When Indra Nooyi served as CEO of PepsiCo, she was known for her direct but compassionate leadership style. One of her most famous practices was writing letters to the parents of her senior executives, recognising their contributions and expressing gratitude for the values they instilled in their children.

But Nooyi also knew that leadership required more than just appreciation—it required honest, constructive feedback.

A defining moment came when Nooyi had to provide tough feedback to a senior leader who was struggling to align with the company’s evolving strategy. Instead of vague or overly critical remarks, she used a structured approach to make her feedback clear and impactful.

She outlined specific situations where the leader’s decisions had caused misalignment, described the observable behaviours, and explained their impact on team morale and business outcomes. This feedback not only helped the executive improve but also reinforced a culture of accountability and continuous growth at PepsiCo.

This moment reinforced her leadership principle: feedback should be clear, actionable, and tied to real impact. There are many frameworks for giving effective feedback; one of the best is the SBI Model (Situation, Behaviour, Impact), which we will expand here to be the SBI+ Model.

What is the SBI Model?

The SBI Model is a structured approach for giving feedback that ensures clarity and effectiveness. It consists of three components:

1. Situation – Describe the specific situation where the behaviour occurred.
2. Behaviour – Explain the behaviour observed, without judgment or interpretation.
3. Impact – State the impact of the behaviour on others or the organisation.

This approach helps eliminate vague or emotionally charged feedback, making it easier for the recipient to understand and act upon it.

How to Use the SBI Model for Effective Feedback

1. Start with the Situation

Begin by setting the context. Clearly define when and where the behaviour occurred so there is no ambiguity.

Example: “During yesterday’s team meeting when we were discussing the upcoming product launch…”

By anchoring the feedback in a specific moment, you ensure that the recipient can recall the event and relate to the discussion.

2. Describe the Behaviour

Focus on observable actions. Avoid subjective interpretations or assumptions about intent.

Example: “…you interrupted two team members before they could finish their points.”

Notice that this statement sticks to the facts rather than assigning motive (e.g., “You were dismissive” or “You didn’t care about their input”). Keeping it neutral prevents defensiveness, or the discussion turning into a disagreement about the interpretations of the behaviour.

3. Explain the Impact

Convey the effect of the behaviour on individuals, the team, or the organisation. This step fosters awareness and encourages accountability.

Example: “…this made it difficult for them to contribute their ideas, and it slowed down our decision-making process.”

By highlighting the impact, you help the person understand why a behaviour needs to change, rather than just telling them to change it.

Expand the model to SBI+

Developing the skill to say no requires self-awareness, clear communication, and strategic thinking. Here are practical strategies to help:

4. Pause

Allow the person time to reflect and respond, or if they don’t, ask them for their reaction / response.

5. Next steps

Agree together on the steps to be taken to get a better outcome next time. If they can come up with the next steps, even better, as they are more likely to buy into it, and it is easier to hold them to account if they don’t.

6. Follow up

Set a date to follow up, in a reasonable time frame. This gives the recipient of the feedback a clear timeline to implement what you have agreed – a short term goal to focus on.

Why the SBI+ Model Works

The SBI Model is particularly effective because it removes personal bias, keeps feedback focused on facts, and promotes a growth mindset. Here’s why great leaders use it:

Clarity – No room for misinterpretation; the person understands exactly what happened and why it matters.
Actionable Insights – Provides specific information that the person can use to improve.
• Encourages Open Dialogue – Reduces defensiveness and fosters a culture of learning and development.

Common Mistakes to Avoid When Giving Feedback

Even with the SBI+ Model, leaders sometimes fall into common feedback pitfalls. Here’s what to watch for:

Being too vague – “You need to be more professional” doesn’t provide enough direction. Use the SBI Model to clarify what professionalism looks like.
Focusing on personality or traits, instead of behaviour – Avoid statements like “You’re lazy.” Instead, describe specific behaviours that need improvement eg “You’ve been late to work three times in the last 2 weeks”.
Skipping the impact – Without explaining why a behaviour matters, feedback may not be taken seriously or acted upon.
Not allowing space for response – Effective feedback should be a conversation, not a monologue. Encourage discussion and questions.

In Summary – Feedback is a powerful part of a leader’s toolkit

Leadership isn’t just about making big decisions—it’s about helping people grow. The SBI Model provides a simple yet powerful way to give feedback that is clear, constructive, and impactful. When used consistently, it fosters a culture of trust, learning, and continuous improvement.

Just like Indra Nooyi demonstrated at PepsiCo, great leaders don’t just give feedback—they embrace it, act on it, and use it as a tool for positive change. Whether you’re leading a team, mentoring a colleague, or managing up, using the SBI Model will help you communicate effectively and drive meaningful results.

If you or your team would benefit from training or coaching around how to give effective feedback, or any of the other leadership, communication and soft skills required to develop outstanding leaders and high performing teams, please book in for a free, no obligation Discovery Session. Alternatively, you can email us at info@full-potential.com.au, or call us on +61 412 403 373. We’d love to chat with you!

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