5 Principle for connecting with your products, your customers, and your people

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BOOKCLUB
Leading The
Starbucks Way
Chapter 01-04

2. INTRODUCTION
The Starbucks Connections
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3. THE STARBUCKS CONNECTIONS
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Lessons from Starbucks leaders, managers and frontline partners
will teach you to build connections with those you serve to
effectively enrich your business and personal life

4. A LEADERSHIP BENCHMARK
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At 2008, Starbucks face a crisis as a cause from their frenzied
speed of expansion, decision to increase sales number, sliding
global economy, less frequent visits from loyal customer.
At its core, Starbucks leadership crafted a transition plan that
established a forward-looking vision that enhanced the company’s
established mission.

5. A LEADERSHIP BENCHMARK
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7 bold moves to focus on existing strength and identify innovations
and process improvement objectives:
1. Be the undisputed coffee authority
2. Engage and inspire our partners
3. Ignite the emotional attachment with our customers
4. Expand our global presence
5. Be the leader in ethical sourcing and environmental impact
6. Create innovative growth platforms
7. Deliver a sustainable economic model
Unlike the leaders of the proliferation of businesses that failed in
2008, 2009, and 2010, Starbucks leadership positioned the
company for enduring profitability and brand respect.

6. A LEADERSHIP BENCHMARK
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Leading the Starbucks Way looks at key strategies and tools that
leaders are deploying to achieve sustainable success.
The foundation for Starbucks leadership is reflected in terms like:
CONNECTION HUMANITY HUMILITY PASSION LOVE
“If we can infuse love, humanity, and humility on a global basis and
build it into a performance-driven organization, we are unbeatable.”
Howard Schultz

7. 5 LEADERSHIP PRINCIPLES
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1. Savor and elevate.
2. Love to be loved.
3. Reach for common ground.
4. Mobilize the connection.
5. Cherish and challenge your legacy.
Executing on these principles produces powerful bonds with
employees, customers, suppliers, and even noncustomers.
These operational and emotional bonds will help any leader achieve
sustainable profits, increase brand equity, and fuel online and offline
stories of loyalty and love.

8. PRINCIPAL 1
SAVOR & ELEVATE
#1 If You Don’t Have Passion for Your Product, Why
Should Your Customer?
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9. SAVOR & ELEVATE
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“Savor and Elevate” is a business principle that emphasizes the
importance of maximizing enthusiasm for the products,
services, and experiences your company provides.
It reflects the importance of helping your people autonomously
master product knowledge, develop strong emotional
connections to your products, and innovate timely solutions
and experiences that build on the strengths of your product array.

10. PASSION FOR YOUR PRODUCT
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Only passions, great passions, can elevate the soul to great
things.
DENIS DIDEROT, French philosopher
Employee passion for the product fuels the emotional engagement
of customers and facilitates sustainability
Starbucks leaders have produced diverse tools to help Starbucks
partners develop or deepen a genuine product passion.

11. TRAINING: SETTING THE STAGE THROUGH
KNOWLEDGE
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A large number of applicants seek employment despite not having
had a taste for the primary product the company sells.
New partners across the company do receive a strong introduction
to the significance, specialness, and importance of coffee.
Research suggests that effective staff growth and development
often follows a 70/20/10 approach, with 70 percent of education
coming from on-the-job experience and hands-on practice, 20
percent from mentoring and coaching, and 10 percent from a
formal curriculum.

12. REFLECTION #01
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13. CORPORATE RITUALS: CELEBRATION
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Corporate rituals “as events which communicate and reinforce desired
performance and values
One of the key celebration rituals at Starbucks—the coffee-tasting ritual.
When a store manager celebrates the first day with a new hire by preparing
a coffee tasting, that manager is producing an event that both
communicates the desired behavior of learning the unique flavor profiles of
coffee and demonstrates values that support coffee passion.

14. CORPORATE RITUALS: CELEBRATION
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This ritualization of coffee tasting is further supported by guidelines set for
employees throughout the company. New hires are encouraged to complete
a “Coffee Passport” within their first 90 days of employment.

15. CORPORATE RITUALS: COMMUNICATION
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Rather than providing messages that just describe the “what” and
“how” of their products, leaders listen for and share stories that
help connect partners to coffee farmers and the journey that coffee
takes before it is served at Starbucks.
Leaders will also define unique aspects of their culture and reinforce
their business’s broader purpose, particularly when the rituals are
supported by enriched experiential learning and a congruent
business strategy.

16. REFLECTION #02
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17. IMMERSIVE EXPERIENCES
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Starbucks leaders have taken a number of different approaches,
including having coffee farmers tour Starbucks stores and a rather
unusual program called the Origin Experience.
Selection for these regularly scheduled Origin Experience
opportunities is highly competitive, and most of the participants
come from customer-facing store-level functions.

18. CREATING STATUS FOR PRODUCT
EXPERTISE
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Leaders at Starbucks encourage the pursuit of coffee expertise
through a mastery- and social recognition–based approach, not
through a monetary or reward solution.
While the Coffee Master designation represents a sufficient growth
challenge for many Starbucks partners, the leaders at Starbucks
have created an additional level of coffee expertise referred to as a
Coffee Ambassador.

19. STRATEGY CONSISTENT WITH PRODUCT PASSION
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For all their effort to value coffee quality, passion, and knowledge,
there was a time in Starbucks history when the strategic decisions of
the leaders failed to support product passion.
Howard detailed a series of strategic moves that were made at the
senior leadership level in an effort to retain the “soul” of Starbucks.

