Starbuck Leadership

Howard Schultz is universally recognized as a transformational leader as he transformed a small budding coffee company in Seattle to the coffee giant that dominates every part of the world. He has successfully communicated to, not just his “partners”, but the world about Starbuck’s vision, which is to “Create a culture of warmth and belonging, where everyone is welcome…challenging the status quo…being present, connecting with transparency, dignity and respect…holding ourselves accountable for results”9.

Schultz vison is to create a company based on the concept of “Performance Driven through the lens of humanity”8. A company that cares not only about it’s employees but the world about it while being performance driven. A people-centered company, where the store employees are cherished partners with stakes in the company1. Schultz implemented town hall meetings to make sure that the managements have regular interaction with the people on the front line, hearing their concerns and opinions, treating everyone with respect and forgiving when failures occur; after all, Schultz is trying to make the company more human in face of social issues and it can only be human when its employees are seen and respect as one, and not feel “disposable”2. He grew up in a struggling environment and that background is not just his motivation to emphasize on “doing good”1 in light of capitalism, but also part of what makes him so relatable to everyone from “other chief executives to young black and Latino adults trying to find their first jobs”3.

Schultz listen to his employees and has enact several initiatives in respond. In 1988 he extended health benefits to part-time workers, stock shares in 1991, fair-trade coffee in 2000, and the College Achievement program where tuition is fully covered in 2015.2 There are also plans to take care of out of work veterans and young-adults, a social problem in America, by planning to hire 10 000 veteran and spouse by 2018 and partnering with other corporations to conduct job-fairs in large cities2.He also travels extensively, visiting Starbuck manager in different countries on a weekly basis9, getting to know every one of his employees and bringing his humanist approach into his work. To really embrace the vision of inclusiveness and equal opportunities for all, Starbucks’s store in Malaysia is first of its kind to be operated by deaf partners4. In order to alleviate stress in the workplace, Starbucks has moved away from the employee performance rating system and instead opted for an on-going conversation with partners4. This in turn, builds the trust the partners have in Schultz that he means to do good, and true to his vision. This is not just socially good for the company but also economically. Starbucks has found out why they are excelling in performance, because they have “successfully linked to percent of store partners in a given store who think we’re living up to our value to the performance of that store”2.

Transformational leaders are agents of change, and Howard Schultz encourage advocate for reinvention with the mindset of “The initiatives may not all work, the trick is to admit a blunder and get out fast”5at the workplace. He is expanding new stores abroad in China and India while experimenting with designs and alcoholic menus in the U.S5. Establishing kiosk and drive-through made of reclaimed steel shipping containers5, cooperating with Chinese ecommerce, T-Mall, to enable digital gifting of Stabucks7, and producing, distributing music CDs in store, “transforming how music is discovered and delivered to consumer”9. Schultz is not one to oppress opposition within his own ranks, as evidently said by Hobson, Starbuck executives, “There are plenty of time we’ve disagreed and said no to 【Schultz】”2. Because sometimes there are successful business ideas in spite of Schultz, and all decision from Schultz is not final since he “can always be convinced”3.

When he came back as CEO in 2008 to revive the Starbuck brand, instead of “shutting 88 U.S stores and laying off 4000 employees, he got rid of most top executives”5. Schultz took “10 000 manages to New Orleans to build morale, closed all the U.S stores for half a day to relearn how to make espresso5”, by the end he has successfully turned the company around with unconventional decisions while sticking true to his values. Schultz has been consistently leading with the same ideals and vision all along, and he instilled that into Starbucks by rewarding people not stores. For example, at a town hall meeting when asked by manager of 10 years, if Starbucks had any special plans for advertising the opening of its 10,000th stores; Schultz said no, and then said “You and I should get together to celebrate your anniversary with us. That’s an unbelievable milestone!”9 He recognized the people who works for the company and celebrate them, keeping the human in the humanist approach, alive and well.

Schultz Managerial leadership

Schultz is not a task-oriented manager, and he knows his limit. Therefore, he hires the best people to do that for him, a COO Kevin Johnson (Formerly Microsoft), Chief strategist Matt Ryan (Formerly Disney) and many more as “leadership doesn’t have to come from Howard on every topic”3.

The CEO of Starbucks is more likely to lead with a people-oriented leadership style. He is always concern about his employees needs by encouraging town hall meeting to hear concerns3, implanting new espresso technology to “reduce repetitive stress and injuries”9, and recognize employee milestones and achievement by investing in them1.