Forum on Leadership 2024: Indra Nooyi, in conversation with Ken Hersh (YouTube Video Transcript)

(00:00:00) Your YouTube transcript will appear here (00:00:01) now I get the honor of having a (00:00:04) conversation with you um and I'm (00:00:08) terrified I think so that was the hard (00:00:11) part right there um the uh having having (00:00:14) read your book uh I have a lot a lot of (00:00:16) questions to ask um but I feel like uh (00:00:20) before that I want to give by way of (00:00:22) background uh Indra was on the list (00:00:26) while she was the 12 years she was in (00:00:28) charge of Pepsi it was on the list of (00:00:30) the most ethical (00:00:32) companies and you had and not only did (00:00:36) you uh outpace the s&p500 you did it (00:00:40) with a purpose uh and you did it with (00:00:43) compassion um and under your watch uh (00:00:46) your performance with a purpose um (00:00:48) around nourishing people replenishing (00:00:50) the environment um and cherishing your (00:00:53) own people uh was uh was a Hallmark (00:00:58) along with the make over of the Pepsi (00:01:01) product line around good for you and (00:01:03) better for you but I want to start where (00:01:06) President Bush uh ended and that was (00:01:08) around an immigrant uh your story you're (00:01:11) the first immigrant to lead a Fortune 50 (00:01:14) company and in your book you talk about (00:01:16) being a guest in someone else's (00:01:19) house did that motivate you and when did (00:01:22) that change along your journey to where (00:01:25) you felt at (00:01:26) home first of all thank you for having (00:01:28) me Mr President thank you thank you so (00:01:30) much for considering me for this honor (00:01:32) I'm really privileged I'm emotional (00:01:34) actually I'm going to try not to (00:01:36) cry but um you know I think back to my (00:01:40) growing up in Madras in India and I was (00:01:43) born 7 years after India got (00:01:45) independence in a very conservative (00:01:47) family never dreamed I would do anything (00:01:49) but get arranged marriage married away (00:01:51) to somebody um you know get educated (00:01:54) yeah but some guy is waiting there my (00:01:56) parents are going to pick him and that's (00:01:57) what life is going to be and then I won (00:02:00) the lottery of life um my father and my (00:02:04) grandfather the men in my family said (00:02:06) our girls are going to study and do (00:02:08) whatever they want to do so they gave us (00:02:10) the ability to spread our wings and fly (00:02:14) to become an engineer or a doctor not a (00:02:16) business person but then my sister got (00:02:19) into business school in India and she (00:02:21) set the stage for me to go to business (00:02:23) school because if I hadn't gotten into (00:02:25) business school myself I would have been (00:02:27) viewed as a failed sister because that's (00:02:29) how we were compared all the time so I (00:02:32) went to business school in India and (00:02:33) then one thing led to another and (00:02:35) everybody told me that if you want to (00:02:38) really um understand what the world is (00:02:40) like you have to go to the United States (00:02:43) it's the seat of Entrepreneurship (00:02:44) Innovation culture this is where ideas (00:02:47) flow and you can be a different person (00:02:49) if you go to the United States so I (00:02:51) applied to the AL School of Management (00:02:53) which was a brand new school and my (00:02:55) parents said of course we can't afford (00:02:57) it therefore you will not go I got in (00:03:00) and then they said we can't afford to (00:03:02) send you so don't even think about it (00:03:04) then I got a letter from Yale saying (00:03:06) we'll give you loans and work program (00:03:09) you have to work and earn your keep I (00:03:12) went to my parents and said can I go and (00:03:14) surprisingly they bought me a ticket (00:03:16) which is again winning the lottery of (00:03:18) life so I came to the United States as (00:03:20) an immigrant in (00:03:22) 1978 and to put it in context it was at (00:03:25) a time when suitcases didn't have wheels (00:03:27) that's the best that's the best way to (00:03:29) talk about okay cuz I still remember (00:03:31) carrying these two suitcases 6 in at a (00:03:34) time from the international office to my (00:03:36) dorm and then started this unbelievable (00:03:40) love affair with the United States (00:03:42) remember I came into this country as a (00:03:44) legal immigrant with a Visa through the (00:03:46) front door into a wonderful (00:03:48) University uh not much of a support (00:03:51) structure but that's how I came in and (00:03:54) what happened since then um how I got (00:03:57) promoted mentored through was something (00:04:00) that i' never experienced any place else (00:04:02) so I feel a deep sense of gratitude (00:04:05) about what this country has done for me (00:04:08) and many ways can I'll