The Starbucks Way

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

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

3. Principle 1: Make it yourown by the 5 Ways of Being • Be welcoming • Be genuine • Be considerate • Be knowledgeable • Be involved

4. Make it your own by the 5 Ways of Being1. 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?

5. Make it your own by the 5 Ways of Being1. 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

6. Make it your own by the 5 Ways of Being1. Be Welcoming Welcome people by name: “Remember that a person’s name is to that person the sweetest and most important sound in the language. In fact a person’s name may be his or her most valuable possession” Dale Carnegie

7. Make it your own by the Five Ways of Being 2. Be Genuine To be genuine you must: • Connect - person must feel heard- so listen to both verbal & non-verbal cues from person you are serving • Discover– go beyond the ordinary – you must have a genuine desire and make the effort to exceed what your client expects • Respond– do not just listen to clients, but take action immediately based on what you hear- learn from these experiences for future client interactions

8. Make it your own by the Five Ways of Being 3. Be Considerate Beconsiderateof 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!

9. 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

10. 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

11. Principle Two: Everything Matters Howard Shultz: “Retail is Detail” – all business is detail – everything matters Reflecting the highest standards by: • Ensuring the highest level of product quality • Excelling at customer service • Building a rewarding culture

12. Everything MattersEverything & Everybody Matters! • Store environment • Product quality • Training of Staff • Development of playful culture • Social consciousness • Developing a “felt sense” in stores • Acknowledging, celebrating, playing!

13. 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

14. Surprise and DelightHow 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

15. 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

16. Embrace ResistanceWhat 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

17. 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

18. Leave Your MarkImpact 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

19. References • Starbucks website: http://www.starbucks.com/default.asp • Joseph Michelli (2007). The Starbucks Experience – 5 Principles for Turning Ordinary into Extraordinary. New York: McGraw Hill