Building A Tension-Free Business. The Magic of Living Your Values
“Scale and ubiquity creates complexity. Complexity demands efficiency. But we are in a business where that touch point between the customer and the barista has to be protected and has to be elevated…Starbucks demands nurturance. It’s a company that has to be nurtured like a young child. That is an anomaly, inconsistent with scale.”
This is pulled from a great interview with Howard Schultz (find it here). This push/pull theme is the golden thread woven throughout the interview. On one end you have an inspiring vision of workplace culture, craftsmanship, and guest experience. On the other, you have scale at all costs.
Every micro-story shares traits with the macro-story. Case study: the Frappuccino
Starbucks acquires the business that created and held the trademark for the Frappuccino
Schultz dislikes it: “I didn’t like the name. I didn’t like the beverage. I didn’t think it was appropriate for Starbucks.”
Schultz bottles the Frappuccino for the mass market in a joint venture with Pepsi
Listening to Howard is inspiring. There are sections of his dialogue that would fit right into a Cat & Cloud meeting. His vision is not so different from ours, but the reality of Starbucks and Cat & Cloud are completely different.
This interview reminds me that every step along our journey we have choices to make, each with an opportunity cost. Who do we want to be? Who do we want to serve? What are the markers of success for us? The tension between what Starbucks is and Howard Schultz’s vision is almost painful to listen to. It seems that a more peaceful way to live might be to:
Be honest with ourselves about what we truly value
Build our brand promise around those values
Enjoy our success tension-free
Note: I can't recommend this episode enough. Great stories, interesting cultural perspective, and an incredible behind-the-scenes look at how one of America's (then the world's) most ubiquitous brands was built.Acquired Podcast. Starbucks, With Howard Schultz