As a regular Starbucks customer, I was intrigued to pick up this book about the company's return from the brink of disaster. But my real interest lay in gaining insight into the author himself, CEO Howard Schultz, the leader who engineered both the rise of the company and it's amazing comeback.
I learned very quickly in the opening chapters that Schultz has an ego.
A big one. The book's flaw is that it is so self-serving. But once you get past all that, the book is a good read - interesting and at times illuminating.
Schultz's story is really about Starbucks getting back to it's core
values. It is not a "company that sells coffee to people", but a "company that brings people together for quality coffee." A place
where the "partners" (what Starbucks calls their store employees) know your name. A community with every cup. In its drive toward huge success in terms of profits, the company had lost its way and was now feeling the consequences. Schultz's path to success involved restoring that core vision, and taking practical steps toward realizing it.
Some of the insights into a strong leader stayed with me (the captions are my own)
- "Remember your most importance audience- the people who work for you." One might be tempted to think that Schultz would see customers as his most important audience. Not the case. Schultz knows that
no matter how fantastic the quality of the product,without staff embracing the vision and service approach, the gig is up.
- "Sometimes you need to take dramatic action." Schultz writes about the move that made the business world gasp - the one-day shutdown of
all the stores in the US so that baristas could be retrained to restore the quality of both the coffee and the service to customers. The move cost millions of dollars at a time when Starbucks shares were taking a dive. But it paid off - restoring pride to partners and providing a first step toward bringing customers back.
- "Have the courage to do what you've gotta do." I loved the story of the heated breakfast sandwiches that made the coffee shops smell of burnt cheese, overwhelming the aroma of fresh, quality coffee (and further alienating the core coffee customer). Schultz decided to get rid of the popular sandwich, and he took a lot of flack from pretty much everyone. He stuck to his guns, and he was right. (Starbucks serves a breakfast sandwich now, but it no longer has the cheesy smell!)
- "Learn from failure." I really appreciated that Schultz didn't sugarcoat his failures, or try to blame others. Remember the Sorbetto? I sure don't. It was one of Schulz's ideas that flopped badly. But it didn't stop him from moving forward, and along came Pike Place Roast, Via instant coffee, Frappuccino, and the Pumpkin Spice Latte that gave rise to many other seasonal flavoured coffees (egg nog latte, anyone?)
- "You gotta have passion." For Schultz, being CEO of Starbucks isn't just a job, it's a passion. A calling. A great love. Probably true of most successful leaders - whether in business, politics or other spheres.
Those are just a few of the lessons learned in his entertaining read - there are many more. Schultz comes across as an egotistical, self absorbed guy. But he has interesting stories to tell and lots to teach us. I'd have a cup of coffee with him anytime. At Starbucks, of course.
Quotes:
“In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable. Their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. The companies that are lasting are those that are authentic.”
― Howard Schultz, Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time
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“Every step of the way, I made it a point to underpromise and overdeliver. In the long run, that's the only way to ensure security in any job.”
― Howard Schultz, Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time
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“One of the fundamental aspects of leadership, I realized more and more, is the ability to instill confidence in others when you yourself are feeling insecure”
― Howard Schultz, Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time