For our associates to thrive, we must continue to provide a supportive and empowering workplace. This includes giving associates the opportunity to learn and grow professionally through regular training and proven career development tools, as well as the transfer of best practices, skills, knowledge and technology across the businesses.
We conduct training for associates, from the frontline to senior management, to make sure they have the knowledge and skills they need to achieve performance goals in a changing world.
PepsiCo University offers expansive classroom and online coursework to develop managerial and leadership programs, which are launched globally. Through PepsiCo's Global Development Council, PepsiCo University sets priorities and aligns on global curriculum needs.
PepsiCo University has created a global learning architecture to systematically develop skills and knowledge and provide our associates with robust opportunities for professional growth. The PEP U Leadership Transition curriculum addresses capability building to: develop a global mindset, build strategic thinking, develop talent and create a collaborative and innovative culture.
The more senior programs in the Leadership Transition curriculum (Leader of Managers, Senior Leader) help our associates understand the importance of partnering with a multitude of stakeholders—including governments, NGOs and nonprofit organizations—on a variety of projects and initiatives across the business.
Global Leadership programs are centrally designed. For the programs addressing the larger audiences (First Time Manager & Leader of Manager), deployment is owned by the sectors. A core team of HQ trainers responsible for program design will travel to a central location or sector where local training associates and HR professionals participate in a "train the trainer" session, building local expertise to facilitate and cascade training to local markets. PepsiCo University oversees global functional learning as well.
Finance University is a multihour web-based course organized under a number of colleges: Investor Relations/External Reporting, Audit/Risk Management, Control, Tax, Treasury, Operations and Supply Chain Finance, Sales Finance, Strategy/M&A, Business Planning, Systems and IT (under development). By the end of the year, Finance University is scheduled to have 15 multihour web-based courses.
In 2010, PepsiCo associates completed 5,556 finance courses totaling over 49,171 hours of learning. More than 1,000 nonfinance associates completed one or more Finance University courses in 2010 with the aim of increasing their skills and improving their performance in their current roles.
In another training initiative, supporting our commercialization competencies, a robust and continuously updated sales and customer management curriculum is available for all U.S. sales professionals.
The purpose of this newest learning initiative is to create a holistic technical training program for all R&D associates worldwide. Before this effort, local R&D teams created training that was specific to their needs and geographic regulations. Global R&D University consists of eight individual colleges, each with one or two deans that govern that "learning domain" or college. The eight colleges are: Packaging, Nutrition, Food Safety and Regulatory, Ingredient Application Science, Human Research and Science, Experience Design, Product Development and Process Engineering. HR University is being launched in 2011.
In addition, the global functional and leadership programs of each sector/line of business have specific training programs directed to meet the local needs of their frontline and mid-level associates.
Associates are offered specific job training as required, including the opportunity to attend professional conferences to enhance their skills. We also have a robust program for helping associates manage their careers. Elements include a guide for career growth tailored to PepsiCo, as well as guides focused on specific functions.
Our year-long proprietary career process includes objective-setting, performance and development reviews, development action plans, midyear reviews and 360-degree evaluations—all supported by training and materials. Executive leadership training focuses on helping high-potential managers learn to be more effective leaders and to gain a broader perspective on our business. All associates are included in some form of the performance management process across PepsiCo.
We have an annual process titled 360-Degree Feedback for executives and managers across all businesses. The process is focused on building self-awareness by linking results to a best-in-class personality assessment inventory (the Hogan Assessment Suite). The process requires mandatory follow-up feedback meetings with certified professionals (based on a custom-designed three-day certification program) in the 360-Degree Feedback process, along with personality tools to ensure a high-quality and rigorous feedback and development planning discussion.
For our entire executive and professional population (all salaried associates at all levels), we also have a formal performance evaluation system with separate "business" and "people" objectives on which our employees are evaluated each year. As part of the performance appraisal process, our entire executive and professional population is required to have a midyear review with their manager, and associates provide input on their results against their objectives.
The competition for talent in China is intense. With our fast-growing business and joint-venture-led business model, we face a huge challenge to make sure we have talented, capable general managers for our 25 business units there, as well as a capable bench for critical roles.
The GM Center's program contains two components—an assessment center and the Leveraging Experience to Accelerate Performance (LEAP) accelerated education program. The assessment center is a full-day simulation center with exercises designed to test each candidate on leadership, management and organizational skills, simulating real-life situations. The best of the best are then selected to join the two-year LEAP leadership development program. Now in its third full year, the program is an enormous success. Seventy-five percent of all our general managers are graduates of the GM assessment and LEAP program, and we have achieved our goal of creating a deep bench.
Our biennial Organizational Health Survey helps foster a workplace in which associates can speak with truth and candor, which are core values of PepsiCo. The data we collect helps PepsiCo find pathways for improvement.
The survey is a global process with a consistent set of core items. All associates are surveyed in every country in the world for their feedback, resulting in survey translations into more than 35 languages. Topics include benefits, working conditions, compensation, career development, and diversity and inclusion initiatives. The results of the survey are shared with associates and used at multiple levels to drive action plans and improvements throughout the corporation.
By conducting the survey every two years, we're able to analyze the data, create meaningful action plans and measure plan effectiveness. We also benchmark our results against other highly respected companies from different industries, using data from the Mayflower Group, a survey consortium of companies to which PepsiCo belongs.
In our last full survey, conducted in 2009, we learned that 73 percent of our associates rated PepsiCo as a favorable place to work compared with other companies, 11 percentage points higher than the Mayflower benchmark. Our overall associate engagement index was also favorable at 75 percent. And our associate response rate of 89 percent was well above survey industry benchmarks.
In 2011, we are again conducting our Organizational Health Survey of all associates, including those in our recently acquired bottling organizations, in approximately 80 countries and in 38 languages.
PepsiCo recognizes associates with a variety of award programs. Common to all businesses are gift awards for length of service. All associates are eligible to receive stock option grants as recipients of The Chairman's Award, a program that recognizes outstanding accomplishments above and beyond an individual's basic job accountabilities that deliver a sustainable business impact in support of the company's Performance with Purpose mission. The Chairman's Award is the highest honor at PepsiCo.
To honor those who have helped PepsiCo advance its commitment to world-class performance in diversity and inclusion, we have created a unique Chairman's Award called the Harvey C. Russell Inclusion Award. Russell broke America's color barrier when he became a vice president of PepsiCo in 1962, and went on to set the standard for corporate social responsibility. He was chosen as the namesake for this prestigious award because his leadership, perseverance and commitment to "raising the bar" make up the foundation upon which PepsiCo's diversity initiative is built.
The Steve Reinemund Diversity & Inclusion Leadership Legacy Award is a PepsiCo leadership award given to senior leaders who champion diversity and inclusion over time, and who move PepsiCo to new levels of diversity and inclusion accomplishments and behaviors through their words and actions.
Frontline associates (those who make, sell and distribute our brands) and operations and R&D associates, as well as the frontline associates of our bottlers, are eligible for the President's Ring of Honor. Associates in supply chain/operations are eligible to be included in the Circle of Champions award program. We also have a variety of other award programs within our divisions.
In 2010, PepsiCo also launched an e-Card recognition program to recognize "Leaders Among Us" for outstanding leadership behavior according to the PepsiCo Leadership Model, which includes Acting with Integrity as one of its tenets.
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