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Inspiration from Howard Schultz, Starbucks CEO

Howard Schultz, CEO of Starbucks can lend business leaders a great deal of insight as to how a business can run more effectively and efficiently.

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Howard Schultz, inspiring other business leaders

Business leaders do and should take note of Howard Schultz, the CEO of Starbucks – you know, that little Fortune 500 company you might have heard of. Schultz helped to make Starbucks the first American company to provide the highest quality healthcare to all full-time and part-time workers (for workers working as little as twenty hours a week), and he says the inspiration for this business model came from “seeing [his] father broken from the thirty terrible blue-collar jobs he had over his life, where an uneducated person just did not have a shot.”

And “that event is directly linked to the culture and the values of Starbucks. I wanted to build the kind of company my father never had a chance to work for, where you would be valued and respected, no matter where you came from, the color of your skin, or your level of education. Offering health care was a transforming event in the equity of the Starbucks brand that created unbelievable trust with our people. We wanted to build a company that linked shareholder value to the cultural values we create with our people.”

The model of valuing employees

If for no other reason than this philosophy alone, business leaders should take notice. You should cherish your employees. Treat them the best way you can and your business will thrive because happy employees stay with you. But, there’s more to Schultz than his past, he is an innovator when it comes to franchises. Here are some of his thoughts about how he runs his business and what makes Starbucks so popular:

  1. “While we are a coffee company at heart, Starbucks provides much more than the best cup of coffee—we offer a community gathering place where people come together to connect and discover new things. We are always looking for innovative ways to surprise and delight our customers.”
  2. “Providing our customers with innovative and unique ways to discover and acquire all genres of great music is another way we are enhancing the Starbucks Experience.”
  3. “Over the past year we viewed countless films and spoke with numerous studios in pursuit of finding the perfect film. Just as we have demonstrated with music we believe that Starbucks can ultimately change the rules of the game for film marketing and distribution.”
  4. “Europe has always represented a major strategic opportunity to achieve our goal of creating and building an enduring global brand.”
  5. “We have just begun to realize how large the global growth prospects are, and we anticipate many years of significant development in existing and new markets, … Ultimately we believe we can surpass 20,000 stores worldwide.”
  6. “Giving back to the community has always been a huge focus for Starbucks and each year we strive to create new ways to become more involved in the neighborhoods where we do business. With the launch of the California Giving Program, Starbucks has the opportunity to partner with some of the most amazing non-profit organizations in all of California that work to build stronger communities by nurturing kids and inspiring grownups.”
  7. “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 overcommunicate 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.”
  8. “Mass advertising can help build brands, but authenticity is what makes them last. If people believe they share values with a company, they will stay loyal to the brand.”
  9. “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.”
  10. “For more than three decades, coffee has captured my imagination because it is a beverage about individuals as well as community. A Rwandan farmer. Eighty roast masters at six Starbucks plants on two continents. Thousands of baristas in 54 countries. Like a symphony, coffee’s power rests in the hands of a few individuals who orchestrate its appeal. So much can go wrong during the journey from soil to cup that when everything goes right, it is nothing short of brilliant! After all, coffee doesn’t lie. It can’t. Every sip is proof of the artistry — technical as well as human — that went into its creation.”

Schultz has faced some controversy while leading Starbucks, but he has always faced it with grace, humility, and honesty; all admirable qualities in a leader. If you are looking to take something away from Schultz’s business model, it should be that philanthropy, caring, and commitment to making things right is a good place to start, and that you should not be afraid to take risks – even when other people think it is impossible, you can make it possible. Schultz has done this numerous times, with great success.

Or, as he says himself, “dream more than others think practical. Expect more than others think possible. Care more than others think wise.”

Jennifer Walpole is a Senior Staff Writer at The American Genius and holds a Master's degree in English from the University of Oklahoma. She is a science fiction fanatic and enjoys writing way more than she should. She dreams of being a screenwriter and seeing her work on the big screen in Hollywood one day.

Business News

How companies are embracing the gig economy to fight employee burnout

(BUSINESS NEWS) The gig economy has had plenty of ups and downs, but employers are using it to advantage their teams and the gig workers. It’s a pretty interesting model we’re watching evolve…

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If you’re an employer of a lot of people, it’s no secret that there are a lot of moving parts involved in the day-to-day processes of keeping the business going. You’ve got full-time employees, people earning both salary and hourly wages, part-time workers, and more than likely have used a staffing agency over the years to fill in the blanks.

