Tag Archives: Starbucks

News, , , ,
Howard Schultz, Presidential candidate?

In 2018, when Starbucks founder Howard Schultz announced his plans to step down from the company, it fueled instant rumors of a possible run for U.S. President. We weren’t surprised: for years, he has called on American CEO’s to provide the economic leadership that our government has at times been unable to.

Now he is exploring a possible Presidential run. His plan is to explore  it during the three-month promotional tour for his new book, “From the Ground Up: A Journey to Reimagine the Promise of America.”  That is a perfect cross-marketing strategy. He will sell more books while using the multi-city appearances to reintroduce himself to the American public. 

As founder of one of the most popular companies in America, Schultz has proven to be an effective agent of change. A classic American success story, he is a master of the practice known as “personal branding.” He has a compelling origin story and an authentic image.  He has also long expressed his concern over the state of America and its politics.

In 2011, he made headlines when he called on fellow CEOs to boycott Washington by stopping all political campaign contributions. “The CEO of Starbucks wants Washington to wake up and smell the coffee,” reported Huffington Post writer Dan Froomkin.

In television interviews that week, Schultz was praised for showing more decisive leadership than any elected official in Washington had in recent months. He was calm, focused and respectful toward Washington leaders as he presented solutions to address a then-growing crisis. Estimating that “a third of the states are facing a crisis of insolvency,” he said that Washington’s political infighting is causing great damage and harm to business in America. He also warned that businesses are “going to have to do more to provide the kinds of services to the communities we serve, and a safety net for the people that we employ, because the federal government is not going to have the resources.”

Howard Schultz has stumbled at times. Who hasn’t? As a citizen activist, he is an inspirational role model for other CEOs. Starbuck’s popularity reflects it, as does the company’s responsive handling to its 2018 racial discrimination case in Philadelphia. We look forward to reading his book.

 
 
Social Media, , , , , ,
social media reputation risks

On April 2, The Wall Street Journal published an interview with me: “CEOs Face Reputation Pitfalls If They Avoid Social Media.” It focuses on the dangers social media poses to executives, and on the reasons mistakes seem to happen so often.

The article is behind the newspaper’s pay wall, but you can read the full text here.

I would like to elaborate on some of the important points the interview touches on. Social media can be an attractive way of engaging with your consumers and the broader public, but it can easily turn into a reputation headache. No executive should have a Twitter account – or any presence on social media – unless she or he has a very clear strategy and measurable goals. And for executives in a regulated industry, or that have already been the target of negative publicity, our advice is to stay off.

Your Presence on Social Media May Not be Worth the Exposure

Why? Unless being active on social media serves a specific objective, it isn’t worth the exposure.

In some cases, social media can be a very effective tool. If the public strongly identifies the CEO with the brand, that CEO can use social media to build the audience for the brand. Elon Musk is a good example. He is Tesla (and everything else his company does). Mary Barra is on Twitter and uses it well. Social media is also often a good match for senior execs in advertising, media, fashion and transportation.

On the other hand, Howard Schultz, CEO of Starbucks, is not on Twitter. But Starbucks itself is, and has over seven million followers. Howard Schultz gets plenty of media exposure already. If he had a Twitter account there is a chance he may get too much attention…and attention that would detract from the Starbucks brand.

Social Media Tips for High-Profile Leaders

If you are a high-profile leader in any industry – or organization – and have not yet adopted social media but are thinking about it, consider taking these steps:

Study the social media landscape, paying special attention to what your peers are doing. Who is doing it well? Who is not? Who is staying away entirely?

Identify what you hope to achieve. Consider how it could impact your organization and its brand. Who will manage your account?

Mistakes do happen. How will you respond to a crisis? Are the benefits worth the possibility of a crisis? An example of one: 500 Twitter followers lampooning your last tweet…and then protesting your salary and recent layoffs at your firm.

The golden rule for social media is to stay neutral. If you want a presence but don’t want to create waves, post about topics that are safe. Avoid stating opinions that aren’t in line with your organization’s brand. That will help you avoid joining the list of executives whose social media gaffes have made headlines.

 
 
Crisis Management, , , , ,

After enduring an online firestorm, Starbucks has stopped encouraging its baristas to write “Race Together” on coffee cups.

Starbucks is planning several steps as part of the “Race Together” initiative that promise to substantially benefit minority groups. But by leading with the slogan, the company has prompted heated criticism.

One issue that is increasingly incensing the online community is when consumers feel they are not represented within the senior-level staff of the brands they are loyal to. And with this campaign, Starbucks unfortunately highlighted that issue. As the New York Times’ Sydney Ember observed, “Many have pointed out that the company’s leadership is predominantly white, while many of its baristas are members of minorities.”

This controversy reinforces the importance of authenticity in public relations initiatives. We don’t doubt that CEO Howard Schultz’s heart is in the right place with this campaign. And we support his efforts to encourage discussion and the economic components of the campaign. But if he is going to associate the Starbucks brand with such a serious social issue, he should have preceded that slogan with action…including perhaps a seriously substantive movement to diversify Starbucks’s leadership.