I’ve just read a wonderful book co-authored by Howard Schultz, ceo of Starbucks, entitled Onward. For those of you who don’t know, Schultz was the iconic leader of Starbucks who retired in 2000, to become non-executive chairman, only to sense that in 2007 all was not well with the iconic coffee brand.
He returned as ceo to Starbucks in the beginning of 2008 and set about revitalising the company at the height of the first recessionary wave. In his book, there are 4 particular observations about growing companies that struck me:
1. In the pursuit of growth you dont realise how everyday, in little ways, you move away from your founding ethos.
2. The demise of great companies is usually not 1 catastrophic event but rather 100 or more little things that are each, of their own accord, impervious. Yet, when they are tabled together they create a tsunami of wrong practices.
3. If you have people in key positions who cannot live the ethos and magic your company aspires to, it gets lost very quickly.
4. You become what you measure – in other words – if you measure only numbers you quickly become a number chaser.
In addition to the above 4 observations, Schultz also identified a host of behaviour attributes necessary for vital organizations today. Each one has a message of its own, but for the record they include the following:
- Grow with discipline
- Balance intuition with rigor
- Innovate around the core
- Don’t embrace the status quo
- Find new ways to see
- Never expect a silver bullet
- Get your hands dirty
- Listen with empathy, over-communicate with transparency
- Tell your story, refusing to let others define you
- Use authentic experiences to inspire
- Stick to your values, they are your foundation
- Hold people accountable, but give them the tools to succeed
- Make the tough choices: it’s how you execute that counts
- Be decisive in times of crisis
- Be nimble
- Find truth in trials and lessons from mistakes
- Be responsible for what you see, hear and do
- Believe
I believe that Schultz’s reinvention of Starbucks is a fitting example of the truth of the two year lag. The two year lag understands that what is currently happening in your company is a result of decisions, right or wrong, made two years ago. Beginning the process of the Starbucks reinvention in 2008, the hard earned results of Schultz’s leadership and decision making is only now being seen 2 – 3 years down the line.
Onward is a must read for anyone who believes that the soul or ethos of a company is the real magic and who is generally concerned about building a company of real value to all its stakeholders.
You can buy the book here