say only in (00:04:10) America could somebody like me have come (00:04:13) in as an immigrant and ascended to lead (00:04:15) a Fortune 50 company so I am a product (00:04:17) of the United (00:04:22) States now you know as a woman also um (00:04:26) you've been pioneered in so many stages (00:04:29) in your life you're one of a handful of (00:04:31) women to to fill in the blank you you (00:04:35) described yourself as a tomboy growing (00:04:36) up um you started a girl band called The (00:04:40) logarithms hey that's a cool name cool (00:04:42) name kind of kind of nerdy but good I (00:04:45) like that but you also started a women's (00:04:47) cricket team in high school as well as (00:04:49) College debate at at each time you were (00:04:51) not intimidated um where did that come (00:04:55) from I don't know I think it's because (00:04:58) you know second middle children have a (00:05:00) problem because nobody gives us (00:05:02) attention so you have to do something to (00:05:04) get attention my sister was brilliant my (00:05:07) younger brother was brilliant and I'm (00:05:08) caught in the middle so academics I'm (00:05:11) not going to distinguish myself because (00:05:12) they're much too smart the my brother (00:05:14) and my sister so I decided I was going (00:05:16) to do extracurricular activities and (00:05:19) show them that I could be somebody so I (00:05:21) did everything that a manageable young (00:05:23) girl shouldn't be doing climbing trees (00:05:25) playing Cricket playing in a rock band (00:05:28) and I was sure that would disqualify me (00:05:29) from the marriage Market it (00:05:31) didn't but that was my goal in life but (00:05:35) what is surprising is my parents allowed (00:05:37) me to do this they showed up for my (00:05:39) concerts when I was playing in the rock (00:05:41) band we were terrible but they showed up (00:05:44) U when I played the cricket match my (00:05:45) family would show up so it's surprising (00:05:47) that they actually came in and (00:05:49) encouraged me but the most interesting (00:05:51) one was I remember when my sister was (00:05:53) going away to business school and for (00:05:56) the first time leaving home and she told (00:05:58) my mother I'm going away my mom said you (00:06:00) cannot leave until you get married (00:06:02) because if you left home as a single (00:06:04) woman nobody will marry you and my (00:06:07) sister said I'm not getting married now (00:06:08) I'm going to business school my mom said (00:06:10) I'm going to fast till I (00:06:12) die and so the two of us kids terrified (00:06:16) and went to the grandfather and the (00:06:17) father and they said you know what let (00:06:19) her (00:06:19) die okay we'll take care of you don't (00:06:23) worry about it we'll take care of you (00:06:26) and you know what gave us a lot of (00:06:27) confidence 24 hours later mom br broke (00:06:30) the (00:06:31) fast grandfather's dead father's dead (00:06:34) mom's still (00:06:36) alive so I love this letter die that's (00:06:39) okay well and and that brings me to your (00:06:42) family your family is obviously very (00:06:44) important and very important to you um (00:06:47) and both your your grandfather and your (00:06:49) father had a big impact and as your (00:06:52) career progressed your mother came here (00:06:55) and lived with you and your kids to help (00:06:58) you in that support system um did your (00:07:01) fa describe how your family fits into (00:07:03) your your leadership style I don't even (00:07:06) know what life is without the family (00:07:08) because growing up you know we had (00:07:11) freedom within a very tight frame and (00:07:13) the frame was open only if we earned our (00:07:16) grades and behave properly and if you (00:07:18) did anything that was out of the rule (00:07:21) box that box became smaller so we grew (00:07:23) up in a very very uh very conservative (00:07:27) very protected environment that's where (00:07:29) I put it (00:07:30) but I think that having a foot in The (00:07:32) Brak and a foot on the accelerator at (00:07:34) home made all the difference because we (00:07:37) knew what limits we had and how to (00:07:39) function within those limits which is a (00:07:41) very good thing and the president talked (00:07:44) about education oh my God the focus on (00:07:46) education was punishing uh if you got 98 (00:07:49) in geography there was a crisis at home (00:07:51) what happened to the other two marks you (00:07:53) know it was just it was constantly you (00:07:55) were never good enough uh and if you (00:07:58) came and said but grandpa that was a (00:08:00) best grade in the class he'll say in a (00:08:02) class of dances you got 98 so it was (00:08:04) like nobody ever said to you good job I (00:08:07) don't believe in my entire life my (00:08:10) family members have said good job or I (00:08:12) love you or given me a hug never nobody (00:08:15) okay the