Steve Jobs is Fortune’s “CEO of the Decade.” As my colleague Adam Lashinsky says in the current issue’s cover story, Jobs has created more than $150 billion in shareholder wealth–meanwhile, “transforming movies, telecom, music, and computing, and profoundly influencing the worlds of retail and design.”

I’ve met Jobs just once, three years ago, when he came to Fortune’s offices here in New York. I remember, he walked into our conference room in his uniform–the black turtleneck, the jeans, the sneakers–and sat down beside me. What could be cooler? For 90 minutes, he demoed a sleek little gadget that was weeks away from launch. Even the most jaded journalists were dazzled. It was the iPhone.

To help report the Jobs cover package, I walked over to Avon (AVP) and interviewed Chairman and CEO Andrea Jung. She didn’t know Jobs well until early last year when he asked her to join the Apple (AAPL) board. Now she’s the only female director, with six guys. She’s also on the board of another famous company founded by a famous creative guy: Thomas Edison. That’s General Electric (GE). So Jung has a front-row seat to how power works, and innovation as well.

Here’s Jung’s first-person take on Jobs.–Patricia Sellers

Steve called me one day two years ago and said, “I’m in the city, Can I come up to your office?” He sauntered in, wearing his black turtleneck, jeans and sneakers. He showed me the new shuffle. We had had some conversations before. I was a huge admirer of the company. There isn’t another consumer business like Apple. About six months later, I joined the Apple board.

All of us would like to think that we’re as focused on the consumer and the end-user experience as Steve is—that maniacal passion for the best phone, the best mp3 player, the best PC, the best retail experience.

Steve is singularly passionate about making products that people love and understand. He does it in a very black and white way, while the rest of the world gets caught up in the gray–or caught up in themselves. He is, on the one hand, the most simple and clear thinker. I so often think, ‘It sounds so simple.’ But he’s taking on things that are extraordinarily complex and arguably risky.

He breaks down barriers. If you have that disruptive vision, you don’t look at historical facts to make a new future.

Steve refuses to compromise on integrity or the consumer experience for the sake of commercialism. He’s laser-focused on getting it right. It’s a great lesson in this quarter-to-quarter world. I leave Apple board meetings thinking, ‘I’ve got to do a better job.’

The board is small—seven directors–smaller than most boards, including Avon’s. There is an extraordinary openness in the board room, and it’s incredibly interactive.  Any board member would feel free to challenge an idea or raise a concern.

He’s a real listener and wants your opinion. He’ll call on a Sunday—like one day he called to let me know that they redid the store in Soho and wanted to know what I thought of it. My son will look at my iPhone and say, “Steve Jobs is calling!” Not many CEOs have that effect on 12-year-olds.

I’ve been really impressed by his humility—his willingness to talk about mistakes or things that need to be corrected. Or things they wish they hadn’t done. It’s been not only gratifying, it’s been great. I feel like I’m part of history being made.

I was not in Germany for the fall of the Berlin Wall 20 years ago today. But I got a front seat to business history-in-the-making three months later, when I went to East Germany to report a story about Coca-Cola’s (KO) aggressive ramp-up in Europe following the Communist collapse.

It seems like yesterday.

Talk about a capitalist invasion. I remember how euphoric–genuinely euphoric–East German consumers and shop-owners were to suddenly have access to not only Coca-Cola but “luxuries” like bananas. Bananas! East Germans were, until the Wall came down, practically as unfamiliar with bananas as they were with Fortune magazine.

The visit was surreal, in so many ways. I flew on the Coke plane (no shame in corporate jets back then) on a glorious sunny Sunday from Weimar, a gray city in East Germany, to Nice, in France. Polly Howes, the young and eager Coke PR woman, and I then helicoptered over the deep-blue Mediterranean to Monte Carlo. Coke’s top brass was convening its senior managers and bottlers at Monaco’s elegant Hotel de Paris.

Walking into the bustling lobby, I ran into Don Keough, Coke’s president and Roberto Goizueta, the company’s CEO, who was wearing canary-colored trousers. What a scene! It was stranger still since Goizueta, whom I had come to know, was a quiet, cerebral chemical engineer. Not the yellow pants type of guy. But he was celebrating that day. Here was a man who grew up in Havana and fled Cuba in 1960–now navigating Coca-Cola, the icon of global capitalism, into new markets, now free and open.

