Starbucks: The importance of harnessing a founder’s values to endure long after they hand over the reins

With a brand recognition probably as strong as McDonald’s, Starbucks is the largest coffee chain in the world.It has 32,000 locations and approximately 350,000 employees, and a very unique brand that is consistent in all jurisdictions.The company has had its ups and downs in recent times, recovering from an alleged racism issue in a Philadelphia store in 2018 that got worldwide attention.Its response was swift and effective, with mandatory training for all staff around the world.The chain was founded in 1971 in the Pike Place Market in Seattle, which is also known for its famous fish market.Howard Schultz joined the company in 1982 and introduced coffee culture to the American market.He stepped down as CEO in 2000, but then returned to the same role in 2008. He had to rescue its reputation for declining customer experience and poor treatment of employees.His aim was to “reignite the emotional attachment with customers”.He eventually stepped down again in 2016. Kevin Johnson, the CEO since 2017, retired abruptly on April 4 and Schultz has again returned to the role.The reason is that the ship needed steadying after much employee unrest and their engagement with unions for the first time.It must have felt like déjà vu for him and the entire organisation.Clearly Schultz is a great leader, at least that’s what Wall Street and Main Street think. But I wonder has he missed a trick in ensuring continuity beyond his own tenure?The brand imagery is strong and the service proposition is consistent across the globe.But why did employee/employer relations deteriorate on at least two occasions?And how did it happen that Schultz had to announce at a recent staff meeting that he wasn’t ‘anti-union’ but ‘pro-Starbucks’?Ensuring you leave a strong legacyFor most founders of SMEs I meet, their ambition for their company is often altruistic. Yes of course they want to build value and optimise return on investment.But many of them are so concerned about the future of the company that they find it difficult to hand over the reins. Only some really consider leadership succession and fewer still, consider culture.But what about culture? After all, it’s the foundation that underlies all decisions, strategies and investment.Leaders won’t be around forever. Markets will evolve, as will customers and the need therefore for an organisation to continuously adapt.As the world continues to change at an alarming pace and complexity, the one element of a business that enables it to cope is culture.Tips for refreshing your cultureIn preparing your legacy, conduct an audit of your current culture. Do that with a carefully structured survey and series of focus groups. Make sure the audit is objective and authentic. Decide which bits are good and will take the business forward.Design a new culture built on a set of values. After all, culture is all about behaviours, rituals and beliefs.Be careful though, as organisations often get this wrong. They list a set of commonly used words or phrases that nobody really believes in. Google is not a good resource for this exercise.They need to be your values. They should be authentic and measurable.Ensure you have a robust plan to embed them for the long term.The Last WordOn his return, Schultz said: “Although I did not plan to return to Starbucks, I know the company must transform once again to meet a new and exciting future where all of our stakeholders mutually flourish.” I’m pleased to hear he has also acknowledged that stakeholders are different in 2022.But if I was fortunate enough to have a chat with him over a coffee, I’d encourage him to carve out a clearly defined culture, making all leadersaccountable for it.But culture change is not easy.Even Wall Street is so far underwhelmed and not giving Schultz any ‘prodigal son’ accolades yet. But that doesn’t mean culture shouldn’t be worked on. It’s quite the opposite. A well designed and embedded culture will not and should not change frequently. Excuse me now, while I go and make a long-distance call.