Talent Sustainability
and Manager Quality
in PepsiCo
October 1st 2010
PepsiCo Confidential
PepsiCo Worldwide
• World second largest food and beverage producer
• Main business directions: soft drinks, juices, snacks, cereals
• The most popular brands: Pepsi-Cola, Diet Pepsi, Mountain Dew, Gatorade,
Lay’s, Tropicana, Doritos, Lipton Ice Tea*, Quaker, Cheetos, 7Up, Ruffles,
Aquafina**, Mirinda, Tostitos, Sierra Mist, Walkers, Fritos
• Company works in 200 countries
• Employees 285 000 associates
• Turnover around $60 billion
* Unilever brand
**Aqua Minerale in Russia
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Brands-millionaires
Pepsi-cola
Mountain Dew
Lay’s Potato Chips
Gatorade (Thirst Quencher, G2, Propel)
Diet Pepsi
Tropicana Beverages
7UP (outside U.S.)
Doritos Tortilla Chips
Lipton Teas (PepsiCo/Unilever Partnership)
Quaker Foods and Snacks
Cheetos Cheese Flavored Snacks
Mirinda
Ruffles Potato Chips
Aquafina Bottled Water
Pepsi Max
Tostitos Tortilla Chips
Sierra Mist
Fritos Corn Chips
Walkers Potato Crisps
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PepsiCo in Russia and the CIS
• # 1 among juice & snacks manufacturers in the CIS, # 2 among soft drinks
manufacturers
• PepsiCo production facilities: 9 plants in Russia + 2 in Ukraine, incl. Lebedyansky (№
1 on Russian juice market) and «Sandora» (№ 1 on Ukrainian juice market)
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Global and Local Brands portfolio
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Performance with Purpose
We are focused on three key areas: our products, the environment and people.
Products: We are committed to building a fully balanced portfolio, making our treats
more healthy and providing our customers with a full range
of nutritious products, through the acquisition of brands like Tropicana,
Gatorade, Quaker Oats, the reformulation of existing products and the introduction of
new products and through joint venture alliances
Environment: We are committed to respecting and preserving the natural
environment and its relationship with our business. We’re focusing our
environmental sustainability efforts on water, energy and packaging – the areas in
which we can make the biggest impact
People: We must inspire, challenge and cherish our employees by attracting,
developing, rewarding and retaining the best people. We fully support
diversity and inclusion and are equally committed to a diverse range of suppliers, in
particular women and minority-owned suppliers
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PepsiCo Talent sustainability strategy
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Manager Quality is the single most important
element of a compelling EVP offer
4,22
4,02
3,84
East; Manager Quality; 5,02
Work-Life Balance
Organizational Environment
Manager quality is the single most
highly valued attribute; employees
are least willing to trade it off
3.82 Average
Category Importance
4,02
3.33
Average Importance
for all Attributes
3,8
3,62
3,59
3,54
3,29 3,23
3,64
3,55
3,41
3,17 3,16
3,31 3,25
3,22 3,18
3,23
3.40 Average
Category
2,9 Importance
2,88 2,87
2,67
2,53
Risk Taking
Technology Level
Development Reputation
Senior Team Reputation
2,08
3.03 Average
Category Importance
Company Reputation
Child Care
Telecommuting
Flextime
Vacation
Location
Hours
Business Travel
Project Responsibility
Role Clarity
Internal Mobility
Cutting-Edge Work
Work Challenge
Empowerment
Coworker Quality
Recognition
Manager Quality
Bonus as Percent of Base
Stock Options
Internal Equity
2,22
3.06 Average1,94
Category Importance
Retirement Contributions
Health Benefits
External Equity
Base Salary
Importance
Rating
(Mean)
Company Size
Compensation, as a
category, is most highly
4,58
valued
Work Environment
Fit With Company & Industry
Compensation & Benefits
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Manager Quality Touchpoints
The difference you make to
motivating employees through R&R
How we
measure how
you’re doing in
delivering our
promise to
employees
Your contribution to our
employees and candidates
experiencing PepsiCo as an
employer of choice
How you create
an inspiring and
effective
onboarding
experience from
day 1 through to
the first 12
months
How you
enable
employees to
get the best
out of their
individual
performance
How you engage with
our current and future
employees through
effective communication
How you can ensure an optimal development at every stage of an
employees’ career development journey
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Driving Manager Quality – explaining managers their
role via set of seminars incl. First Time Manager
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Driving Manager Quality – support via Manager Quality
Microsite
“One stop shop” of all Manager Quality tips, tools and processes for each
of the Manager Quality touch points
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Driving Manager Quality – via selected focused initiatives
2009-10 Focus
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Key features: external selection
Attraction
Selection
RE-launch Global careers
website
Robust job analysis and
clear job description
Correctly briefed
recruitment agencies/
search firms &
recruitment advertising
reflective of Employer
Brand
Robust selection
methodology and tools
/upskilled line managers
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Our New On-Boarding Approach
LINE MANAGER
OWNERSHIP
DRIVING
ACCOUNTABILITY
Measuring the
effectiveness of the
on-boarding process
Manages and takes full
responsibility for the
process from day 1
Trained on-boarding
coaches for new starters
A Multi-Faceted Approach to
On-boarding in
PepsiCo Europe
ON-BOARDING
PLAN
ON-BOARDING
PROGRAMME
A face-to-face meeting
Introducing key business
messages and processes
ON-BOARDING
COACH
WELCOME PACK
USB tool
History of our Brands
On-boarding Coach
On-boarding Plan
Our Products
Guiding new starters
on what they need to
know and when
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MQPI overview