Coke’s “speed and seat-of-the-pants decision-making,” as I called it in my 1990 Fortune story, seemed to be just right at the time. Now, 20 years later, we can see how right Coke’s aggressive response really was. Coke’s market share of carbonated soft drinks in Germany stands at 39%. Pepsi’s (PEP) share is 6%, according to Beverage Digest. Consumption of Coke products has risen significantly. And one fellow who was, back when the Wall fell, key to Coke’s European expansion, has risen as well. He is Muhtar Kent, now Coke’s chairman and CEO.

Here’s an excerpt from my 1990 story, “Coke Gets Off its Can in Europe”:

[Coke's bottling plan in] Dunkirk increased production in a flash after the Berlin Wall fell last November. ”If it hadn’t been for this plant, we wouldn’t have been able to move into East Germany so quickly,” says Goizueta. Coca-Cola has left competitors in the dust in East Germany, and the chairman predicts that annual sales there should reach 100 million cases — around $1 billion at retail — in two years or so.

Coke’s success in East Germany shows the increasing importance of speed and seat-of-the-pants decision-making. Heinz Wiezorek, 51, president of the German division, was traveling in Rochester, New York, last November when he saw the Wall fall on TV. He called his West Berlin bottler and said, ”Get Coke out there!” Border crossers in their sputtering Wartburg and Trabant automobiles received free cases of Coke, while East Germans on foot got six-packs and single cans. At one checkpoint, delivery trucks dispensed over 70,000 cans in a few hours. To Wiezorek, diving in fast was crucial. ”There won’t be two colas in restaurants and small outlets,” he says. ”They’ll choose the one that’s first in the market.”

One day in January while strolling East Berlin’s Alexanderplatz, Wiezorek and Coca-Cola senior vice president Doug Ivester (since promoted to head Coca-Cola USA) made a quick, risky decision to accept East German currency, even though they then couldn’t convert it into Western money. Coke and other companies selling in soft-currency markets instead have almost always countertraded, exchanging their goods for local ones, then selling the local products in the West for hard cash. Coca-Cola plans to invest $140 million in East German bottlers, which will package and sell Coke locally.

Ivester, by the way, went onto great success, as Goizueta’s No. 2. After Goizueta died of lung cancer in 1997, Ivester moved up to CEO–and lasted just two years before the board pushed him out. After a couple of poor CEOs and years of disappointing results, Coke finally got back on track under chief Neville Isdell. And now Kent is steering Coke aggressively again.

“The age of thrift is here. You have to do innovation at both ends–premium innovation and innovation for the value consumer.”

– PepsiCo (PEP) chairman and CEO Indra Nooyi in a recent Q&A with Pattie Sellers. No. 1 on Fortune’s 2009 Most Powerful Women in Business list (for the fourth year in a row) Nooyi today delivered another quarter of solid earnings. PepsiCo beat analyst expectations with net income of  $1.72 billion, up 9% over last year.

Nooyi is relentless in reinventing a company that many others might have thought didn’t need reinventing. Investing in healthier products, reorganizing her core team, spending billions to acquire Pepsi’s two largest bottlers…the list of changes go on and on. “Any capital we invested in the company has to be rethought,” Nooyi said in the interview, noting, “The bottom line is: Through this downturn, you have to increase your investment, not cut back.” She added, “Now is a wonderful time to look for disruptive models.”

Click here for a series of video clips from Pattie’s interview with Nooyi. –Jessica Shambora

Hey, Starbucks lovers–and critics too! Have you taken the Starbucks Via Taste Challenge? The drip vs. instant coffee faceoff began this morning in Starbucks (SBUX) stores across North America.

If you want to know the science (it involves micro-grinding) behind Starbucks’ new instant, check out this story today by my Fortune tech-writer colleague Michael Copeland. He talked with Andrew Linnemann, Starbucks’ director of green coffee quality and operations, whose mission these past two years has been to make Via worthy of Starbucks branding.

The mission is incomplete, as I see it: I did my own taste tests earlier this week and gave Via lukewarm reviews. So, what do you think of Via?

P.S. To read a barista’s advice to Starbucks CEO Howard Schultz, click here.

