How Pepsico implemented agile in their projects: Case study

Agile is often discussed in the context of software startups, but its power extends far beyond tech. One of the world’s largest food and beverage companies, Pepsico, implemented agile in their projects to overcome slow decision-making and siloed operations.

The result was faster project delivery, stronger cross-team collaboration, and an ability to adapt to shifting consumer expectations.

For leaders considering a similar transformation, Pepsico’s journey offers valuable lessons on what it really takes to scale agile in complex organizations.

PepsiCo’s Agile Transformation Framework

PepsiCo implemented multiple transformation initiatives across different regions and timeframes. The company's various agile efforts were built on four key pillars that connected business goals with digital capabilities:

Corporate strategy - provided overall direction and alignment
Transformation group - managed change and ensured execution
Digital group - drove technology adoption and innovation
Data analytics and AI - delivered insights and enabled automation

What made this different from many corporate initiatives is that it wasn’t simply a top-down directive from executives. Instead, PepsiCo’s leaders combined a top-down vision with bottom-up participation.

Senior leadership set the strategy and structure, while teams across the organization were empowered to adopt, test, and refine agile practices. This balance ensured the transformation wasn’t just mandated; it was embraced at every level.

Phase-based implementation strategy

Rather than attempting a company-wide rollout immediately, PepsiCo adopted a measured approach. Over the course of 18 months, PepsiCo's corporate leadership team implemented strategies that would ultimately impact over 300,000 employees across 60 global markets and a multitude of functions.

The implementation followed a proven pattern:

Phase 1: Identify five business-critical missions with autonomous, multidisciplinary teams
Phase 2: Train high-achievers and influencers as advocates
Phase 3: Expand training to broader groups with iterative feedback incorporation
Phase 4: Scale successful practices across additional business units

Pro tip: Start with your highest-performing teams and use them as proof points. Their early success creates momentum and reduces resistance in subsequent phases.

Integration with existing frameworks

PepsiCo didn't abandon all existing processes. Instead, they integrated agile principles with established methodologies where it made sense.

The company successfully integrated agile methodologies while maintaining its focus on user experience and business outcomes, though specific framework implementations varied by region and initiative.

They applied user-centric design principles within their agile structure, ensuring that customer needs remained central to their development process.

Cultural transformation as the foundation

The most crucial element of PepsiCo's transformation wasn't technical; it was cultural. In the technology industry, agile often refers to an intensive project development method, but for PepsiCo, it is an overarching cultural orientation.

This cultural shift manifested in specific behavioral changes:

Reduced meeting overhead and bureaucracy
Increased employee empowerment to challenge existing processes
Focus on customer-centric decision making
Tolerance for intelligent risk-taking and fast iteration

Geographic and cultural complexity management

Different PepsiCo regions implemented agile transformations at different times and in different ways. For example, CASA is a complex operating unit, comprising more than 20 countries with different cultures and different ways of working.

This diversity created a lot of uncertainties for teams, so communication about the program and how it would be implemented was key.

PepsiCo addressed this complexity through:

Localized training programs adapted to regional cultures
Clear communication strategies tailored to each market
Change champions who understood local dynamics
Feedback loops that allowed for regional customization while maintaining core principles

💡Key insight: Global agile transformations require local adaptation. What works in North American markets may need modification for Latin American or European teams.

Practical implementation tactics that drove results

PepsiCo’s agile transformation was grounded in practical, step-by-step tactics that made change manageable and repeatable across global markets.

The "crawl, walk, run" methodology

PepsiCo didn't jump straight into its largest markets; instead, it adopted a "crawl, walk, run" approach to carefully test and refine its IBP. It began with a proof of value in Benelux, followed by pilots in Iberia and Turkey.

This approach provided several advantages:

Risk mitigation: Testing in smaller markets reduced the potential impact of failures
Process refinement: Early implementations revealed optimization opportunities
Success stories: Proven results in pilot markets built confidence for larger rollouts
Team development: Project leaders gained experience before tackling complex implementations

Technology integration strategy

Digital transformation has enabled PepsiCo to optimize its supply chain operations. By integrating IoT devices and data analytics, the company has improved inventory management, reduced costs, and enhanced overall efficiency.

The technology stack supported agile practices through:

Real-time data visibility enabling faster decision-making
Automated workflow processes reducing manual overhead
Integration platforms connecting previously siloed systems
Analytics dashboards providing transparent progress tracking

Innovation acceleration framework

By shaking up its innovation process, the Lay's-to-Pepsi manufacturer has accelerated its go-to-market time significantly in recent years.

