Schultz Leadership

&
Starbucks organizational Culture
GROUP 6
Schultz Leadership & Starbucks organizational Culture Shanghai Jiao Tong University | IMBA | Group 6

Schultz Leadership
Transformational Leadership

The transformational leadership is a leadership perspective that explain how leaders change teams or organizations by creating, communicating, modeling a vision for the organization
and inspiring employees to strive for that vision.

Develop and communicate the vision

A vision is a positive model of the future that motivates and brings employees together. The vision could be either created by the leader or formed by employees. Schultz acts as the

Starbucks brand ambassador to champion the vision. Every single of his actions in the public and inside the company represents the Starbucks’s vision and mission. Schultz

attributes the Starbucks culture into seven core principles and he sticks to them. For example, he always mentions about his employees are his partners, and also reminds people

that the challenge of this company is not only in terms of economic or finance, but also social value. When the company come back from the dead valley to all time high in stock

price, he communicates to all employees via companywide email that "In 2008, 2009, when the stock price had plummeted to single digits, we all joined together to ensure that we

would not allow the stock price to define the company, our brand, and our long-term performance," To communicate these visions, Schultz always visits the stores and engage with

the employees regularly. During the recent visit in South Africa, he sat down with each new Starbucks employee there.

Model the vision

Transformational leaders don’t just talk about the vision, they also enact it. They will do things to symbolize the vision. Based on the Starbucks vision of welcoming all kinds of

stakeholders, customer centric and encouraging partners to grow together, Schultz really walks the talk on these issues. He told a manager in the monthly town hall meeting that he
wanted to celebrate the manager’s 10 th year anniversary with him. Besides that, Schultz also visits 30 to 40 Starbucks stores a week to share enthusiasm with the partners. And he

thinks this is the single most important thing for him to do to keep the Starbucks values from being compromised by ambitions to grow.

Schultz is a really caring employer and he seeks to build connections between people. For example, the ‘Green Apron Book’ exhorts Starbucks baristas to ‘be genuine’ and ‘be

considerate’. Also, the company treats the coffee growers in Third World countries with dignity when purchasing beans at above market price.

Humanity is a very important part of the Starbucks’s culture and Schultz really enacts that too. For example, the ‘Race together’ initiative is an effort to spark a national dialogue about
the race.

Encourage experimentation
Schultz Leadership & Starbucks organizational Culture Shanghai Jiao Tong University | IMBA | Group 6

Transformational leaders support a learning orientation and encourage employees to question current practices and experiment with new ideas. To encourage the employees to

question the current practices, Schultz has a monthly town hall meeting to take questions from abut 250 of his top managers. The dialogues with the senior executives are sensitive,

passionate and responsive. People can speak up without fear of retribution.

Schultz wants to find “new ways to grow our company and each other”. Actually, it is a priority for Schultz to ensure alignment and supporting the partners’ development in order to
drive a good business. That is why he always finds new innovative ways to elevate the partner. The company has experimented with a few different ways of doing that. For example,
the Starbucks China University train partners in terms of “coffee knowledge, leadership skills, and retail management” and also “equip talented partners to fast track their careers within
the company”.

Experimentation is really being encouraged in Starbucks, which we can also find from the company experimentation with design. Some new Starbucks stores including walk-up kiosks
and drive throughs made from containers.

Build commitment toward the vision

Transformational leaders build commitment toward the vision not only through communicating, modeling and encouraging experimentation, they also use rewards, recognition and
celebration.

To build commitment of the vision of ‘being human’, Schultz makes Starbucks a lab for developing a better society. For instance, he hires veterans and active-duty spouses and invites
out-of-work young adults for job interviews.

Schultz thinks that the profit and stock price is not the primary thing should be measured or celebrated. He believes “We are performance driven, through the lens of humanity."
Humanity is important and the company should reward the right things to make sure the values of the company is not compromised. The Starbucks partners have to work very hard
but with humanity. And Schultz indeed takes care of his employees and rewards them every time. For example, he distributes every year stocks option and has created a health care
coverage for them.