Depending on your experience, some managers love working with temp agencies, while others aren’t the biggest fans. Like toppings on a hot dog, it all comes down to personal preference.

But, there’s one segment of the market that’s roaring – the gig economy.

While on the surface, it might seem simple (someone comes in and does a job and leaves), it’s a little deeper than that. Depending on the industry, there needs to be a more nuanced approach to solving how staffing issues are handled.

When you think of the gig economy, you’re probably thinking of Uber or GrubHub, but a whole world has opened up – you can get your car fixed in your driveway or hire movers to come and take boxes away. There are a lot of apps out there putting money in people’s pockets thanks to taking on tasks like food delivery but also working on a crew for a day or being hospitality staff for a corporate gig.

Many people love the gig economy because honestly, the Internet has democratized our lives so much that millions of workers would rather be their own bosses, which honestly works to the advantage of businesses as well.

First, there’s less demand for the business because if they need a specific job taken care of, they can bring in some ringers to bang out the job, collect their pay, and move on. For companies, this helps because they’re only paying a one-time fee versus keeping someone on staff and paying them annually.

The boom right now is applications connecting workers with businesses who need help.

Instead of the consumer being the end-user, the applications connect a worker with a temporary or sometimes long-term employer with a click.

And the process is simple – workers are in just as much control as the companies. The price point is established by the company and the hours and people they need, but the worker can set their skill level and availability. So, when there’s a match, everyone wins.

While some of the companies offering access into the space, provide workers with gigs for whatever length of time, some of them are even doubling down on retention, offering W-2s and full insurance for staying in the worker community so employers have a larger pool to choose from.

This model works because it incentives both parties: the worker gets to work on their terms and still receive benefits, and the company gets the staff they need for project work without the HR/taxes/risk.

Listen: That W-2 aspect is enormous. The reason being is if you’ve ever had to deal with a 1099, they’re the worst. Taking away the burden of taxes is a significant win for the worker, especially those of us who still have trouble figuring out, “should I claim one or zero?”

Because this model addresses a major staffing problem, concerning short-term help, it’s still very focused on the worker.

The aspect of flexibility is built into the fabric of the concept, considering the labor pool is what matters – you can have a bunch of open jobs, but you need qualified and motivated people to fill those roles. While this is a gig-working scenario, it’s also unique in that there’s less focus on the person performing an idealized task like delivering food, but rather jumping on a team to solve a problem or finish a job.

Basically, they’ve digitized the temporary staffing model but cut all of the ugly overhead and worker quality issues out.

They’re taking a labor market and connecting it with a consumer via an app on the iPhone. But, the consumer isn’t someone who needs a ride to the airport, it’s a company who needs help staffing a Pearl Jam concert in a stadium.

With the market evolving pretty much on the hour these days, there’s a clear through line at play – we’re seeing more and more businesses adopt gig workers, if even for the day.

It’s easier to bring someone in as a temp to help clear projects or just get things finished the regular staff is too busy to handle. One of the biggest pluses of the model is that it helps avoid employee burnout.

For a place like a hotel, if there are a bunch of small jobs that keep piling up, it’s easier to spend the cash for a day or two worth of work rather than add to an already overworked staff’s load.

It’s a new world that’s evolving every day, but with every swipe, tab, and click, we see the workforce develop in ways we could have never imagined just a few short years ago. If the future of work is now, imagining five years from now is mind-blowing.

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Business News

How to work with someone who’s a never-ending stress mess

(OPINION EDITORIAL) Working with, or around, people who seem to always be carrying stress can be detrimental to your health and theirs, here’s how to deal with them.

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My baseline level of anxiety is pretty high. I get stressed out if I forget to pack a fork in my lunch even though there are utensils at the office. If someone is mean to me, I get on edge. If I make a small mistake I’m probably going to carry it with me for a few hours.

Others may not exhibit stress unless they’re up against a tight deadline or coming from a difficult meeting, but it seems like they’re always inclined towards stress regardless of their schedules. While many people exhibit stress in understandable, fleeting situations, for some stress is a default setting. It can be difficult to work with someone who’s always stressed out.

