What's Love Got to Do With It? (Reaction to the Justin Bariso Article on Howard Schultz)

In a recent Inc. Magazine article,[1] Justin Bariso identified one "simple word" as the missing link between the success and failure of Starbucks. In response to a LinkedIn post[2] by former CEO Howard Schultz , Bariso opined that the simple word "love," or the lack thereof, was at the core of Starbucks' challenges. He pointed out that Schultz appeared to be the secret sauce of success for the flailing company. That is a fact about which nobody can argue.

WHAT'S LOVE GOT TO DO WITH IT?

While Schultz stated that his "love of the company . . . knows no bounds." (Schultz, 2024, Para. 3), it's what's behind that love that intrinsically connects Schultz to his repeatedly successful Starbucks rescues over the past two decades. Schultz's LinkedIn post reveals what Bariso is missing concerning Schultz's success.

It's not the miss that matters. It's what comes next. What's the diagnosis of the problem? What's the impact on morale? And what's the strategy to fix it? (Schultz, 2024, Para. 5)

Morale matters as it affects the customer experience. Many organizations diagnose the problem without considering morale. Without team input, any strategic fix is fallacious on its face and may further erode morale. Ignoring team morale and input contradicts Starbucks' core values[3] of "Creating a culture of warmth and belonging . . .," ". . . finding new ways to grow our company and each other," and ". . . connecting with transparency, dignity, and respect."

FOR THE LOVE OF TRUST

Leaders must model both humility and confidence as they work to restore trust . . . (Schultz, 2024, Para. 7)

If we were to major in a single word, it should be "trust." The importance of psychological safety to building a thriving corporate culture cannot be overstated. No transparency, dignity, or respect is evident in a culture where teams don't feel free to speak up without retaliation or face the disrespect of having their input wholly ignored. ?

. . . the company's fix needs to begin at home. The stores require a maniacal focus on the customer experience . . .. The answer does not lie in data . . . (Schultz, 2024, Para. 9)

Ignoring the connection between morale and the customer experience will never work. Boots on the ground should be the first line of feedback in diagnosing a problem. That will never happen with a top-down, ivory-tower approach that aggregates data to arrive at solutions. When it comes to the human experience, aggregation is not going to cut it.

THE DEVIL IN THE DRILL DOWN

In The Devil's in the Drill Down (Five Immutable Rules of Sustainable Change),[4] I write about one of the great frustrations of my 37-year federal career.

One of my greatest challenges as a labor-management leader was getting leadership to understand the importance of drilling down the data. When the national surveys revealed that my former federal agency repeatedly failed to advance cultural change and failed to make the list of best federal agencies at which to work, they just could not understand how their internal numbers were not reflected in the national data. Progress stalled, and there was no movement in this regard. Their answers could have been found in the drill down.[5]

They failed to recognize the devil in the drill down. Aggregated analysis masks problem areas, especially where psychological safety is negligible.

The overall data might look acceptable, but once you get the employees' take on the matter, you might not be looking so good. It is tempting to ignore the outliers. But it is bad business to do so.[6]

Schultz recommended an answer to this challenge:

Senior leaders—including board members—need to spend more time with those who wear the green apron. (Schultz, 2024, Para. 10)

I would suggest unannounced visits undercover. Leadership's very presence alters the dynamic. You will not likely receive unadulterated feedback without the trust that psychologically safe cultures provide.

Do not have the manager ask; they might be the perceived problem or the employee may not feel safe expressing concerns to that individual. Do not ask in a survey. If the employee feels taking it would be a waste of time – it will not be done. Do not ask in any manner in which the employee would have reservations about self-disclosure or possible whistle-blowing.

Throw a few dollars into hiring a neutral party, sworn to confidentiality and skilled in facilitation, to hold listening sessions. The facilitator will provide you with a professionally written report detailing emergent themes from the sessions. Give it to the employees and let them advise you on actionable steps to address the matter.[7]

While I understand why Schultz said the answer doesn't lie in the data, I recommend that quantitative data be augmented with qualitative data collected through listening sessions. As long as strict confidentiality protocols are followed and well-developed and communicated ground rules for the sessions are followed, the resulting information can be valuable.

BOOM! THERE IT IS!

?. . . make it the uplifting experience it was designed to be. The go-to-market strategy needs to be overhauled and elevated with coffee-forward innovation that inspires partners, and creates differentiation in the marketplace . . .. Through it all, focus on being experiential, not transactional. (Schultz, 2024, Para. 10)

Boom, there it is! Experiential versus transactional. Schultz's statement cuts to the crux of cultural transformation as he advocates for addressing human beings instead of viewing people as human resources. It cuts to the difference between intrinsic-influence and external-control paradigms. We should nurture human beings, not manage human resources. Schultz goes on to say,

At Starbucks, culture is the currency of the company and its internal operating system. All roads at Starbucks—groundbreaking innovation, relentless execution, years of growth, and outsized financial performance and shareholder value—go through its culture. (Schultz, 2024, Para. 11)

What Schultz said is true for every organization—whether that culture is good or bad determines the direction and outcomes of the company. Schultz correctly says that change depends on Starbucks returning to its core values and allowing that to drive strategy. That truth is Cultural Transformation 101. In stating that "Culture eats strategy for breakfast," Peter Drucker pointed out "the importance of the human factor in organizations."[8] Culture drives how employees perform under pressure and respond in a crisis. It also informs how employees treat partners and customers.[9]

THE SHULTZ SUPERPOWER REVEALED

And, here is the coup de?grace of Shultz's entire post. It is the quintessential expression of what's behind the love about which Bariso wrote.

There are no quick fixes. But the path forward should be what has guided the company over decades of financial success: Inspire your people, exceed the expectations of your customers, and let culture and servant leadership lead the way. (Schultz, 2024, Para. 12)

No more valid words have ever been spoken. Schultz's repeated references to the concepts of humanity and culture testify to the fact that it's not about his love for Starbucks. However, it is his intrinsic embodiment of the company's core values that is the superpower that drives Schultz's love for the company he helped create.

[1] Bariso, J. (2024, May 6). With 1 Simple Word, Ex-Starbucks CEO Howard Schultz Revealed the Company’s Biggest Problem. It’s a Lesson in Emotional Intelligence. Inc Magazine; Mansueto Ventures LLC. https://www.inc.com/justin-bariso/with-1-simple-word-ex-starbucks-ceo-howard-schultz-revealed-companys-biggest-problem-its-a-lesson-in-emotional-intelligence.html

[2] Howard Schultz on LinkedIn: Starbucks announced earnings last week (2024 May 06). Retrieved May 12, 2024, from https://www.dhirubhai.net/posts/howardschultz_starbucks-announced-earnings-last-week-and-activity-7193044402255110144-y4mN

[3] Starbucks (2024). About Us. www.starbuckscoffee.cz. Retrieved May 12, 2024, from https://www.starbuckscoffee.cz/en/about-us

[4] Williams, L. F. (2015 December 12). The Devil’s in the Drill Down (Five Immutable Rules of Sustainable Change). (n.d.). www.dhirubhai.net. Retrieved May 12, 2024, from https://www.dhirubhai.net/pulse/devils-drill-down-linda-f-williams-msw/

[5] Ibid

[6] Ibid

[7] Ibid

[8] Board, T. A. (2020, February 26). “Culture Eats Strategy For Breakfast” - What Does it Mean? [Blog Post] The alternative Board. Retrieved on May 12, 2024 from https://www.thealternativeboard.com/blog/culture-eats-strategy

[9] Ibid