Employees in Starbucks are partners, and Schultz really cherishes them. He once offered to celebrate a manager’s 10th year anniversary with him.

Managerial Leadership

Managerial leadership is distinguished from transformational leadership. It means that a leader implements current objectives through daily supporting or guiding the performance
and well-being of employees and work unit. The managerial leadership is about doing things right and micro-focused.

Task-oriented Leadership

Leaders are task-oriented when they assign work, establish work procedure and plan, clarify responsibilities and expectations, and provide feedbacks.

Although Schultz is transformational leader, sometimes he also dives into details. He studies the previous day’s sales reports each morning, nudges the brewmasters to put more
Aged Sumatra into each autumn’s Reserve Holiday Blend, and even worries about the color of some cards.
Schultz Leadership & Starbucks organizational Culture Shanghai Jiao Tong University | IMBA | Group 6

Besides these detailed things, he also focuses on bigger plans from opening a new store to expanding the market. Last year Schultz visited Ferguson, a troubled Missouri town.
Looking at the broken homes, he decided to open a store there. Then the store is being built and people hiring is in process. He also becomes ‘Mr. China’ and makes quarterly trips
to China because he believes China could be a larger market than US.

People-oriented Leadership

Leaders are people-oriented when they concern for employee needs, listen to them, recognize the contribution and make the working environment pleasant.

Schultz cares so much about the employee well-being in Starbucks and he thinks the employees as partners not hourly workers. In US, Starbucks covers all tuition costs for employees
to earn online college degree from ASU. In China, Starbucks was named China Best Employer. The company offers lots of benefits for the partners including health insurance for both
full and part time partners, the Bean Stock program, and the training in Starbucks university.

The employees well-being is constantly in Schultz’s mind. During a meeting, he got challenged about the company spending too much on healthcare, but he insisted to continue that
in front of everybody. Also when he was asked to feedback on an espresso machine, he briefly commented on the productivity and improved flavor, but instead, he focused on how
the technology will reduce repetitive stress and injuries for the partners.

Participative Leadership

The leaders encourage employee involvement in decisions. Schultz likes to interact with the employees in the monthly town hall meeting which allows him have a dialogue with the
employees in an open way.

Achievement-oriented Leadership

The leaders set challenge goals for the employees and expect them to perform at their highest level.

According to Lombard, Schultz asks questions, pushes people to gather data, and challenge people to perform. Schultz does not always hand the answers to people. When Lombard
consulted Schultz regarding launching Starbucks music business last year, all Schultz said is to be consistent with the heritage of Starbucks.

Authentic Leadership

Authentic leadership refers to how well leaders are aware of, feel comfortable with, and act consistently with their values, personality, and self-concept. Authentic leadership is mainly
about knowing yourself and being yourself.

Howard Schultz is such a leader. He usually goes to the shabby little store where Star-bucks got its start, and he think it is the right place whenever he needs centering. This is the
way he engaged in self-reflection.

Schultz always keeps in mind that he is still the kid from Brooklyn who want to fight his way out and his father was summarily retrenched by his company because of seriously injured
by slipping. All of these things formed Schultz’s value of no racial discrimination, helping vulnerable people, and treating his employees well. He exactly applies these values to his
Schultz Leadership & Starbucks organizational Culture Shanghai Jiao Tong University | IMBA | Group 6

actions. Schultz treats his employees as partners, offers them comprehensive health care coverage and stock options, and buys health insurance for their parents to make sure the
employees are taken good care of because he has always dreamed of building a company which his father struggled whole life can not get into.

Schultz is immersed in social causes, he launched “Race Together” and showed his attitude toward same-sex marriage in public, not for profit, but for what he thinks he and his
company should do. Although Schultz has the present wealth and status, he always maintains a positive core self-evaluation. He said he is still working things through, pacing himself
better this time around, listening more and showing more patience with other people, which demonstrate how he looks at himself and reminds himself to stay hungry.

