‼️ MasterClass: Howard Schultz teaches Business Leadership ‼️

 26/∞

Rating: ⭐️⭐️⭐️⭐️

“Success is not an entitlement.”

I’m excited to announce that this review will a be part of LEADERSHIP mini-series and will be followed by another book on leadership next Monday.

Now, shall I give you a few reasons why I think that Howard is actually a cool guy worth listening to? Beside the fact he is a former Starbucks CEO I was impressed to hear that he has a blue collar background and never went into an Ivy League school. In my eyes that makes him tough. He is also a living proof you can make it against all odds.

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This MasterClass is short and compact. In my opinion a little bit way too short and it could have been so much better. I would have love to hear how Starbucks fucked up and how did they solve all the fucking problems. Sadly, what could have been a great business fucked up story was narrowed down to: “I was CEO and employees wanted my head.”

Of course, it is not a piece of cake to be a CEO. Out of my personal experience, you are never proud of it. Maybe you are when things are going good, which is never,  actually… There is always something you can improve and do better. I know how it is when a bunch of angry employees want your head.

Culture

One thing Howard should get credit for is a business culture in Starbucks. Apparently, when you work for Starbucks in the USA, you get a health insurance. To be honest, in Europe this is no big deal, as we all get compulsory health insurance.

Another great benefit is that Starbucks supports their employees in terms of education and offers scholarships for their employees. Again, in the Czech Rep. is better to avoid free university education, because Czech universities are run by former communists who will force you to memorise non-existent sectors of industry from communist era… 

Starbucks’s expansion in China

Now, many of you failed at something. You then thought: “Fuck! I’m never ever gonna do this again.” But I’m going to give you a few reasons why you should try again. Because to fuck up and to try again is the most important attitude in life. Even Starbucks failed when trying to conquer Chinese market. The numbers were down, their employees in China weren’t happy and Chinese actually did not love Starbucks coffee… How did they solve it? Well, through something I would call an intercultural skills. Howard went in China. Noticed that in China is everything about the family and that all Chinese companies are organising  company events for parents of their employees. He came back to Seattle, announced the idea and everybody looked at him as he is some crazy mofo (those events are unheard of in western culture). Since then, Starbucks managed to turn around and conquer fucking China. 

Equity

I really liked what Howard said about equity. My opinion on equity is similar as Phil Knight’s (you can read the entire review on Shoe Dog by Phil Knight HERE). Phil Knight holds 51% of Nike, which means he has majority and he is the top dog. When I had business, I also insisted on keeping my 51% and you would have not believed how many people wanted to steal that equity away from me…

Interestingly, Howard has different opinion. He says: “If you are a good leader, you have no reason to fear losing equity.” He thinks about equity as some sort of “social contract” between the CEO and his employees. If you perform well as a CEO, there is no reason for your employees to hang you. Anyway, I would not go down this way, but it is very interesting to hear that some CEOs do not have equity in the company and still manage to successfully lead.

Investments

Investments go hand in hand with equity. As your company grows you can expect that your 51% will be diluted. Reasons? You would need to hire new talents and one way to compensate their “financial loses” from their previous jobs is to award them some shares.

 

Another thing he speaks about in terms of investments is a partnership with your investors. It is based on trust. But always:

“Underpromise and over deliver.”

Aged Sumatra ☕️

Now with this masterclass comes also a great tip on coffee. Howard Schultz’s favourite Starbucks coffee is Aged Sumatra. I haven’t tried, but next time I’m going to pass Starbucks I will get a bag.

Conclusion:

I mean, not a bad MasterClass, but it could have been so much better. I was really excited to hear how badly Starbucks fucked up and draw lessons out of it. 

⭐️⭐️⭐️⭐️

Feel free to like, share and comment or recommend books/courses you find inspirational yourself. I’m keen to hear about them.

Coming Up Next: 

Extreme Ownership: How U.S. Navy SEALs Lead and Win by Jocko Willink and Leif Babin

Peace 🧘‍♂️✌️🌱