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Leadership Style of Howard Schultz

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Mohamed Alremeithi

on 14 December 2013

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Transcript of Leadership Style of Howard Schultz

*Research Hypothesis
*Personal Attributes of Howard Schultz
*Charismatic & Transformational Leadership Aspects as a Business Leader
*Leadership Actions, Styles and Attitudes of Howard Schultz
*Leadership activities & attitudes of Schultz
*Competitors thoughts
*Innovative Business Aspects of Howard Schultz
*Interview & survey results of this research
*Statistical analysis of Starbucks

Leadership activities & attitudes of Schultz
Idealized Influence: leadership behavior in which the leader behaves so that followers seek to emulate with their own actions. 
acts as a role model for his employees followers
He adopted the approach of leading by example
He managed to be consistent in his words and action
He work enthusiastically and optimistically to foster the spirit of teamwork and commitment.

Leadership Style of
Howard Schultz

Charismatic &
Transformational Leadership
*Charismatic leadership is the ability of the leader to converse and behave in ways that reach followers on a basic, moving way, to motivate and inspire.
*A charismatic leader should have the gift to speak on a very commanding emotional level, and maybe include some personality traits

Research Hypothesis
*Research Hypothesis is based on:

>Howard Schultz is famous as successful leader
>Howard Schultz has outstanding capability of leading Starbucks organization

Interview & survey
results of this research
*Howard Schultz is an effective leader?
*made organizational development in efficient manner?
*leadership style of Howard Schultz?
*leadership capabilities of Schultz have helped in the business strategy?
*does Schultz offer workforce priority?
*major motivating and coaching techniques?
*key personal attributes of Howard Schultz?
*major leadership attitudes of Howard Schultz?

Leadership Actions, Styles and Attitudes of Howard Schultz
Howard Schultz searched for employees who have capabilities as a team player thus Starbucks is the best among worldwide market
He applied empowerment as he gave more power to employees to make their own choices such as selecting their own working hours
Fairness as Schultz dealt with workers and treated them with equal respect.
Has a high capabilities as a team player and have high energy

Starbucks Reborn
*Hayward introduced the idea of Selling traditional coffee
*He started his own coffee store in 1985, named 'Il Giornale‘
*Starbucks management sold Starbucks to Schultz
*Then he renamed his coffee store to Starbucks
*17, 000 stores over the globe in 50 countries

Introduction: Howard Schultz Rewards
*The top 25 Managers of the Year by Business Week magazine in January 2002
*Top 25 Best Manager—awarded by Business Week in 2001
*Top 6 Entrepreneurs of the year—awarded by Restaurant Business in 2001
*Botwinick Price in Business Ethics—awarded by Columbia Business School in 2000
*Executive of the year—awarded by Restaurants and Institutions in the year of 2000

Leadership activities & attitudes of Schultz
Inspirational Motivation: it is the degree to which the leader pronounces a vision that is appealing and inspiring to the employees.
He has the ability to provide meaning and context to the work of those who work under him
He challenge the employees to leave their comfort zones
Encouraging the entire organization to adopt his vision
He provided a clear & optimistic views about future goals
The visionary aspects of his leadership are supported by communication skills that make the vision understandable
The followers are willing to invest more effort in their tasks; they are encouraged and optimistic about the future and believe in their abilities.
Leadership activities & attitudes of Schultz
Intellectual Stimulation: Intellectual stimulation refers to mental exercise that is performed by the employees which helps in stimulating the mind to tackle a given task and it mainly helps to improve the thinking capacity of someone.
Encourage the employees to think about the task at hand, asking questions, and solving problems.
Enables the employees to practice new and innovative approaches
Strengthen and urge their employees to investigate best approaches
 George Howell the person who invented the Frappuccino
Competitors thoughts
*Donald Thompson
>Starbucks is lead by a captivating leader
>Follows effective transformational leadership techniques
*Nigel Travis
>Major competitor for Dunkin Donuts
>Collaborative leadership style
>Ensuring the empowerment in employees

Charismatic & Transformational Leadership
*It is the ability to bring positive changes by moving group members beyond their self-interests and towards the good of the group, organization, or society.