Schultz is also mindful of his own limits, so he has hired lots of proven professional leaders for Starbucks management team from outside in recent years.

Source: https://fortunedotcom.files.wordpress.com/2017/06/sbu0615_a.jpg
Schultz Leadership & Starbucks organizational Culture Shanghai Jiao Tong University | IMBA | Group 6

Starbucks Organizational Culture

The Organizational Cultures are very important factors for companies to survive in the fierce and competitive markets. The executives and employees who would recognize definite,
common shared values and assumptions can think and act in correct ways when they would respond to the opportunities and threats which the companies are confronted with. It is
needless to say that those companies can achieve the excellent performance in comparison with other competitors.

Shared values and Assumptions

Shared values are conscious beliefs and evaluation of right or wrong, while shared assumptions are non-conscious beliefs and shared mental models of ideals. It is not easy to
define the shared values and assumptions of Starbucks because they are invisible. But through the visible artifacts from this case, we find that there are three dominant values and
assumptions. Humanity, employee-centric and diversity & inclusion. The company strongly believes that it can drive the performance through the lens of these values.

Analysis of Artifacts

Artifacts are the visible symbols and signs of an organization’s culture, such as stories of the founder, rituals, organizational language and physical structures.

Humanity

Starbucks thinks that they have the obligations to society beyond what tangibly impacts their bottom lines. For example, when the company sells a beverage at the price of $3.45, he

considers it as a ticket into “a pleasant experience and an ethically sound way of doing things.” And the company speaks out about the major issues which the societies are

confronted with. Starbucks began contributing to the relief organization CARE in 1991, launched the clean water project in 2005 and started the race together campaign in 2015.

Especially during the race together campaign, Starbucks held lots of partner forums to show commitment on racial equality.

Employee-centric

Starbucks considers the employees as the most important factors to the success. They use different language to call the employees- the ‘Partners’.

As a ritual, the company holds monthly town hall meeting to let management team have regular interactions with the employees to listen to their concerns. Even Schultz himself likes
to often engage in direct interactions with the partners. Besides town hall, there are also one-on-one meetings between the partners and managers to an ongoing dialogue.

Starbucks organization operates in a flat structure to allow the partners to quickly adapt the business climate.

Besides the above artifacts, the company operates the ‘Career Coffee Break Program’ to refresh employees, put lots of spending on employee healthcare, offer employee stock
option to share the success with them and help elevate the employees through the College Achievement program.
Schultz Leadership & Starbucks organizational Culture Shanghai Jiao Tong University | IMBA | Group 6

Diversity & Inclusion

Starbucks makes efforts to create an inclusive environment with opportunities for all. For example, the signing store in Malaysia is operated by deaf partners.

Culture effectiveness

Starbucks started 11 stores in the mid of 1980 and nowadays it has around 24,000 stores in more than 70 countries. From the growth, we can conclude that the Organizational
Cultures in Starbucks have been successful till now. Humanity as part of the culture plays an important role in the success. Because nowadays, consumers’ expectations on
organizations being socially responsible are getting higher, Starbucks humanity culture aligns really well with this important aspects of the external environment.

The environment is dynamic and customers constantly expect new and innovative products, which requires Starbucks to be very agile. Since the employees are the key factors in
innovation, the partner-focused culture makes sure the company can sustain the customer relationship while growing big.

We can see Starbucks’s success from both company performance and employees well-being. Starbucks was named China Best Employer and the growth in China is accelerating
too.

But when we recall the period of the absence of influential CEO, the organizational culture had been distorted and the stock price had tumbled at the lowest level. So the remaining
issues in Starbucks are to mature the capable successors and stay agile as well as adaptive to the ever changing external environments.

