Tuesday, February 15, 2005
Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time
Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time
© Copyright 1997 Howard Schultz and Dori Jones Yang – book
Passion
Pour your heart into your work and you can achieve dreams others may think impossible.
This is the story of the growth of Starbucks by Howard Schultz, CEO of Starbucks and the main driver of the growth of the business.
Notes and excerpts from book:
Care more than others think wise. Risk more than others think safe. Dream more than others think practical. Expect more than others think possible.
The key is heart. I pour my heart into every cup of coffee, and so do my partners at Starbucks. When customers sense that, they respond in kind. If you pour your heart into your work, or into any worthy enterprise, you can achieve dreams others may think impossible.
My mother gave him tremendous confidence. Over and over, she would put powerful models in front of me, pointing out individuals who had made something of their lives and insisting that I, too, could achieve anything I set my heart on. She encouraged me to challenge myself, to place myself in situations that weren’t comfortable, so that I could learn to overcome adversity. She willed us to succeed.
I’d encourage everyone to dream big, lay your foundations well, absorb information like a sponge, and not be afraid to defy conventional wisdom. Just because it hasn’t been done before doesn’t mean you shouldn’t try it.
He had a job at Xerox and did cold calls in New York City. In 1981 he noticed a retailer in Seattle placing unusually large orders for a certain type of drip coffeemaker. He said to his wife: “I’m going to see this company. I want to know what’s going on out there.”
The original founders of Seattle did not aspire to build a business empire. They founded Starbucks for one reason: they loved coffee and tea and wanted Seattle to have access to the best. In 1970 they decided to open a coffee store in Seattle.
Every company must stand for something. You don’t just give your customers what they ask for. Give them something they’re not accustomed to and you can create a sense of discovery and excitement and loyalty that will bond them to you.
I believe in destiny. In Yiddish, they call it “bashert.”
When I first asked for a job with Starbucks, they turned me down. What would have happened had I just accepted his decision? So many times, I have been told it can’t be done. Again and again, I’ve had to use every ounce of perseverance and persuasion to summon to make things happen. Life is a series of near misses. But a lot of what we ascribe to luck is not luck at all. It’s seizing the day and accepting responsibility for your future. It’s seeing what other people don’t see, and pursuing that vision, no matter who tells you not to.
In 1983 I went to Milan and discovered Italian coffeehouses. But I felt the unexpressed demand for romance and community.
Whenever you see a successful business, someone once made a courageous decision – Peter Drucker.
Gordon and I visited over 400 espresso bars in Italy and took pictures and video.
His first angel investor was Ron – “It appears to me that people who succeed have an incredible drive to do something. They spend the energy to take the gamble. In this world, relatively few people are willing to take a large gamble.”
He raised $400,000 in first round. In the course of the year, he spoke to 242 people to raise money and 217 of them said “No.”
If you ask any of those investors today why they took the risk, almost all of them will tell you that they invested in me, not in my idea. Those initial investors ended up earning a one hundred to one return on their investment.
The single most important thing you do at work each day is communicate your values to others, especially new hires.
If I sense that a person lacks integrity or principles, I cut off any dealings with him. In the long run, it’s not worth it.
If you want to build a great enterprise, you have to have the courage to dream great dreams.
He was walking around Chicago and said to his friend “Jack, five years from now, every one of these people is going to be walking around holding a Starbucks cup.” He looked at me and laughed and said “You’re crazy.” But I could just see it.
Starbucks offers a taste of romance, an affordable luxury, an oasis, casual social interaction.
Stock options were first granted in 1991. Each partner was awarded stock options worth 12 percent of base salary. A partner earning $20,000, for example, would be given $2,400 worth of stock options. They could vest and cash-in 20% per year for 5 years. The grant was increased to 14% of base pay. So each year the partner remains at Starbucks, he or she receives another 14 percent of his or her salary, awarded at the stock price. Someone making $20,000 in 1991 would have been able to cash in his 1991 options alone for $50,000 five years later.
