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Howard Schultz by Nitin Sharma

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Howard Schultz by Nitin Sharma

  1. 1. Howard Schultz: A Total LeaderTotal Leadership: Spring 2013Nitin Sharma
  2. 2. Framing the PurposeWhat business are we in?
  3. 3. Framing the Purpose“Very early on, I realized that …We are NOT in the Coffee Business servingPeople,We are in the People Business servingCoffee”
  4. 4. Background• Born 1959. German Jewish family.• New York City projects. Poverty.• First in family to go to college• Professional: Xerox >> Hammarplast >> Director of Marketingat Starbucks• The famous buying trip to Milan. Coffee culture sparks the idea• Trying to convince managers to scale the concept, met withresistance• Leaves to start own coffee shop, later buys Starbucks in 1984• The rest is history: Biggest success story in retail• 2000: Stepped back. Starbucks loses its way….• 2008: Back as CEO to lead a revival
  5. 5. Episode 1: Living Personal Stories at WorkWhy be the First American Company toProvide Health Insurance to Full-Time ANDPart-Time Workers (total of 200,000+employees)??• “My inspiration comes from seeing my father broken from the thirtyterrible blue-collar jobs he had over his life, where an uneducatedperson just did not have a shot”• “On the day in 1987 that Schultz bought a local business in Seattlecalled Starbucks, he held an all-employee meeting. He had threetalking points: “1. Speak from my heart.2. Put myself in their shoes.3. Share the Big Dream with them.”• “A company can grow big without losing the passion andpersonality that built it, but only if it’s driven not by profits but bypeople . . . The key is heart. I pour my heart into every cup of coffeeand so do my partners.”
  6. 6. Episode 2: Deriving Strength from Family andSelf Domains• Maintaining a Very Healthy Lifestyle:• Diet, Kinetix, Biking, Sunday basketball• From Self >> Employees >> Customers• Stepping back in 2000• Self: Other endeavors• Family: Spending more time with family• Marriage, Kids and Privacy• Very happy marriage with Sheri Schultz, 2 kids• Dedicated time, philanthropic activities together• Separation of domains
  7. 7. Episode 3: Community at the Heart ofStarbucks’ Turnaround• “I decided--against the advice of many people at the time, because it had ahigh cost attached to it--to take 10,000 store managers to New Orleans. Iknew that if I could remind people of our character and values, we couldmake a difference.”• “Our efforts represent the single largest block of community support in thehistory of New Orleans, contributing more than 54,000 volunteer hours andinvesting more than $1 million in local projects like painting, landscaping,and building playgrounds. …• “If we hadnt had New Orleans, we wouldnt have turned things around. Itwas real, it was truthful, and it was about leadership.”
  8. 8. Episode 4: Voicing Values• “It is not an economic decision," he said. "The lens in which we aremaking that decision is through the lens of our people. We employ over200,000 people in this company, and we want to embrace diversity."• “If you feel, respectfully, that you can get a higher return than the 38percent you got last year, it’s a free country. You can sell your shares ofStarbucks and buy shares in another company. Thank you very much.”

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