first time it happened was when (00:08:17) I got married where's my husband he's (00:08:19) right there so you know they don't do (00:08:21) those things so we never got positive (00:08:23) reinforcement and so the family was good (00:08:26) but in the American context where I tell (00:08:28) my kids I love you times a day we were (00:08:32) bereft in many ways okay but we did fine (00:08:36) coming here um having kids I don't know (00:08:39) how you can do it without Family Support (00:08:42) nannies are not enough you need family (00:08:44) support I keep telling our kids get (00:08:46) married and have children give them to (00:08:48) me I'll give them back to you when (00:08:50) either we pass or the kids are ready to (00:08:52) go to college so if you don't give that (00:08:55) sort of a support I don't know how these (00:08:57) young people today can have kids keep a (00:09:00) job somehow do all the things they have (00:09:03) to do it's not possible Ken because the (00:09:05) biological clock and the career clock (00:09:07) are in conflict with each other unless (00:09:09) you build a support structure around you (00:09:11) it just doesn't work okay so your mother (00:09:14) um you mentioned keep one foot on the (00:09:16) accelerator one foot on the brake um so (00:09:18) your your mother guided you along the (00:09:20) way and at the same time culturally to (00:09:23) balance the role of a woman in the house (00:09:25) in the household along with um being (00:09:28) prideful of your (00:09:30) professional accomplishments um how did (00:09:33) that uh how did that pull uh that sort (00:09:36) of tug OFW uh play out in as you as your (00:09:40) career progressed there was never a time (00:09:43) where I could come home and everybody (00:09:44) phone over me and bring me my chuffles (00:09:46) and my a drink that never happened okay (00:09:49) so you come home you just have to make a (00:09:53) quick uh change and become the mother (00:09:56) the wife the everything in the house and (00:10:00) so um my mother would say leave the (00:10:02) crown in the garage don't walk in with (00:10:04) your crown because when you walk in the (00:10:05) house you're a wife and a mother and a (00:10:07) daughter and you have those roles to (00:10:09) play um they never say that to the guys (00:10:12) but they always say that to the women (00:10:14) and so you know what I'm I'm not going (00:10:16) to change her uh so uh you know I (00:10:20) learned how to leave my crown in the (00:10:22) garage not that there was a crown but I (00:10:24) learned to leave whatever it was in the (00:10:26) garage and that was the story where you (00:10:28) had just been promoted the president of (00:10:29) Pep (00:10:30) and you drove home and they said go to (00:10:32) the store and get some milk that's right (00:10:34) and and she's always put me down that (00:10:36) way not put me down look that's reality (00:10:38) of life you know somebody has to do the (00:10:40) work and there's no point trying to say (00:10:42) hey I'm president I won't do these (00:10:43) things okay it doesn't work somebody has (00:10:46) got to do this the work the work the (00:10:49) work somebody has got to do the (00:10:53) work I'm sorry Mr (00:10:56) President I'm really sorry (00:11:02) now one of your early experiences (00:11:05) professionally was at BCG Boston (00:11:07) Consulting Group and their um their (00:11:10) leave Pol their family leave policy was (00:11:12) very generous and allowed you to go home (00:11:16) uh to be with your father U you know BCG (00:11:19) didn't have a leave policy and so I was (00:11:22) a young consultant and a year after I (00:11:24) started my father has pancreatic cancer (00:11:26) has six months to live at the most and (00:11:29) you know uh Raj has just graduated from (00:11:32) business school in the University of (00:11:33) Chicago uh you know I'm a young (00:11:36) consultant we don't have money uh pretty (00:11:38) dead broke and um if my father's sick (00:11:42) and I have to take off 6 months to be (00:11:44) with him because I intended to be with (00:11:45) him and see him through his death my (00:11:48) sister and I sitting here figuring out (00:11:50) what to do then BCG calls me and says we (00:11:52) hear that your father's dying we've (00:11:55) decided to give you 6 months off with (00:11:57) pay never heard of this they've never (00:11:59) done this for anybody they didn't have a (00:12:01) sick leave paid leave policy they just (00:12:04) put it in and U my father died in 3 (00:12:07) months 3 months one day I was back at (00:12:09) work so I never exploited that U time (00:12:12) off but the fact that BCG was so (00:12:15) generous in giving me that time off (00:12:17) allowed me to spend the last days with (00:12:19) my father and I'll never forget the firm (00:12:22) for their incredible generosity and when (00:12:24) you got to Pepsi that was a priority for (00:12:26) you