This process provides employees with the opportunity to rate their manager on
his/her people management behaviors.

The following 12 behaviors are used to assess manager quality:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Keeps people focused on the right priorities
Sets challenging but attainable performance goals
Constructively addresses performance issues
Balances a concern for results with a concern for the needs of individuals in his/her group
Effectively manages and works with people who are different from him/herself
Provides timely and direct feedback to others regarding performance or workplace issues
Engages in candid discussions with others regarding their career opportunities
Provides others with challenging assignments and training experiences to promote their development
Recognizes and celebrates the significant achievement of others
Effectively uses different rewards and incentives to drive performance
Gives others full credit for their ideas and contributions
Treats others’ concerns and issues fairly and with sensitivity and confidentiality
Opportunity to provide open ended comments to your manager.
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D&I Annual Operating Plan
Recruitment:


Establish/implement 50/50 gender candidate slates to ensure diversity of choice
Establish Regional Monitoring mechanism of hires/Promos to instill female
Representation Mindset
Culture/Environment:


Establish D&I Council scope/deliverables/roles
Build D&I Awareness to the Senior Leaders
Talent Development


Execute Internal and external Focus Group to understand Mfg/Sales poor female
representation
Execute Plan for Finance Female bench building and Senior Leadership female
developmental experiences
Female representation target for 2010: 30%
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Driving Talent Sustainability agenda via Annual People
objective (50% of Overall Performance Rating)
Creating an
Inclusive and
Engaging
Environment
Talent
Development
For all employees, these objectives reflect a commitment to creating and reinforcing a culture
where employees feel valued, included, and respected for their skills and contributions and for the
unique differences they bring to the workplace. These objectives should also reflect collaborating
and working constructively with others to achieve organizational goals.
For people managers and leaders, these objectives should also relate to creating an environment
where employees can achieve their career and personal goals and where work is effectively
structured and managed.
For all employees, these objectives reflect a commitment to building talent and sharing knowledge
within PepsiCo, including among peers and colleagues. For individual contributors in particular,
this could include formal or informal mentoring of other employees, partnering with others to help
them develop specific skill sets, or developing systems or programs that build the capability of
others.
For people managers and leaders, these objectives also emphasize ensuring that we build broad
capability and bench strength for the sustainability of the organization by making people decisions
that are consistent and reliable, seeking to balance both individual and organizational needs, and
ensuring high-quality developmental feedback is provided for all.
Manager Quality
Employee
Learning and
Development
For all people managers, these objectives reflect an emphasis on providing your direct reports
with clear direction, performance feedback, coaching, and developmental opportunities; motivating
and rewarding contributions and achievements; and treating others respectfully, fairly, and with
sensitivity.
For all employees, these objectives should focus on improving your personal and professional
effectiveness and skills. For people managers and leaders, these also should emphasize
building/reinforcing a learning and development culture by providing employees with access to
learning activities and opportunities, supporting people through their career transitions, and
helping people make the right decisions in support of their career goals and aspirations.
Electronic system already has People Objective categories included for employees
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2010 People agenda EER
Key 2010 Regional initiatives
Key questions to help define
individual contribution
KPI’s
 How
will you personally engage
and secure the development of
your Manager Quality?
 How will you ensure robust MQPI
development plans for your
teams?
(all B1+ to include MQPI
objective in their PDRs)
 MQPI
 Ensure
 Measured
Manager Quality
MQPI
 Analyze Manager Quality
Performance index 2009 and come
up with concrete action steps to
improve results in 2010 (All B1+)
On Boarding
 New concept will be introduced in
EER in 2010.
 All hiring managers will have their role
enhanced in on boarding their new
subordinates.
that every new comer has
structured on boarding plan
 Meet on the first day and ensure
objectives are discussed within
first month

score
improved by X%
 Concrete item in
MQPI improved
by X%
by On
boarding surveys
and input used
during PDR
evaluation
(people rating)
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