When someone is perpetually stressed, it takes a toll on everyone else too. That energy can be toxic and leave you wondering if you should be helping or if your colleague is intentionally being a Debbie Downer.

For starters, don’t make a judgement call about your coworker. Everyone handles stress at different levels, and for some people that means not really handling stress at all.

You may be able to breeze through your day with minor frustrations while others are thrown off by the smallest thing.

Holly Weeks, author of Failure to Communicate, notes “Don’t think what can I do to change this person?” Instead, she suggests considering how to neutralizes the situation and move forward.

If you want to offer the most basic form of help, acknowledge what’s going on and offer a compliment. Even if it doesn’t seem like much is going on, simply letting your stressed colleague feel heard and appreciated can make an impact.

Author of How to Have a Good Day, Caroline Webb, explains stressed people are “feeling out of control, incompetent, and disrespected. A compliment is your easy way to help them get back to their better self.” Make sure you’re not enabling them by dragging out the situation, though.

Acknowledge, offer some praise, and try to move with the conversation.

Although it’s not necessarily in your job description to fix your coworkers problems, you can still offer support. You may not actually be able to do anything, but offering assistance gives the other person a chance to think through solutions.

Webb also suggests brainstorming way to “reduce their cognitive load,” to ease what’s making your coworker feel overwhelmed.

Some simple solutions include splitting requests into smaller steps, shortening emails, or dividing work into parts.

Ultimately the job needs to get done, but you can provide your coworker with more manageable means of accomplishing tasks by breaking things into chunks.

You can also check in on your coworker to find out if you should be concerned, or if their stress limited to the work environment. If their stress is beyond what you can reasonably handle with these de-escalation tips, don’t hesitate to reach out to someone about further steps to take.

Check out our mental health series for some more insight if you’re concerned your coworker’s problem may be more than regular stress.

Just like some people are easily stressed, some easily pick up on the negative feelings of others. Be aware of how your coworker’s stress is affecting you. If someone is truly draining you, try to get some distance.

While that may be difficult in a small office, Weeks recommends keeping in mind that out of all the “office characters…the stress case’s temperament [is] less of a problem” than others.

Ultimately, it’s not your responsibility to destress your coworker, but you can certainly make your work life a little easier if you take these steps to make for healthier, happier collaboration.

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Business News

Company offers extra vacation days to nonsmoker employees

(BUSINESS NEWS) A Japanese marketing company offers extra vacation days for nonsmoker employees who don’t utilize smoke breaks – sound good to you?

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Anyone who knows me will tell you that I’m a huge fan of “The Office” (I mean, who isn’t?) I spend a lot of time reflecting on the awesomeness of that show and the situations that characters go through at Dunder Mifflin.

One thing that always stuck with me was a scene where Kelly is talking about how she will take up smoking in order to get the 15 minute breaks throughout the day. This statement made me think about how odd it was that smokers got breaks throughout the day while nonsmokers stay inside, maybe taking a water cooler break.

Being from Chicago, I always thought the concept of smoke breaks was crazy, anyway. I remember visiting my dad at work as a kid and seeing people standing in the freezing cold, smoking outside of his building. I don’t know if you’ve ever been to Chicago in the middle of January, but having to spend 15 extra minutes in that weather would be enough to make me stop smoking, cold turkey (pun intended).

All of these memories about the weirdness of smoke breaks came back today when I learned about Piala Inc., a Japanese marketing firm, and their new plan to give non-smokers six extra vacation days a year.

The policy was introduced in 2016 after employees complained about colleagues receiving multiple smoke breaks throughout the day. Since its implementation, 30 employees have taken advantage of the extra vacation days.

“One of our non-smoking staff put a message in the company suggestion box earlier in the year saying that smoking breaks were causing problems,” company spokesman, Hirotaka Matsushima, told The Telegraph. “Our CEO saw the comment and agreed, so we are giving non-smokers some extra time off to compensate.”

This is a great incentive for companies to offer employees. Not only in terms of equality, but would also be beneficial for a company’s health and wellness program.

While I’ve never fallen under the spell of nicotine, I would like to think that I’d prefer six extra days off compared to the habit of smoking. Apparently others are starting to feel this way as the company has reported that it has helped at least four people to stop smoking.

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