to make sure that most certainly (00:12:29) leave policies and and the from Child (00:12:32) Care to elder care we had to make sure (00:12:35) that people felt like they came to work (00:12:37) at PepsiCo and didn't have to leave (00:12:39) themselves at the door because they're (00:12:41) all parents or sisters or aunts and (00:12:44) uncles and citizens of the citizens of (00:12:46) the community so we wanted to make sure (00:12:48) people could balance both uh without (00:12:50) compromising on productivity and (00:12:52) whatever we had to do in the company and (00:12:54) so we put in the appropriate policies (00:12:57) the time off uh you know being sensitive (00:13:00) to all of these that needed needed to be (00:13:02) done and I think that made for a better (00:13:04) company a better Workforce higher (00:13:06) retention more leaders I mean just to (00:13:08) give you an idea we have just on my my (00:13:11) watch we have 11 CEOs of us companies (00:13:14) today who were under my watch at PepsiCo (00:13:17) 11 CEOs we have six so we you know (00:13:22) people stuck around we have 16 CEOs (00:13:24) today who were around PepsiCo in my time (00:13:27) who are doing brilliantly today in (00:13:29) America and so I look at this and go if (00:13:31) you create the right environment in the (00:13:33) company balancing all these needs you (00:13:35) actually develop better leaders better (00:13:38) managers and you retain them longer and (00:13:40) there's great loyalty that they have to (00:13:42) towards the company in fact you said (00:13:44) Pepsi was a talent Academy that sold (00:13:46) drinks and snacks in a way yes in a way (00:13:49) yes it still is a talent Academy and I (00:13:51) mean look it started with the leaders (00:13:53) before me and I just made it better and (00:13:55) better because I felt that was my single (00:13:57) biggest responsibility to develop more (00:14:00) successes than the company could ever (00:14:01) handle and you know people like is Ray (00:14:03) hunt here no Ray hunt was on our board (00:14:07) uh you know uh when time came for me to (00:14:10) transition out of PepsiCo they had five (00:14:11) people to pick from five successors (00:14:14) that's how it should be succession right (00:14:16) and felt great that the board had so (00:14:18) many choices isn't every company a (00:14:21) talent Academy shouldn't every leader (00:14:22) look at their look at their company and (00:14:24) say we're a talent Academy that puts out (00:14:26) a product I think so but I the question (00:14:29) I would ask is why don't boards hold (00:14:31) CEOs accountable for being talent acmy (00:14:33) because developing Talent is a very (00:14:35) unselfish thing because if you develop a (00:14:37) great leader and if they're ready to (00:14:39) ascend to the top then you have to get (00:14:41) out right many leaders don't want to get (00:14:44) out so they hold people back and say (00:14:46) when I'm ready to leave maybe I'll (00:14:48) showcase this person my point is hey I'm (00:14:50) going to develop all of you the day you (00:14:52) are ready for the job I'm out of here (00:14:54) because you got to worry about the (00:14:56) company in its future not your longevity (00:14:58) in the company so so if you manage the (00:15:00) company for the company and not for you (00:15:03) you'll have a very different unselfish (00:15:04) perspective about the company okay so (00:15:06) when you advise young women um about (00:15:09) balancing their uh work life and their (00:15:13) and their personal life um how do you uh (00:15:17) how do you guide (00:15:18) them you want the (00:15:20) truth I tell them there's nothing called (00:15:22) balance doesn't exist at best you can (00:15:25) juggle all these priorities how can you (00:15:28) do six jobs at the the same time you (00:15:30) know being a mother is two or three jobs (00:15:32) being an executive just an executive (00:15:33) forget CEO is a few more jobs on top of (00:15:36) that if you want to be in the community (00:15:38) if you want to do something for yourself (00:15:39) that's another couple of jobs you cannot (00:15:42) do these six jobs and be sane at the (00:15:44) same time because they expected to be (00:15:45) sane right and women already are super (00:15:49) people okay because they somehow make it (00:15:51) all work but anybody uses the word (00:15:54) balance is it's crazy I think at best (00:15:58) you can juggle these priorities and hope (00:16:00) that the most important ones don't fall (00:16:02) to the floor but it's a juggling act (00:16:04) every day I'll give you one story again (00:16:07) um when my children were the con of the (00:16:10) Sacred Heart and grenage and I get a (00:16:12) call from my younger daughter mom your (00:16:14) turn to bring chocolate chip cookies for (00:16:16) the class coffee this morning I go you (00:16:18) didn't tell me I didn't do it she said (00:16:20) it's