What we did was to try to figure out how big we wanted to be in two years and hire experienced executives who had already built and managed companies of that size. A year after we raised 3.8 mil we raised 3.9 mil and in 1990 13.5 mil of venture money and then 15 mil of venture before going public in 1992.
I was badly in need of a mentor.
To any entrepreneur, once you have figured out what you want to do, find someone who has done it before.
I hired you because you’re smarter than I am. Now go and prove it.
Howard established tradition of sending birthday cards and starting-date anniversary cards to every Starbucks partner.
We never set out to build a brand.
At Starbucks, we have a different approach. We’re creating something new. We’re expanding and defining the market. We didn’t set out to steal customers away from Folgers or Maxwell House or Hills Brothers. If people believe they share values with a company, they will stay loyal to a brand.
Don’t do things the way they have always been done. Don’t try to fit the system. If you do what’s expected of you, you’ll never accomplish more than others expect.
Exceptional leaders cultivate the Merlin-like habit of acting in the present moment as ambassadors of a radically different future, in order to imbue their organization with a breakthrough vision of what it is possible to achieve.
We have to lead with our hearts.
But if you don’t aim high, if you aim for only “good enough” or “above average” that’s precisely what you’ll get. Why bother aiming high? Far too many people don’t. So mediocrity is far too common in America and throughout the world. In the ethical vacuum of this era, people long to be inspired. They want a break from the negative noise that inundates us all. They’re not just coming for the coffee. They’re coming for the feeling they get when they’re there.
It’s about how you conduct the journey, and how big your heart is at the end of it. It takes courage. A lot of people will try to tell you it’s impractical or impossible. They’ll tell you to lower your sights. They’ll tell your business can’t be benevolent.
I’d encourage everyone to dream big, lay your foundations well, absorb information like a sponge, and not be afraid to defy conventional wisdom. Just because it hasn’t been done before doesn’t mean you shouldn’t try it.
Amazon: http://www.amazon.com/exec/obidos/ASIN/0786883561
© Copyright 1997 Howard Schultz and Dori Jones Yang – book
Passion
Pour your heart into your work and you can achieve dreams others may think impossible.
This is the story of the growth of Starbucks by Howard Schultz, CEO of Starbucks and the main driver of the growth of the business.
Notes and excerpts from book:
Care more than others think wise. Risk more than others think safe. Dream more than others think practical. Expect more than others think possible.
The key is heart. I pour my heart into every cup of coffee, and so do my partners at Starbucks. When customers sense that, they respond in kind. If you pour your heart into your work, or into any worthy enterprise, you can achieve dreams others may think impossible.
My mother gave him tremendous confidence. Over and over, she would put powerful models in front of me, pointing out individuals who had made something of their lives and insisting that I, too, could achieve anything I set my heart on. She encouraged me to challenge myself, to place myself in situations that weren’t comfortable, so that I could learn to overcome adversity. She willed us to succeed.
I’d encourage everyone to dream big, lay your foundations well, absorb information like a sponge, and not be afraid to defy conventional wisdom. Just because it hasn’t been done before doesn’t mean you shouldn’t try it.
He had a job at Xerox and did cold calls in New York City. In 1981 he noticed a retailer in Seattle placing unusually large orders for a certain type of drip coffeemaker. He said to his wife: “I’m going to see this company. I want to know what’s going on out there.”
The original founders of Seattle did not aspire to build a business empire. They founded Starbucks for one reason: they loved coffee and tea and wanted Seattle to have access to the best. In 1970 they decided to open a coffee store in Seattle.
Every company must stand for something. You don’t just give your customers what they ask for. Give them something they’re not accustomed to and you can create a sense of discovery and excitement and loyalty that will bond them to you.
I believe in destiny. In Yiddish, they call it “bashert.”
