{"id":1684,"date":"2012-09-09T23:50:58","date_gmt":"2012-09-10T06:50:58","guid":{"rendered":"https:\/\/markccrowley.com\/?p=1684"},"modified":"2017-11-20T13:00:12","modified_gmt":"2017-11-20T21:00:12","slug":"four-great-examples-of-how-starbucks-howard-schultz-leads-from-the-heart","status":"publish","type":"post","link":"https:\/\/staging-wmplo.xyz\/mark-c-divi5\/four-great-examples-of-how-starbucks-howard-schultz-leads-from-the-heart\/","title":{"rendered":"Four Great Examples Of How Starbuck\u2019s Howard Schultz Leads From The Heart"},"content":{"rendered":"

\"Starbucks'<\/a>\u201cSome people say, \u2018Come on, markets are not about morals, they\u2019re about profits.\u201d I say that is old thinking.\u00a0 That\u2019s a false choice.\u00a0 The great companies will be the ones that find a way to have and hold on to their values while chasing profits, and brand value will converge to create a new business model that unites commerce and compassion.\u00a0 The heart and the wallet\u2026 The great companies will be sharp to success and at the same time sensitive to the idea that you can\u2019t measure the true success of a company on a spreadsheet.\u201d
\n<\/em>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0U2 Lead Singer, Bono<\/p>\n

Few leaders in business inspire me as much as Starbucks CEO, Howard Shultz.<\/p>\n

As the head of a forty-year-old iconic organization he\u2019s grown to nearly 18,000 worldwide stores and 150,000 employees, he not only demonstrates what it means to lead from the heart \u2013 he personifies<\/em> it.<\/p>\n

By intentionally managing with both his mind and heart, Shultz most certainly remains an anomaly amongst business CEOs.\u00a0 That most leaders continue to let the mind alone do their bidding has everything to do with the way they likely were taught.\u00a0\u00a0 Virtually all of us have been imbued with the idea that the mind is the highest form of intelligence possible \u2013 especially when it comes to managing in a business environment.\u00a0 We\u2019ve been groomed to be intellectual, to subordinate feeling and to purposely marginalize our hearts.<\/p>\n

In light of this, I\u2019d like to give you four great examples of how Schultz thinks differently, acts differently and achieves differently.\u00a0 His beliefs about the heart in leadership offer a profound contrast to standard operating procedures.\u00a0 And the remarkable and sustained performance he\u2019s attained, I believe, soon will usher in emulators \u2013 people in leadership roles who will seek to maximize their own employees\u2019 engagement and productivity by adopting his inspired managerial practices.<\/p>\n

1.\u00a0\u00a0\u00a0 <\/strong>Poisoned Like Chiron<\/strong><\/span><\/p>\n

As a teenager, Schultz came home one day to find his father laid-up on the couch.\u00a0 While delivering diapers on a cold Brooklyn day, he\u2019d slipped on the ice and broken his hip and leg.\u00a0 Without being given any severance or shown any genuine concern or support by his employer, Schultz\u2019s father was fired on the spot.<\/p>\n

In Greek mythology, there\u2019s the story of Chiron, a centaur who was deeply wounded by a poisoned arrow and needed healing.\u00a0 We learn from the tale that the toxins Chiron carried with him for the rest of his life served as a stimulant to make him more sensitive, tolerant, and understanding to the experience of others.\u00a0 According to author, Paul Pearsall, almost every great leader in history has his own Chironic poisoning that contributed to their extraordinary accomplishments.<\/p>\n

It\u2019s clear that by seeing how his own father had been treated by his boss that Schultz was influenced to regard his own workers far differently and more compassionately.\u00a0\u00a0 As a result of this experience, expressing his concern for the well-being of his employees became a life long practice. \u00a0That inclination to care for people, and to give sincere consideration to how all managerial decisions and actions affect them, comes directly from the man’s heart.<\/p>\n

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2.\u00a0\u00a0\u00a0 <\/strong>Unwavering In His Values<\/strong><\/span><\/p>\n

While you wouldn\u2019t know it today, Starbucks was in a major meltdown mode seven years ago following the launch of the Great Recession.\u00a0\u00a0 The stock price plummeted, scared-to-spend customers suddenly stopped coming in, and hundreds of stores were bleeding money.<\/p>\n

Knowing that the company was on the brink of disaster while annually spending $250 million dollars on full-time and part-time employee health care, institutional shareholders demanded that Schultz eliminate the benefit.\u00a0\u00a0 Ignoring the huge cost-save and it\u2019s potential to immediately drive up his firm\u2019s share price, Schultz didn\u2019t flinch.\u00a0\u00a0 Believing that his providing health care was a competitive differentiator that allowed him to attract and retain great workers \u2013 people who would every day be counted on to deliver the brand\u2019s high caliber customer service \u2013 he argued that making such a cut would be a pyrrhic victory.<\/p>\n

Maintaining the perk under that kind of financial pressure, and when so many other organizations acted differently, only led to greater employee loyalty and commitment.\u00a0 We now know that Starbucks rebounded and has seen its stock price fully recover.<\/p>\n

