Starbucks staff has been at loggerheads with the CEO for more than a year now-and it is the legacy of the new man in the top job eager to put to bed.
Former coffee boss Howard Schultz is fighting the rank and file over unionization in 2021.
When the brand announced a raft of employee benefit improvements last year, it added that union membership was not included.
Schultz previously said he was not anti-union but pro-Starbucks, writing in a letter to employees: “I do not believe conflict, division, and dissension — which is the focus of union organizing — benefits Starbucks or us. [employees].”
Now Starbucks’ new CEO, Laxman Narasimhan—who took the reins at the coffee chain two weeks earlier than expected—has announced he wants to spend half a day a month at the store working as a barista.
Narasimhan wrote in a letter to staff on Thursday: “You have welcomed me to the store, trained me to be a barista … us. To keep us close to the culture and customers, as well as challenges and opportunities, I want to continue working in the store.
Be a person, not a title
Staff are not yet sure Narasimhan will implement the changes they want to see above.
To get buy-in, experts say, CEOs need to listen to the problem and make sure their leadership team helps make changes.
Chris Preston is the founder and director of UK-based employee engagement specialist The Culture Builders and says that while Narasimhan avoids the pitfalls CEOs often fall into when it comes to cultural initiatives, it can be a very positive idea.
He explained: “It has to be small and consistent. It can’t be ‘Oh God the CEO has arrived’, it just has to happen. I have seen these two extremes: in one company there is a meeting with the executive that happens once a month and it has been several times year, it’s really relaxed.In another big pharmacy brand when the CEO comes, it’s like the Royals in town.
Instead of telling employees what to do, the C-suite should “shut up and listen” if they want to make positive changes, he added. The CEO must be seen by the staff as a human being and not a title, he added, so instead of operating from the pedestal bosses must get to grips with real challenges in the trenches.
That’s the sentiment echoed by Piers Hudson, senior research director at global HR specialist Gartner, based in Connecticut. Hudson added: “If it’s not felt that the CEO is really there to listen and understand it’s tokenism and it’s going to cause a backlash.”
He said that the CEO should show an interest in the staff as a person who is different from the employee: “The focus of the visit should be to help the CEO but also to help people to understand.
“This may be how the work is compatible with the goals of life and wider family problems, so ensure enough focus not only: ‘How to make coffee faster’ but ask ‘How does this fit into your life? Do we protect you if people don’t like it? with you?’ That involvement will help avoid feeling tokenistic or like the CEO is just doing it to show his face.
The value of the smiley face in the cup
The Seattle-based chain is considered not only to brighten customers’ days with hand-drawn smiley faces on the side of the cup, but also to go above and beyond for visitors.
In February 2022, a Texas cafe was praised for secretly checking female patrons were not threatened by an elderly man who spoke to them. A note on the woman’s cup from the barista read: “Are you okay? Do you want us to interfere? If you do, take the lid off the cup.”
Staff clearly care about customers, said Preston, and to ensure that they do not become disenchanted with efforts there is a simple goal to keep in mind: solutions.
Preston explained: “We work with many sports teams and high-performance athletes and they reflect this idea. They never think about a problem for more than two hours, they see how they can improve. After the conversation, the CEO should have time to talk to the staff : “What if we …”
He said staff need to understand the “why” behind company decisions, whether wages are not increased, shift patterns are changed or more employees are hired. An understanding of a reasonable solution should then be communicated to the rest of the business c-suite, Preston added, to ensure agreement is reached.
Employees can also get more out of conversations with executives by making sure the concerns they raise are data-driven company issues, Hudson added.
He explained: “Obviously there will be different experiences in a company like Starbucks, but the CEO and the CHRO will try to understand whether the problem is local or not. Make sure that you add the problem to something that the business has created a structural context and make the link.
Being the CEO to determine the next steps and when the staff will hear back, he said: “If there is no resolution, it will only feel that the staff has said and ignored.”
The power of vulnerability
Usually under fire from stakeholders, board members and others, CEOs can often become defensive when faced with criticism.
Being prepared and educated about an issue is key to calmly initiating a potentially aggressive dialogue, adds Hudson, who also encourages CEOs to embrace vulnerability.
He explained: “CEOs are not always very good at being vulnerable. They are used to talking to investors and people trying to get their point of view.
“Having someone prepare and maybe coach you: ‘This is a conversation you can have’ and understand yourself about the issue will help.
Opportunities for such preparation should also be extended to staff, Hudson said, giving them the opportunity to “set the agenda”.