The Starbucks Way

Prepared by:James J. Messina, Ph.D.

5 Guiding Principles ofStarbucks

1. Make it your own2. Everything matters3. Surprise and delight4. Embrace resistance5. Leave your mark

Listen and respond with a greater awareness of opportunity

Principle 1: Make it yourown by the 5 Ways of Being

1. Be welcoming2. Be genuine3. Be considerate4. Be knowledgeable5. Be involved

Make it your own by the 5 Ways of Being

1. Be Welcoming

Questions your customers have in meeting you

Does this staff person care to get to know me?

Does this staff person remember me? Will this person take care of my needs? Do I matter? Am I invisible?

Make it your own by the 5 Ways of Being

1. Be Welcoming

Welcoming is: Offering everyone a sense of belonging People feel they are a priority People have their day brightened by

being involved with your service Utilize your own style to create

this welcoming atmosphere

Make it your own by the 5 Ways of Being

1. Be Welcoming

Welcome people by name:“Remember that a person’s name is to that person the sweetest and most important sound in the language. In fact a person’s name may be his or her most valuable possession”

Dale Carnegie

Make it your own by the Five Ways of Being

2. Be GenuineTo be genuine you must:1. Connect - person must feel heard- so listen to both

verbal & non-verbal cues from person you are serving2. Discover – go beyond the ordinary – you must have

a genuine desire and make the effort to exceed what your client expects

3. Respond – do not just listen to clients, but take action immediately based on what you hear- learn from these experiences for future client interactions

Make it your own by the Five Ways of Being

3. Be Considerate

Be considerate of needs on a global level Starbuck staff people are encouraged to

look beyond their own needs and consider the needs of all other such as: customers, potential customers, critics, coworkers, other shareholders, managers, support staff, farmers who pick the beans, vendors and even the environment!

Make it your own by the Five Ways of Being

4. Be Knowledgeable

Be knowledgeable: love what you do and share it with others Add value to your efforts when you

gain work-related knowledge Starbucks encourages their employees

to be fully trained and knowledgeable about coffee

Make it your own by the Five Ways of Being

5. Be Involved

Be involved: Starbucks encourages employees to be active in their stores, their company and the community

Leaders encourage employees to go beyond just doing their day-to-day job and to instead invest attentive, creative, and passionate energy – for a “Yes I Will” attitude of service to others

Principle Two: Everything Matters

Howard Shultz: “Retail is Detail” – all business is detail – everything matters

Reflecting the highest standards by:1. Ensuring the highest level of product

quality2. Excelling at customer service3. Building a rewarding culture

Everything MattersEverything & Everybody Matters!

Store environment Product quality Training of Staff Development of playful culture Social consciousness Developing a “felt sense” in stores Acknowledging, celebrating, playing!

Principle 3: Surprise and Delight

Customers want the predictable and consistent with an occasional positive twist or added value thrown in: The Cracker Jack Principle – a surprise in every box!

That something different which differentiates them from the competition and builds brand loyalty

Surprise and Delight

How to Surprise and Delight

Recognize that people anticipate & hope that they will be dazzled!

Look for a need & then BAM-step in & fill it! Most effective means are natural &

spontaneous Delight results from unwavering

commitment to creating a trusting & comfortable relationship

Principle 4: Embrace Resistance

Starbucks Values criticism “A person only profits from praise

when he values criticism” Learn to create business and

relationship opportunities when confronted with skepticism, irritation or wariness

Embrace Resistance

What is Gained? You must distinguish between customers

who want concerns resolved vs. never stop complaining or being satisfied

When concerns of critics are allayed they can become ardent supporters

When errors are made: take direct, responsibility & follow up with correct action – 95% of dissatisfied clients will return if you do so

Principle 5: Leave Your Mark

Starbucks believes that an important part of their success is linked to the powerful and positive impact that they have on their communities

Social involvement is integral to their leadership mission

They are committed to corporate stewardship-staff, suppliers, communities

Leave Your Mark

Impact of Leave Your Mark

People want to do business with, work for & invest in socially conscious companies

Employee morale is 3 times higher in community involved companies

By being involved in community based activities employees grow in leadership

Value of the brand is linked to trust people have for it

References

Starbucks website: http://www.starbucks.com/default.asp

Joseph Michelli (2007). The Starbucks Experience – 5 Principles for Turning Ordinary into Extraordinary. New York: McGraw Hill