Howard Schultz - Teaching Business
Table of Contents
- Cost to starting business today is lot easier due to technology
- Have a great discipline and thoughtfulness
- Balancing responsibility for customer and investors.
- All people have some insecurity.
- Self-Doubt is common.
- Personal decision - are you willing to sacrifice for this endevour.
- Have courage and conviction
- Ability to look back and live your life to the fullest.
- If you know you have it, just jump into the pool.
How did I start ?
- I didnt have all the answer back then.
- 1987 - 11 starbuck stores.
- Belief to build a different kind of company.
- Company to give health insurance and stock options to part time workers.
- Success is best when shared.
- Free college tuition to every single employee.
Expanding to China
- 3500 stores and opening a store a day.
- Transfer of culture to un-american place.
- Understand your customer and customer region.
- After 9 yrs of being unsuccessful.
- Belinda Wong - CEO of starbucks china. Integrate the culture of company and regional culture.
- Family unit is important in china.
- Value based company is not in conflict with profit based company. we have to make profit.
- Be intellectly curious.
- Having courage to put yourself in uncomfortable positions.
- Put yourself in learning position
- Life experience of learning, observing and practicing your craft.
- We learn from mistakes and we learn from the environment.
- Humility of rejection will teach you so much.
- self-awareness of sitaution and culture of the company.
- Creating relationship before asking questions.
- Understand the strategy and how decisions are made.
- How a company makes a decision. They teach them so much
- Not have a fear of failure. You need to ask questions.
Find a mentor
- Mentorship will evolve. whom you respect and whom you can relate to.
- Know what you’re asking your mentor of the obligation.
- There is always a place for niche player.
- If we present ourselves in different , they can do something a big company cannot do.
- Be sponge and talk to all your peer.
- There are things you cannot prepare for.
- Observe and learn from everywhere.
- There has to be priority in an Organization
- There can be 3 to 5 big audicious goals that you can manage.
- Engage with people
- Ask questions on everything. Be curious.
- Get your hands dirty
- Don’t operate at the high level.
- Every meeting - One chair will be partner and another share is customer.
- Will this decision will make our customer’s proud. Debate more before making decisions.
Find Right Investors
- Do your homework about investors and their history.
- How they act and do they share your values. Can you rely on them when things get difficult.
- Create a scenario and ask them about how they deal. Make due diligence about the investors.
- We have lot of insecurities, with healthy level of skepticsm.
- you will be served well, if you under-promised and over deliver.
- Let them know why are you in the business.
- Know about investors. Know their history understand their values.
Overinvest in culture
- Most underestimate the concept of culture.
- Understanding the human behaviour and empowering people to create a behaviour. It is the foundation of the company.
- Define the culture early.
- It is like raising a child. Teaching child for self-esteem.
- This action is not consistent to the culture of the company, then swiftly stop it. It is who we are, it is why we do something. - Do culture audit. Having honest conversation. Bring people from all walks of life and come talk to the team.
- Work-Life Balance. It is the fundamental issue for young minds. we need to decide about this early. Establish responsibility. Company should develop deep level of sensitivity on work environment.
Hire a Value based Team
- Team should be the priority. Company should attract like-minded people to join the team.
- How to balance out the pay. If he is not interested in equity when joining a startup that is a red flag. He is not looking out for future,long term and not hungry.
- Everyone going in same direction is important.
Interviewing a canditate
- Intimate conversation. Reduce tension.
- " What’s the last book he read ?” - he is not curious.
- your opportunity to show that you are a servent leader.
- You will make hiring mistakes. Involve many people to interview that person.
- Culture fit is very important. Prep org for new hires. before a new hire makes a decision, he needs to be immersed into the business.
Don’t manage, lead
- No one wants to be managed. People wanted to be valued.
- Its a team sport.
- Balance input. Don’t micromanage.
- Give early feedback. Establish the culture early on
- Many people are conflict avoidant. If you’re not honest with the person. One standard for everybody. that is excellence.
- Be specific about excellence
- Show your displease , as it can affect downstream
- You have to control your destiny. You cannot allow others to dictate what you have to do
- Do your homework for the market. Be mindful of compeititors. But compeitition should be there in the decision making room
- Pricing is not competitive edge. It is not sustainable
- You have to invest in the future of the business.
- Innovation - it must be distruptive. You have to fracture and disturpt the market / norms.
- Chasing too many things too early is not good. You cannot multi-task. You cannot spoil the core business. Know if you have resource
- Same time, don’t be afraid about innovation. You have evolve to be innovative naturally
Leadership in crisis
- Self-Belief in crisis situation is vital
- Be transparent about challenges and address the needs and thereby letting them know what is going to be affected
- Do I have trust on people. How I can ask them if I am not transparent and granualar enough ? We have to be transparent
- Significant Cuts - Do it early. 100% empathy while doing this.
- Every company has experienced some kind of disappointment down the line
- Success has to be earned everyday
- Remind people , what sacrifices and culture we had to get it here
- If you work with high aspirations and surround with good people who share your values, you can acheive it
- It’s a team game and understand sharing success with each other