5 Principles for Turning Ordinary Into Extraordinary
By Joseph Michelli
Note: You will see text throughout the document that looks like this (Bookmark Loc. 323). This is the section of the book I highlighted from my Kindle. It serves as a modern day “footnote” or location from my electronic book reader.
In A Nutshell
The author believes that Starbucks is guided by five principles that make the business successful:
1. Make it your own: all people in the organization feel a true sense of ownership and believe that they have a stake in the success of the company.
2. Everything matters: What goes on behind the counter is just as important as what customers see. Cleanliness, atmosphere, a desired product, customer service, are all important and no detail should ever be overlooked.
3. Surprise and delight: Using as an example the success of Crackerjacks as a snack that people enjoyed that also caught them by surprise when first introduced, Starbucks tries to have new and innovative ways to attract new
customers and keep committed customers interested so that the business never becomes static.
4. Embrace resistance: Starbucks, unlike many businesses, does not rely on
good public relations to be rid of problems and criticisms. Instead, Starbucks tries to engage in discussions with its dissenters to convince where it's necessary and change when change is what is necessary.
5. Leave your mark: Making money may be a goal of any business, but
businesses also have a responsibility to contribute to the greater good. Starbucks does this through financial transparency, involvement in the community, a commitment to making sure that its suppliers are justly paid, and delivering a quality product.
Starbucks employees have an 82% job-satisfaction rate, according to a Hewitt Associates Starbucks Partner View Survey. This compares to a 50% satisfaction rate for all employers and 74% for Hewitt’s ‘Best Place to Work’ employers. - Highlight Loc. 320-23
Starbucks management takes pride in the company being “the leading retailer, roaster and brand of specialty coffee in the world,” but also recognizes that people flock to the company’s stores for the total Starbucks Experience. In essence, people come into a comfortable setting where they are valued on a personal level, and where a meaningful connection is made. - Bookmark Loc. 323
- Note Loc. 323 “shouldn’t this be the definition of church?”
To achieve this, the ambience of the store must be inviting; the store must be a place where a person will feel comfortable hanging out alone or with friends. This setting, often referred to by Starbucks partners as the “third place.” - Highlight Loc. 324-26
- My Note. The first place is the home the second place is work.
As Howard Schultz noted on brand channel.com, The success of Starbucks demonstrates that we have built an emotional connection with our customers. - Highlight Loc. 334-36
The 5 Principles - Highlight Loc. 394-96
1. Make It Your Own
Both Macro Level (strategic, vision) and micro level (operational) are key to making an organization successful. (Craig’s Sentence) While great leaders spend most of their time looking at big-picture, strategic opportunities, they cannot overlook the systems and training necessary to ensure the quality of every aspect of the company’s products, services, and processes. - Highlight Loc. 941-43
2. Everything Matters
Missed details produce dissatisfied customers who go elsewhere. - Highlight Loc. 1180
There really is no way to hide poor quality. - Highlight Loc. 1183-84
Attention to Detail Occurs by Design, Not by Default. - Highlight Loc. 765
Everyone Matters. Uniqueness of Customers and Employees. - Highlight Loc. 1117-18
To put it simply, the vast majority of shortcuts backfire. This is illustrated by the
story of a wealthy man who asked a builder to spare no expense in creating his mansion. Since the man was out of the country while the home was being constructed, the builder decided that he could make the infrastructure out of inferior material and cover it up with superior finish work. The builder could then overcharge the man based on the home’s appearance. When the owner returned to the country, he was so taken by the beauty of the home that he told the builder, “This is simply too nice a house for me. Here, you take the keys.” - Highlight Loc. 899-904
3. Surprise And Delight
Consumers want the predictable and consistent, with an occasional positive twist or added value thrown in. - Highlight Loc. 1199
Psychologists who study happiness (the correct psychological/ research term is subjective well-being) often talk about the importance of predictability for safety and security (the caramelized popcorn, if you will, from Cracker Jacks), mixed with small increments of variety to offset boredom (the prize). - Highlight Loc. 1199-1201
simple acts often create the greatest connection between people. - Highlight Loc. 1313-14
When leaders care enough to surprise their staff, employee morale soars, and important modeling takes place. - Highlight Loc. 1355-56
Great businesses deliver a quality product in a predictable manner. - Highlight Loc. 1432-33
When a business consistently draws the favor of a large number of people, other individuals gather at that location to enjoy community. - Highlight Loc. 1489-90
4. Embrace Resistance
Don’t mind criticism. If it is untrue, disregard it; if unfair, keep from irritation; if it is ignorant, smile; if it is justified, it is not criticism—learn from it. AUTHOR UNKNOWN
- Highlight Loc. 1551-54
Fear is often the emotion that fuels the greatest resistance. - Highlight Loc. 1812-13
Embracing resistance is a lot about respecting other people’s perspectives. - Highlight Loc. 1879-80
At times, great leadership is little more than making sound compromises. - Highlight Loc. 1896-97
Be open to innovation as long as that idea is true to the original mission of your company. - Highlight Loc. 1923
When resistance beats you, all that is left is your creative spirit. - Highlight Loc. 2081-82
Great leaders drop the defensiveness and open their ears and minds to the input of others, - Highlight Loc. 2085
To work with resistance effectively, you must distinguish between people who want their concerns to be resolved and those who simply like to complain. - Highlight Loc. 2097-98
5. Leave Your Mark
The Starbucks brand, and every company’s brand, is nothing more than the sum total of the individual actions its people take. - Highlight Loc. 1103-4
For additional complimentary resources concerning The Starbucks Experience, please visit: www.josephmichelli.com. Dr. Michelli is eager to help you to bring The Starbucks Experience fully to life in your business. He can be reached through his Web site, email at joseph@josephmichelli.com, or by calling either (719) 473-2414 or 888-711-4900. - Highlight Loc. 3035-38
The Five Ways of Being - Highlight Loc. 422-25
1. Be Welcoming
At its essence, Starbucks management defines be welcoming as “offering everyone a sense of belonging.” - Highlight Loc. 449-50
Produce inviting encounters. - Highlight Loc. 453
Connect, discover, and respond. Focusing on these three elements in each customer interaction forms a quality relationship. - Highlight Loc. 488-89
2. Be Genuine
To be genuine means to connect, discover, and respond. - Highlight Loc. 745
3. Be Considerate
Being considerate is less about being polite and more about being mindful of the needs of others. - Highlight Loc. 748
4. Be Knowledgeable
5. Be Involved
Quotes
This is leadership at its best: simple instruction provided in an appealing way. - Highlight Loc. 434-35
Starbucks leadership understands that customers long to have their uniqueness recognized. - Highlight Loc. 468-69
People come in for coffee, but we can give them more while they’re there. - Highlight Loc. 805-6
Managers have to constantly put themselves in the shoes of their customers, seeing everything from the other side of the counter. - Highlight Loc. 822-23
Prioritizing Objectives and Keeping Them in Front of Your People. - Highlight Loc. 975-76
Creating a Playful Corporate Culture. - Highlight Loc. 1051
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