Starbucks' new CEO promised rare and effective leadership

 The new CEO of Starbucks promised a rare leadership style that would make its employees and customers very happy.

Tarbucks CEO Brian Nichol

 

Starbucks stated on Tuesday that CEO Laxman Narasimhan has "stepped down" after 17 months in the post, as the company's revenues are decreasing and investors are becoming increasingly frustrated. Let's be honest: "stepped down" is a polite way of stating "he was fired."

Chipotle CEO Brian Niccol has been chosen Starbucks' new chairman and CEO, effective September 9. Under Niccol's leadership at Chipotle, revenue nearly doubled, profits nearly quadrupled, and the stock price skyrocketed by about 800 percent.

Naturally, as the news of the new CEO surfaced, Starbucks' stock soared 24 percent, marking the company's greatest day since its 1992 IPO.

"Enough of the numbers. Behind what appears to be a fantastic decision thus far, you're betting on the leadership side of business management, which Niccol excelled at at Chipotle. The old phrase goes, "Everything rises and falls on leadership."

 I am thrilled to be joining Starbucks and appreciative for the opportunity to help lead this wonderful organization with hundreds of thousands of loyal associates. I've long admired Starbucks' renowned brand, distinct culture, and commitment to improving human relationships around the world. As I embark on this adventure, I am motivated by the huge opportunity to drive growth and improve the Starbucks experience for our customers and partners while remaining true to our mission and values."

 'Lead this wonderful organization.'

To cut to the chase, this is the section of the quote that piqued my interest, and the term "steward" should not be taken lightly when declared out for all to hear. Returning to leadership principles, what CEO says this today? But first, some context for this uncommon leadership term (and style of leadership).

Real stewardship is about caring for anything that has been entrusted to you, whether it is money, resources, a team, or a worldwide brand. It's like being trusted to manage or look after something essential, knowing you're doing it responsibly and with the broader picture in mind.

When you're a leader, stewardship involves leading your team in a way that benefits everyone, not just you. It is about making decisions that help people grow and keep things operating smoothly, while always thinking about what is best for its various groups (including employees and customers) and the organization as a whole. This is not a word to be taken lightly, therefore Niccol has a lot to prove.

Create a culture of stewardship. 

If Niccol envisions guiding Starbucks in this manner, the brand is in excellent hands, and its over 300,000 'partners' (workers) should be ecstatic. However, there is no flipping of the switch. This will require several seasons of culture transformation and trust building with his numerous stakeholders. So, in the best-case scenario, how could Niccol manage its global partners so that the employee experience translates into an amazing customer experience?

Here are some suggestions for Niccol and his executive team, with a lesson for all business leaders:

1. Don't only delegate or empower your teams; give them the authority to lead in accordance with the company's purpose and values.

2. Set a good example by not just working in the firm but also impacting its entire operations. More importantly, venture outside of your regular executive positions to influence people and keep the company's ideals and culture alive--giving it life and heartbeat.

3. Always consider the best interests of the organization and its stakeholders. This entails taking into account other points of view while also fostering confidence, security, and pride. This promotes creativity and innovation while attracting top personnel and loyal customers, underscoring the importance of stewardship. 

4. Finally, if done correctly, allow others to lead and create a culture in which everyone serves as a steward of the company, instilling a sense of pride and success that inspires and motivates.

These concepts may explain why Chipotle thrived financially under Niccol's leadership. The world now waits to see if he would keep his vows to lead his new company.