Bloomberg has a good piece about how the Howard Schultz era (eras?) at Starbucks finally is over.
Here’s how Bloomberg frames the story:
“Howard Schultz officially stepped down as chief executive of Starbucks Corp. in March 2023. But with Schultz, you’re never really sure that he’s gone.
“Twice before the longtime CEO has handed over the reins to a hand-picked successor. And twice before he boomeranged back into the CEO job, claiming he had returned to right a company that had lost its way.
“But this week, we got the surest sign yet that the Schultz era at Starbucks is officially over. The company and the union representing its employees said they had agreed to start discussions about how to reach collective bargaining agreements. It’s the first real indication of any sort of thaw between the two parties, which have been locked in a bitter battle over workers’ efforts to organize.
“These initial steps toward an agreement were unlikely to ever have happened with Schultz in charge. He’d been adamantly opposed to a union at Starbucks; in fact, the labor organizing at the company was one of the factors that precipitated his 2022 return.”
KC’s View:
I chuckled when I read this, because on Wednesday I wrote about Starbucks and the union coming to the table and commented:
Sounds like Starbucks finally realized that unionization isn’t going away anytime soon, and that its approach to the movement was undermining its brand image. It also probably helped that Howard Schultz isn’t calling the shots anymore – it gives new leadership more room to move and the ability to judiciously distance itself from an autocratic attitude that was not helpful.
Forgive me, but I get enough stuff wrong that it is nice when I get one right.
Let’s bear clear. Schultz will forever be known as a visionary business leader, and Starbucks always will be the tangible result of his vision. Not sure if it was age or attitude, or maybe just the idea that he took the idea of unionization personally, but the way he dealt with this issue seemed at odds with his carefully cultivated image. It was like he was more focused on legacy than reality.
Good lesson for every business leader. This stuff shouldn’t be personal. It’s business, and you have to be able to get beyond your own feelings.
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