*The ability of the leader are able to inspire followers to change expectations, perceptions, and motivations to work towards common goals.

analysis of Starbucks
Charismatic & Transformational Leadership of Howard Schultz
*Schultz transformed past business tactics and continued presenting new things
*Howard Schultz being a role model
*Inspire his employees to follow his vision and passion
*Creates a positive climate “You can't expect your employees to exceed the expectations of your customers if you don't exceed the employees expectations of management”
*Giving his team the autonomy and freedom to make decisions
*Challenging one’s own beliefs and the status quo. “ Don't embrace the status quo. Find new ways to see. Never expect a silver bullet. Get your hands dirty. Listen with empathy and over-communicate with transparency.”

Introduction: Howard Schultz in few Words
*Howard Schultz Joined Starbucks in 1981 to invigorate the marketing of the company
*Chairman & CEO of Starbucks which is largest chain of coffee manufacturing company
*His vision was is to offer a lifestyle experience through every purchased cup of coffee
*Effective transformational leader who motivate and empower his employees with a collaborative leadership style
*Based on London business forum (2011), Howard Schultz, one of the business world’s exceptional businessman and a futuristic leader

Charismatic &
Transformational Leadership of Howard Schultz
*Communicates his ideas in such a way that it will encourage Starbucks employees to gain the organizational goals and vision.

*He communicates and motivates through simple stories and motivational speeches.

*Encourages them to take part in decision-making through employees empowerment.

*Keeps the employees evolved in his visions of growth and expansions

Leadership Actions,
Styles and Attitudes of Howard Schultz
*Howard Schultz exhibits autocratic and democratic leadership style based on the situation requirements

*A good example is when he realized that for the business to survive he must adopt retrenchment strategy

*According to the strategy he had to shutdown 800 store and layoff employees

*Following this he implemented a consolidation strategy to improve the business by implementing market research, client feedback, give promotional offers & discounts with the aim of expanding the business.

*Mass promoting can serve to advertise
*Stay conferred to the organization
*Capability to teach Confidence
*Cafe quality scores went up and remained
*Terrified that it could be too intense
*Bantered about the taste of coffee
*With style, humbleness, and truthfulness
*Mind more than others might suspect sensible

*Starbucks is genuinely a cafe organization at center
*Demonstrated great in furnishing to the planet
*Group assembling place
*Individuals meet up to revel in
*New and inventive routes by which their clients can uncover
*Procure all classifications of extraordinary music
*Europe has dependably spoken to as a major strategic prospect
*Objective of making and building a stable worldwide brand

activities & attitudes of Schultz
*Intellectual Stimulation
>Enables leaders to practice new and innovative approaches
>Offer several innovative results
>Intellectual stimulation capabilities
>Strengthen and urge their employees to investigate best approaches
>Acknowledged appreciation from the workers
>Most flourishing improvements and "Frappuccino”
>Popular cold coffee from Starbucks employees

activities & attitudes of Schultz
*Individualized Consideration
>Incorporates achieving the unique and specific requirements
>Incorporated in change procedure of Starbucks
>Treated individually and distinctively
>Ability and information
>Individual consideration Starbucks has created 'Working Solution‘
>Furnishing them proper assistance
>Typical training program for all class of employees

Innovative Business
Aspects of Howard Schultz
*He has highly motivating and committed attitude towards Starbucks and its employees.
*Formulated a work environment that gives great importance to the employees
*Consistently make sure the recruitment of highly reliable workers
*He created an insightful work culture that influences & motivates
*Introduced several profit-oriented programs
*Gave those profits for both part and full time representatives
*Incorporated sick leaves, paid vacations, health profits
*Offering flexibility in working time

Personal Attributes of Howard Schultz
*Insight by investigating new plans and anticipating alternatives
*forethought and dedication to treating workers like treating him self
*Self Awareness as he is not confused about feeling in the working environment
*Hard-working , Enthusiasm and passion towards work
*Utilizes his heart within the choices he makes

*Corporate Social Responsibility is the key range
*Make modern approaches to wind up additional concerned
*Mind boggling non-benefit associations in all of California
*Word on Starbucks' CEO mind "love"
*Fortifying neighborhoods by supporting children
*Reasoning of initiative constitutes

Thank you
Abdu AlRahman
Q & A
Full transcript