The Starbucks Way Prepared by: James J. Messina, Ph.D.

5 Guiding Principles of Starbucks 1. Make it your own 2. Everything matters 3. Surprise and delight 4. Embrace resistance 5. Leave your mark Listen and respond with a greater awareness of opportunity

Principle 1: Make it your own by the 5 Ways of Being 1. Be welcoming 2. Be genuine 3. Be considerate 4. Be knowledgeable 5. 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 persons name is to that person the sweetest and most important sound in the language. In fact a persons name may be his or her most valuable possession Dale Carnegie

Make it your own by the Five Ways of Being 2. Be Genuine To be genuine you must: 1. Connect - person must feel heard- so listen to both verbal & non-verbal cues from person you are serving 2. 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 quality 2. Excelling at customer service 3. Building a rewarding culture

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