Source: http://www.hrmasia.com/sites/
Schultz Leadership & Starbucks organizational Culture Shanghai Jiao Tong University | IMBA | Group 6

Appendix
Appendix I: Vision check list

Appendix II: Transformational Leadership check list

Appendix I: Vision check list
Acting with
Creating a courage,
culture of challenging Being Delivery our
We are
warmth the status present, very best in
Starbuck's performance
and quo and connecting all we do,
vision driven,
belonging, finding new with holding
& through the
where ways to transparency, ourselves
mission lens of
everyone grow our dignity and accountable
humanity.
is company respect. for results.
welcome. and each
other.
HROnline17
X X X X X X
INC14
Schultz arranged for a care package of Teavana Maharaja
Chai Oolong to be delivered to her hotel room the next morning.
✓ ✓

"We're going to do for tea what we've done for coffee." ✓ ✓

"Create Jobs for USA" campaign to help raise loans for small businesses. ✓ ✓
"In 2008, 2009, when the stock price had plummeted to single digits,
we all joined together to ensure that we would not allow the
stock price to define the company, our brand, and our long-term ✓ ✓ ✓ ✓ ✓
performance," As hard as it might be to reach the same conclusion when the stock is at an all-
time high, we must!"
"Think Willy Wonka!" Schultz says. "I'd like to open one in every major city in the world." ✓
"use our scale for good. ✓ ✓
"through the lens of humanity." Public-spirited efforts, he says, "add value to the company's
bottom line,
but they were never intended to." The combination of doing right and doing well, he says,
✓ ✓
makes everybody at Starbucks buy into his aspirations.
Starbuck 16
Schultz and other company leaders announced the initiatives at Starbucks China Partner-
Family Forum
in Chengdu where they joined more than 1,300 Central and Western China region partners
and their ✓ ✓
family members to experience Starbucks mission and values together and celebrated the 2,000
store milestone
achievement.
 “We are deeply humbled by the enthusiasm with which Chinese people have embraced
Starbucks as part of their daily ritual over the past 17 years. Over time, it’s conceivable that
China could become our largest market and I am grateful to our 30,000 dedicated China
partners and their supportive families for the significant contributions they are making to ✓ ✓
Starbucks success. The continued investments we are making, coupled with the culture of
innovation we have established, are elevating Starbucks partner and customer experience
beyond that of any other retailer in China.”
Both leaders shared their vision to redefine the roles and responsibilities of a for-profit public
company – one that invests in its people, giving back to the local communities in meaningful ✓ ✓ ✓
ways, and creating unique developmental opportunities for the youth of today.
“I am so incredibly proud of what you (Starbucks China partners) have accomplished. And I
promise you
(the parents of Starbucks partners) we will grow this company the right way. I am a true
believer in the future of
China because of the humanity and the heart and the conscience of the Chinese people. And ✓
we will do
everything we can to continue to build a great and enduring company that you and your
parents can be proud of.”
Beginning this month, full-time baristas and shift supervisors* in Starbucks company-owned
stores across ✓ ✓
China will receive a monthly housing allowance subsidy
The partner will be guaranteed reinstatement to either the same position or a position with
similar pay
and benefits upon their return to work. The partner’s social and company benefits will also ✓ ✓
continue during
the career coffee break.
Innovating the customer experience is core to the company and Starbucks once again
✓
delivered on this commitment with the opening of an e-flagship store on Alibaba’s Tmall
1,500 university students, from both urban and rural areas, and those with disadvantaged
backgrounds, ✓
will benefit from the program over three years.
We will learn from the experiences in our other markets and explore new strategic partnerships
with leading platforms to enable the Starbucks China digital flywheel. More awaits us as we
implement ✓ ✓ ✓
new digital experience innovations to surprise, delight and exceed the expectations of our
Chinese customers.”
Starbuck 17
Calling its employees “partners” reflects Starbucks deep commitment to bring the magic of its
core purpose
to lead through the lens of humanity, and to share its successes with its partners while ✓ ✓
consistently exceeding
each partner’s expectations.
Starbucks pioneered the Starbucks China Parent Care Program. It provides the parents of
eligible full-time ✓ ✓
partners with a fully sponsored critical health insurance plan.
 “Not every decision in business is an economic one.” The Company creates for its partners,
✓ ✓ ✓
and the value it creates for its shareholders and customers should take equal priority.
Starbucks it is committed to taking even bolder steps to invest in its partners, find innovative
and relevant new ways to elevate the partner experience and to do everything possible to earn ✓ ✓ ✓ ✓ ✓
the trust and confidence of its partners
USNEWS05
Schultz, dressed casually in chinos and sweater, simply engages in a dialogue with the senior
executives. ✓ ✓
He lets it all hang out--and is, by turns, sensitive, passionate, and responsive.
"We're not ever going to turn our backs on our partners [employees]," says Schultz
reassuringly. ✓ ✓ ✓
Then he faces reality. "But we need relief. Where is the money going to come from?"