Addendum: The Starbucks Via Taste Challenge kicks off Friday and runs through Monday in Starbucks stores across the U.S. and Canada. But I got a head start Tuesday morning, as I noted in the post below: I disagree with CEO Howard Schultz’s “guarantee” that you won’t be able to tell the difference between Starbucks’ drip and its new instant (or “ready brew,” as he calls it). Starbucks Bold drip handily beat Bold Via in my taste test–for what it’s worth. This morning (Wednesday) at my local Starbucks, I tried the lower-test brews: Pike Place drip vs. Columbia Mild Via, side by side. Verdict: Via wins. Then again, what true coffee lover loves Pike Place?

“We’ve literally cracked the code on being able to replicate a cup of Starbucks coffee that I can guarantee you would not be able to tell the difference.”

- Starbucks (SBUX) CEO Howard Schultz on his entry today into the $20-plus billion instant coffee market. I tried Via, Starbucks’ new product, this morning: The barista served me a cup of the new instant bold brew and a cup my usual bold drip coffee, and I drank them side by side.

Howard, I have to tell you, they do taste different. Your new Via lacks the burnt taste that causes some people to call Starbucks “Charbucks.” I actually prefer the burnt taste of your bold drip. Via seems to me to be short on flavor. Though the barista insisted that the regular Via is better than Pike Place drip.

It’s interesting that Starbucks is introducing its value brand, Via (“less than a dollar a cup,” notes Schultz in the video below), the same week that the guy who tried to balance value and quality and got the boot, Jim Donald, landed a new CEO job elsewhere. Former Starbucks chief executive Donald, whom Schultz replaced with himself in January 2008, has been under the radar for almost two years (roaming, rowing, speaking, teaching, and serving on boards), but he just accepted a job as CEO of Haggen, a food and drugstore chain based in Washington state. (Haggen’s website claims that it was the first grocer to have an in-store Starbucks Coffee shop, in 1989.) Donald’s earlier career was in grocery–senior posts at Safeway (SWY), Wal-Mart (WMT), and Pathmark–so he’s going back to his roots.–Patricia Sellers

by Jessica Shambora

Photo courtesy of Avon

Some say patience is a virtue. Others say that if you want something, you have to go for it. This is the tactic Avon (AVP) president Liz Smith is taking, as the company announced today that she will step down from her post on October 30, to pursue a CEO job elsewhere. Smith, No. 29 on Fortune’s Most Powerful Women list, will not be replaced, and the global business units she oversaw will now report to Avon CEO Andrea Jung, No. 5 on the list.

Smith won’t reveal who she might be talking to about the top job. But don’t be surprised if it’s a company ripe for overhaul. There are plenty of outfits that could use the help and Smith is known for seeking challenges. “It’s really always been in my DNA,” she told Fortune on Thursday, following the news of her plans to leave Avon.

Prior to her five years at the cosmetics company, she spent 14 years at Kraft (KFT). In 1996 she left a lucrative position running the Jell-O brand to transfer to a small U.S. import business related to a new European acquisition. Thanks in large part to Smith, the funny little mints called Altoids are now a household brand name.

“What has guided my career is that it’s about never settling for being less than inspired. What I’m looking for is to find an organization that I can bring a transformation to. I’m not a big believer in checklists and molds,” Smith said.

Many expected her to remain in the number two job until Jung retired. But Smith, 46, seems to have realized she would be in for a long wait. She may also be following the model set by Jung, who became CEO of Avon a decade ago at age 41.

“I’m 51, not 61, as it relates to my time horizon,” Jung told Fortune, about her commitment to staying at Avon for a while. “It’s bittersweet. It’s difficult to lose someone of Liz’s caliber, and these five years have been incredible.”

With Smith as her deputy, Jung has led a successful turnaround effort at Avon. The company hit over $10 billion in sales last year, and the stock, at $32, has more than doubled since its March low.

“Liz has brought extraordinary change to company as it relates to operating acumen, a new lens of how to look at the business, and how to drive growth and profitability,” Jung says.  “Both of us have groomed the transformation. We couldn’t have done it without her.”

Meanwhile, “extraordinarily visionary” is how Smith describes Jung. “You need business acumen, and you also need that something that’s about inspiring and bring out the best in people.”

