When Howard Behar first joined Starbucks as an executive in 1989, the company had just 28 stores, but its employee handbook spoke volumes. “Up until page 4 or 5, it never mentioned a word about people,” he recalls. “Starbucks was a coffee-centered organization.” While it certainly makes sense for a company to focus on its main product, Behar believes much of Starbucks’ subsequent growth and success can be attributed to the fact that it became a people-centered organization, a topic he discusses at length in his book, It’s Not About the Coffee. FuelNet caught up with Behar, who went on to become the founding president of Starbucks International and president of Starbucks North America, to discuss Starbucks’ approach to customer relationship marketing, why all businesses are “small,” and the importance of putting people first.

FuelNet: You write about how important it is for organizations to be clear about their values, purpose, and goals. Why is that so essential?

Behar: I think organizations have to serve a deeper purpose than just selling widgets. It’s the thing that gets you up in the morning, other than the dollar sign.

FuelNet: What is Starbucks’ deeper purpose?

Behar: We wanted to be one of the most well-known and respected organizations in the world. But most importantly, we wanted to be known for nurturing and inspiring the human spirit. We got into trouble when we didn’t hold those words in front of our face. You’re not the only one measuring [your purpose]. Your people measure it. The people you serve measure it.

FuelNet: What are the essential elements of a people-centered organization?

Behar: No. 1 is a set of values that revolve around people. We treat each other and the people we serve with respect and dignity. I need to understand what matters to you. When I understand what matters to you, then you are going to listen to me. The second piece is being a caring organization. What does that mean? As an example, when I [started] at Starbucks, a store manager came to [founder and chairman] Howard Schultz and said he had AIDS. Howard said, “What can we do for you?” [The manager] replied, “Well, I’d like to work as long as I can.” And Howard said, “You can work as long as you physically can, and [afterward] we will cover your insurance.” That’s a caring organization.

FuelNet: What did you try to do as a leader to ensure that everyone at Starbucks shared the same company values?

Behar: It’s an endless journey. There are no training programs or education programs that you can use to make that happen. It starts with values and the constant reinforcing of why we are here. That has to be done every day because it’s always breaking down. I think a leader’s primary responsibility is to constantly communicate why we are here and make sure that we are living the values we have espoused. I tell people I’ve been at Starbucks 19 years and that I have had one speech that I’ve delivered a thousand different ways. It’s the same message because I don’t know what else to say.

FuelNet: Your father ran his own grocery store. What lessons can big businesses learn from small ones?

Behar: All businesses are really small businesses. It’s always one customer at a time. IBM can sell hundreds of millions of dollars of product to a company, but in that process they’re talking to some individual someplace making a decision about a piece of software or service they’re going to buy. And it’s that interaction that always makes a huge difference. It’s the fact that whoever is working for IBM and calling on that account says, “Hey, what can I do to help you and your organization attain your dreams and live your values?”

FuelNet: During your tenure at Starbucks, what was the integrated marketing communications approach?

Behar: We didn’t know what we were doing. We spent hardly any money on strategic communications. Most everything we’ve done is inside the store. I don’t think it will always be that way. I think as other people define who we are and where we are going, we have to find ways to communicate effectively. It has to fit with our values. Everybody thinks we are a fantastic marketing organization, but that’s not what we ever were. We were just opening stores and doing what we love to do — treating people in a way that we thought matched our values and living the dream. Doing that gets people talking and, hopefully, coming back.

Permalink: http://www.fuelnet.com/?p=277