Tag: brilliant

2 brilliant management strategies Howard Schultz used to build the Starbucks coffee empire

howard schultz starbucksEven now that he’s running a global business with upwards of 191,000 employees, Starbucks CEO Howard Schultz still has the impulse to micromanage.

According to a new profile of Schultz by George Anders in Forbes, at a recent staff meeting Schultz jumped in with a critique of some cards introducing Starbucks’ new partnership with Spotify. “Black looks so dull,” he said. “We’re talking about music. This should be lively. Can we go with green instead?”

Yet the Forbes article also revealed that Schultz has found two key strategies to temper his urge to meddle: He recruits top performers and encourages them to step up and push back against his ideas when they don’t agree.

Schultz has hired seasoned execs from companies like Microsoft and Disney to serve on Starbucks’ management team. As Myron Ullman, JCPenney’s chairman and a Starbucks director, told Forbes: “There’s a lot more here than just The Howard Show. Leadership doesn’t have to come from Howard on every topic.”

Schultz also remains open to new ideas from staffers. For example, according to Forbes, in 2008 Schultz ordered that Starbucks stop selling melted-cheese breakfast sandwiches because the smell was masking the aroma of coffee, the company’s core offering.

Key leaders pushed back and argued for the sandwiches, and ultimately they found a compromise. Now, Starbucks is once again selling them and cooking them in a way that makes them less aromatic.

Luigi Bonini, Starbucks’ head of product development, told Forbes, “Howard can always be convinced.”

Of course, some amount of oversight and attention to detail is necessary. Yet experts say the ability to delegate and to resist micromanaging are critical competencies in a leader — whether you’re running Starbucks or a startup.

Jeffrey Pfeffer, a professor of organizational behavior at Stanford University’s Graduate School of Business, told The Harvard Business Review, “Your most important task as a leader is to teach people how to think and ask the right questions so that the world doesn’t go to hell if you take a day off.”

At the same time, many managers struggle with delegation, sometimes because doing all the work themselves makes them feel important and sometimes simply because they’re perfectionists.

One strategy for becoming more comfortable with delegation, according to The Harvard Business Review, is to choose the right people to pass on work to. Those people should be both skilled and motivated enough to do a good job.

Apparently, Schultz has internalized this idea, both by hiring top performers for his management team and by communicating to them that they can act as leaders as well.

Meanwhile, Susan Tardanico, CEO of the Authentic Leadership Alliance and Executive in Residence at the Center for Creative Leadership, wrote in a 2013 Forbes article that one key trait of courageous leaders is encouraging push-back.

“By encouraging constructive dissent and healthy debate,” she wrote, “you reinforce the strength of the team and demonstrate that in the tension of diverse opinions lies a better answer.”

That’s exactly what Schultz did when he let employees persuade him that it was a good idea to bring back the cheese sandwiches.

It would seem as though Schultz’s ability to delegate leadership duties and his openness to new ideas are helping the company succeed. As Forbes reports, sales surpassed $19 billion in 2015.

The takeaway for any leader is that, as much as you want things to be perfect, you need to accept that you can’t do everything — and that sometimes other people can do things better than you can. It’s a tough pill to swallow, but it will probably make your organization more successful in the long run.

SEE ALSO: From the projects to a $2.3 billion fortune — the inspiring rags-to-riches story of Starbucks CEO Howard Schultz

Join the conversation about this story »

