Diving into the lessons and stories of how Howard Schultz helped turn Starbucks around from his book: Onward
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0:00 - Opening
“I’ve come to think that I am at my best as a leader when Starbucks is being challenged or fighting for survival. I’m comfortable with, and in a way enjoy, the rugged, steep ascent. That is my nature. And while I would not want to constantly battle against the odds, the raw feeling of accomplishing something that others did not think possible, or leading people beyond where they thought they could go, is extremely gratifying.”
2:30 - The Goal
As a business leader, my quest has never been just about winning or making money; it has also been about building a great, enduring company, which has always meant trying to strike a balance between profit and social conscience
5:20 - Mastering the Craft
We’re taking time to perfect our espresso. Great espresso requires practice. That’s why we’re dedicating ourselves to honing our craft.
6:55 - Decision-Making
The only filters to our thinking should be: will it make the people proud? Will this make the customer experience better? And will this enhance Starbucks in the minds and hearts of our customers?
11:15 - The Power of One
Like a doctor who measures a patient’s height and weight every year without checking blood pressure or heart rate, Starbucks was not diagnosing itself at a level of detail that would help ensure its long-term health. We predicted future success on how many stores we opened during a quarter instead of taking the time to determine whether each of those stores would in fact be profitable. We thought in terms of millions of customers, and thousands of stores instead of one customer, one partner, and one cup of coffee at a time…We forgot that “ones” add up.
13:45 - On Being an Entrepreneur
But the entrepreneurial journey is not for everyone. Yes, the highs are high and the rewards can be thrilling. But the lows can break your heart. Entrepreneurs must love what they do to such a degree that doing it is worth sacrifice, at times, pain. But doing anything else, we think, would be unimaginable.
18:05 - On Innovation
I’ve always believed that innovation is about rethinking the nature of relationships, not just rethinking products.
19:30 - No Magic Pills
Our success would only be won by many. Transforming Starbucks was a complex puzzle we were trying to piece together, where everything we did contributed to the whole. We just had to focus on the right, relevant things for our partners, for our customers, for our shareholders, and our brand.
21:00 - Lessons Learned
Grow with discipline. Balance intuition with rigor. InnovaTe around the core. Don’t embrace the status quo. Find new ways to see. Never expect a silver bullet. Get your hands dirty. Listen with empathy and over communicate with transparency. Tell your story, refusing to let others define you. Use authentic experiences to inspire. Stick to your values, they are your foundation. Hold people accountable but give them the tools to succeed. Make the tough choices; it’s how you execute that counts. Be decisive in times of crisis. Be nimble. Find truth in trials and lessons in mistakes. Be responsible for what you see, hear, and do. Believe.
One Final Note
Starbucks is not a coffee company that serves people, it’s a people company that serves coffee.
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