Org Whisperers’ Post

#340 I have been teaching the Starbucks case for many years now, a fascinating story with a lot of learnings. In my latest case update from 2023, I presented the new CEO’s challenges (Mr Narasimhan, pictured) and reminded the fact that the last 2 CEOs were eventually ejected by Howard Schultz (the founder, also pictured) taking the top job back. Schultz promised there would be no third come back. But after recent unsatisfactory results of Starbucks, Schultz wrote a LinkedIn post not very unlike his famous email from 2007 (soon after which he took back the CEO’s job). In his post Howard wrote he isn’t so much concerned about missing the earning goals, but about doing the right diagnostic of the problems. “A maniacal focus on the customer experience” is required according to Schultz. But already in my case I ask students who exactly Starbucks now caters to? It appears to be neither the artisanal hipster coffee shop nor the cheap and speedy coffee chain. What do you think Starbucks’ CEO should do? Howard Schultz post: https://lnkd.in/eMSp6UAt -

Starbucks management has built a company on a willingness to actively listen to criticism. Therefore, complaints are addressed head on, as evidenced by what David Martin reported shortly after his negative Starbucks column was published: “A few days after the column posted, I was in an airport, and picked up a voicemail message that caught my attention. The call was from a gentleman named Gregg Johnson…the Senior VP of Emerging Businesses at Starbucks. He stated that he had read the column and would appreciate the opportunity of discussing it with me. I think I cringed.… “I was able to call Greg that evening. I remember preparing myself for an unpleasant interaction. I know that many senior managers become über-defensive when given negative feedback. Nothing could’ve been further from the truth. “To begin with, Greg thanked me for my business. He then told me that he apologized for the instances in which his company had failed to deliver the kind of experiences they strive for and customers expect. In 10 seconds, he had turned this phone call into a pleasant one.“ Ultimately, David and Gregg developed a positive and ongoing relationship, and Gregg and other Starbucks leaders have spoken at events sponsored by David’s organization. Gregg has even utilized David’s initial critique as a training tool for partners in licensed stores. From David’s perspective, The entire experience reinforced a few lessons for me: 1. When presented with negative feedback by a customer, recognize that you may have an opportunity to actually strengthen that relationship. By first thanking customers for their business and recognizing their grievances,…you are far more likely to keep that customer as well as gain useful feedback to improve your business. 2. When employees see that management actually cares about feedback—positive and negative—they are more likely to care as well. When they see that management is personally committed to addressing issues, repairing and/or solidifying relationships, they will likely be more committed as well. The Starbucks Experience by Joseph Michelli #EmptyShelfChallenge2023

Deployment. Assigning resources to create efficiency. But what if deployment also fosters connection? What if deployment means more than having resources at the right place at the right time? What if it also means having the right people at the right place at the right time? I worked at Starbucks at a very special time. We had pastries- but no way to warm them. We were moving from the manual La Marzocco espresso machine to the automatic machines to ensure quality at speed. We were increasing drive through options while focusing on customer experience. Everything was about connection. I was a Starbucks Manager district lead in charge of vetting deployment strategies. In the beginning, I was AGAINST a positional strategy, but I was ready to be wrong. Everything I understood about Starbucks was connection. The emphasis on it being the Third Pace. For customers- we are not your family. We are not your workplace. A place to share your story. A place to be vulnerable. A place where we knew your name and story, but due to proximity were absent from judgment. What did deployment do? Instead of following your customer from beginning to end, the register person stayed in contact with you. The runner prepared & crafted your order. The register person stayed in place, continuing the conversation. We were sure this would slow things down. But no. The order completed more efficiently AND the conversation grew deeper. So- if you were a good manager- you identified who your register people were. Who were the people who went deep? Who could ask follow up questions? Who REALLY cared? Some people want to know your story. Some people want to check the boxes and provide excellent products and services. Both people are valuable and vital when deployed to the role that suits them.. Do you know your people? Knowing your people and what drives them can lead to success for your people and satisfaction for your customers. Deployment is more than deploying resources. It’s about knowing your resources and putting them where they will succeed. As a mom of 5, I find myself returning to my deployment training. Identify your team members, understand their motivations, and capitalize on their strengths. Know your team. This can lead to success for both your team and your customers. For meal prep. For inspiring a kid, for homework help, for life. Resources. Who are the best people to deploy at each time in each situation? #connection #deployment #success #manage #resources #talent #partner #people

Friday ☕️ Chat Time This week marks the completion of my Starbucks Shift Supervisor Training and Week 4 of my journey. I focused on refining the execution of processes I learned last week, all with the aim of brewing exceptional customer experiences (thanks to Almohannad Alsbeai for the brew pun). I’m particularly fond of our recognition tools here at Starbucks, both digital and physical. My favorite is the Green Apron cards, which we physically hand to our Partners to acknowledge their embodiment of our values or behaviors that align with our mission of nurturing human connection. The excitement they show upon receiving one is truly heartwarming. A key takeaway from my training this week was, “What’s rewarded gets repeated.” This simple yet powerful concept highlights the importance of acknowledging and thanking our people for their consistent efforts. As leaders, it’s easy to focus on what’s lacking rather than reinforcing positive actions. Leaders and peers in my store consistently recognize each other in so many ways. This weekend, I encourage you to reflect and identify the unsung heroes or consistent performers in your team or department who might not always receive the recognition they deserve. Next week, make an effort to acknowledge them with a personal note or email. It could really make their week! Next week, I start my Store Manager training, and my excitement continues to grow. To cap off this update, here’s a photo of some sampler beverages we handed out in the café this week.

