T H E 4 I ’ S O F H O WA R D S H U LT Z

TRANSFORMATIONAL LEADERSHIP

IDEALIZED INFLUENCE• Is a role model because he

doesn’t just talk the talk- especially in the case of taking care of his employees. Its not just saying we value our employees, its showing it and investing in them. This is evident in the extensive benefits like stock options Schultz initiated for his employees

• Another characteristic of Schultz’s leadership is that he hold true to his business values and principles- he runs a company with a conscience.

INSPIRATIONAL MOTIVATION

• Integrated employee appreciation into the company values. He believed in sharing the company’s success with the people who made it happen.

• This is evident in the extensive health care and benefits plans he offers to employees. By investing in employees and showing the care he has for them, he motivates them to work toward a future in the company.

• Schultz own story and how he became successful is inspirational in itself. His determination, perseverance, and hard work speak of his character.

INTELLECTUAL STIMULATION• Extensive and continuous

training programs for all employees

• Spends nearly $3000 to train a new employee – invests in their development and education

• Saw the importance of knowing every facet of the coffee business- including the countries and cultures from where they purchased their coffee beans

• Saw part of the Starbucks experience as being the expert baristas, not just the ambiance and the coffee itself.

• Empowered employees to be creative to satisfy customer needs and to figure out what it took to “just say yes” to customer requests

INDIVIDUALIZED CONSIDERATION• Integrated employee appreciation into the company values. He believed

in sharing the company’s success with the people who made it happen.• There is a specific example in an online case study where a store

manager and barista came into his office to inform Schultz that he had AIDS and that it was getting into its later stages. After sitting and crying together in his office for a while, Schultz then had to address the issue at hand. He decided to extend full health care coverage for employees with terminal illness.

• Another example in a different case study was how Schultz made it imperative in the early stages of the company to have open forums with his employees. He wanted to hear concerns, whether personal or regarding service or product directly from them.