Schultz Is the Inspirational Leader for Starbucks,

Schultz is the inspirational leader for Starbucks, and as such is a critical element in creating the company's attitudes, beliefs, behaviors and motivations. It was Schultz who created the company in the first place, and this gives him a tremendous amount of credibility with anybody who works there. There is no person who has contributed more to the success of the company, and this is something that is recognized within the company and externally as well, so in part working for Starbucks implies that one buys into Schultz's vision for the company.

That vision includes making Starbucks a great place to work, with a positive attitude. Schultz wanted Starbucks to have great people working on the front lines in order to create a superior customer experience, as he feels that this will drive the repeat business that is so critical to the company's success. Moreover, the superior service from the staff must come from having people with great attitudes. This is part of the Starbucks system, built into the hiring process, to find people with great attitudes who will actively make a great contribution to the customer experience.

In the managerial ranks of Starbucks, again, buying into Schultz's vision for the company is essential. Not only is it mandated by the company, but because every success that the company has had was the result of Schultz's vision and hard work, Starbucks has become a place where people work specifically because they believe in the company's mission and because they want to be there. The culture of the company is critical to its success, and part of that culture is about being devoted to the company's mission and vision. Those things come from Schultz, and the implementation in terms of hiring, training and enculturation is part of the system that he developed when the company was first embarking on its expansion. Franchise owners are trained in these things as well, to ensure consistency of experience whether the store is company-owned or a franchise.

The biggest issue with Starbucks might be that there is no serious succession plan. When Schultz returned, it was evident to all concerned that he was back to stay. The company and him were inseparable, and he would retire as Starbucks CEO, and that this event was a couple of decades away at least. As a result, there are no plans to replace Schultz. In the event that Schultz is no longer able to continue as CEO, there is obviously going to be a plan in place to have a new person in that position, but the problem is that nobody within the senior management team has the charisma or the credibility of Schultz. Because the company is a reflection of his vision first and foremost, others have not been able to contribute at a high level to its success. When others have tried, they have not enjoyed nearly the same degree of success.