Mike Henderson

The Comeback of Starbucks (Part 2)

The story of how Starbucks almost went away, in fact it's stock price was well below $10 a share, and how it recovered to where it is profitable and how it's current stock price is at $60, is in one word, fascinating.

This is a great read for any individual or organizational leader to read.  The quotes that I have included will just give you a taste of what's in the book.  Also, another word that describes the book is hope.  The light had almost gone out at Starbucks.

While my copy is highlighted and dog-eared all over, I have chosen just a few quotes to give you an idea of what's in the book. In the following quotes I have italicized some key words.

9. "Every time a barista had to tell a customer, 'Sorry, we're out of vanilla syrup' or 'We didn't receive our banana shipment so I can't make your Vivanno,' the fragile trust between Starbucks and our partners and between Starbucks and our customers fractured."  

10. "Starbucks' store managers were keys to the company's transformation.  All the cost cuts and innovation meant nothing unless our baristas understood their personal responsibility to connect with customers..." p. 193

11. "...reinforced how much a barista's job matters given that he or she quite possibly might serve up the only human connection in a customer's day." p. 198

12. "I've never embraced traditional advertising for Starbucks...our success had been won with millions of daily interactions." p. 211

13. "In September 2008, Starbucks had parted ways, somewhat painfully, with our primary advertising agency of four years..."  p. 211

14. "...the more critical the times, the more important it is...to work together in a non-political, non-emotional, fact-focused way." p. 221

15. "Although I never stopped believing that Starbucks would emerge from the darkness, I was nonetheless experiencing an emotional roller coaster daily." p. 222

16. "And while I would not want to constantly battle against the odds, the raw feeling of accomplishing something that others did not think possible, or leading people beyond where they thought they could go, is extremely gratifying." 302

17. "Never expect a silver bullet...Stick to your values...Find truth in trials and lessons in mistakes...Believe." p. 309

As you read the book you realize that Howard Schultz put himself through a lot.  In other words, he had enough money.  He did not have to go back to Starbucks.  So why did he do it?

"Quite simply, I love this company and the responsibility that goes with it.  Onward..."  p. 311

Onward is a candid and compelling story of a remarkable comeback.  This book is required reading.  

The Comeback of Starbucks

Onward was one of my favorite books from 2011. I purchased it as soon as it came out and devoured it within the week.  It's the story of how Starbucks almost went away with a worsening economy and internal troubles. 

However, the former CEO, Howard Schultz, came back as CEO and began to once again oversee the day to day operations.  

Today Starbucks' stock price has increased six-fold from it's low. It has once again returned to profitability. 

The book is a great read as it covers the decision making, the store closings, and also the elimination of some of its people.  On the one hand I'm sure many felt that Schultz went about it the wrong way.  For some it could appear that he was unnecessarily ruthless at times. But Starbucks had lost its way, and someone had to right the ship.  Howard Schultz was the man to do it.

I have included twenty quotes that sort of summarize the decisions, the emotional turmoil, and the process that brought Starbucks back. Rather than include all twenty in one post, I will break it into two posts with several highlights in each post.  These are all the words of Howard Schultz. 

1. "There are moments in our lives when we summon the courage to make choices that go against reason, against common sense and the wise counsel of people we trust." p. 7

2. "What upset me, what felt like a blow to the gut, was the leak.  I could not imagine who would do such a thing.  It was nothing less than betrayal.  In my life I place enormous value on loyalty and trust." p. 27

3. "Saying good-bye to people when they leave Starbucks never gets easier, even when I think it is the right choice for the company, and especially when I truly respect the individual." p. 60

4. "Did we have the right people with the right skills in place for everything that needed attention." p.77

5. "Our coffee and marketing departments went out and conducted their own taste tests to gain a definitive understanding of what many consumers really wanted in lieu of a bold brew--not what we assumed they wanted, which was a weak, inferior coffee.  What we heard, what many people told us, was that they wanted Starbucks to sell a more consistent, balanced brewed coffee." p. 85

6. "Closing so many stores felt like a defeat, even if it was the right thing to ensure the company's health." p. 152

7. "Success is not sustainable if it's defined by how big you become.  Large numbers that once motivated me--40,000 stores!--are not what matter.  The only number that matters is 'one.'  One cup.  One customer.  One partner.  One experience at a time." p. 156

8. "I know people are angry and grieving and I know people are mad.  But I had to make the difficult choice (and consider) the long-term sustainability of the company." p. 172

Obviously being at the top can be emotionally draining and incredibly challenging.

