Page 22 - The Starbucks Experience

Introduction

In an article for Workforce Management, writer Samuel
Greengard pointed out,

Starbucks Corporation went public in June 1992. On
the first day of trading, the stock closed at $21.50—up
from an opening price of $17. Not only did the CEO’s
net worth zoom; the coffee retailer had finally reached
the big leagues. But instead of hoarding his beans,
Schultz decided that he would give some of them back
to employees in the form of stock options. . . . [While]
other firms offered options only to key senior execu-
tives, Schultz made them available to everyone working
20 hours a week or more, including those standing
behind the counter at a local Starbucks store.

So why did Howard Schultz and Starbucks leadership take
this unconventional approach? According to Geoff Kirbyson 7
in a brandchannel article, Howard noted, “The way we have
built our company by including the success of the company
with everyone in it and not leaving our people behind is a
great example of building a business the right way.” From
Starbucks perspective, that “right way” to conduct business
means truly turning employees into partners—shareholders
with a stake in the outcome of the company.
Starbucks leadership offers a refreshing philosophy in a
time when many CEOs pocket millions while leaving their
employees’ pension funds insolvent. Starbucks executives con-
tinue to respectfully and willingly share profits with their peo-
ple. Through this sharing, partners appreciate the direct link
between their effort and the success of the business enterprise.
The importance of this shared gain is reflected in conver-
sations with individuals like Omollo Gaya, a Starbucks part-
ner who immigrated to the United States from Kenya. While