In the industry #5

ORGANIZATIONAL CHANGE&

LEADERSHIP

Starbucks Coffee

Complexity of Change

Planned change and organizational life cycles Start-up

Holiday season beginning in October Growth / harvest

October through early January Decay

Holiday season ends in early to mid January and Spring begins

Every year Starbucks plans a new holiday cup design

Typical Problems Associated with Change

Lack of management support Managers don’t want to make the changes

Top managers forcing change Managers are not consulting other team members

Inconsistent action by key managers Confusion in the workplace

Unrealistic expectations Sales goals are to much to achieve in a short amount

of time

Typical Problems Associated with Change

Lack of meaningful participation People don’t want to change with the program Starbucks customers were not happy with rewards

program changesPoor communication

Unclear goalsPurpose of program was not clear

Why is the change taking place Starbucks explained the rewards program change to

baristas to explain to customersResponsibility for change not properly identified

Who is supposed to make changes

Strategies for Communicating Change

Tell and sell Management selects a limited set of messages

regarding core organizational issues. Management “tells” employees about these issues and then “sells” employees on the wisdom of the chosen approach

To the Partners: Emails from top management, COO Kevin Johnson Partner hub (website partners use to access store

information and resources) Team meetings


Underscore and explore Management focuses on fundamental issues related to

change success and allows employees the creative freedom to explore various possibilities

To the partners: Partners get to change the displays and advertising with

some variation from the plan sent from corporate


Identify and reply Management listens to and identifies key concerns for

employees and then responds to those issues as they are brought up

To the partners: What are the best ways to sell our products How can we improve our sales with techniques and

relationships


To rewards members Emails Special offers Free rewards

To the world New drinks are sporadically announced to Starbucks

fans Social media such as Twitter Advertisements on Snapchat

Unplanned Crisis

The War on Christmas (CNBC) The 2015 holiday season red cup did not feature any

holiday designs such as snowflakes or reindeer Customers furious at the lack of holiday designs.

“blowing off Christmas” and “reeks of political correctness”

Unplanned Crisis

Precrisis Signal detection, prevention, and crisis preparation Starbucks: no warning signs and did not anticipate backlash

from their new cup designCrisis

Trigger that threatens and organization must make sense of what is happening

Starbucks: acknowledged angry customers and why they were mad

Postcrisis Responsibility and maybe apologizing Starbucks: said the cup was a blank canvas for people to

create their own stories. (King)

Starbucks Company Hierarchy

Starbucks Transformational Leadership

Intellectual Stimulation; challenge the status quo; they also encourage creativity among followers. The leader encourages followers to explore new ways of doing things and new opportunities to learn. Baristas are encouraged by their superiors to create themselves as

an individual and create their own style

Individualized Consideration; offer support and encouragement to individual followers. Foster supportive relationships by keeping lines of communication open so that followers feel free to share ideas. Managers constantly are asking their coworkers for feedback with

how the store is doing and asking for suggestions


Inspirational Motivation; have a clear vision that they are able to articulate to followers. Able to help followers experience the same passion and motivation to fulfill these goals. Starbucks mission statement Help customers find their favorite drink Encouraging partners to want to create the best

experience possible for both them and the customer Baristas are encouraged to become

shift leaders and managers


Idealized Influence; serve as a role model for followers. Because followers trust and respect them, they emulate this individual and internalize his or her ideals Managers set a good example Continuous education from coworkers Helping customers understanding drinks and

answering their questions

Starbucks Framing

Metaphors Partners constantly have to use metaphors to help

customers understand drinks. They have to describe the taste or consistency of a food or drink to someone who has never had it, but say it is similar to another food or drink.

Contrast Partners have to help customers decide between drinks

Ex. Hot or cold, sweet or savoryStories

Feel, felt, found stories Ex. Partner have difficult time catching on when they are first

hired

Why It All Works For Starbucks

The channel of communication allows partners to receive information quickly and clearly

The transformational leadership from Howard Schultz allows partners to be involved and promote productivity

Leadership in turn creates partner and customer loyalty

Communication is formulated to create better relationships between top leaders, baristas, and customers

Questions

What are some ways that Starbucks shows signs of being a transactional or contingent leader?

Are there ways that Starbucks could improve their communication to both their employees and members?

Suggestions

Starbucks could change the way that members earn rewards, such as having them come into the store to interact with the baristas

Reform positions to allow more baristas to become shift leaders and mangers

Works Cited

King, C. (2015, November 13). Social Media Today: Starbucks’ Response to Red Cup Controversy? Let Social Sort It Out. Retrieved March 30, 2016, from http://www.socialmediatoday.com/social-business/starbucks-response-red-cup-controversy-let-social-sort-it-out

No author (2015, June 22). Starbucks Melody: Starbucks Leadership Changes: Organizational Moves. Retrieved March 30, 2016, from http://starbucksmelody.com/2015/06/22/starb ucks-leadership-changes-organizational-moves/

Works Cited

Whitten, S. (2015, Friday 13). CNBC: Starbucks Holiday Red Cup Brews Controversy On Social Media. Retrieved March 30, 2016, from http://www.cnbc.com/2015/11/09/starbucks-

holiday-red-cup-brews-controversy-on-social- media.html

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In the industry #5