Caso iese
108
Harvard Business Revlew
July-August
2010
HBR,ORG
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Howard Schultz is the
former chairman and two-
time CEO of Starbucks.
Starbucks CEO Howard Schultz
on
the
challenges
of
a
OF.
turnaround at the company he made household name. Interviewed by Adi Ignatius
leading
a
,
l
?
&,
J
'
...
"We Had to Own theistakes"
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BY THE TIME
Howard Schultz
stepped
down
as
chief executive of
Starbucks, in
l'
2000, the coffee chain was one ofthe world's most
steady trajectory of growth. Eight years later Starbucks was suffering from a rough economy and its own strategic missteps, and Schultz felt compelled to return to the CEO seat. His previous tenure had seenpromising growth, but now he faced a challenging mission: to lead a turnaround of
recognizable
brands-and
on a
the company he had built. In this condensed and edited interview, Schultz discusses what it's like to retake the reins in the middle of
a
crisis.
HBR:
Wethought we knewthe Howard Schultz
You had
a
180,000 Starbucks people and their families.
And
even
story.vision, built a successful comon.
though I wasn't the CEO, I had been
chairman; I should have known
pany, and moved
But then Starbucks
ran
around
more.
as am
into trouble, and two years ago you had to
return
as
I
CEO. How hard has it been to
get
ourselves and to the
that
we
responsible. We had to admit to people of this company
were
things right?Schultz: The past two years have been trans-
owned the mistakes that
made.
Once
we
did, it
was a
powerful turning point.
a
candidly, personally. When I returned, in January 2008, things were actually worse than I'd thought. The decisions we had to make
for
me were ver y
formational for the company and,
It's like when you have
secret and
get it
out:
Theburden is
offyour shoulders.
To what extent did the financial crisis add to
difficult, but first there had to be
we as
a
the management crisis?
For
sorne reason we
time when company
stood up in front ofthe entire
a con-
seemed to become the
It's easy to
leaders and made almost
poster child for
excess.
fession-that the
leadership
had failed the
aboutit now, but
people
said that
laugh buying
July-August
2010
Harvard Business Review 109
THE HBR INTERVIEW STARBUCKS CEO HOWARD SCHULTZ
a
latte at Starbucks wasn't smart. McDonald's put
e-rnails and
phone calls about
was a
an
issue I had
never
up bíllboards
dumb, Gas went
saying as high as five dollars in sorne places,
a
a
that four dollarsfor
coffee is
heard of. There
sensational story in the Sun, in
water
London, that Starbucks was wasting
coupled
den
with the financial crisis-and all of seisrnic
sud-
something
and it
called the
"dipper
well," My
through phone rang,
change in consurner behavior. always been our busiest times, but people changed their driving habits. There were times duringthe day when we didn't have enough sales per hour to justify the labor. And this for a cornpany that had always hit not singles or doubles but horne runs. We didn't really know how to respond, because it's not sornething you're taught, and we'd
we saw a
was a
Weekends have
the
dipper ing about,"
well, "1 ha ve
reporter asking me to cornrnent on no idea what you're talk-
Isaid. The reporter
said, "Mr. Schultz, I
suggest you Google Starbucks real fast." The Sun
clairned that
we were
pouring "millions of litres of
as a
precious
rnethod
was
water down the drain"
result of the
we
used to sanitize equipment. The report and
we
wildly exaggerated,
a
had been
working
we
never
had any such
to
reaching out
were
experience....
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