Smith was among six women Fortune profiled in a 2007 piece, “One step away,” about rising stars on track to become Fortune 500 CEOs. Only Schering-Plough’s (SGP) Carrie Cox remains in her same job (and not for long as Merck’s (MRK) acquisition of Schering is expected to close by year-end). For more on the other women in the story, click here.

Smith hasn’t said she’s set on becoming the Fortune 500’s 16th female CEO. But Jung is convinced she can handle the job.

“I feel proud that I’ve been a part of helping Liz get to this next stage in her career, and I look forward to seeing her on the list of female Fortune 500 CEOs,” Jung says.

by Jessica Shambora

The 2009 Fortune Most Powerful Women in Business list is out today. You can find the 50 women, ranked in order, here.

Topping our charts: Pepsico (PEP) chairman and CEO Indra Nooyi. She’s been No. 1 in our rankings every year since 2006, when she ascended to the top job.

Last week, Nooyi sat down with Pattie and talked about leading a $43 billion global corporation in the “age of thrift,” as she calls this challenging era:

by Jessica Shambora

We’re toiling away on this year’s Fortune Most Powerful Women in Business list, due out September 10. Anything can happen up to the minute we go to press, and this news today caused us to shuffle those yet-to be-unveiled rankings: Procter & Gamble’s (PG) Melanie Healey is moving up to head the company’s enormous North American business, effective October 1.

No. 37 on last year’s MPWomen list, Healey currently heads global feminine & health care, a $9 billion business that includes Tampax, Vicks and Prilosec OTC. Her new purview brings in 40% of P&G’s total revenue. That’s $32 billion in sales.

Actually, Healey, 48, was destined to be a global operator. She was born in Rio de Janeiro to a British father and a Chilean mother. She went to college in the U.S.–graduating from the University of Richmond–but began her career back in Brazil with  S.C. Johnson and then Johnson & Johnson (JNJ). She joined P&G in 1990. Over the next 11 years until she got worldwide responsibilities, she helped build the company in Brazil, Mexico and Venezuela.

Healey’s promotion follows a raft of management changes at the consumer-goods giant. In March, Susan Arnold, president of global business units and No.7 on Fortune’s 2008 Most Powerful Women list, announced she was leaving. She was a contender to succeed CEO A.G. Lafley. Soon after came the news that COO Robert McDonald would replace Lafley. That transition happened in July.

Healey’s promotion, says P&G spokesman Paul Fox, is simply part of the company’s leadership development program. (She’s swapping jobs with Steven Bishop, who held the top North America post and will now run global feminine care.) Clearly, though, Healey’s new job sets her up to be part of the next generation of P&G leadership.

Whatever the future holds for her, Healey has a claim to fame that’s practically unmatched. Last year at a late-night bridge tournament at the  Fortune Most Powerful Women Summit, she beat Warren Buffett.

by Jessica Shambora

If 2009 has a buzz word, it’s “transparency.”

The consensus is that we got into this mess because a lot of people didn’t know what they were signing up for: adjustable rate mortgages, arcane investment vehicles, credit cards with hidden fees. People didn’t know because the products were too complicated to understand. Or they weren’t transparent. Or both.

We’ve written about this here on Postcards: Sallie Krawcheck, ex-Citigroup (C) and now the boss of Bank of America’s (BAC) global wealth and investment management arm, rails against this racket of making financial products too complicated. (“If you can make them complex enough, then it’s difficult to copy them,” she says, explaining big business’s motivation). She calls for greater simplicity and transparency to level the playing field for consumers and investors.

The Internet can help level the playing field too. Last week, I met with the Peter Pham, the CEO of BillShrink.com, a Redwood City, Calif.-based start-up that aims to bring transparency to all your hard-to-figure-out bills. Research shows that 80% of people overpay for credit-card and cell-phone services. BillShrink claims to have found savings of $225 million for the site’s 650,000 U.S. visitors in July.

Pham, who was an early employee and head of biz dev at Photobucket, a photo sharing site that News Corp. (NWSA) acquired in 2007, explains the appeal: “The idea is that you don’t have to ask yourself when you get your bill, ‘Am I getting ripped off?’”

Compare mobile phone plans at BillShrink.com

BillShrink, which raised $8 million from Bessemer Venture Partners and Trinity Ventures, started chasing the problem last year, focusing first on cell phone bills. You might have seen T-Mobile (DT) spokeswoman Catherine Zeta-Jones on TV, offering wireless customers “mobile makeovers.” Those makeovers come courtesy of BillShrink.