on the you know little table on the (00:16:23) refrigerator you didn't see it yes I (00:16:25) didn't see it I was busy so now it's (00:16:28) like 9:00 I'm supposed to walk in with (00:16:30) chocolate chip cookies at 10:00 and she (00:16:32) says do not bake those nestly Tollhouse (00:16:35) Cookies cuz everybody knows that you're (00:16:38) supposed to make homemade cookies where (00:16:40) am I going to make homemade cookies (00:16:41) first I don't know how to make them and (00:16:43) I can't do it in an hour so I called on (00:16:45) to my cafeteria and say guys I need help (00:16:47) I need homemade cookies in an hour in 40 (00:16:51) minutes I'll pay whatever it takes just (00:16:54) give it to me say go on it Mrs newi so (00:16:56) in 40 minutes I get the most delectable (00:17:00) homemade cookies in aluminum foil so (00:17:03) it's not professional I walk into school (00:17:05) with it evidently those cookies tasted (00:17:08) fabulous and my daughter was a hero but (00:17:10) you see I juggled (00:17:13) priorities did I balance them no I (00:17:15) didn't schedule time to bake cookies (00:17:17) because I just didn't have the time was (00:17:19) that the product development for the (00:17:21) Pepsi uh Quick Serve ready to make ready (00:17:25) we didn't do that we didn't make that no (00:17:26) no that's for parents who forget to take (00:17:29) cook to school product line there may be (00:17:32) a market for that hu huge Market (00:17:34) especially huge all over the country (00:17:36) women all over the country are (00:17:38) struggling with this because everything (00:17:40) we do today in society is a plot against (00:17:43) working women we don't help them at all (00:17:46) and so we have to find our own Survival (00:17:48) tactics and cafeteria is are one of (00:17:50) [Laughter] (00:17:56) them so so let's talk about Pepsi for a (00:17:59) minute um because as I as I read earlier (00:18:03) uh performance with a purpose um was (00:18:06) your Mantra and quite ahead of its time (00:18:09) with respect to stakeholder capitalism (00:18:11) Etc where you really said we're going to (00:18:13) focus on good products and taking care (00:18:15) of our own people and making sure that (00:18:17) we're we're good for our environment um (00:18:20) talk about the talk about the nourishing (00:18:23) people uh as well as the as well as (00:18:26) cherishing your people and what did that (00:18:28) mean to you and your leadership at Pepsi (00:18:30) I mean it was performance with purpose (00:18:32) PepsiCo was a performance company and we (00:18:34) were always going to be a performance (00:18:35) company we're not going to back off of (00:18:37) that but what happens is that you know (00:18:40) somebody asked me the other day Indra in (00:18:42) your time at PepsiCo did you maximize (00:18:44) shareholder value or did you optimize (00:18:46) shareholder value that is a trick (00:18:48) question because if I said optimize they (00:18:51) say oh you left money on the table (00:18:52) okay wrong but let me tell you if I was (00:18:55) maximizing shareholder value I would not (00:18:57) invest in the company I would out Source (00:18:59) every job offshore everything I can take (00:19:02) all my full-time employees and make them (00:19:04) part-time employees cut their benefits (00:19:06) is that good for the country I don't (00:19:08) think so so what happens when you (00:19:11) maximize shareholder value you screw the (00:19:13) company but you make a lot of money and (00:19:15) then the country has to pay for you to (00:19:17) bring the jobs back I find that (00:19:20) completely wrong so what I did was say (00:19:23) hang on a second we're going to manage (00:19:25) PepsiCo for level of returns and (00:19:27) duration of returns we're not going to (00:19:29) have this boom Splat let's generate a (00:19:32) level of returns that can be sustained (00:19:33) for a long time so let's anticipate the (00:19:36) trends and instead of passing costs onto (00:19:38) Society let's start to address this now (00:19:41) so whether it was transforming the (00:19:43) product portfolio to have a good blend (00:19:46) of sort of fun for you better for you (00:19:48) good for you products look I was not (00:19:50) swinging the pendulum I was just (00:19:52) balancing the portfolio uh I wanted us (00:19:54) to make sure we were environmentally (00:19:56) conscious everywhere I went I saw (00:19:58) Plastics on on the sides I saw uh water (00:20:01) use that was excessive said what are we (00:20:03) doing we have plants in water distressed (00:20:06) areas let's cut back water use very (00:20:08) simple to do why use 2 and 1/2 lers of (00:20:11) water to make a liter of Pepsi it makes (00:20:13) no sense cut back water use we save (00:20:15) money and we do good for the environment (00:20:17) and people are our biggest asset rather (00:20:21) than look at them as tools of the trade (00:20:23) let's look