Starbucks vs. Amazon: A Tale of Two (Very Different) Cultures

Two companies, two distinct sets of values, both with the aim to achieve a culture of excellence. What can we learn from the differences?

A lot has been written about Amazon and Starbucks in the past few weeks.

Let's recap:

The New York Times published a scathing piece portraying Amazon, the world’s largest retailer, as a brutal employer that puts innovation and company performance above its people's well-being. The authors, Jodi Kantor and David Streitfeld, painted a picture of long and late workdays, “unreasonably high” standards, and colleagues sending secret feedback to bosses that equated to career sabotage.

Two weeks later, amid the stock market chaos that was causing distress to millions across the globe, Starbucks's CEO, Howard Schultz, sent a memo to his entire company of 190,000 "partners" (Starbucks-speak for employees). It asked baristas to show special concern and sensitivity to their customers, and lavished praise on Starbucks workers for their recent accomplishments. The move was covered by multiple channels (including my take on Inc.), and received an extremely high amount of engagement--most of it positive.

Now, let me be the first to tell you: I've never worked at Starbucks or Amazon. I can't comment definitively on their internal cultures.

But we can learn something about the organizational cultures of both companies by looking for clues--in this case, from their own communication. I decided to compare the companies' values, as taken from their respective websites. (You can find Starbucks's values on its mission statement page, under the heading "Our Values." Amazon's are located on the Amazon.jobs website, under the title "Our Leadership Principles.")

True, these are simply written values. We can’t gauge how closely real life within the companies represents these principles. But the statements were obviously crafted by persons with a certain level of responsibility, and you can be sure they were reviewed, revised, and redrafted multiple times before getting approved. And I'm sure both Howard Schultz and Jeff Bezos have read these words many times.

Here's what I found

What stands out most at first is that Amazon's "leadership principles" (14 sections, 564 total words) are much longer than Starbucks' "values" (six lines, 78 total words).

So what does that mean? Different people will draw different conclusions, depending on the lens you're looking through. The Starbucks values would obviously be easier to remember. (Maybe that's why "Amazonians" inscribe theirs on handy laminated cards.)

Generally, I prefer the concept of less is more, especially when it comes to value statements.

Both companies claim to value customer service, innovation, growth, high performance, and responsibility/accountability. These are all great qualities when working to establish a culture of excellence.

Customers

However, I noticed a subtle difference between the two companies' views of customers.

The only time Starbucks mentions the customer directly, it says the following:

With our partners, our coffee and our customers at our core, we live these values: ...

And Amazon:

Customer Obsession: Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers.

Did you notice the difference?

Starbucks puts customers on the same line of importance as partners (employees) and product. Amazon, in using words like "obsess", places customer value above everything else. I won't go so far as to say that Amazon values its customers more than its employees (although Jeff Bezos has been reported to send employees emails forwarding customer complaints with a single character added: "?").

By going out of its way to place customers on the same level as its workers, Starbucks sends the subtle message that although customers are important, they are no more important than employees.

Performance

Starbucks value No. 4, along with the conclusion:

Delivering our very best in all we do, holding ourselves accountable for results.

We are performance driven, through the lens of humanity.

And some quotes from Amazon's principles:

Hire and Develop the Best: Leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and willingly move them throughout the organization. Leaders develop leaders and take seriously their role in coaching others. We work on behalf of our people to invent mechanisms for development like Career Choice.

Insist on the Highest Standards: Leaders have relentlessly high standards--many people may think these standards are unreasonably high. Leaders are continually raising the bar and driving their teams to deliver high quality products, services and processes ...

With the statement, "We are performance driven, through the lens of humanity," Starbucks attempts to promote effective execution, while somehow keeping balance.

And Amazon? Supporters will say that to completely disrupt retail (and even the internet) the way Amazon has, requires a culture of relentless performance.

And that’s what I’m afraid of.

If you're constantly raising the bar, you'll have more and more people who fall down. It may be sustainable for a time (even a long time). But the problem that type of environment presents is that somewhere along the line, people lose empathy. It's about a perspective gap.

I believe the danger in Amazon's leadership principles is the potential to breed arrogance and self-promotion, traits that are unhealthy for anyone. Big egos lead to destructive behavior, without exception. And a culture that supports those types of personalities will eventually work in opposition to qualities such as empathy and compassion.

It may be great for disrupting, innovating, and making bank. But it's not great for society.

I admit, I’m a heavy Amazon user. I think it puts out a remarkable service. And there are a lot of good things about its leadership principles–such as the “Bias for Action” and an insistence on growth and self-improvement.

So here’s a chance to improve. I hope that Jeff Bezos and his team can take those recent discussions and provide a catalyst to look carefully at where Amazon is, where it's heading, and what needs fixing.

And the rest of us should do the same.

What do you think? Do you interpret Starbucks's and Amazon's value statements differently? Let me know in the comments section below.

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A version of this article appeared on Inc.com, where I also write. 

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