Using algorithms that monitor more than 10 million wireless plan combinations, BillShrink analyzes your phone bill to tell you which plan and phone give you the best value. BillShrink provides the service to you for free. The company gets a commission for its referrals–which, CEO Pham vows, are unbiased.

If you try BillShrink, you’ll get all kinds of data about your cell-phone behavior. For example, I learned that 72% of my minutes are spent calling the same five numbers. (You lucky people know who you are.) I also learned that I talk most often at 8pm (when I’m walking home from the subway after work).

After it offers this analysis, BillShrink gives you a list of cell-phone plans and shows you how much you’ll save by switching, taking into account the cost of breaking your contract with your current carrier. It turned out that based on my habits, T-Mobile does have the best plan for me. But as soon as I used the filters to tell BillShrink that I have an iPhone and am therefore married to AT&T (T), I got word that I was already on the best plan.

Eager to tap new markets, Pham has expanded BillShrink into tracking more than 200 credit cards, to make sure you’re not getting taken advantage of there. The BillShrink site has a “Credit Card Bill of Rights” that reflects new credit card legislation (some went into effect last week) and tells you if your cards are complying.

A “gas station” comparison tool is in beta. Next up: Savings & CDs. BillShrink won’t stop trying to help you until you understand exactly what you’re signing up for. Making the right choices from there is all up to you.

Home Depot (HD) hammered it home this morning–earnings beat expectations, and the stock is up 3%, to just under $27. Nice surprise after Lowe’s (LOW) disappointed yesterday. The No. 2 home-improvement retailer reported a 19% profit dip in its second quarter and, even more worrisome to investors, a 9.5% decline in same-store sales.

So what is Home Depot, the market leader, doing right? The new Fortune, hitting newsstands this week, delivers some intelligence on that. My colleague Geoff Colvin did a comprehensive interview with Home Depot CFO Carol Tome, who has seen it all. I remember when Tome joined Home Depot from Riverwood International Corp., a packaging and paper products company, 14 years ago. (I was a student of Home Depot back then.) We’ve followed Tome via our Most Powerful Women tracking and watched her weather the tumult as the mega-retailer has gone through four CEOs. Tome has worked for Bernice Marcus, Arthur Blank, Bob Nardelli, and Frank Blake.

Now Blake is Home Depot’s chief, and Tome has an expanding purview. (She’s also on the UPS (UPS) board, where she chairs the audit committee, and last year she joined the board of the Federal Reserve Bank of Atlanta, where she’s deputy chair.) Blake and Tome and their team are doing a lot of smart things. Since you probably don’t yet have your new Fortune in hand and since the Tome interview won’t be on Fortune.com and CNNMoney.com until Thursday, here’s a preview of what the savvy survivor says about “Renovating Home Depot”:

Recognize what you’re good at. “We have a three-legged strategy, and you will recognize this from Jim Collins’ book Good to Great. What are we passionate about? We are passionate about our customers. What are we the best at? Product authority. And what drives our economic engine? Productivity and efficiency. It is no longer driven by square-footage growth. We’re still going to open stores–we’re opening 13 stores this year. But it’s not about that any longer. It’s about how do we get more sales per square foot in the existing stores.”

Rethink your people strategy. “We introduced something we call power hours inside our stores. In the hours when traffic is heaviest, we stop all activity that is not customer-facing–pack-down activities, say–and spend 100% of our time taking care of customers…Even if you’re in the receiving area, if you’re in the vault, you come out on the floor.”

Remember that  the devil is in the details. “The professional contractor is a very important customers to us–3% of our transactions and about 30% of our business. We serve coffee at the pro desk. By changing the brand of coffee–not stopping the coffee, because coffee is important–but by changing the brand, we will save our company $500,000. It doesn’t take too many $500,000 decisions to make a penny per share.”

P.S. Credit Suisse (CS) analyst Gary Balter today reaffirmed his bullish view and raised his estimates on Home Depot, noting that HD’s U.S. quarterly same-store sales, while down 8.5% company-wide and down 6.9% in the U.S., beat Lowe’s for the first time in memory. Guess that cheap coffee isn’t turning off too many Home Depot customers.