What Is Howard Schultz's Leadership Style?

Howard Schultz believed that a business has to stand for more than just profits, and that belief turned Starbucks into what it has today. He envisioned making Starbucks all about people, connections, and quality. Instead of just selling coffee, he envisioned Starbucks as somewhere people would come and feel comfortable. His long-term vision and dedication to his vision were the keys to making Starbucks one of the most recognized brands in the world.

Putting Employees First Showed That Howard Schultz Cared About The People Who Built The Company

One of the most notable features of Howard Schultz's leadership style was his focus on employees, or as Starbucks calls them, partners. He introduced benefits including healthcare and stock options for full-time and part-time staff, which was virtually unheard of for the retail business at the time. He believed that if the staff were looked after and appreciated, then they would work with more intensity and dedication to the company. This people focus enabled Starbucks to build a loyal and stable workforce.

Staying Connected With Customers Helped Him Understand What People Really Wanted And Allowed Starbucks To Keep Improving

Howard Schultz did not spend his days in the corporate office making executive decisions—he went out of his way to remain in contact with the customers. He visited the shops, met with staff, and heard what the customers were saying about Starbucks. From listening to the comments and adapting according to what people were seeking, he kept Starbucks fresh and appealing. This ability to stay in contact with the day-to-day customer experience helped him build a company people trusted and loved.

Facing Challenges Head-On Showed Howard Schultz’s Determination To Keep Starbucks Moving Forward

Like any leader, Howard Schultz faced tough times, but how he handled challenges distinguished him. When Starbucks stumbled in the late 2000s, he stepped in as CEO and made sweeping changes to get the company back on track. He shut down under-performing locations, retrained the baristas, and streamlined the quality of Starbucks coffee. Instead of glossing over problems and patching them up temporarily, he met them head-on and attempted to make them better in the long term.

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Encouraging Innovation Helped Starbucks Stay Ahead Of The Competition By Always Offering Something New And Exciting

Howard Schultz understood that for Starbucks to sustain its success, the company needed to keep changing continuously. He never held back from innovating, from introducing mobile ordering to adding fresh food and beverage options to the menu. He also led the charge for Starbucks to focus on ethically sourced coffee, which helped the company differentiate itself from most of its competitors. His willingness to embrace change and risk kept Starbucks fresh and exciting for consumers.

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Building A Strong Company Culture Made Employees Feel Like They Were Part Of Something Bigger

One of the most central parts of Howard Schultz's leadership philosophy was creating company culture where employees would take pride in working there. He did not want Starbucks to merely be another place to work—he wanted employees to have the company mission and values in mind. He talked about the importance of people connecting with people, and that philosophy seeped into the way Starbucks operates. He encouraged employees to treat people with respect and take ownership of the work that they did every day.

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Making A Difference In The World Was Just As Important To Him As Running A Successful Business

Howard Schultz believed that businesses need to take responsibility for making the world a better place. Under his leadership, Starbucks took stands on social issues, gave back to communities, and attempted to provide more opportunities for employees. He proved that there could be a company that was both profitable and socially responsible. His focus on giving back and business being used for good was much of what set his leadership style apart.