Starbucks Leadership

Introduction

Leadership does not have a universal definition because of its complex nature. Leadership is considered to be a holistic spectrum which can arise from several different factors. For many individuals, when thinking about the best way to lead a team, there are also several various factors which need to be considered. When the wrong approach is selected, the morale, effectiveness, and the productivity of the group can suffer. One of the theories that are commonly used is the Path-Goal theory which helps one identifies which practical approach to leadership should be utilized based on the people and the current situation (Northouse, 2013). The purpose of this paper is to examine what makes for an effective leader and why leaders derail, falter and fail. The paper will also discuss the leadership background of the chairman and CEO of Starbucks, Howard Schultz and identify how his leadership skills are aligned to the different leadership theories.

Summary of Leader's Early Life and Education

Howard Schultz came from a low-income family. He was born in Brooklyn, New York where he experienced poverty at an early age. When he was seven years old, his father who was the breadwinner got into an accident while working as a truck driver and broke his ankle. Since his father had no health insurance or worker's compensation, the family was left with no income. When he was in high school, he played football which earned him an athletic scholarship to Northern Michigan University where he became a communications major. However, he decided that he did not want to play football, so he tried to pay off student loans by entering different jobs like bartending and even resorted to selling his blood. He graduated in 1975 and spent a year working at a ski lodge in Michigan while waiting for bigger opportunities. Schultz finally landed a job at Xerox where he gained more experience but decided to leave after three years to accept a job at Hammarplast that is owned by a Swedish company named Perstorp. There, Schultz ascended the ranks and eventually became vice president and general manager of a team of sales people in the company's New York office. This was the time he first encountered Starbucks which is a coffee shop which had a few stores in Seattle. In an interview with Oprah Winfrey on the show Super Soul Sunday, Schultz said his father never find fulfillment in his jobs and his accident which caused severe poverty for the family left an impression on him the most. When he discovered Starbucks, he revealed that he found it as the opportunity for him to build a company that his father was never able to work for. With that, he tried to create a company with a set of values, guidelines, and culture (Schultz, 2013).

Example of a successful leader

Howard Schultz is an American businessman and CEO of Starbucks. In the many years Schultz spent at Starbucks, he has always made sure that he prioritizes his employees who he calls partners. Because of his father's past, he made sure that all employees including part-time workers are complete with health insurance and stock options. Schultz is a transformational leader who inspires the team and encourages the employees to develop as individuals to help them to be part of the collective team with the same goals. Schultz is the type of leader who wants to inspire his people. In 2013, he called 10,000 Starbucks managers to a four-day conference where he wanted to inspire them and challenge the employees to be personally accountable for everything in their stores (Gallo, 2013). He is the kind of leader who believes in the right people for the company to succeed.

Starbucks: The Reasons for Its Success

Starbucks' mission is to inspire and nurture the human spirit through their coffees. To accomplish this mission, the company is set to follow principles which are used as a guide for their employees as they go through their daily business. The company focuses on the importance of providing quality products to their customers and making their stores comfortable. It is also important that all employees treat each other with respect and dignity. This is one of the reasons why Starbucks is a very successful company because employees live to their mission and make sure that from the CEO to the part-time employees, there is respect which can be channeled to their products. With that, the company was able to provide quality goods and services to their customers.

Running a company as big as Starbucks also came with set-backs like in 2008 when Schultz was forced to temporarily close over 7,000 stores to retain employees who know how to make the perfect espresso. During this time, several stores would not provide the quality product; the customers are expecting. With that, Schultz made a tough decision to make sure that baristas who are passionate about making good coffee will remain in the company and those who are not up to the task cannot destroy the name of the brand. Schultz wanted to ensure the welfare of his customers and also encourage the employees to work better.

Leader's Qualities Compared to Path-Goal Theory

The path-goal model specifies a leader's style or behavior which benefits the employee and the work environment to achieve the team's goal. The goal is to increase motivation and empower the employee so that they would become more productive members of the company. There are four path-goal types of leader behaviors, and they are directive, supportive, participative and achievement. In the case of Schultz, his leadership style fits the behaviors directive, supportive and performance. He is known for considering the employees as his partners in his business. In the company mission statement, all employees know what is expected of them, and the management expects them to perform the task to provide quality service and products to their customers. Schultz also showed concern for his employees by offering health care and stock options for them. With that, he expects that all employees should have the highest confidence in their ability to help the company to grow further.

Leader's Qualities Compared to Authentic Leader Theory

The authentic leadership theory involves four concepts: self-awareness, balanced processing, internalized moral perspective and relational transparency. It is an approach that emphasizes on building the leader's authenticity by creating an honest relationship with his employees. Schultz builds the support from his employees by taking care of them and wanting them to improve their performance for the company. Schultz is a kind of leader who does not emphasize on the profit but gives more importance to people involved in his company and the values and ethics that he likes everyone to follow. An authentic leader is more interested in empowering his people more than personal power. Schultz believes that his employees are the reason for the success of his company and by building a strong partnership, he can make sure to be a strong contender in the industry.

Why leaders fail?

Leaders fail because they do not inspire the team that they work with or encourages employees to develop as individuals and encourage them to be part of the collective team with the same goals. An excellent type of leader wants to inspire his people. A great leader believes in the right people for the company to succeed. Leadership and mentoring are key elements in building active employees into future managers. According to the Columbia Encyclopedia (2004), motivation is "the intention of achieving a goal, leading to goal-directed behavior." Motivators encourage employees to work harder and aim for a higher standard.