starbucks: leadership

K R I S T I N S A M P L E

STARBUCKS: LEADERSHIP

STARBUCKS

• Established 1971• Started with one store in

Seattle• Today has more than 22,000

stores worldwide• Starbucks and CEO Howard

Schultz are getting a lot of attention in leadership, culture, and ethics

STARBUCKS & LEADERSHIP

• Starbucks awarded one of “Worlds Most Ethical Companies,” 8th year in a row• Ethisphere evaluates

companies in Reputation, Leadership & Innovation, Ethics & Compliance Program, Governance, Corporate Citizenship and Responsibility, Culture of Ethics

STARBUCKS & LEADERSHIP

• Schultz #29 on Fortunes “Worlds 50 Greatest Leaders”• Schultz #8 on Glassdoor’s

“Highest Rated CEO’s”• Received 93% approval

rate• Earned top 10 spot on an

employee rated survey of executives

HOWARD SCHULTZ: 7 LEADERSHIP PRINCIPLES

• Need the right people on your team• Returned as CEO in 2008• Had 10,000 managers go on 4

day conference in New Orleans, was chief communicator• His goal was to challenge &

inspire them• They came back more

energized than ever

1.) Hire the right people


• 22,000 stores globally that offer different coffee blends and foods• No matter what branch you

go to, will get the same quality product• Has goal of giving best

customer care service, including consistency of products

2.) Consistent in delivering products & services


• Gives employees more than just perks• Gives comprehensive health

insurance• Option to own stocks, even

part-time• Tuition benefits• Shifting Schedules• Listens to his employees

3.) Take good care of employees


• Believes every place has its own preference and practice, and designs every store accordingly

• Includes appearance and design

• Open to suppliers in diversified communities such as minority races, People with Disabilities, Veterans, LGBT, etc.

• Contributes to economic development

4.) Respect culture & encourage diversity


• Passion is building a company focused on treating people with respect and dignity

• This is the vision of Starbucks

• Mission aims to give customers a place where to meet up with friends, hold meetings, do work, and relax

• Want it to be more than just a place to get coffee

5.) Has a mission and vision


• Company has partnered with organizations to reach out to its markets

• Believes in finding right team to partner with

• It will be easier to build brand awareness and achieve goals

• Barnes & Noble, have many stores inside. Customers can enjoy their book over coffee

• Apple, can download Starbucks’ playlist on iTunes

6.) Importance of Partnerships


• Customers and employees are pillars of a business• Baristas give personal touch to

customers• Employees fix mistakes and

replace orders• Employees have ideas to offer

and it pays to listen to them• Frappuccino was invented by

one of his employees

7.) Knowing employees & customers

TRANSFORMATIONAL LEADERSHIP

• Transformational leaders create a relationship between leaders and followers the helps followers reach their full potential and can transform both.• Schultz principles of leadership and his way of

running Starbucks presents him as a transformational leader…


• Intellectual Stimulation: Challenge status quo, encourage followers to be creative, explore new ways, and new opportunities.

• Schultz listens to his employees. Believes they have ideas worth being heard.

• Challenges management, asks for creativity and innovation, like when he sent them to New Orleans.

• Can share ideas and views


• Individualized Consideration: Offer support & encouragement to followers. Supportive relationships by keeping lines of communication open. • Schultz principle #3 is taking

good care of his employees. He offers them many benefits.• Instead of punishing or ignoring

a worker for interviewing with New York Times about work schedules, her concerns were heard and resolved.


• Inspirational Motivation: Clear vision, shown to followers. Able to help them experience same passion & motivation.• Schultz inspirational motivation

is clear in his principle and the way the world is following and awarding his leadership • Spreads Starbucks’ mission,

vision, & values


• Vision is to build a company focused on treating people with dignity & respect• Mission Statement: To inspire and nurture the

human spirit – one person, one cup and one neighborhood at a time.• Mission is to create a place for people to do more

than just get coffee


“With our partners, our coffee, and our customers at our core, we live these values:”• Creating a culture of warmth and belonging, where

everyone is welcome.• Acting with courage, challenging the status quo and

finding new ways to grow our company and each other.• Being present, connecting with transparency, dignity and

respect.• Delivering our very best in all we do, holding ourselves

accountable for results“We are performance driven, through the lens of humanity.”

TRANSFORMATIONAL LEADERSHIP• Idealized Influence: Serve as

role model. Followers trust and respect them.• Schultz has received attention

from many to commend his leadership.• 93% approval rate is amazing.• On list of Worlds 50 Greatest

Leaders• Top Rated CEO• His employees are happy to be

lead by him.

WORKS CITED

Chris, J. (2015, August 30). 7 Howard Schultz Leadership Style Principles - Joseph Chris Partners. Retrieved March 31, 2016, from http://www.josephchris.com/7-howard-schultz-leadership-style-principles

Starbucks and Howard Schultz Recognized for Leadership. (2014, March 21). Retrieved March 31, 2016, from https://news.starbucks.com/news/starbucks-and-howard-schultz-recognized-for-leadership

WORK CITED

Starbucks Corporation. (2016). Mission Statement. Retrieved March 31, 2016, from http://www.starbucks.com/about-us/company-information/mission-statement

The Leadership Summit. (2014). Retrieved March 31, 2016, from https://www.theleadershipsummit.co.za/events/speaker/howard-schultz/

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