LEADERSHIP THEORIES Activity Instructions In this discussion

LEADERSHIP THEORIES

Activity Instructions

In this discussion, you will gain experience in articulating a particular leadership theory and evaluating a rationale for using it as a guide to enact a leadership agenda.

Using either Scharmer\'s or Pless and Maak\'s article as a guide, analyze the ability of the top leadership team at PepsiCo to recognize and change the way they had responded in the past to the pesticide and water contamination issues. Take a stance on whether Nooyi and the top leadership team at PepsiCo exhibited the capacity to align Gardner\'s five minds toward finding new solutions to these issues.

Solution

In his article on leadership, Scharmer provides the reason for the failure of companies while attempting to deal with challenges. In his view, the reason for collective failure of the companies includes the lack of vision regarding leadership and transformational change. He further argues that the companies’ strategies contain several blind spots that gets overlooked by the management and top leaders.         

In case of PepsiCo, the company wanted to implement a standardized strategy across the globe. The company needs to understand that there is no global standard for leadership. The company has faced pesticide and water contamination issues in India. However, it did not take any actions regarding them, till they experience decline in their sales performance and revenue in the country. The company should have taken the issue seriously from the very beginning. Among the five minds of G\'s, the ethical mind of the management, in this regard, could be used which has become a learning experience on how to deal with the issues related to people problems.

However, after the incident, the company has started to show more proactive approach towards decision making. At present the company is putting great efforts on re-establishing its brand image. It has shown great commitment to deliver sustainable growth by empowering its employees and building trust among the stakeholders of the company.