Brian Niccol, the new CEO of Starbucks, is a prime example of this mindset. Despite having what some might call a “relaxed” schedule—starting at 10 am and clocking out by 6 pm—he’s far from average. Niccol isn’t defined by the hours he works, but by the impact he makes. Before joining Starbucks, Niccol was the CEO of Chipotle, where he grew the company by a staggering 5100%, creating $65 billion in shareholder value in just six years. And yes, he did it all while sticking to his 10-6 pm routine. His story is a powerful reminder: Your value as a professional isn’t measured by how long you’re at your desk. It’s about the quality, efficiency, and impact of the work you produce. Focus on what you deliver, not just the time you spend.

Did you know I’ve trained over 2900 Starbucks partners? 🤔 Almost no one understands what I do for a living, and for a long time, I actually enjoyed and played into that mystery. But I recently realized that this seemingly harmless charade was actually self-sabotage. Building in dark mode actually hinders our ability to create the vital connections and support we need to thrive. When people understand what we do, why we do it, and who we do it for, they subconsciously start to connect the dots. "Oh, have you ever talked to _____? They were just telling me they needed something like this," or "_____ was just promoted and would love to get behind an idea like this," etc. Innately, people want to be valuable, helpful, and do good (at least in my humble opinion), but if they don’t know what our goals are, how great we are at what we do, and how we can make a difference, we take away that spark from them and end up paying the price. So, let me turn off dark mode and make it simple for the world to understand "what I do"... Our amazing team and I built a custom equipment training & support platform for baristas and managers of Starbucks. Why? Because hundreds of millions, likely billions of dollars are wasted each year with simple technical equipment challenges that can be easily prevented or resolved without a technician with just a little training. It was clear that someone had to step up and create it. With our parent company's nearly 40 years of industry experience, and a 15-year history of servicing Starbucks, it seemed natural for us to take the lead! And there you have it—that's what I do. It feels liberating to finally share this ;) Below is a 30-second video diving a bit deeper into the details. Enjoy! #tobeapartner #trainthetrainer #traininganddevelopment

The first letter from the new Starbucks CEO, Brian Niccol I am most interested in the line “..a clear distinction between “to-go” and “for-here” service.” At Chipotle Mexican Grill , they have separate preparation counters for pick up / to-go orders. Starbucks, currently, has this all mashed into one - you go to the same counter whether you’re sitting down or leaving. This makes a lot of sense and will mean a redesign of the store to improve the customer experience. I love the case study method for learning. Any leader can watch this ‘live case study’ to consider what he would do - and think hard about what he should do to turn Starbucks around. What would you do? What do you think he should do? You can live vicariously through this experience and test your judgement and ideas. It’s also a great lesson on how quickly things can change for yourself as a leader. 2 quarters ago, Starbucks was pretty much ‘fine’. Double digit year over year growth last September. Then, the last CEO had 2 quarters of bad results, and he was out. Wall Street does not give you much time to get and keep things right. The ground shifts under you if you’re not paying attention. How many quarters until they’re back to double digit growth? Where will the stock price be (Today it’s $92.16) in 2, 3, or 4 quarters?

What’s Wrong With Starbucks? A Sunday morning lesson in #business #strategy, #operations, and managing a business in it's maturity phase. Also, are too many products and options good or bad? How do you manage competition in geographically dispersed markets? While doing all this, retaining value proposition is another challenge altogether.

Starbucks' Journey from Customer-Centricity to Current Challenges. Starbucks has long been celebrated for its exceptional customer-centric approach. A viral story exemplifies this, where employees in Texas discreetly intervened when they noticed a teen being harassed, handing her a cup with a hidden message asking if she needed help. The teen signaled she was fine, and the man soon left. This level of service is what made Starbucks a case study on #CustomerCentricity. However, recent times have seen a significant decline in Starbucks' profits. One potential reason for this downturn is the overwhelming increase in menu options. According to one study, Starbucks now offers more than 170,000 possible drink combinations. While variety can be appealing, it often leads to #ChoiceOverload for customers. 👉More importantly, it becomes challenging to #train employees to serve such a vast array of customer options effectively. This is particularly problematic at Starbucks, where many employees are temporary or part-time college students. The increased complexity means they have less #time to spend with customers, making the service feel less personalized. #Nudgeable Insight: Behavioral science shows that even well-meaning decisions—like expanding customer choices—can have unintended consequences, such as overwhelming employees and diluting the personal touch in customer service.

🌟 Gratitude Post: Webinar on Starbucks' Remarkable Revival 🌟 I had the pleasure of attending an insightful webinar on "Brand Revival: How Starbucks Bounced Back from the 2008 Crisis," and I am genuinely inspired by the remarkable journey shared by the speakers. ☕✨ Key Takeaways: - Resilience in Adversity: Learning how Starbucks faced the challenges of the 2008 crisis head-on and emerged stronger underscores the power of resilience. - Innovation as a Catalyst: The webinar highlighted how Starbucks embraced innovation during tough times, emphasizing the importance of adapting to change and thinking outside the box. - Customer-Centric Approach: Starbucks' commitment to its customers was evident throughout the crisis and beyond. It's a reminder that customer satisfaction is at the heart of any successful revival. Kudos to the speakers including Hilary Akatwijuka and Miss Nothando Ndlovu for sharing valuable insights and lessons. A big thank you to UniAthena and the entire team for curating such an enriching session. Let's apply these lessons in our professional journeys and continue to learn, adapt, and thrive. Here's to resilience, innovation, and the enduring spirit of great brands! 🚀💼 #BrandRevival #StarbucksSuccess #webinarinsights