he focuses equally on how the technology will reduce repetitive stress and injuries. ✓ ✓ ✓
"We have to balance being a competitive leader and being a benevolent employer." ✓ ✓
"People aren't interested in how much you know," he says. "It's how much you care." ✓ ✓ ✓
the company works hard to treat its coffee growers in Third World countries with dignity
while purchasing ✓ ✓ ✓ ✓
their products at above-market prices.
"We all want the same thing as people--to be respected and valued as employees and
✓ ✓ ✓
appreciated as customers."
"The art of leadership is making sure we don't allow the scale and size of the company to
change the methodology of how we conduct ourselves," says Schultz. "We have to be careful ✓ ✓ ✓ ✓
not to let our values be compromised by an ambition to grow."
he was asked if Starbucks had any special plans for advertising the opening of its 10,000th
store. Schultz answered no, and then he turned to his questioner, a manager who was marking
✓ ✓ ✓
his 10th year with the company, and said: "You and I should get together to celebrate your
anniversary with us. That's an unbelievable milestone!"
"I need to touch as many people as possible--I want to spend time with people," he says.
✓
"That's the single most important thing I'm doing."
He'll push you to go gather the data. He'll tell you what he would do to try and solve a
✓
problem, but he's not always going to hand you the answer.
"And you have to follow the path of doing the right thing by making decisions that are true to
✓
your mission and cause. You refer to your heart, conscience, and memory."
"Being a great leader also means identifying a path we need to go down and creating enough
confidence in our people so they follow it and don't veer off course because it's an easier route ✓
to go."
EntrepMagSA16
He engages, encourages his employees and communicate his vision : face time management,
Schultz himself sat down with each and every new Starbucks employee in South Africa during
his visit, they organize Town Hall Meetings where each employee can speak freely. Each ✓ ✓
employee has some stake in Starbucks (portion of their annual salary)
He create a Starbucks culture shared by all the employees : commitment on social issues such
as same sex-marriage, gay rights, gun control & racism = also adaptation to external ✓ ✓ ✓
environment (current tends)
FastCo15
He is very committed to social issues like racism, he pay for education of employees ✓ ✓
Change the vision of Starbucks in 1987 : warm & inviting interactions between baristas &
customers would make a Starbucks store feel like another home ✓ ✓
He invests in his employees : stock options, rewards, health care coverage -> reduction of
✓ ✓ ✓ ✓
turnover rates and increase motivation
He want to create a culture of Starbucks = no just focus on make money but create a sense of
belonging, to be a part of an organization they really believe is doing great work (for ✓ ✓ ✓
customer) + create emotional attachment.
Want employees to preoccupy together of racial problem (common culture), go to a new goal :
✓ ✓ ✓
promote equality by adding “Race Together” on the cup
Forbes16
Since taking charge of Starbucks in the 1980s, he has turned a regional coffee company into
one of the world’s top brands. Sales topped $19 billion in 2015, thanks to Star-bucks’ ability to
provide food and coffee along with a feel-good environment where friends meet, students do ✓ ✓
their homework and romances come of age.
Searching for inspiration, he’s traveled everywhere from veterans’ hospitals to an Indian
ashram in the past year, asking people to share their stories and their beliefs. Now he wants
Starbucks to be the place where people can get excited about voting again, where people can ✓
courteously discuss tough issues such as gun rights and race relations—and where “we can
elevate citizenship and humanity.”
Baristas were encouraged to write “Race Together” on millions of patrons’ coffee cups. Then,
✓
somehow, good things would result.
BOUNDING ONTO THE BROOKLYN stage, Schultz began by ticking off issues that
concerned him: death benefits for soldiers killed in Iraq or Afghanistan; gun safety; and the
2016 presidential election. “We’re not just here to raise the stock price,” he declared. “What ✓
can we do to use our strength for social good?”
In the past year Starbucks has set up 19 cafes on the edge of military bases, going out of its
way to hire veterans and active-duty spouses to work there. Another initiative is a partnership
with other big companies to convene giant job fairs in cities such as Phoenix, Chicago and Los
✓
Angeles, inviting out-of-work young adults for job interviews. A third program, started in
2014, provides baristas and other employees a chance to earn an online college degree from
Arizona State University —with Starbucks absorbing all tuition costs.
In 2008 Schultz angrily insisted that Starbucks stop selling melted-cheese breakfast
sandwiches, because the smell of toasted cheddar was overwhelming the gentler aroma of
fresh-brewed coffee. Guess what? Melted cheese made a comeback. The new version is ✓ ✓
cooked at 500 degrees Fahrenheit instead of 1,100 and with smaller slices of medium cheddar
instead of big slices of sharp cheddar. “Howard can always be convinced,”
He’s jousting back with smaller packages of even pricier beans, packaged in distinctive bags
as Starbucks Reserve. An 8.8-ounce pouch of pure Ethiopia Yirgacheffe Chelba goes for
✓ ✓
$17.50, perched among other upscale offerings in their own showcase in regular Starbucks
stores, along with artful marketing promotion (“Exotic, rare, exquisite”).
Appendix II: Transformational Leadership check list

