The Starbucks CEO says he wouldn't have wavered in his decision to bring 10,000 employees to the leadership conference to New Orleans even if he had foreseen the economic downturn. "I still would proceed and I still would go to New Orleans," he says. "It was absolutely the right decision for us to come to New Orleans. It's going to be a galvanizing event for our people." || Read "Starbucks to help perk up New Orleans"
Leadership Conference:
This seems like a lot of time and money spent for the already converted to bond.
To an outsider/shareholder, I do see a similarity with a Mary Kay Cosmetics or Herbal Life convention. And as I suspected, the conference agenda includes the obligatory show of community service.
Just spare us any Habitat for Humanity type photo op with Schultz in Sbux hat, jeans and construction-man belt.
Posted by: | October 26, 2008 at 04:08 PM
I think Melody may disagree with you on the Howard HfH "in only a tool belt" shot...
He's done KISS already, why not the Village People?
As for the conference. The store managers are in need of some love if the company is going to emerge from the darkness they've put themselves into.
Posted by: Pat Nerr | October 26, 2008 at 04:26 PM
Halloween is coming up, and Howard probably needs a costume...why not the Village People?
Posted by: Belle | October 26, 2008 at 04:36 PM
i only attended one of the company wide leadership conferences in seattle and it was very disappointing. the zone leadership conferences we had before that one were much more productive. it was just too big. the only high point was that i somehow rated a single room at the W which was awesome. i guess there were so many of us, they had to take whatever rooms they could get and i got lucky. the conference itself was nothing but a big yawn.
Posted by: jabanga | October 26, 2008 at 05:14 PM
It sounds like this conference might actually have some interesting content. Anyone blogging the happenings while they're down there?
Posted by: | October 26, 2008 at 06:18 PM
Mmmmm....tastes like...galvanization.
Posted by: truth | October 26, 2008 at 07:06 PM
The Starbucks Rebel Alliance is of course sending our delegation. I shall not be in attendence due to previous commitments.
Posted by: BOSTON STARBUCKS REBEL | October 26, 2008 at 07:22 PM
Oh get over yourself BSR.
Posted by: | October 26, 2008 at 07:39 PM
Well, at least Starbucks is saving money vs. hosting this regular conference in Seattle. It's more central flying everyone there, than to Seatlle, and the hotel rooms in New Orleans are half the cost of a room in Seattle...
Posted by: me | October 26, 2008 at 08:43 PM
Howard and co. already did the village people in 2005.
Maybe they'll do New Kids On The Block.
Posted by: ex-sbuxmanager | October 26, 2008 at 08:44 PM
Maybe they can do a magic act. After all, they're making 600 stores disappear.
Posted by: Belle | October 26, 2008 at 08:56 PM
Who gets to attend this LC? Is there an agenda made public yet?
Posted by: | October 26, 2008 at 09:08 PM
Mr. Nerr - You're too funny, and somehow I still laugh even when you're making jokes at my expense!
at anon at 7:08 pm - My understanding is that pretty much all company-operated store managers are going (or can go), some licensed store managers, and of course tons of management/executive people above the SM level.
Posted by: Melody | October 26, 2008 at 10:01 PM
crap! I forgot that they did the Village People too... somewhere I probably have footage of that...
Posted by: Pat Nerr | October 26, 2008 at 10:08 PM
Ah, 50,000 hours of community service=tax write off for Howard. What kind of suit was that? Armani? Starbucks altruistic? I think not.
Posted by: Melissa | October 26, 2008 at 10:13 PM
bsr, you're a barista and we all know it. and probably a crappy one who openly complains about customers and calls people out on stupid little things.
Posted by: | October 26, 2008 at 10:16 PM
LOL - Melissa I didn't think that was flattering suit he was wearing for the news article photo, even if it was Armani! :-D
I did notice the reflection in the glass behind and the lovely architecture. Was that photo taken in New Orleans?
They already did the Village People? So I missed Uncle Howard as the indian already? Who was the cop? Cliff Burrows?
Posted by: Melody | October 26, 2008 at 10:27 PM
Speaking of managers and such. Is it just in my area or are managers being fired elsewhere too? Our district manager fired 5 managers in less than 4 months. Only 1-2 of them actually deserved it. The rest were doing a great job.
Posted by: Michael Bednarczyk | October 26, 2008 at 11:17 PM
i think its absolutely disgusting that starbucks decided to go forward with this.
in this economy, with the average customer being on the verge of unemployment and higher living costs, starbucks decides to sink a ton of cash into a non-essential meeting for the sake of camaraderie, it goes to show how out of touch this company is.
why not drive operational and non-operational costs DOWN so that the customer can benefit? think of the price reductions that could take place. starbucks, too, would benefit because people would actually open their wallets with the same frequency they did in a good economy. it's a common perception that starbucks is expensive, so why not try to mitigate that?
i think starbucks needs to learn their place and remember that its the customer who should be the important asset to the company.
don't get me wrong: i'm all for conferences and large gatherings, but its rather off-putting in this economy that starbucks would be so brash as to fly in tons of employees, get hotels, executive costs, etc all for what could be done via conference calls.
also, i bet former, laid-off employees are fuming. they were laid off because the company needed to save some money. how many jobs could have been saved, how many stores could have been saved with whatever this thing costs? seems horribly out of touch!!!
i don't think i'll be spending some cash in a starbucks any time soon. i can't in good conscience for my fellow neighbors and those laid-off by starbucks put money into a company that obviously doesn't care about its people or customers.
