Howard Schultz and Transformational Leadership By Hailey Hickman

Starbucks Many Americans know what Starbucks is, a chain-coffee café that specializes in serving personalized coffee beverages, as well as teas and specialized drinks, such as hot coco. Many people go there regularly. Logically, Starbucks is so popular because of the quality of their drinks. However, Starbucks is not an industry leader only due to products they offer, but mainly because of the customer service they provide. The importance of customer service is instilled and exemplified by CEO Howard Schultz, who is an exemplary transformational leader. Why, you ask?

Idealized Influence Transformational leaders use vision and mission in order to influence followers, aka employees. Howard Schultz has created a company where he wants everyone to feel welcome, including employees. He also is incredibly driven, leading the company to be innovators in the coffee market.

Inspirational Motivation Not only does Starbucks have high expectations for their coffee, but also for their employees. However, Schultz understands that he must inspire his employees, not just tell them what to do. He has done this using emotional appeals. Schultz often tells the story of how his father was incredibly hardworking, but never found fulfillment in any of his jobs. This is what has really motivated Schultz, thus creating a company that his father “never got to work for. ” This anecdote helps employees see that Schultz’s motivations are much more than profit.

Schultz created Starbucks not out of a passion for coffee, but a desire to serve. Intellectual Stimulation Individualized Consideration Schultz created a company with a strong set of values, guiding principles, and cultures. Schultz is passionate about “building a company that treats people with value and respect. ” While Starbucks sells goods, such as beverages, pastries, and mugs, the focus of the company is service. They are really selling an experience. Starbucks was the first American company to offer comprehensive health insurance and company ownership in the form of stocks to all employees, even part-time workers. Starbucks is in business in order to exceed customer expectations, not profit (a very innovative idea for corporate business). Schultz believes that the product “doesn’t sell itself, ” but the purpose of the product is to improve the lives of not only customers, but employees as well.

Howard Schultz is a truly transformational leader.

Howard Schultz is a truly transformational leader. What is truly innovative about Schultz’s approach to business is that he is not incredibly passionate about coffee, but wants to better the lives of people. By focusing on company culture, values, and employee relations as a first priority, Schultz has been able to create an incredibly successful company that is a leader in the industry.