Transformational Develop/Communicate Model the Encourage Build Commitment

Leadership Check list*** the vision vision Experimentation toward the Vision

HROnline17

X X X X X

INC14
Schultz arranged for a care package of Teavana Maharaja
Chai Oolong to be delivered to her hotel room the next morning. ✓ ✓
"We're going to do for tea what we've done for coffee." ✓ ✓
"Create Jobs for USA" campaign to help raise loans for small
businesses. ✓ ✓
"In 2008, 2009, when the stock price had plummeted to single digits,
we all joined together to ensure that we would not allow the
stock price to define the company, our brand, and our long-term ✓ ✓
performance,"" As hard as it might be to reach the same conclusion
when the stock is at an all-time high, we must!"
"Think Willy Wonka!" Schultz says.
"I'd like to open one in every major city in the world." ✓
"use our scale for good. ✓
"through the lens of humanity." Public-spirited efforts, he says,"add
value to the company's bottom line, but they were never intended to."
" The combination of doing right and doing well, he says, makes ✓ ✓
everybody at Starbucks buy into his aspirations. "
Starbuck 16
 Schultz and other company leaders announced the initiatives at
Starbucks China Partner-Family Forum
in Chengdu where they joined more than 1,300 Central and Western
China region partners and their ✓ ✓ ✓
family members to experience Starbucks mission and values together
and celebrated the 2,000 store milestone
achievement.
“We are deeply humbled by the enthusiasm with which Chinese
people have embraced Starbucks as part of their daily ritual over the
past 17 years. Over time, it’s conceivable that China could become our
largest market and I am grateful to our 30,000 dedicated China
partners and their supportive families for the significant contributions ✓
they are making to Starbucks success. The continued investments we
are making, coupled with the culture of innovation we have
established, are elevating Starbucks partner and customer experience
beyond that of any other retailer in China.”
Both leaders shared their vision to redefine the roles and
responsibilities of a for-profit public company – one that invests in its
✓ ✓ ✓ ✓
people, giving back to the local communities in meaningful ways, and
creating unique developmental opportunities for the youth of today.

