TOP LESSONS FROM HOWARD SCHULTZ FOR ANY BUSINESS
TOP LESSONS FROM HOWARD SCHULTZ FOR ANY BUSINESS:
Howard Schultz is an American businessman who served as Starbucks' CEO (1987-2000, 2008-17). He made a coffeehouse chain helps it turn into a global presence. But now the billionaire and guiding force behind Starbucks is cultivating ambitions that are far greater than the coffee industry.
Coming from modest roots in Brooklyn, Schultz has always brought a sense of social justice to the way he's operated. Over the last few years, the underlying search for justice has exploded with a new intensity, inspiring both support and boycotts of Starbucks. His aspirations and lessons for the business leaders and entrepreneurs had changed the concept of business in several minds. The opinions or pieces of advice that he gave are listed below.
LEADERSHIP MAKES A DIFFERENCE:
It is effortless to lead when things are going great. You have the wind at your back. It gets tough when you have headwinds disappointments, and people tell you that you are going in the wrong way and that's when you have to ask yourself a critical personal question that do I have what it takes to lead the company to show these people. The answer is yes, you do, but you have to believe it when I say every business has to face several choices concerning how to balance all that and especially in a time of turmoil or crisis. It is the place where the leadership comes in With the company's culture and values' reservoir is filled with trust then you could stand up in front of the entire company and say to your people we found ourselves in a critical moment facing a crucible and a real test or challenge and layout what they are. With openness and transparency and then say because of that, we got to shift our resources and make sure we address this need and issue. But it could harm not our values but our ability to provide the resources or the investment in this other area at this time. But we are not seeking our values. We are just doing what is necessary, for the company and us as the leaders to perform financially.
CUSTOMER OBSESSION CAN NOT COST EMPLOYEES AND PARTNERS:
"Customer obsession" is definitely essential, but cannot come at the detriment of workers and partners and should not be so. Schultz maintained the pecking order right from the start of the company: partners, clients, and shareholders. Starbucks was one of the first companies in the world to give part-time employees both comprehensive healthcare benefits as well as equity in the form of stock options. Even under extreme cost-cutting pressure, management did not give up on these benefits offered to its partners.
GROWTH IS A MIND DIVERTER:
Starbucks's pursuit of unrelenting growth was one of the leading causes. During the 2000s, and added more shops in the USA and around the world. The company even grew into entertainment companies and began to sell unrelated products in its shops. So it undoubtedly came at the expense of customer loyalty, partner participation, and a resulting brand dilution. Number growth can be a risky endeavor, as Howard Schultz is scandalously experiencing. While showing progress, be careful to fracture your base, employee morals, and consumer orientation by growing the valuation and pledge of additional funding.
ALWAYS STICK TO THE CORE VALUES OF BUSINESS:
It's relatively easy to reboot an organization, but it's much harder to maintain the core and innovate around it. Starbucks was still proud of its activities in ethical coffee procurement, fair trade, collaborations, community support, diversity and environmental management. The business, for example, never has used a single pound of robust coffee and always has the finest arabica beans. A Starbucks coffee can only make 3 percent of the best quality Arabica bean. Besides, the company does not allow smoking at its stores to maintain the coffee scent and requests its partners not to wear perfumes and cologne.
GIVE BACK TO SOCIETY:
Howard Schultz was compassionate and has always cared about his team, his workers, and his caring for society. Business is a social establishment, so it takes many things if you are not loyal to the community at the end of the day. Payback to society thus becomes a significant challenge for the business. Howard has a family trust, the Schultz Family Foundation. The Foundation focuses on the needs of young people, veterans, and charitable activities.
In tough times, the leadership was under enormous pressure to compromise on a variety of these aspects. Still, Schultz and his lieutenant stood on the ground and remained faithful to the company's roots. The business was innovating. But all of this, achieved by maintaining the essence intact. Innovation is best done "about the foundation". Again, management requires continuity, guidelines and vision clarity. Hard times are unavoidable, and the way leaders cope with these times determines their future. A highly self-conscious leader is well prepared to direct his team to great heights. Howard Schultz is a magnificent illustration of the limitless possibilities for those who dream great. When you are motivated by a deep commitment to achieving your objectives, everything is possible. Starbucks is a leadership story inspiring.