRP
1983
Promotability
Matrix
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Assessing People Results: An Evolution
Categories
Dimensions
•
•
•
•
•
•
•
Guidance
Initial Launch
(2001)
First Refresh
(2004)
Current Model
(2008)
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4
4
Org Capability
People Development
Employee Retention
Inclusion
Team Climate
Cross-Functional
Effectiveness
Personal Development
•
•
•
•
Creating a Diverse &
Inclusive Workforce
Managing &
Developing People
Teamwork &
Collaboration
Personal Development
& Growth
•
•
•
•
Creating an Inclusive &
Engaging Environment
Talent Development
Manager Quality
Employee Learning &
Development
Use you own judgment
One for each; Drive
consistency across
calibration efforts
One for each; Direct links
to core HR processes
(OHS, PP, MQPI, Pep U,
etc.)
Reason for
Change
Initial change to PMP
ratings (2/3 business &1/3
people)
Consistency to support
forced ranking overlay
Change to 50% equal
weighting required a
refresh
Other
Comments
Broad based guidance to
apply to all constituents
Introduced D&I as a
required category into
formal mix for the first time
Isolated Culture from
Talent and Talent from
Manager Quality
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PepsiCo OMD
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Taco Bell 1987
Game Planning
A “what if”
scenario
planning
exercise
Set up a Board with a card per person laid out as an
org chart—Pins to move the cards; people gather
round and “play”.
(Got fancier later with magnetic cards)—no “CSI Table”.
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Taco Bell 1987
Game Planning
A “what if”
scenario
planning
exercise
If “x” is hit by
a Beer Truck
then what
moves does
that set up?
What actions
do we take
now to be
more ready?
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The
Feedback
“Issue”:
Eichinger
The
Simplified
Version
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Proven Results
Demonstrating consistent Business and People
results is essential for consideration for new
opportunities
We look for results that create lasting impact
How results are achieved is important
Business Results: 50%
PepsiCo
Performance
Management Process
(PMP)
People Results: 50%
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PepsiCo OMD
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PepsiCo Management Philosophy: 1984
Keeping PepsiCo Dynamic
1988: Wayne Calloway
(Chair/CEO) speaking
to Dupont’s senior
team (Heckert is
Chair/CEO)
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PepsiCo Management Philosophy: 1984
Keeping PepsiCo Dynamic
Love/Hate relationship with
HRP:
If I don’t get feedback I fear it.
People get promoted and fired.
Pitchfork/Halo Issues.
Yet when understood is your
best recruiting tool for Talent:
“It isn’t just who you know”.
The “Dr.
Bob”
Eichinger
connection
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PepsiCo People Processes
AOP (Annual Operating Plan)
Objective Setting
Employees set Business and
People Results performance
objectives for the year;
Development action plans
drafted
360-Hogan/
Org Health/MQPI
Results
Mid-Year Review
Discussion with manager
regarding progress on
objectives, development
plans, career interests,
and other related topics
Performance & Development
Review Formal meeting to
(a) Review performance
against prior year’s Business
and People Results; and (b)
Finalize current objectives
PepsiCo Career Model
Proven Results
Leadership Capability
Functional Excellence
Knowing the Business Cold
Critical Experiences
Functional Gameplans
360-Hogan/Org Health/MQPI
Admin
Career Development Action Plan
(CDAP) & Discussions
People Planning
Organization and individual talent
review-assess bench strength,
potential moves, diversity scorecard,
career interests, leadership and
functional excellence, key
experiences
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PepsiCo OMD
Linking PMP to Our Core HR Processes
Org Health Survey
Workforce Metrics
•
Creating an Inclusive and Engaging
Environment
People Planning Metrics
Workforce Analytics
•
Talent Development
•
Manager Quality
•
Employee Learning & Development
MQPI
Workforce Metrics
LMS Metrics
Qualitative Activities
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PepsiCo OMD
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My Performance & Development
My P&D (a SuccessFactors tool) and its associated processes have evolved with
each performance year
2007
Pilot
2008
Implement
2009
Stabilize
2010
Enhance
2011
Expand
Tool used with
small group
Launched to
global audience
Upgraded to
new version
Implement
online Succession
Planning
Brought on
additional users
following M&A
All others
used manual
Word documents
PepsiCo leverages a
Global Performance
Management tool
for the first time
Improved look &
feel
Streamline PDR and
CDAP processes
Further streamline
timing of processes
Enable reporting
capabilities
Further refine
reporting and Profiles
New system
generated
Experience Plan and
Profiles
New career
discussion card and
process defined
Enabled
Succession
functionality &
reporting for
Succession
Planning
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PepsiCo OMD
2014
28
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PepsiCo Management Philosophy: 1984
Keeping PepsiCo Dynamic
Searching for the Balance:
We created too much change,
moved people too quickly,
Changed structures too
frequently.
How many bosses have you
had in the last 2 years?
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PepsiCo’s Leadership Models
Previous Model
Leadership
Imperatives
Setting
Success
Factors
Current Model
Competency
Dimensions
Planning
1. Thinking Skills
2. Innovation
3. Strategic Focus
Setting
Execution
4. Establishes Priorities
5. Drives for Results
Agenda
The
Agenda
Courageous
Taking
Leadership
Others
People
With
Development
You
Savvy
Communication
Doing It
Integrity
6. Change Leadership
7. Motivates Others
8. Collaboration
PepsiCo OMD
The
9 Key
Dimensions
Decision Making
Innovating
Driving for Results
Creating an Inclusive Culture
Taking
9. Builds Talent
10. Inclusion
11. Supports Others
Others
12. Communicates
Productively
13. Negotiation
You
14. Inspires Trust
15. Walks the Talk
Doing It
The
Right Way
Leadership
Imperatives
With
Building Talent
Motivating & Inspiring Others
Collaborating & Influencing
Acting with Integrity
The
Operational
Excellence
16. Know the Business
17. Functional Excellence
Right Way
Inspiring Trust
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Front Line Magazine
1986
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Front Line Magazine 1986
32
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Wayne Calloway
(Chair/CEO) speaking to
the 1989 PepsiCo
Personnel Conference
(Roger King, SVP)
Notes by Richard Vosburgh
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1989 PepsiCo Personnel Conference
34
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1989 PepsiCo
Personnel
Conference: The
Pepsi-Cola Culture
Place Mat.
35
36
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With a New CEO Comes a New Direction
2007
2008
2009
2010
2011
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PepsiCo OMD
Performance with Purpose
Performance with Purpose
•
•
Business strategy introduced in 2007
Focus on delivering business growth while also supporting three
sustainability platforms
Nourish consumers
with a range of
products
“Nourish”
PepsiCo OMD
Be responsible
stewards of our
planet’s resources
“Replenish”
Attract, retain and
develop world-class
talent
“Cherish”
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