Julia Yue, Head of UHNW Business Development, Private Wealth Management, Morgan Stanley
Senior leaders in companies of all sizes face a range of unprecedented challenges, and few are more complex – or more important – than the need to continually grow and advance their workforce. Hardly a day goes by without leaders hearing about game-changing technologies like generative AI—and how companies need to evolve by incorporating new tools into their operations and service models.
Yet for seasoned leaders like Indra Nooyi, the former Chairman and CEO of PepsiCo, it’s not enough for executives to pay lip service to change or delegate it to subordinates. According to Nooyi, leaders need to be the ones spearheading transformation and persistently working behind the scenes to enable a culture of innovation by promoting inclusivity and amplifying everyone’s voices—not just those at the top.
In this Q&A with Morgan Stanley Private Wealth Management, Nooyi reflects on her 13 years helming PepsiCo and shares insights about how today's leaders can shape the leaders of tomorrow by catalyzing innovative thinking and fostering talent that is empowered to think differently.
Q: What qualities set you apart as a CEO? How did you share those skills and develop so many emerging leaders at PepsiCo, a touted “CEO factory”?
A: I wanted to make sure PepsiCo was successful for a long time, not just during my tenure. That shaped how I made decisions in terms of the business model, our impact on society and, most importantly, how we developed leaders.
I felt the only way PepsiCo would be successful in the future would be if we had a phenomenal leadership development program that would cultivate talent to constantly renew our company. And that's why PepsiCo's always referred to as a CEO factory—because it was an explicit focus.
Q: In your book “My Life in Full: Work, Family, and Our Future,” you speak about the importance of mentorship. Why is mentorship so valuable in any industry?
A: If you have a mentor who is outside your sphere of influence, they can tell you what you’re good at, but they can’t really shape your professional life. Mentors are most useful if they can influence the trajectory of your career.
When mentoring talent, I pushed them and gave them assignments that were above their capability, and they reached for it and did brilliantly. I gave them balanced but tough feedback, and they always knew where they stood. If you treat people with honesty—tell them and demonstrate that you believe in them and give them assignments to help them grow—they do grow.
Q: What advice do you have for business leaders, whether they have decades of tenure or they’re just emerging?
A: You don't inherit leadership. You earn the stripes to be a leader. Leaders have to inspire everyone in the organization to follow them. They have to be supremely competent and show mastery of operations details while setting a direction for the future.
Q: How do you think leadership is evolving as industries and technology evolve?
A: Leaders of tomorrow have to be digital natives. Take generative AI: How are leaders going to implement it if they don't understand it in great detail? They have to think about new organizational structures and how leaders can operate in the changed environment. Today, the onus is on leaders to go back and be students, in addition to running their companies.
My advice to leaders of the future is to assemble a group of people with varied capabilities who can be advisors and sounding boards for you. It's not just the old CEO group that can support you. Your network might have people much younger than you and they're the ones who can tell you what you need to learn.
Q: What advice do you have for women running into the “glass ceiling”? How can companies better support all emerging talent?
A: The glass ceiling certainly does exist, but fortunately it’s glass, so it can be broken.
One of the big mistakes we’re making is asking women to talk about women, people of color to talk about people of color or immigrants to talk about immigrants—and we become our own echo chambers.
It can’t only be these groups having these conversations. Companies have to get their male leadership talking about these issues. You have to have enlightened leaders who are asking, “Why does the glass ceiling exist? Why aren’t we utilizing all talent to its fullest potential?”
Q: You are highly respected for your work within the Asian American and Pacific Islander (AAPI) community and as part of the Advisory Council of The Asian American Foundation (TAAF). Why is that mission so important today?
A: TAAF was created after a spike in Asian American hate, which is terribly sad. At the end of the day, Asian Americans contribute so much to our country. They over-index in disciplines that many people consider uncool, particularly across STEM fields.
Fortunately, TAAF is helping to draw a positive light to the community, with a focus on recruiting and mentoring. It’s important that these networks help Asian Americans speak with one voice.
Q: What can organizations do to promote greater representation of AAPI and other diverse professionals in leadership roles?
A: You need people in positions of leadership who help pull others up. When we look at the barriers that stand in the way of AAPI people, it's usually that they're highly competent but may be less likely to speak up. It’s important for leaders to recognize all talent equally and ensure everyone has access to honest feedback and opportunities to stretch themselves.
Once you find great talent, you develop them.
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