NOW WATCH: How Richard Branson gets over his hatred of public speaking

Read More

51 Brilliant Warren Buffett Quotes

Warren Buffett is an American businessman, investor and philanthropist and is considered the most successful investor in the world. He is the CEO, chairman and biggest shareholder of Berkshire Hathaway. Warren Buffett was ranked the world’s wealthiest person in 2008, and 3rd wealthiest person in 2015. Take a look at Warren Buffett quotes below: 51 Brilliant Warren Buffett Quotes: 1. “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” – Warren Buffett 2. “In the business world, the rear-view mirror is always clearer than the windshield.” – Warren Buffett 3. “Someone is sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett 4. “Price is what you pay. Value is what you get.” – Warren Buffett 5. “The only time to buy these is on a day with no ‘y’ in it.” – Warren Buffett 5. “Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value.” – Warren Buffett 6. “Predicting rain doesn’t count. Building arks does.” – Warren Buffett 7. “If past history was all there was to the game, the richest people would be librarians.” – Warren Buffett 8. “You do things when the opportunities come along. I’ve had periods in my life when I’ve had a bundle of ideas come along, and I’ve had long dry spells. If I get an idea next week, I’ll do something. If not, I won’t do a damn thing.” – Warren Buffett 9. “Americans are in a cycle of fear which leads to people not wanting to spend and not wanting to make investments, and that leads to more fear. We’ll break out of it. It takes time.” – Warren Buffett 10. “Beware of geeks bearing formulas.” – Warren Buffett 11. “Derivatives are financial weapons of mass destruction.” – Warren Buffett 12. “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” – Warren Buffett 13. “The investor of today does not profit from yesterday’s growth.” – Warren Buffett 14. “Basically, when you get to my age, you’ll really measure your success in life by how many of the people you want to have love you actually do love you.” – Warren Buffett 15. “I think the most important factor in getting out of the recession actually is just the regenerative capacity of American capitalism.” – Warren Buffett 16. “Value is what you get.” – Warren Buffett 17. “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.” – Warren Buffett 18. “We’re still in a recession. We’re not gonna be out of it for a while, but we will get out.” – Warren Buffett 19. “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” – Warren Buffett 20. “There seems to be some perverse human characteristic that likes to make easy things difficult.” – Warren Buffett 21. “Only when the tide goes out do you discover who’s been swimming naked.” – Warren Buffett 22. “Of the billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars.” – Warren Buffett 23. “A public-opinion poll is no substitute for thought.” – Warren Buffett 24. “If you get to my age in life and nobody thinks well of you, I don’t care how big your bank account is, your life is a disaster.” – Warren Buffett 25. “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” – Warren Buffett     26. “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” – Warren Buffett 27. “The big question about how people behave is whether they’ve got an Inner Scorecard or an Outer Scorecard. It helps if you can be satisfied with an Inner Scorecard.” – Warren Buffett 28. “When you combine ignorance and leverage, you get some pretty interesting results.” – Warren Buffett 29. “The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.” – Warren Buffett 30. “We enjoy the process far more than the proceeds.” – Warren Buffett 31. “I always knew I was going to be rich. I don’t think I ever doubted it for a minute.” – Warren Buffett 32. “The best thing I did was to choose the right heroes.” – Warren Buffett 33. “Our favorite holding period is forever.” – Warren Buffett 34. “We always live in an uncertain world. What is certain is that the United States will go forward over time.” – Warren Buffett 35. “We believe that according the name ‘investors’ to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a ‘romantic.’” – Warren Buffett 36. “Your premium brand had better be delivering something special, or it’s not going to get the business.” – Warren Buffett 37. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett 38. “You only have to do a very few things right in your life so long as you don’t do too many things wrong.” – Warren Buffett 39. “If a business does well, the stock eventually follows.” – Warren Buffett 40. “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.” – Warren Buffett 41. “Chains of habit are too light to be felt until they are too heavy to be broken.” – Warren Buffett 42. “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett 43. “You have no ability, if you’re a financial institution and you’re threatened with criminal prosecution, you have no ability to negotiate.” – Warren Buffett 44.“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.” – Warren Buffett 45. “The rich are always going to say that, you know, just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you. But that has not worked the last 10 years, and I hope the American public is catching on.” – Warren Buffett 46. “Why not invest your assets in the companies you really like? As Mae West said, ‘Too much of a good thing can be wonderful’.” – Warren Buffett 47. “The only way to get love is to be lovable. It’s very irritating if you have a lot of money. You’d like to think you could write a check: ‘I’ll buy a million dollars’ worth of love.’ But it doesn’t work that way. The more you give love away, the more you get.” – Warren Buffett 48. “Let blockheads read what blockheads wrote.” – Warren Buffett 49. “Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett 50. “Risk comes from not knowing what you’re doing.” – Warren Buffett 51. “Time is the friend of the wonderful company, the enemy of the mediocre.” – Warren Buffett What’s your favorite Warren Buffett Quote? Share your favorite quote in the comment section below.

Read More