“I am so incredibly proud of what you (Starbucks China partners)

have accomplished. And I promise you
(the parents of Starbucks partners) we will grow this company the
right way. I am a true believer in the future of
China because of the humanity and the heart and the conscience of the
✓ ✓
Chinese people. And we will do
everything we can to continue to build a great and enduring company
that you and your parents can be proud of.”
Beginning this month, full-time baristas and shift supervisors* in
Starbucks company-owned stores across ✓
China will receive a monthly housing allowance subsidy
The partner will be guaranteed reinstatement to either the same
position or a position with similar pay
and benefits upon their return to work. The partner’s social and ✓ ✓
company benefits will also continue during
the career coffee break.
Innovating the customer experience is core to the company and
Starbucks once again
✓
delivered on this commitment with the opening of an e-flagship store
on Alibaba’s Tmall
1,500 university students, from both urban and rural areas, and those
with disadvantaged backgrounds, ✓ ✓ ✓
will benefit from the program over three years.
 We will learn from the experiences in our other markets and explore
new strategic partnerships
with leading platforms to enable the Starbucks China digital flywheel.
✓ ✓
More awaits us as we implement
new digital experience innovations to surprise, delight and exceed the
expectations of our Chinese customers.”
Starbuck 17
Calling its employees “partners” reflects Starbucks deep commitment
to bring the magic of its core purpose
to lead through the lens of humanity, and to share its successes with ✓ ✓
its partners while consistently exceeding
each partner’s expectations.
Starbucks pioneered the Starbucks China Parent Care Program. It
provides the parents of eligible full-time ✓ ✓
partners with a fully sponsored critical health insurance plan.
“Not every decision in business is an economic one.” The Company
creates for its partners, and the value it creates for its shareholders and ✓ ✓
customers should take equal priority.
Starbucks it is committed to taking even bolder steps to invest in its
partners, find innovative and relevant new ways to elevate the partner
experience and to do everything possible to earn the trust and ✓ ✓
confidence of its partners
USNEWS05
Schultz, dressed casually in chinos and sweater, simply engages in a
dialogue with the senior executives.
✓
He lets it all hang out--and is, by turns, sensitive, passionate, and
responsive.
"We're not ever going to turn our backs on our partners [employees],"
says Schultz reassuringly.
Then he faces reality. "But we need relief. Where is the money going ✓ ✓
to come from?"
he focuses equally on how the technology will reduce repetitive stress
✓ ✓ ✓
and injuries.
"We have to balance being a competitive leader and being a
benevolent employer." ✓ ✓
"People aren't interested in how much you know," he says. "It's how
✓ ✓
much you care."
the company works hard to treat its coffee growers in Third World
countries with dignity while purchasing ✓ ✓
their products at above-market prices.
"We all want the same thing as people--to be respected and valued as
✓ ✓
employees and appreciated as customers."
"The art of leadership is making sure we don't allow the scale and size
of the company to change the methodology of how we conduct
ourselves," says Schultz. "We have to be careful not to let our values ✓ ✓
be compromised by an ambition to grow."
he was asked if Starbucks had any special plans for advertising the
opening of its 10,000th store. Schultz answered no, and then he turned
to his questioner, a manager who was marking his 10th year with the ✓ ✓ ✓
company, and said: "You and I should get together to celebrate your
anniversary with us. That's an unbelievable milestone!"
"I need to touch as many people as possible--I want to spend time with
people," he says. "That's the single most important thing I'm doing." ✓ ✓ ✓
b ✓ ✓ ✓
"And you have to follow the path of doing the right thing by making
decisions that are true to your mission and cause. You refer to your ✓ ✓
heart, conscience, and memory."