at them as real talent and (00:20:26) what if we made them feel like human (00:20:29) beings coming to work as opposed to I'm (00:20:32) going to cut your pay by 50% I'm going (00:20:34) to cut the number of people by 25,000 (00:20:36) because that's the way I'm going to (00:20:38) maximize shareholder return we did (00:20:40) pretty good Ken on shareholder return (00:20:42) pretty damn good but we have a company (00:20:45) that's performing well for decades as (00:20:48) opposed to Boom Splat boom Splat which (00:20:50) is what people think CEO should be doing (00:20:53) you know the minute you leave let the (00:20:55) new guy come and crash the financials (00:20:57) and then ride the alpha what a miserable (00:20:59) model somebody's going to call you know (00:21:03) the bluff and say stop this crap that (00:21:05) you're doing on Pardon The French well (00:21:07) you know this boom Splat stuff it's got (00:21:09) to a balanced level of level and (00:21:11) duration of returns that's the way you (00:21:13) should manage company right and you also (00:21:15) made a big push uh for diversity you (00:21:18) talked about when you started in the (00:21:19) corporate uh Development Area um HR uh (00:21:22) the HR department uh increased your (00:21:24) diversity uh but they were protecting (00:21:26) the softball team from corporate (00:21:28) development so they maybe more Canadians (00:21:30) that was their that was their when I (00:21:32) joined Pico I I was a head of strategy (00:21:34) and there were about 50 people in (00:21:35) corporate strategy cuz that was our (00:21:37) input point for talent in the company so (00:21:39) I looked around and said Hey where's the (00:21:42) diversity International diversity we're (00:21:44) going overseas and they said hon it boss (00:21:48) and they came back and said we've got a (00:21:50) really diverse group and all the people (00:21:52) they hired we're from Canada and I said (00:21:55) hey guys wait a minute why did why did (00:21:57) you end up doing this they said because (00:21:59) the strategy team has always won the (00:22:01) softball tournament and therefore we had (00:22:02) to hire for the softball team I said (00:22:05) that's not how it's going to work you (00:22:07) know we're going to change everything uh (00:22:09) let me put this way diversity to me is a (00:22:12) state of mind it's not a number it's not (00:22:14) a program it's a state of mind if we're (00:22:16) going to serve all customers all (00:22:19) consumers our employee base should (00:22:22) reflect the consumer base all right the (00:22:24) best example I'll give you is we own the (00:22:26) an jamaa an Jima is 80% consumed by (00:22:31) black people yet the entire team working (00:22:34) on it were were white not that they (00:22:36) can't understand black people but I (00:22:37) think if you put a team with a lot of (00:22:40) black people they will understand anj (00:22:41) Mama even more so I think you know when (00:22:45) you have a consumer company in (00:22:46) particular if your employee base does (00:22:48) not reflect the consumer base you're (00:22:50) making a mistake but if you call it a (00:22:52) program then people get sort of uh the (00:22:55) backs up and say God why are they (00:22:57) forcing us to do something we're not (00:22:59) interested in because it's so much (00:23:00) easier to deal with somebody who looks (00:23:02) like us talks like us uh I remember when (00:23:04) I joined PepsiCo my predecessor took me (00:23:07) to dinner and said I hate this diversity (00:23:10) crap because if it's another white guy I (00:23:12) can talk to him about sports and we can (00:23:14) just give each other a high five and (00:23:16) we've solved the problem and I said do (00:23:18) you know who you're talking to he said (00:23:20) oh you're different I'm not different I (00:23:22) am an immigrant colored immigrant but (00:23:25) that's how people had you know their (00:23:28) perspective on diversity I think if you (00:23:30) change that and say we want to draw from (00:23:32) the entire talent pool we want to bring (00:23:34) the best and brightest we're going to (00:23:36) give them all tailored programs and (00:23:38) develop them all of a sudden your (00:23:39) mindset changes completely and it's a (00:23:42) state of mind it's not a program it's (00:23:44) not forced on you you've got to feel it (00:23:47) from the inside and if you feel it from (00:23:48) the inside it makes it so much easier (00:23:51) you don't make those diverse diverse (00:23:53) people feel like their quarter hires (00:23:56) which is what happens very often right (00:23:58) and do you think people people are (00:23:59) getting that message now or we sub work (00:24:00) to do you know when you start calling (00:24:02) diversity woke or whatever woke is I (00:24:04) don't even know what it is I thought I (00:24:05) woke I woke up I thought that's what (00:24:07) woke was