We all die. The goal isn’t to live forever; the goal is to create something that will. ~Chuck Palahniuk
I believe I’ve mentioned the idea, before, about how with every interaction we have the opportunity to build or damage trust (earn trust dividends or pay trust taxes, as Stephen MR Covey would say). Well, there are other types of capital for leaders; in addition to trust, there is personal capital (ability, time, and influence) — things you have control over, and corporate capital (brands, product lines, etc…). Every day, and throughout your career, you will have the opportunity to make trade-offs with the various types of capital you have within your control. As we would with our money, we might make a withdrawal of one type of capital in order to invest it in another area, with the expectation of a positive pay-off at some point in the future.
In many ways, your legacy as a leader will be defined by your ability to shift capital from unproductive ventures to more profitable areas.
For an example of this, take a look at Indra Nooyi, chief strategist of PepsiCo, Inc. She was the driving force behind Pepsi’s transition from just being a soft drink company to becoming a more diverse producer and distributor of some healthier fare. Under her direction, the company bought Quaker Oats, which brought Gatorade and Quaker Oatmeal into Pepsi’s portfolio. She also drove the acquisition of Tropicana, which allowed Pepsi to add a well-known fruit juice to the portfolio. Later, she persuaded the company to sell Pizza Hut, Taco Bell, and Kentucky Fried Chicken, essentially getting out of the “fast food” (or Quick Serve) industry.
Because of her efforts, only 20% of Pepsi’s sales wee from soft drinks by 2006, compared with 80% for Coca-Cola. Based on her accomplishments, Nooyi became CEO of PepsiCo.
What do you think she said when asked about the legacy she hoped to leave? She wanted Pepsi to be regarded as “both a commercial and moral success — turning profits while combating obesity.”
That’s a tall order, one might say, but it’s clear the woman is not easily discouraged by circumstances and conditions. She has a vision, she has the capital — both personal and corporate — to use at her disposal in crafting the company she dreams of…
Let’s transition now, and look inward. In what area of your life / business do you think you are wasting capital?
What can you do differently to reinvest your resources for a more favorable outcome?