 

Three Must Have Parenting Books

Over the past two weeks I presented a two-part series on parenting.  During those two weeks we gave away three different titles which should be in every parents library.

The Jesus Storybook Bible: Every Story Whispers His Name is an excellent book for parents with toddlers.  The illustrations are worth the price of the book.  Plus the biblical teaching is excellent.

Shepherding a Child's Heart is the first book a parent needs.  This book will take you to the Scriptures and show you how to influence the heart of the child, and not simply the external behavior.

Long Story Short: Ten-Minute Devotions to Draw Your Family to God is designed to teach the Bible in 10-minute segments and is ideal to use with elementary age and middle schoolers.  

               

One More Book Title to Giveaway

Today at New Hope I gave away the first two books of the four I am giving away.  The books I am giving away are some of the best three titles that every parent should have in their parenting arsenal.  Here is a brief intro to the third title. 

 

Parenting Series Book Giveaway

This Sunday I will begin a brand new two-part series on parenting.  Since I am a huge fan of books, I will be giving a few away.

Could You Work for Tony Hsieh?

One of the great business stories of the past decade is the story of Zappos.  Tony Hsieh is the CEO and if there is one word that sums up his personal passion it would be happiness.  In fact, his book is entitled Delivering Happiness.

The book is a great read and details the story of his life from a little kid all the way to CEO of Zappos and the ultimate acquisition by Amazon for over $1 billion.  That was in October of 2009.  Every shareholder was awarded Amazon stock shares which have doubled since then.  So you could say the deal turned out to be worth about $2 1/2 billion.

At any rate what fascinated me are the values and principles in play at Zappos.  For instance, after they hire you they will actually offer you $2000 to leave. Quit.  Why?  Because they want people who have the same values and passions.

Delivering Happiness is now a global company.  One of the things obvious about Hsieh is that he enforces his values.  For instance, if you were to arrive in town for a job interview and you were rude to the cab driver, you would not be working for Delivering Happiness and Tony Hsieh. Of course, as pastor of New Hope I find myself asking that question.  Can you be on staff at New Hope, be rude and keep your job?  I don't see that happening.  Would I take some heat for dismissing a rude person?  Probably.  Amazing when you stop and think about it. 

It's refreshing to see people step up and live out their values.  How many would lose their jobs tomorrow because of rudeness?  A  lot.  Just look around.  Spouses are rude to each other.  Employees are rude to fellow employees.  Customer service people are occasionally rude to customers and vice versa. 

Have you ever let someone go because they were rude to others?  Was there any fallout?  Did others think that terminating someone for rudeness was out of line?  That's what makes someone like Hsieh stand out.

Yes, you can sometimes get by with rude behavoir where you are, but should you get by?  If it were someone else you wouldn't think so.  So let's keep it personal.  Could you work for Tony Hsieh?

Sex - God's Way

In Sunday's message at New Hope I spoke on the topic of sex.  That's always a fascinating subject, especially in the church since the church has not always gotten it right.  Add to that the fact that our culture clearly doesn't get it and, well, you have an interesting time...

During the message I mentioned a couple of books and wanted to make it easy for people to access them.  I have added a few, but here is a list of books that I highly recommend. 

Going All the Way by Craig Groeshel is an excellent book which deals with premarital sex, cohabitation, and sexual faithfulness in marriage.

A Marriage Without Regrets by Kay Arthur.  This book is simply a book on marriage.  However, it is also a book of hope because her first marriage failed and she has now been happily married for decades.

And the Bride Wore White by Dannah Gresh.  She addresses the issue of sexual purity while dating.

Sheet Music by Kevin Leman is a book for couples and is challenging book about your entire love life, sex in particular.