but they tell me something more (00:24:09) than that I don't know what to do about (00:24:11) ESG and woke because performance with (00:24:14) purpose was a form of ESG but it was (00:24:16) linked to (00:24:18) Performance when you start to separate (00:24:20) ESG from performance and make it a (00:24:24) metrics (00:24:25) div um you know metrics driving (00:24:30) something that nobody understands people (00:24:32) call it woke and try to dismiss it we've (00:24:34) got to bring it back to its core and (00:24:36) find a way to relaunch the notion of (00:24:39) diversity and ESG in a (00:24:42) sensible shareholder value linked way (00:24:46) and not say all of these take away from (00:24:48) shareholder value which is the (00:24:49) commentary today which is the big (00:24:51) mistake because all that we're doing is (00:24:54) passing costs from companies to (00:24:57) societies and the government govern are (00:24:59) going to pay for it if you have a (00:25:00) society where certain groups do not get (00:25:03) jobs that's a cost to government you (00:25:06) know we company should be able to bring (00:25:07) them in train them and help societies (00:25:11) that's our job that's what we can do (00:25:13) well but we don't somehow everything has (00:25:15) been cast in such negative light I don't (00:25:18) even know how to bend this curve can (00:25:20) maybe the bush library can help (00:25:22) seriously it's a topic to discuss well (00:25:25) we're working on making making the case (00:25:27) for capitalism uh around the world kind (00:25:29) of capitalism yeah um now you talked (00:25:31) about uh The Forum our Forum topic is (00:25:34) the call of freedom and uh you're you've (00:25:37) been pretty consistent about about the (00:25:40) role of work uh as the key to Freedom (00:25:43) tying the uh that that feeling of (00:25:46) dignity and self-worth that comes from (00:25:48) from work and and not making that (00:25:51) inconsistent with social (00:25:52) responsibility do you think that that is (00:25:56) uh yesterday's news (00:25:59) globally do you feel like you let a (00:26:01) multinational corporation you were all (00:26:02) over the world do you feel like um the (00:26:06) this the benefits of capitalism that (00:26:08) have that are so obvious that have been (00:26:10) exported around the world seem to be be (00:26:12) losing momentum well the problem is that (00:26:15) all of us are not questioning what is (00:26:17) the future of a multinational company (00:26:19) because if if a company's success and (00:26:23) globalization is going to be linked to (00:26:26) the foreign policy priorities of the (00:26:29) country of domicile then there's going (00:26:31) to be a problem especially if you're in (00:26:32) the us because we are the world (00:26:34) superpower and we will have to exercise (00:26:36) our power in different ways now if every (00:26:38) country has to bend with every policy (00:26:41) change how does a multinational company (00:26:44) stay in business the best example I'll (00:26:46) give you is 15 years ago if you didn't (00:26:49) have a China strategy you were not worth (00:26:51) it at all I mean the stock market killed (00:26:54) you now if you don't have an exit (00:26:56) strategy from China the stock market (00:26:58) going to kill you it took us 10 years to (00:27:01) build a meaningful position in China how (00:27:03) do you just turn the tap and say I'm I'm (00:27:06) leaving China or Russia or if you've (00:27:09) just struggled to get into a country in (00:27:11) Africa and tomorrow the government says (00:27:13) you need an OAC license to continue to (00:27:16) you know function there how can we (00:27:18) function so I think we have to think (00:27:20) through and say is the role of a private (00:27:25) Enterprise you know if you want (00:27:27) capitalism to thrive and for us to (00:27:28) spread our American values and ideals (00:27:31) around the world can it be kind of sort (00:27:34) of independent from our foreign policy (00:27:37) priorities I don't know how to make that (00:27:39) work in but that's the only way it's (00:27:41) going to work otherwise you'll end up (00:27:43) with large companies in every (00:27:46) country okay um rather than true (00:27:49) American multinationals I mean most of (00:27:51) the multinationals come from the US (00:27:53) powerful ones we won't be able to (00:27:56) maintain those going forward and that's (00:27:58) the thing I what are you about right (00:28:00) let's talk about um something a little (00:28:03) bit closer to home um when I read your (00:28:04) book I was I was um it struck me that (00:28:07) you've been psychically connected to (00:28:10) President Bush uh ever since you walked (00:28:12) into the front door at Pepsi your (00:28:14) building was located in the fourth (00:28:16) building building four on the third (00:28:19) floor which they called it (00:28:21) 43 that's true