The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary

Publishers Weekly

In this paean to "one of the truly exceptional American success stories," Michelli convinces the reader that Starbucks is a great company, but he stumbles when trying to extract "precepts that can enhance your business and your personal life." He explores the various levels on which Starbucks succeeds, from its generous HR policies and lively work environment to its attention to detail and genuine concern for social causes all of which highlight how singular a company it is. (Michelli throws in the word "unique" as often as twice a sentence.) But when it comes to advice for businesspeople, his "simple, yet not simplistic" tenets are too vague to be very helpful. Michelli notes that he has no personal stake in Starbucks: "I am not here to sell you on the company." But his enthused exclamations "It is difficult to imagine all the great things that are yet to come for Starbucks" give The Starbucks Experience the ring of an authorized book. Still, the company's practices are undeniably innovative and inspiring, and even if most of them aren't directly relevant, there's surely something in this book that's applicable to most businesses. (Nov.) Copyright 2006 Reed Business Information.

Library Journal

Michelli, a professional speaker, trainer, and consultant, takes an in-depth look at Starbucks's proven and practical strategies for building a successful, multinational corporation. His chapters illustrate the company's five basic success principles: make it your own, everything matters, surprise and delight, embrace resistance, and leave your mark. Readers will discover a rich mix of ideas and techniques that will help them apply the Starbucks vision, creativity, and leadership to their own careers, workplaces, and companies. Michelli shares fascinating information, e.g., the Starbucks employee turnover rate is 250 percent lower than the industry average, Starbucks has stores in 37 countries and averages more than 35 million customer visits each week, five new Starbucks stores open a day, and, perhaps most amazingly, Starbucks is not a franchise business. This book shows readers how employee motivation, excellent customer service and satisfaction, and community involvement build a great company. Most business collections will want to add.-Susan C. Awe, Univ. of New Mexico Lib., Albuquerque Copyright 2006 Reed Business Information.

Soundview Executive Book Summaries

Turning The Ordinary Into Extraordinary
After two years of access to the inner workings of the coffee-retailer behemoth, Joseph Michelli wrote The Starbucks Experience in an effort to explain the company's runaway success. From its establishment in Seattle in 1971 as a single-location coffee shop, Starbucks now has more than 11,500 non-franchised locations worldwide, annual sales of more than $600 million and has been rated as one of the best Fortune 100 companies to work for. Since 1992, its stock has grown a staggering 5,000 percent.

How has Starbucks prospered based on the supposedly absurd idea of a $3 cup of coffee? By having a progressive corporate culture, says Michelli, and passing its values to all employees - "partners" as they are known in the company. Michelli says that by using the same principles, almost any company can become more successful.

Concentration on Basics
While part of Starbucks' success is drawn from extensions of its core coffee business - retail sales, music, gift packs - the lion's share comes from its creation of experience. This is true not only for customers but, perhaps more importantly, for Starbucks' partners (employees). Going beyond things such as stock options and health insurance (provided even for part-timers), Starbucks "consistently spends more on training than it does on advertising," writes Michelli. Its program includes product information, how to create good customer relations, the basic principles of success and employee empowerment strategies.

This philosophy has helped keep Starbucks' employee turnover rate 120 percent below the quick-service restaurant industry average. Partners are encouraged to have fun, get to know customers' likes and dislikes and treat each other with respect. Management sticks to the same tenets. Michelli quotes Starbucks International President Martin Coles saying, "It's impossible to ask our people to behave the same way if we're not willing to go down that track ourselves." Michelli says that regardless of a company's resources, all principals can treat employees in a way that will inspire them to creativity and passion.

The Big Five
Michelli breaks down the Starbucks success formula into five parts. Number one is "Make It Your Own." By virtue of their stock options, partners consider themselves part owners of the corporation and most try to meet the firm's mission and priorities. In turn, the company makes it a point to encourage, listen and respond to partners' suggestions and comments. Additionally, partners are encouraged to find out customers' needs and respond to them on as personal a level as feasible. Partners are also urged to become involved in their communities, another Starbucks passion.

The second principle is "Everything Matters" - strive for consistency in quality and environment and pay constant attention to detail. It also means never compromising quality, making sure every partner in every location is knowledgeable and friendly, and ensuring that every Starbucks location offers a welcoming atmosphere that makes customers want to return.

Next is "Surprise and Delight," which Starbucks takes to new levels. This principle might involve something as simple as opening early for a customer waiting outside or as involved as creating a city-wide coffee-tasting day, where Starbucks' partners set up tables at train stations, offering commuters free coffee - both examples Michelli provides.

The fourth principle, "Embrace Resistance," addresses how Starbucks' partners are trained to turn negative feedback from customers into opportunities to improve the business and strengthen the relationship. All levels of management are asked to commit to this. Similarly, stores are expected to always seek options to seemingly "impossible" customer requests.

The last principle is "Leave Your Mark." This addresses the company's commitment to not only community outreach, but to environmental issues, positive change and fiscal responsibility.

Referring to his subtitle, Michelli concludes that any firm can become more "extraordinary" by using these five Starbucks' principles.

Why We Like This Book
In The Starbucks Experience, Michelli has produced something more than the typical Fortune 500 company profile. Through his use of personalized stories and quotes from present and former Starbucks' partners, he creates a framework of the Starbucks strategy useful enough for any business owner. Copyright © 2007 Soundview Executive Book Summaries