Were Schultz to only have consulted his mind in making this important decision, it\u2019s almost certain he would have acted differently.\u00a0 His heart told him to look out for the people who worked for him and the lesson is they repaid in him kind.<\/p>\n

3.\u00a0\u00a0\u00a0 <\/strong>Wears His Heart On His Sleeve<\/span><\/strong><\/p>\n

In the corporate world, business decisions almost always are tied to financial analysis and projections.\u00a0 As the visionary who dreamed up the whole idea of making a coffee-buying outing an experience of theatre and heightened pleasure, Schultz has an instinctive feel for what products, store design and culture he wants customers to experience.\u00a0 When it comes to decision-making (including big choices like whether or not to launch a new product or to close all<\/em> his stores for 3 hours for employee training), he routinely acts upon his intuition \u2013 intelligence from his heart.\u00a0\u00a0 He most certainly knows his numbers, but he\u2019s very willing to go on gut when deciding whether or not to act.\u00a0 This is rare.<\/p>\n

In his most recent book, Onward, <\/em>Schultz uses the word \u201cheart\u201d no fewer than 33 times (I counted) in just over three hundred pages.\u00a0 He makes \u201cheartfelt pleas,\u201d \u201cspeaks from his heart,\u201d offers employees \u201chearty congratulations,\u201d and concerns himself with the \u201cminds and hearts of his customers.\u201d\u00a0 He\u2019d like his stores to become the \u201cheart of the neighborhood\u201d and knows what\u2019s at the very \u201cheart of being a merchant.\u201d\u00a0\u00a0 In his book, Schultz has chapters on \u201cLove,\u201d \u201cLoyalty,\u201d \u201cBenevolence,\u201d \u201cCourage\u201d and \u201cTruth In Crisis.\u2019\u00a0\u00a0 Schultz knows he\u2019s \u201cat the heart of Starbuck\u2019s operations\u201d and has the clearest understanding that what people feel in their hearts has far greater impact than anything he can possibly say.\u00a0 This is simply uncommon and inherently extraordinary. \u00a0It’s also especially and uniquely informed.<\/p>\n

4.\u00a0\u00a0\u00a0 <\/strong>Demanding As Hell<\/span><\/strong><\/p>\n

If this heading seems like it belongs in a different blog, you\u2019re mistaken.<\/p>\n

The whole idea of leading with greater heart is to drive better and more sustainable performance.\u00a0 When you openly value employees, develop, encourage, recognize and reward them, you end up with a highly charged workforce.\u00a0 Sensing their needs are being authentically met, employees reciprocate by excelling and delivering beyond their expectations.\u00a0 It\u2019s a law of nature.\u00a0 Schultz very much knows this.<\/p>\n

It\u2019s pretty clear that Starbuck\u2019s CEO thinks about his organization in virtually every waking hour.\u00a0 Consequently, he\u2019s been known to call 9:00 PM Sunday night meetings at the spur of a moment or to call an executive at home on Christmas Eve.\u00a0 While these events aren\u2019t routine affairs \u2013 and did occur when the firm was greatly struggling \u2013 the point is Schultz has great expectations for his employees and for the performance of his firm.\u00a0\u00a0 As validation that Schultz\u2019s leading from the heart rewards all constituencies, the ten-year price appreciation on Starbucks\u2019 s stock is nearly 400%.\u00a0\u00a0 The ten-year return on the S & P 500 Index is just 60%!<\/p>\n

At Starbucks, it\u2019s Howard Schultz\u2019s ambition to \u201cinspire and nurture the human spirit one person, one cup, one neighborhood at a time.\u201d\u00a0\u00a0 You can\u2019t succeed on a noble mission like that \u2013 or even to conceive it \u2013 without routinely conferring with the heart.<\/p>\n

We always are grateful when you share these blogs on all social media with colleagues and friends. \u00a0Our reward in writing these is knowing people found them helpful and insightful.<\/strong><\/em><\/p>\n

We invite you to sign up here<\/a> to receive them directly. \u00a0We promise to never share your information or call you during dinner.<\/strong><\/em><\/p>\n

PS: \u00a0After this article was posted, all of the social media counters on our website mysteriously reverted to zeros — and all historical share counts were lost.<\/em>\u00a0\u00a0All links now are working!
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\u201cSome people say, \u2018Come on, markets are not about morals, they\u2019re about profits.\u201d I say that is old thinking.\u00a0 That\u2019s a false choice.\u00a0 The great companies will be the ones that find a way to have and hold on to their values while chasing profits, and brand value will converge to create a new business […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,14,16],"tags":[22,31,39,44,50,52,72,75,100,104,109,133,143,192,197],"class_list":["post-1684","post","type-post","status-publish","format-standard","hentry","category-heartleadershipinpractice","category-leadership","category-wisdomefromotherauthors","tag-achievement","tag-appreciation","tag-business","tag-ceo","tag-compassion","tag-connection","tag-employee-engagement","tag-encouragement","tag-heart","tag-howard-schultz","tag-human-performance","tag-leadership-skills","tag-management","tag-starbucks","tag-success"],"yoast_head":"\nFour Great Examples Of How Starbuck\u2019s Howard Schultz Leads From The Heart - Mark C. 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