When I first asked for a job with Starbucks, they turned me down. What would have happened had I just accepted his decision? So many times, I have been told it can’t be done. Again and again, I’ve had to use every ounce of perseverance and persuasion to summon to make things happen. Life is a series of near misses. But a lot of what we ascribe to luck is not luck at all. It’s seizing the day and accepting responsibility for your future. It’s seeing what other people don’t see, and pursuing that vision, no matter who tells you not to.
In 1983 I went to Milan and discovered Italian coffeehouses. But I felt the unexpressed demand for romance and community.
Whenever you see a successful business, someone once made a courageous decision – Peter Drucker.
Gordon and I visited over 400 espresso bars in Italy and took pictures and video.
His first angel investor was Ron – “It appears to me that people who succeed have an incredible drive to do something. They spend the energy to take the gamble. In this world, relatively few people are willing to take a large gamble.”
He raised $400,000 in first round. In the course of the year, he spoke to 242 people to raise money and 217 of them said “No.”
If you ask any of those investors today why they took the risk, almost all of them will tell you that they invested in me, not in my idea. Those initial investors ended up earning a one hundred to one return on their investment.
The single most important thing you do at work each day is communicate your values to others, especially new hires.
If I sense that a person lacks integrity or principles, I cut off any dealings with him. In the long run, it’s not worth it.
If you want to build a great enterprise, you have to have the courage to dream great dreams.
He was walking around Chicago and said to his friend “Jack, five years from now, every one of these people is going to be walking around holding a Starbucks cup.” He looked at me and laughed and said “You’re crazy.” But I could just see it.
Starbucks offers a taste of romance, an affordable luxury, an oasis, casual social interaction.
Stock options were first granted in 1991. Each partner was awarded stock options worth 12 percent of base salary. A partner earning $20,000, for example, would be given $2,400 worth of stock options. They could vest and cash-in 20% per year for 5 years. The grant was increased to 14% of base pay. So each year the partner remains at Starbucks, he or she receives another 14 percent of his or her salary, awarded at the stock price. Someone making $20,000 in 1991 would have been able to cash in his 1991 options alone for $50,000 five years later.
What we did was to try to figure out how big we wanted to be in two years and hire experienced executives who had already built and managed companies of that size. A year after we raised 3.8 mil we raised 3.9 mil and in 1990 13.5 mil of venture money and then 15 mil of venture before going public in 1992.
I was badly in need of a mentor.
To any entrepreneur, once you have figured out what you want to do, find someone who has done it before.
I hired you because you’re smarter than I am. Now go and prove it.
Howard established tradition of sending birthday cards and starting-date anniversary cards to every Starbucks partner.
We never set out to build a brand.
At Starbucks, we have a different approach. We’re creating something new. We’re expanding and defining the market. We didn’t set out to steal customers away from Folgers or Maxwell House or Hills Brothers. If people believe they share values with a company, they will stay loyal to a brand.
Don’t do things the way they have always been done. Don’t try to fit the system. If you do what’s expected of you, you’ll never accomplish more than others expect.
Exceptional leaders cultivate the Merlin-like habit of acting in the present moment as ambassadors of a radically different future, in order to imbue their organization with a breakthrough vision of what it is possible to achieve.
We have to lead with our hearts.
But if you don’t aim high, if you aim for only “good enough” or “above average” that’s precisely what you’ll get. Why bother aiming high? Far too many people don’t. So mediocrity is far too common in America and throughout the world. In the ethical vacuum of this era, people long to be inspired. They want a break from the negative noise that inundates us all. They’re not just coming for the coffee. They’re coming for the feeling they get when they’re there.
It’s about how you conduct the journey, and how big your heart is at the end of it. It takes courage. A lot of people will try to tell you it’s impractical or impossible. They’ll tell you to lower your sights. They’ll tell your business can’t be benevolent.
I’d encourage everyone to dream big, lay your foundations well, absorb information like a sponge, and not be afraid to defy conventional wisdom. Just because it hasn’t been done before doesn’t mean you shouldn’t try it.
Amazon: http://www.amazon.com/exec/obidos/ASIN/0786883561
