Howard Schultz Starbucks Chairman CEO Transformational Leadership 00

Howard Schultz Starbucks Chairman & CEO Transformational Leadership

00 Who is Howard Schultz? Schultz • Schultz is an American businessman and writer who is best known as the chairman and CEO of Starbucks • Schultz had a vision, managed company successfully, and maintains the growth of the company through his transformational leadership • Schultz had a vision for Starbucks: o Wanted to expand the company o Visited Italy and loved the concept of the Italian Bar

01 Transformational Leadership through ‘Idealized Influence’ • Schultz admits failure, takes accountability, and keeps learning (from Forbes article). • Starbucks struggled with maintaining their "neighborhood feel" for a while due to business expansion after Schultz resigned CEO. Schultz saw the ongoing struggle and joined the team again. He tried to build the feel again and even gathered the managers to New Orleans to do more than 54, 000 volunteer hours in the community which is very unusual and unexpected. After this action, the team was perfectly backed up to where it used be and he showed his people and the world that his job is to inspire others and the company.

02 Transformational Leadership through ‘Inspirational Motivation’ • Schultz always shows optimism through his words and actions and it truly impact his employees. They are motivated in various ways and Schultz shows his life focusing on the values he really care and appreciate. • Schultz is always willing to share his story of achieving his dream through Starbucks and give others an opportunity to help out their struggles and give an idea of where they can improve on.

03 Transformational Leadership through ‘Intellectual Stimulation’ • Starbucks does not satisfy with where they are now, so they always come up with new ideas. Recently they came up with instant coffee brand for the first time and have been experiencing a huge success. They are not afraid to walk the pathway others haven’t walked. • Some of their major achievements and innovations are: the introduction of the milder Pike Place Roast; the story of its VIA Ready Brew line; the launch of a loyalty program; investment in and engagement with social media; focus on a global expansion strategy; and the extension of social programs

04 Transformational Leadership through ‘Individualized Consideration’ • Schultz excelled in individualized consideration. He lived in his values which are integrity, genuinity, and honesty. During the economy aggravation, Schultz was persuaded to change the policy of health care, but he refused to do so because employee benefit holds a value of the company and the employees are the ones who make the company better everyday. He was never contrary to employees' expectation. • Schultz saw the people as a value and asset to the company and set up a supportive and encouraging atmosphere for all employees.