Intended for Pleasure by Ed Wheat is perhaps the best overall book on sex for couples.  It is excellent for engaged couples about to get married and for married couples at any point.

Restoring the Pleasure by Clifford and Joyce Penner is a great book for couples who are dissatisfied with their lives or for any couple who wants to bring sexual counseling right into their bedroom.

All of these books are worth reading.  If you only want one book my personal picks would be Going All the Way for singles, and Intended for Pleasure for married couples.

What Am I Reading?

Perhaps in the post I should have said, "Who am I reading?"  While there are always various things on my reading list one current author, professor, and speaker is Gary Hamel.

Hamel was recently recognized by the Wall Street Journal as one of the world's most influential business thinkers.  What fascinates me about Hamel is that he is a solid Christ-follower and has spent time talking with churches and pastors about the effectiveness of churches.

His most recent book is called "The Future of Management" and will no doubt be a best-seller.  Perhaps in a later post I will comment on some of his thoughts regarding the church.  You can find more info at www.garyhamel.com

Primal: A Quest for the Lost Soul of Christianity

Loving God is man's highest calling.  In fact Jesus said the Greatest Commandment was to "Love God." Mark Batterson has hit a home run by explaining and expounding on the Great Commandment in an incredible way.  Primal must be read, reflected upon, and put into action.

Batterson breaks down the four components of loving God:

1.  Loving God with your heart.  The key thought here is compassion and having empathy for people who need hope.  Wow!  You may sell your car, or simply put your money where your mouth is.  

2.  Loving God with your soul.  Life and soul go hand in hand.  If our souls are full of wonder about God then life will be wonderful.  Much of that wonder will come from time exploring creation and from time exposed to the Bible.  

3.  Loving God with your mind.  Our minds often quit expanding when our education comes to an end. With diploma in hand our curiosity to learn takes a nosedive.  But Mark points out, "you cannot see what you do not know" (p. 102).  If we can't imagine it, we are unable to "entertain thoughts of God who is able to do immeasurably more than all we can ask or imagine" (p. 112).

4.  Loving God with your strength.  Now it gets physical.  "Love is measured by calories burned" (p. 134). As long as you stay in the will of God the energy will be there.  Get disconnected from God and entropy sets in.  Christianity is a verb and "Primal" will help you move into action.

As Batterson has commented, "We've got to be great at the Great Commandment."  This book will help you immensely.  This book will not be read just once and placed back on the shelf.  This book will be a constant companion.  This book is loaded with memorable lines and is fun to read from start to finish.

The Perfect Player

As football finally kicks off as of last night and in earnest this weekend let me end talking about the perfect player.  This week Teddy Bruschi announced his retirement from football.

He had been with the New England Patiots for 13 years.  At one point he had a stroke from which he recovered and returned to play football at a very high level.

Upon his announcement his coach Bill Belichick referred to him as 'the perfect player.'  Deep down I think everyone wants to be remembered as the perfect player.  Perhaps the perfect dad.  The perfect assistant. You name it.

Perfection.  No one will be considered perfect by everyone.  That's ok.  The point is what can I learn, what are some of the characteristics of a player who was called 'perfect' by his coach?

Longevity: Often one's length of time in one place will be the difference maker.  We often overestimate what we do in one year, but underestimate what we can do in a lifetime.

Loyalty: Everyone from food stores to pro sports teams are vying for people's and players loyalty. Loyalty can pay huge dividends and everyone knows it.  You must be 'countable.'  Can others count on you?

Accomplishments:  At the end of the day you have to produce, have results.  Bruschi's list is too long to list, but he was known for his tackles, sacks, and recovered fumbles.

Change: Bruschi started out as a defensive end, but switched to linebacker. It was at that position that he added the most value to the team.  It's always healthy to ask, 'Where can I add the most value to the team, organization, company?'

Attitude: You can tell when someone loves what they do, loves their teammates, and the team they play for.  It's written all over their face.  When Teddy Bruschi gave his retirement announcement, you could see it all over his face.  He loved what he did and where he was.

One day you will arrive at the last day at where you are.  How will you be remembered?  Teddy Bruschi will be remembered as "The Perfect Player."