Page 23 - The Starbucks Experience

Introduction

standing in a coffee-tasting room at the Starbucks Support
Center in Seattle, Omollo shared, “I cashed in my Starbucks
stock options after six years, and took the $25,000 profit to
build a new four-bedroom house for my mother, who is a
widow. This is my company. I am an owner, and I am respon-
sible for creating greatness here, just as my treatment has
been great.” Starbucks profitability has been good for
Omollo, and reciprocally Omollo’s passion and sense of
responsibility benefit the business.
Many managers and business leaders don’t talk to their
employees about the importance of profit. It is as if “prof-
itability” were a dirty word or a concern that is outside the
interests of workers. By contrast, Starbucks leadership has
done an exceptional job of both linking a partner’s financial
gain to Starbucks profit and helping partners understand that
8 profit is the lifeblood of business. Even the Starbucks mission
statement acknowledges that partners need to commit to
“profitability [which] is essential to our future success.” Prof-
its increase not only the breadth of Starbucks market, but also
the scope of its positive social influence and its capacity to
provide quality benefits for partners. These benefits include
health insurance for 20-hours-per-week employees, something
that Starbucks partners received long before such a thing was
even considered, let alone adopted, by other corporations.
But the treatment that partners receive at Starbucks goes
well beyond stock options and health insurance. For exam-
ple, partners are given extensive training in product knowl-
edge, guiding principles for success, personal empowerment,
and the importance of creating warm customer experiences.
In stunning contrast to most Fortune 500 companies, Star-
bucks consistently spends more on training than it does on
advertising.