PepsiCo's innovation approach emphasized:

Rapid prototyping over perfect planning
Customer feedback integration throughout development cycles
Cross-functional collaboration breaking down departmental silos
Fail-fast mentalities that encouraged intelligent experimentation

Common pitfalls and how PepsiCo addressed them

PepsiCo encountered several predictable challenges along the way, but by anticipating them and responding strategically, the company was able to keep the momentum moving forward.

Challenge 1: Resistance to change

In the UK transformation specifically, when it was announced to the staff that they would be working in these new ways, some employees were skeptical, for two reasons: They doubted that they would be granted the freedom to put the principles to work, and, even if that happened, they doubted it would help keep the company agile in responding to customer needs.

Solution: PepsiCo addressed skepticism through transparent communication and quick wins that demonstrated value.

Challenge 2: Scale complexity

Rolling out agile across 60 global markets introduced enormous complexity. Each region operated under different cultural norms, business practices, and regulatory environments. Without careful planning, this diversity could have led to inconsistent adoption and fragmented results.

Solution: Regional adaptation of core principles while maintaining enterprise-wide consistency through shared frameworks and success metrics.

Challenge 3: Integration with existing systems

PepsiCo was already operating with established enterprise processes, legacy systems, and strict compliance requirements. A full replacement of these systems was neither realistic nor desirable. The challenge was to introduce agility without disrupting the company’s core operations.

Solution: Selective integration rather than wholesale replacement, focusing on high-impact areas first, such as supply chain and product innovation, where results could be measured quickly.

PepsiCo's agile transformation delivered measurable business impact

The transformation began when PepsiCo UK faced its third consecutive year of declining revenues. Traditional project management approaches were creating bottlenecks rather than solutions.

In the broader global transformation effort, within just 12 weeks, participants reported significant improvements across key metrics:

Decision autonomy: +28% increase
Team priority alignment: +31% improvement
Product shipping frequency: +35% boost
Role clarity: +27% enhancement
Information access: +32% better
Equal voice participation: +32% increase

PepsiCo's agile implementation extended beyond IT departments. Agility became a cultural orientation focused on reducing bureaucracy, accelerating customer response, and maintaining work-life balance.

Key Performance Indicators:

Speed: Teams accelerated delivery by 15-30%
Decision autonomy: 28% increase in team decision-making authority
Stakeholder alignment: 31% improvement in priority alignment
Product delivery: 35% increase in shipping frequency to users

Critical success factors

Based on PepsiCo's experience, these factors proved essential:

Leadership commitment beyond initial announcement
Employee empowerment with actual decision-making authority
Measurement systems that tracked both process and outcome metrics
Continuous learning culture that embraced iteration and improvement
Technology enablement that supported rather than constrained agile practices

Key insight: Successful agile transformation requires changing how people work, not just what tools they use. Focus on empowerment and cultural evolution alongside process improvements.

Applying PepsiCo's approach to your organization

Before implementing agile practices at scale, evaluate your organization across these dimensions:

Leadership alignment: Do executives demonstrate commitment beyond verbal support?
Cultural readiness: How does your organization currently handle change and failure?
Technology infrastructure: Can your systems support transparent, real-time collaboration?
Process maturity: Which existing processes add value versus bureaucratic overhead?
Talent capabilities: Do you have change champions who can drive adoption?

Implementation roadmap

Follow a phased implementation roadmap that gradually builds momentum while minimizing risk.

Months 1-3: Foundation building

Identify pilot programs in lower-risk business areas
Train change champions and early adopters
Establish success metrics and tracking systems
Begin cultural conversations about empowerment and risk tolerance

Months 4-6: Pilot execution

Run structured pilots with clear boundaries and support
Gather quantitative and qualitative feedback
Refine processes based on real-world learnings
Build success stories for broader communication

Months 7-12: Scaling and optimization

Expand successful practices to additional teams
Integrate agile principles with existing enterprise processes
Develop internal training and coaching capabilities
Measure and communicate business impact

PepsiCo's transformation took 18 months to reach 300,000+ employees. Plan for patience; sustainable change requires time to take root.

Technology considerations for enterprise agile

Modern project management platforms can accelerate your agile transformation by providing:

Automated reporting that reduces administrative overhead
Real-time dashboards that increase transparency and accountability
Integration capabilities that connect previously siloed tools
AI-powered insights that identify bottlenecks and optimization opportunities

The key is choosing tools that support agile principles rather than constraining them with rigid processes.

Launching Your Own Agile Transformation

PepsiCo’s journey shows that agile transformation is achievable even in the most complex, global organizations. Their 18-month rollout proved that cultural change, not just process change, drives results.

The lessons are clear: build from strong leadership alignment, empower teams with real authority, and scale gradually with proof points. These steps turn agility from a buzzword into a measurable business impact.

With the right balance of culture, process, and technology, enterprises can replicate PepsiCo’s success and deliver faster innovation in a rapidly changing market.