absolutely so and then (00:28:24) President Bush you you struck up a (00:28:26) relationship um and he painted you and (00:28:28) we have that painting in the foyer (00:28:32) um I must say I think that painting was (00:28:35) even better than the one in the SMI (00:28:37) Smithsonian Portrait Gallery flattery (00:28:39) will get you everywhere it's a great (00:28:41) painting seriously so he he has said he (00:28:44) doesn't usually paint women because he (00:28:46) doesn't want to risk somehow being rude (00:28:48) what do you think of the (00:28:50) painting you know he mentioned to me (00:28:52) that he made me look like a teenager I (00:28:54) agree with him I look pretty pretty hot (00:28:56) in that picture (00:29:00) thank (00:29:01) you and and explain your emotion when (00:29:04) you heard he was painting (00:29:06) you first it's like the Portrait Gallery (00:29:09) when somebody told me they were going to (00:29:10) do that I'm like why I mean it's like (00:29:14) why me you know like are you sure the (00:29:16) president wants to paint (00:29:19) me it's incredulousness first of all and (00:29:22) then the emotion comes in and then you (00:29:24) shut the door to your office and cry for (00:29:26) a little while saying where did I come (00:29:28) from where am I cuz I still have that (00:29:30) immigrant mentality can it never goes (00:29:32) away and so you sort of reflect on all (00:29:34) this and go uh I hope I deserve this you (00:29:38) know kind of feeling then when I read (00:29:40) the write up that's when I really boohoo (00:29:43) because it's such a beautiful write up (00:29:47) um I don't believe anything has ever (00:29:49) been written about me as beautiful and (00:29:52) lyrical as what was written in this book (00:29:54) out of many on so thank you really (00:29:56) really beautiful really beautiful (00:30:02) um so we have just about a minute left (00:30:04) I'd like to finish with a little (00:30:06) lightning round if I could with you if (00:30:09) democracy were a stock would you be long (00:30:11) or (00:30:12) short always long if China were a stock (00:30:16) would you be long or (00:30:17) short long no choice what is your (00:30:21) favorite Pepsi (00:30:23) product I consume tremendous amount of (00:30:26) kettle lays so I love that product yeah (00:30:31) do you ever you drink a Coca-Cola (00:30:33) product what's (00:30:34) [Laughter] (00:30:38) that what teacher had the biggest impact (00:30:41) on (00:30:42) you there was a professor ATM Yale (00:30:45) School of Management Larry Isaacson who (00:30:47) passed away and from day one that he met (00:30:49) me he had so much faith in me I don't (00:30:53) know why I had to earn it every time but (00:30:55) he just believed in me that every (00:30:58) recruiter that came on campus he'd say (00:31:00) have you talked to her I'm like Larry I (00:31:02) don't want to interview with this (00:31:03) company I want you to talk to them so he (00:31:07) had faith in me and gave me such a push (00:31:09) I'll never forget him for as long as we (00:31:11) live okay what book is on your (00:31:13) nightstand now book that I'm going back (00:31:16) and reading because it Bo it's bothering (00:31:17) me so much is the anxious Mind by (00:31:20) Jonathan hate because I think it's a (00:31:23) book that is so profound if we don't do (00:31:26) something about it shame on all of us (00:31:27) leaders about about breaking the habits (00:31:30) of social media in our you yeah what are (00:31:33) you optimistic about the New York (00:31:37) Yankees other than the (00:31:40) Yankees what is your favorite (00:31:43) professional baseball (00:31:47) team my favorite professional baseball (00:31:50) team that won the World Series (00:31:53) last it's a tough (00:31:55) one this is for you thank you thank you (00:31:58) k no it's just that it's not it's not (00:32:00) that I like the Yankees I love them I'm (00:32:03) I just adore them that's okay you don't (00:32:05) have to go on and on about the um so (00:32:08) thank you I challeng this cap yeah (00:32:11) absolutely and before before we dismiss (00:32:13) to dinner upstairs I do I do want to (00:32:16) finish with your call to action which (00:32:20) was from your speech at the National (00:32:22) Portrait Gallery when your painting uh (00:32:25) was unveiled and you said I hope that (00:32:27) any girl girl any person of color any (00:32:30) immigrant any American who looks at (00:32:32) John's the artist creation will not only (00:32:35) see a portrait I hope they will see that (00:32:37) anything is possible and I hope they (00:32:39) will find their own way of bringing (00:32:41) their spirit and talents to bear on the (00:32:43) work of lifting up in this country and (00:32:46) our world ladies and Gentlemen please (00:32:48) join me in thanking and honoring engine (00:32:51) thank you thank (00:32:54) you wonderful thank you thank you thank (00:32:58) you very much