"Being a great leader also means identifying a path we need to go
down and creating enough confidence in our people so they follow it ✓ ✓
and don't veer off course because it's an easier route to go."
EntrepMagSA16
He engages, encourages his employees and communicate his vision :
face time management, Schultz himself sat down with each and every
new Starbucks employee in South Africa during his visit, they
✓ ✓ ✓
organize Town Hall Meetings where each employee can speak freely.
Each employee has some stake in Starbucks (portion of their annual
salary)
He create a Starbucks culture shared by all the employees :
commitment on social issues such as same sex-marriage, gay rights,
gun control & racism = also adaptation to external environment ✓ ✓
(current tends)
FastCo15
He is very committed to social issues like racism, he pay for education
✓ ✓ ✓
of employees
Change the vision of Starbucks in 1987 : warm & inviting interactions
between baristas & customers would make a Starbucks store feel like ✓
another home
He invests in his employees : stock options, rewards, health care
✓ ✓ ✓
coverage -> reduction of turnover rates and increase motivation
He want to create a culture of Starbucks = no just focus on make
money but create a sense of belonging, to be a part of an organization
they really believe is doing great work (for customer) + create ✓
emotional attachment.
Want employees to preoccupy together of racial problem (common
culture), go to a new goal : promote equality by adding “Race ✓ ✓
Together” on the cup
 Forbes16
Since taking charge of Starbucks in the 1980s, he has turned a regional
coffee company into one of the world’s top brands. Sales topped $19
billion in 2015, thanks to Star-bucks’ ability to provide food and ✓
coffee along with a feel-good environment where friends meet,
students do their homework and romances come of age.
Searching for inspiration, he’s traveled everywhere from veterans’
hospitals to an Indian ashram in the past year, asking people to share
their stories and their beliefs. Now he wants Starbucks to be the place
where people can get excited about voting again, where people can ✓ ✓
courteously discuss tough issues such as gun rights and race
relations—and where “we can elevate citizenship and humanity.”
Baristas were encouraged to write “Race Together” on millions of
✓ ✓
patrons’ coffee cups. Then, somehow, good things would result.
BOUNDING ONTO THE BROOKLYN stage, Schultz began by
ticking off issues that concerned him: death benefits for soldiers killed
in Iraq or Afghanistan; gun safety; and the 2016 presidential election. ✓ ✓
“We’re not just here to raise the stock price,” he declared. “What can
we do to use our strength for social good?”
In the past year Starbucks has set up 19 cafes on the edge of military
bases, going out of its way to hire veterans and active-duty spouses to
work there. Another initiative is a partnership with other big
companies to convene giant job fairs in cities such as Phoenix,
✓ ✓
Chicago and Los Angeles, inviting out-of-work young adults for job
interviews. A third program, started in 2014, provides baristas and
other employees a chance to earn an online college degree from
Arizona State University —with Starbucks absorbing all tuition costs.
In 2008 Schultz angrily insisted that Starbucks stop selling melted-
cheese breakfast sandwiches, because the smell of toasted cheddar was
overwhelming the gentler aroma of fresh-brewed coffee. Guess what?
Melted cheese made a comeback. The new version is cooked at 500 ✓
degrees Fahrenheit instead of 1,100 and with smaller slices of medium
cheddar instead of big slices of sharp cheddar. “Howard can always be
convinced,”
He’s jousting back with smaller packages of even pricier beans,
packaged in distinctive bags as Starbucks Reserve. An 8.8-ounce
pouch of pure Ethiopia Yirgacheffe Chelba goes for $17.50, perched
✓ ✓
among other upscale offerings in their own showcase in regular
Starbucks stores, along with artful marketing promotion (“Exotic, rare,
exquisite”).

*** In this table, build commitment toward the vision will focus only reward, recognition, and celebration, otherwise, this factor will valid in every action
and statement.