I am not a coffee drinker, but after watching a masterclass by Howard Shultz, founder of Starbucks I have been fascinated by his story and leadership.  Awhile ago I wrote a post about Starbucks leadership.  Since watching that masterclass on the plane, I have taken the time to read Howard Shultz’s two autobiographical books:  Pour Your Heart Into It and Onward.  Both are great books to learn about building and rebuilding a culture.

As I reflect on what I learned in these books a few principles come to mind that we can all learn on how to build a culture.  As leaders, the culture can eat up our leadership, but we also have the ability to mold the culture, and I think Shultz’s example highlights some key ways we can mold the culture as a leader.

Be The Example

“Whatever your culture, your values, your guiding principles, you have to take steps to inculcate them in the organization early in its life so that they can guide every decision, every hire, every strategic objective you set.”

Howard Shultz

The first coffee shop Shultz opened was named II Giornale and Shultz had a passion to create a place that would be a third space for people to connect.  He wanted to create the Italian coffee bar experience in America.  He wanted a place where people felt seen and known.  This was part of Howard’s vision and passion.

In order to pass this along he had to do two things.  First, he had to live out and be the example of what he envisioned, especially when it was small.  Second, he had to find people who were going to be aligned in values and passionate about the vision.

As a leader your reach has a limit and those around you are the microphone for the vision.  If they only pass along information then a culture is created that may not align.  On the other hand, when they embody the vision, they attract others who also want to be a part of the culture.  Live the vision and values as a leader and find people who will do the same.

Care for Your People

“Success is not sustainable if it’s defined by how big you become….The only number that matters is ‘one.’  One cup.  One customer.  One partner.  One experience at a time.”

Howard Shultz

Shultz made this statement after reflecting on his return to Starbucks in the early 2000’s.  When he was growing the company he made an intentional decision to call employees partners.  Not only that, but he decided to take care of them with benefits unheard of for a retail-based industry.

Shultz understood if he took care of his people they would be happier and take care of their customers.  The one employee, the one customer, the one experience is what truly mattered.

Leaders who develop healthy cultures take care of their people and their customers.  If money or numbers is the highest value, the culture will reflect that.  On the other hand, when people are the highest value, the customers will experience that and the numbers will take care of themselves.

Build a Greater Purpose

“Starbucks is not a coffee company that serves people.  It is a people company that serves coffee.”

Howard Shultz

When Shultz got the vision for Starbucks while sitting at a café in Italy it was not to make a lot of money serving coffee.  His vision was to create an experience for people where they could connect with others and be known by those who serve them.  The culture was made to be about people, not profits.

This is the foundation of the organization, but unfortunately as happens in many organizations . . . things change.  When Shultz came back a second time, he had to reinvigorate the organization, and one aspect of this plan was to host a company-wide leadership training in New Orleans.  As a part of that experience, employees went throughout the community after Hurricane Katrina and served the community.

This is one example of creating a greater purpose and making a large organization feel small.  Fast forward and things have changed again.  As I mentioned, culture will eat leadership and leadership decisions impact culture.

I read a recent Harvard Business Review article discussing how the commoditization of Starbucks has impacted the culture.  The present-day Starbucks is not as it was.¹  What will they do?  That is not for me to discuss, but here is one bonus principle:  Leadership Impacts Culture and Both Must Evolve.  That may have to be a post for another day.

Take a minute and evaluate how you are doing in each of these areas.  What can you do to nurture a healthy culture in your organization or team?  Need help building your team?  Contact me and let’s discover any way I may be able to help you grow your team.  Lead Well!

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1. https://hbr.org/2024/06/how-starbucks-devalued-its-own-brand retrieved 7/25/24
2. Shultz, Howard. Pour Your Heart Into It
3. Shultz, Howard. Onward:  How Starbucks Fought for Its Life without Losing Its Soul.