Converting Strategy into Results The Promise of PepsiCo. San Antonio, TX February 25, 2011

Transcription

1 Converting Strategy into Results The Promise of PepsiCo San Antonio, TX February 25, 2011

2 PepsiCo is one of the largest Food and Beverage Companies in the World Major Brands: 19 Billion Dollar Plus Brands Frito Lay Gatorade Pepsi Cola Quaker Tropicana Global Distribution Businesses in Virtually Every Country in the World 700 Company Owned or Licensed Manufacturing Sites High Visibility Water Energy and GHG Land Fill

3 Support From the Top: Performance With Purpose Performance with Purpose mission: our belief that our financial success Performance must go hand-in-hand with our social and environmental responsibilities our Purpose. We call this the Promise of PepsiCo is a manifesto that includes ambitious global goals 47 commitments in all that will guide our company this decade 3

4 The Challenge of Alignment and Implementation Headquarters This is a company mandate Compliance Field It ll Never Work We have set targets for the Field Global Tools with Local Solutions Work through the Regional and Site Captains Sustainability can be self serving and whole serving Integrated in Business Strategy Aligned with Core Values We will do it our way It s in our AOP and Evaluation We Need Help We have to imbed sustainable practices or we wont be doing business in the future

5 Dr. Peter Senge: The Creative Tension Model Dr. Peter Senge o o o Founder of Society for Organizational Learning (SoL) Author, The Fifth Discipline (1990) and The Necessary Revolution (2008) Professor at MIT ENERGY to CHANGE The gap between vision and current reality creates the creative tension The larger the gap between vision and reality, the more tension exists

6 Converting Strategy to Results Create the Vision Create the Tension Enable Success Recognize and Reward

7 The Promise of PepsiCo Creates and Enshrines the Vision. Leading Innovation in Water Stewardship Achieving 2015 Goals and enabling Positive Water Impact Minimizing External Waste Zero Landfill Innovation in Carbon Reduction Enterprise and Product Level reductions Building Community Trust Human Right to Water, Sustainable Agriculture 7

8 Create the Tension with Globally Aligned Objectives MFG WATER L/L or KG MFG FUEL per Unit MFG ELEC per Unit 20% Reduction 15 vs 06 25% Reduction 15 vs 06 20% Reduction 15 vs 06 First Universal Operating Targets in PepsiCo Tracked at Every Level in the Organization Water Reduction Targets are ahead of Plan, Fuel and Electricity are on flight plan -8-

9 Build Capability : ReCon is the Most Widely Used Tool within PepsiCo and its Supply Chain Climate Change Water Land/Waste STAGE I Common Priorities STAGE II Critical Systems STAGE III Enterprise Solutions STAGE IV Supply Chain Reapplication Awareness Energy Efficiency People Practices Combustion Compressed Air Refrigeration Absolute GHG Enterprise Solutions Life Cycle Analysis Energy Efficiency Absolute GHG Today 2011 Water Value Water Conservation Awareness Water Treatment Process Water Waste Water Watershed Mgmt. Water Balance Enterprise Solutions Water Risk Mitigation Supply Chain Future Waste Reduction Recycling Practices Waste Value Packaging Product Zero Landfill Enterprise Solutions Waste Reduction Waste Value Zero Landfill From In House to the Supply Chain

10 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Pepsi 2L 1 ReCon has established PepsiCo s leadership, from fundamentals to breakthrough research. STAGE I Enabling Tools, Metric Indicators Best Practice Broad Deployment STAGE II Go Deep on the Critical Systems Best Practice Targeted Deployment STAGE III Expert Partnerships (TNC, WRI) Enterprise-wide Impact Drivers Legend Walkers 34.5 grams Walker s 34.5 gm Pepsi 2L STAGE IV Research Partners ( Columbia, MIT) Supply Chain Impact End Of Life Processing Transportation Packaging Agro/Ingredients CO2e Content 80 Gm CO2e 1070 Gm CO2e

11 All Stages of ReCon are supported by Universal Tools ReCon Scorecard Hotlist PI Xpert Diagnostic On Line Profilers for Energy, Water The XPERT Diagnostic is the Single most applied tool In the program 200 sites In all Sectors, Multiple Co-Packers, Suppliers and Franchises. 27 Audits In First 3 Weeks of 2011!

12 Building Capability in Green Design : Sustainable Engineering Identify and Deploy New Technology Promote Good Ideas from Local to Global Leverage Knowledge Management Systems to Spread Expertise and Capability Support LEED Certification and similar programs

13 Aligning Sustainable Engineering with LEED Certification. Nanchang Chongqing Monterrey Complete In Progress Azov PepsiCo has earned 19 LEED Certifications and has more in progress.

14 Building Capability through Knowledge Management Tools Sustainable Engineering Guidelines On-Line LEED Guidance Green Product Search Best Practice Library Credit Submission Examples Certification Support In-House LEED AP Guidance Consultant Support Low Cost Certification Minimize Consultant Reliance Overcome Cost Objections

15 Reward and Recognition: At the Site and for the Individual Center of Excellence Award Demonstrated Sponsorship Excellence in Implementation Impact to the Business Creativity in Sustainment Above & beyond to achieve breakthrough business results. Outstanding performance with purpose in core accountabilities. Recognized leader and role model by management, peers, and/or customers.

16 Success Criteria Invest in Alignment it pays off Avoid Shortcuts not sustainable Stay the Course Recognize and Reward Early and Often