building & sustaining a culture of trust the starbucks story dave pace evp, partner resources...
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Building & Sustaining a Culture
of TrustThe Starbucks Story
Dave PaceEVP, Partner Resources
Starbucks Coffee CompanyOctober 3, 2006
Building and Sustaining a Culture of Trust
October 3, 2006 2
Discussion Framework
• The Crisis of Trust
• The Starbucks Story
• The Evolving Role of HR
• Q&A / Discussion
October 3, 2006 3
Building and Sustaining a Culture of Trust
Overview
• Institutions are facing a crisis of trust
– Business
– Government
– Sports
– Religion
Building and Sustaining a Culture of Trust
October 3, 2006 4
Overview
• However, trust is at the foundation of exceptional performance
– Risk-Taking
– Accountability
– Service
– Creativity
– Continuity
October 3, 2006 5
Building and Sustaining a Culture of Trust
The Challenge
• How can organizations build and leverage trust as a competitive advantage?
• What is the role of Human Resources in supporting this movement?
Building and Sustaining a Culture of Trust
October 3, 2006 6
The Starbucks Story
• Founded in 1971 / In current form since 1986
• Fiscal year 2005 revenues - $6.4 billion (+20%)
• 36 countries
• 11,000+ stores / opening 5 per day
• Over 130,000 partners / Hiring more than 200 per day
• Stock has grown 6,500% since going public in 1992
October 3, 2006 7
Building and Sustaining a Culture of Trust
The Starbucks Story
• Our business is multi-faceted• Retail – the Starbucks you know• Manufacturing – 4 roasting plants around the
world• Consumer Products
– Grocery– Ice Cream– Ready-to-Drink– Liqueurs
• Entertainment– Music– Film
Building and Sustaining a Culture of Trust
October 3, 2006 8
The Starbucks Story
• Our Work Environment– Fortune Most Admired Companies– Fortune 100 Best Places to Work– World Class engagement as measured by Hewitt &
Gallup– Astonishing employee involvement in communications– Broad based support for our partners
• Healthcare
• Stock Options
• 401K Match
• Tuition Reimbursement
• ESPP Discounts
• Partner Connection Clubs
• CUP Fund
October 3, 2006 9
Building and Sustaining a Culture of Trust
The Starbucks Philosophy
• We don’t do these things for our partners because we are a successful company …
We are a successful company because we do these things for our partners
Building and Sustaining a Culture of Trust
October 3, 2006 10
How do we bring it to life?
• Define what you stand for- Our Mission and Guiding Principles
• Communicate it broadly and often- Leadership Conferences
• Use it as a decision filter- What you don’t do is as powerful as what you do
• Allow your organization to hold you accountable - Mission Review
• Measure your progress- Partner View Surveys
October 3, 2006 11
Building and Sustaining a Culture of Trust
Making It Global
• Trust travels
• Values travel
• Defining a Best Place To Work
• Flex on the tactics, not on the values
Building and Sustaining a Culture of Trust
October 3, 2006 12
Fragility
• Trust is an easily violated relationship
• Actions must be consistent with words
- Labor Hours
- Apron Pockets
- Facility Maintenance
• Recovery is not impossible, but it takes a long time
October 3, 2006 13
Building and Sustaining a Culture of Trust
The Evolving Role of Human Resources
• The function is overly fixated on being a “Strategic Partner”
• Many in the function stop there
• Must be equally balanced with “Employee Advocate”
• Once at the table, advocacy is more critical
• Focus on enabling, not controlling
Building and Sustaining a Culture of Trust
October 3, 2006 14
Summary
Trust is possible, but it’s hard
It requires you to be humble and stay humble
The benefits are substantial