20. REFLECTION #03
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21. CONNECTING CUSTOMERS TO PASSION
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While most customers won’t be moved to the point of seeking
employment with Starbucks, many will strengthen their relationship
with Starbucks and expand the frequency, depth, and breadth of
their purchases.
Increased visit frequency, wider product penetration, greater
customer engagement, consistent product sell-through, and
employee pride and professional development are enviable by-
products of igniting the passion of your team members.

22. PRINCIPAL 1
SAVOR & ELEVATE
#2 From Replicable & Consistent to Magical & Unique
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23. FROM REPLICABLE AND CONSISTENT TO
MAGICAL AND UNIQUE
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So, how does a company like Starbucks take a product that can
easily be commoditized and offer it in a way that produces
differentiation anchored to enduring relationships and personal
connections?
1. Define and communicate the desired and unique Starbucks
Experience.
2. Select individuals with the requisite talent to deliver that
experience consistently.
3. Train partners on the key pillars necessary to engage
customers routinely.

24. WHAT EXPERIENCE DO YOU WANT
CUSTOMERS TO HAVE?
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Leaders like those at Starbucks put customers, products, and
experiences at the purposeful center of their businesses.
Human connection is the magic at the core of the Starbucks brand.
In order to make the magic happen, Starbucks looks for prospective
partners who are authentically and consistently interested in others.
The key element in selection is observing and interviewing for
enthusiasm and service talent.

25. GUIDING EXPERIENCE DELIVERY
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At Starbucks, however, initial training dives quickly into courses like
“Customer Service Basics” and the “Starbucks Experience.”
During these training sessions, new hires are provided guidance on
what “customer experience” means at Starbucks, and they are
placed in positions where they can observe the service experience
from the customer’s perspective.

26. GUIDING EXPERIENCE DELIVERY
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The Starbucks customer vision statement reads:
“We create inspired moments in each customer’s day.”
To accomplish this objective, partners are encouraged to focus on
the following customer service behaviors:
1. Anticipate
2. Connect
3. Personalize
4. Own

27. REFLECTION #04
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28. CREATING THE ENVIRONMENT—KEEPING IT
CLEAN AND LEAN
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Starbucks leaders understand that the design of extraordinary
experiences involves a willingness to see the environment from the
customers’ perspective and to attend to the need states of core
customer segments.
Howard Schultz, for example, removed breakfast food items from
Starbucks stores until he could be assured that any negative smells
of food preparation did not intrude upon a key sensory element in the
coffee shop—the smell of coffee.

29. CREATING THE ENVIRONMENT—KEEPING IT
CLEAN AND LEAN
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Every contact point between your customer and your business
serves as an opportunity to engage customers through thoughtful
presentation.

30. REFLECTION #05
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32. PERMISSION TO BUILD ON AN EXPERIENCE
PLATFORM
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Customers not only will support your growth through that product
line but are also likely to explore other offerings you innovate in the
context of those core competencies.
For Starbucks leadership, this has meant a growth plan that
includes café environments serving other high-quality beverages—
enter the Evolution Fresh™ and Tazo® tea stores.

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35. PRINCIPAL 2
LOVE TO BE
LOVED
#1 IT’S A MATTER OF TRUST AND LOVE
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36. NO POINT IN SEEKING LOVABILITY IF YOU
AREN’T LIKABLE OR TRUSTWORTHY
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In his hierarchy, Maslow identifies biological and safety needs as
having primacy over the need for love.
In essence, Maslow suggests that humans have to answer the
question, “Am I safe?” before they will seek to answer the question,
“Am I loved?”
If customers view your company as being competent and having
integrity, you have created the environment for consumer trust.
That trust can set the stage for yet deeper levels of customer
engagement, such as brand passion or beloved brand status.

37. WATCH YOUR FEET
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Brand integrity is the result of leaders authentically striving to align
expectations and actions.
Striving to do “the right thing” is at the core of leadership excellence,
and, in today’s interconnected world, it involves both the public and
private behavior of leaders.
Albert Einstein suggested that success should be measured not only
through short-term profitability but also by morally considering the
betterment of others.

38. REFLECTION #06
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39. TRUST IN A CUP
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Customers don’t engage in service transactions simply to see how
friendly a service provider will be.
They want to have a functional need met, and if you treat them in a
way that engages them emotionally, you will be providing a
differentiating bonus.
All of these efforts culminate in consistent product presentation that
strengthens customer trust.

40. CONSISTENT AND BEYOND EXPECTATIONS
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Training materials communicate the impact of service basics and
the expectations that leaders have for consistent service delivery.
Starbucks service basics, leaders have set the expectation that
baristas will connect with customers to understand their needs
before making a product recommendation.

41. WAIT—THIS IS NOT WHAT I EXPECTED
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In circumstances in which products do not live up to consumers’
expectations, a critical moment of truth occurs.
Since complaints are opportunities to both re-engage customers and
demonstrate integrity, strong leaders look for ways to encourage
customers to share their concerns.
From the earliest phases of training, Starbucks partners are
provided with the resources and the autonomy to resolve customer
complaints or concerns.

42. REFLECTION #07
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43. IT’S TIME FOR PASSION AND LOVE
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If you communicate the importance of emotional value and you set
“beloved” or “passion brand” status as your destination, you can
derive a significant business advantage.
Graham Robertson, president of the brand strategy and coaching
firm Beloved Brands Inc., developed a brand love curve where
leaders self-assess consumers’ emotional connection in the context
of one of four categories

45. THANK YOU
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