Former PepsiCo CEO Indra Nooyi shares her 5 rules for leading through uncertainty: ‘Companies have to articulate a purpose’

Good morning.

Every age has its uncertainties, but the current age has more than most. War raging in Europe and the Middle East and foreboding in Asia; an economy perched on the pivot from unprecedented monetary and fiscal stimulus to a return to an unfamiliar normality; a pandemic that provoked massive changes in work and life; new technologies moving at warp speed with premonitions of both utopian and dystopian consequences. How do you lead a business in such an extreme 'VUCA' environment?

I had the opportunity last week to pose that question to Indra Nooyi, ex-CEO of PepsiCo, at a forum hosted by consulting firm Slalom. Her answer was a mini-master class in modern leadership. She boiled it down to five rules:

“First: Rather than articulate a vision for the company, CEOs have to learn to talk about alternatives and scenarios. That is the only way you can get your team to constantly look for changes in the environment that could impact your direction."

“Second: You have to build resilience, agility and adaptability into the company. That’s often talked about, but rarely practiced. Study past setbacks. Look for leaders who have navigated through crises and failures."

“Third: Lifelong learning is the survival mantra of the future. Leaders must understand coming trends and technologies. They must study whatever is driving change in-depth. They must go back to being students."

“Fourth: Rethink how you do talent succession. Targeting the most capable is going to be the biggest competitive advantage you have. Make succession an ongoing science."

"Fifth: The only way to find and bind outstanding talent to the company is to engage their hearts as well as their head and hands in the business of the company. To do so, companies have to articulate a purpose…that touches people emotionally and encourages them to give the company their all.”

Well put. More news below.

Alan Murray
@alansmurray
alan.murray@fortune.com

This story was originally featured on Fortune.com