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by Stephanie Capparell
The rivalry between Pepsi and Coke was as hot in the 1940s • The team boosted sales of Pepsi in every geographi-
as it is today. Pepsi’s then-president Walter Mack decided cal area they targeted, and during the four years the
he could gain an edge by hiring an all African-American sales team operated, they consistently surpassed their
team to actively pursue the untapped African-American con- profit goals.
sumer market. In her eye-opening and sometimes disturbing • The marketing campaigns developed by Boyd
book, The Real Pepsi Challenge: The Inspirational Story of and his team defined the concept of niche
Breaking the Color Barrier in American Business, Stephanie marketing and changed the way African-
Capparell commends Mack for hiring these dozen or so Americans were portrayed in advertising. Instead
African-American executives at a time when job opportuni- of stereotypes or offensive caricatures, Pepsi ads
ties for African-Americans were limited primarily to the showed stylish, middle-class consumers. One
kitchen and the clean-up crew. Yet the real heroes of her tale campaign featured “leaders in their field,” such as
are the salesmen themselves. United Nations diplomat Ralph Bunche. Another
featured top African-American university students.
THE TEAM THAT FOUGHT AND WON
Things aren’t always easy for African-American leaders in
THE LONG ROAD TO AN INCLUSIVE CULTURE
today’s organizations. But imagine what it must have been
Despite their success, most team members never
like in the mid-1940s, when African-American Edward Boyd
became fully accepted and integrated members of
and his sales team went to work at Pepsi-Cola. Not only did
Pepsi’s culture. After Mack retired, the new president
they face prejudice within the organization, but traveling the
of Pepsi-Cola fired Boyd and broke up the team. Most
country during the days of segregation and open bigotry,
soon quit as a result of the frustrations of trying to suc-
team members experienced humiliation, ridicule, and scorn.
ceed in a white-dominated corporation. One member,
Yet they stood up to the challenge, buoyed by the respect
Harvey Russell, stayed and in 1962 became the first
and admiration they got from African-American communities
African-American vice president of a major U.S. corpora-
and a chance to pave the way for future generations. In her
tion. Most team members went on to remarkable sec-
book, Capparell highlights both the accomplishments of the
ond careers, continuing to break color barriers along the
team and the trials team members faced. Here are a few:
way. Boyd joined the international aid agency CARE in
• Team members were more qualified than many of their the Middle East. Of his work at Pepsi, he says, “It was
white counterparts, with all having college degrees (one a contribution to progress. I didn’t make that much of a
had an MBA), yet they were consistently paid less. They dollar. I wasn’t paid on the basis of other executives. It
worked a grueling schedule, often working morning and was at the beginning.”
night 7 days a week, visiting bottlers, churches, “ladies
Source: The Real Pepsi Challenge: The Inspirational Story of Breaking
groups,” insurance conferences, schools, YMCAs,
the Color Barrier in American Business, by Stephanie Capparell, is
community centers, and various other organizations. published by Free Press.
Diversity at Allstate also helps to develop employee and or-
As a leader, you can hire and promote
ganizational potential. When organizations support diversity, Action Memo
people feel valued for what they can bring to the organization, people from diverse cultures and with
which leads to higher morale. A story from furniture manufac- diverse human characteristics. You can use
turer Herman Miller, told in the Consider This box, illustrates that organizational diversity to improve creativity
each of us has unique talents and gifts. People can build better re- and decision making, better serve customers,
lationships at work when they develop the skills to understand and and enhance organizational fl exibility.
accept cultural differences. Allstate’s diversity training emphasizes
that employees can expect to be treated with respect and dignity,
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