Wednesday, February 26, 2025

It’s just coffee…

Lots of business turmoil these days.  Even Starbucks has been in the news.  New leadership; big changes; customer confusion; disruption.

How is it that a coffee shop company (albeit a big coffee shop company) has reached this point?  Based on the lines at their drive-thru windows I’m surprised the perception is they’re not succeeding; require new leadership; need a refill.  I wonder what’s missing:

As you work to build your organization, remember this:

·         Personnel determine the potential of the organization.

·         Relationships determine the morale of the organization.

·         Structure determines the size of the organization.

·         Vision determines the direction of the organization.

·         Leadership determines the success of the organization.                                 

John C. Maxwell

Has employee potential maxed out (with the machines waiting in the wings to take over) at American companies?  I’ve written frequently about the challenges of maintaining employee morale.  Lord knows organizational structure in constantly changing aka being blown up!  (Even the federal government isn’t immune to that one.)  I chuckle at Starbuck’s vision of being a coffee shop again.  All told, that’s a lot of pressure on leadership.

Many accuse leaders of being overly focused on their personal wealth.  Morale, structure, and vision are intellectually interesting but on their own may not be enough for success.  Just when you think all of the pieces are in place…

I’ve always advocated for the tactical side of things; the doing; the executing:

Focused action beats brilliance any day.

Art Turock

It may start with brilliance and a visionary leader but come sundown, without execution the rest is almost always temporary:

In its most fundamental sense, execution is a systematic way of exposing reality and acting on it.  Most companies don't face reality very well.

Larry Bossidy

Starbucks has exposed their reality, true?  I remember legendary Starbucks CEO Howard Schultz back in the day saying:

We’re not in the coffee business; we’re in the destination business.

Everyone followed his lead and Starbucks grew from a regional company to an international powerhouse.  We all started stopping at Starbucks and while we were there we bought a cup of coffee.  Following Howard’s “retirement” the company keeps rehiring him to help steer them back on track.  It makes you wonder if he gets more engaged than the other leaders:

Here is the fundamental problem: people think of execution as the tactical side of business, something leaders delegate while they focus on the perceived bigger issues.  Execution is not just tactics - it is a discipline and a system.  It has to be built into a company's strategy, its goals, and its culture.  And the leader of the organization must be deeply engaged in it.

Larry Bossidy

The big news of the day is Starbucks trimming their menu; returning free refills; becoming a destination again; perhaps realizing - it’s just coffee.

GAP

When life gets tough we could get a helmet… or… we could leverage the peace and share the power of a positive perspective.

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