Posted by: protest starbucks! don't spend money there! | October 26, 2008 at 11:26 PM
I loved the village people act! I think Orin was the indian, am I right? Alling was fabulous, so was Howard. Although they did seem very awkward and tight. I laughed so hard when they came out. None of them can dance. I think this is the time I'll miss the most, I always loved our LC. For the folks who are saying they shouldn't go, I disagree. SM's really need something to re-ignite their passion. So much hardship these past two years, they need to connect again. I wish I were there, there are soooo many people I would love to be seeing right now. It really makes me sad. I hope that everyone there takes in as much as they can and bring it back to their team. Good Luck, be safe and connect with each other.
Posted by: Darleen | October 27, 2008 at 03:19 AM
Jabanga,
Are you talking about the one in seattle where a shift wrote to the Oprah show about a barista that had taken in her brothers children and they needed a bigger house, so Oprah bought the woman a house, then took all the kids on a 10,000 shopping spree? I don't think there was a dry eye in the room when that shift supervisor came out and read the letter, than the barista came out and everyone was clapping. My DM kept handing me tissues, LOL. I agree, the ones we had outside of seattle were the best ones. Orlando especially, they rented out all of Islands of Adventure for us. That one was a blast! I'm so nastalgic right now, anyone have a tissue?????
Posted by: Darleen | October 27, 2008 at 03:28 AM
orlando was the best. it was incredible. the only negative was that that was when i was first introduced to the new president of retail north america, jim donald. the company has never been the same since.
Posted by: jabanga | October 27, 2008 at 05:43 AM
Hey, protest. You are right. The company is being gutted, everyone is under stress because of it, the love is gone or fading for many of the remaining store leaders, so let's all get on the phone from a cramped backroom in a busy understaffed store.
Nothing says we value your leadership on our stores like a conference call. Without this conference the company will hemmorage store leaders at an even more alarming rate than already happening.
Posted by: | October 27, 2008 at 06:28 AM
I hope that the leadership at Starbucksis filled with passion fir what they do. To quote Cameron Diaz, "I'd rather do something that makes me happy."
Posted by: BOSTON STARBUCKS REBEL | October 27, 2008 at 09:27 AM
Make sure y'all go to a local Community Coffee or a Rue de la Course for a really good local coffee while your there!
Posted by: Robbi | October 27, 2008 at 11:16 AM
get some chickory coffee and beignets!
Posted by: Ryan (SS) | October 27, 2008 at 12:42 PM
The last leadership conference that I attended, in 2005 showed a lot of promise...I could have done without Erin Brockovich and all the "f-bombs" though.
Anyway, I never saw any of the community stuff come to fruition. And quite frankly, half of what they present/talk about is the same stuff over and over again.
News flash...if the message isn't getting through, you need to find a better way to present it or take a good hard look at how you are conducting your business.
Posted by: xsbuxdm | October 27, 2008 at 12:55 PM
Robbi, they are dangerously close to Cafe Du Monde. But a bit further and they get to Cafe EnVie, a personal favorite stop of mine when I'm in the Crescent City. Decent espresso and a little something extra to get the evening stared right (must be 21 to participate). Plus those wonderful sidewalk seats and open doors for people watching. Heaven!
Posted by: Herman M | October 27, 2008 at 04:07 PM
I am in complete agreement with whoever thinks this- and most other corporate getaways-is somewhat vulgar. Besides the store cuts, the tanking economy, and everything else, many of these managers (especially mine) have left understaffed and overworked stores for a week only to be able to come back and try to "motivate us". There has been a great deal of pissing on partners and telling them it's raining in this company lately. This is going to be the ultimate piss party. Most managers are going to come back with "cool stories" and "renewed vigor" and a host of other useless shit- While we have all been running these stores all week without proper staffing, or real leadership- which we were kind of lacking in the first place.
Posted by: verticalphil | October 27, 2008 at 05:00 PM
I agree, vertical. The managers will be pumped, or maybe not, they are logging 50,000 hours of community service while there, and the partners will have had to deal with the same old shite. There was no Open Forum this summer, it was supposed to be held at a local amusement park, and it was axed. No matter how geeked the managers are when they get back, you can't force the partners to feel it, especially in the time of cut back, cut personnel, cut, cut, cut. I go to DD every morning and there are plenty of pleasant people to greet me. Watch a barista during a rush, the poor thing tries to cover the anxiety, but with every cup piling up on the bar, you can see their stress.
Posted by: Melissa | October 27, 2008 at 07:29 PM
Here are some videos from the event. I can't believe how much production went into this! It feels like they built a Starbucks museum in this video.
http://mfile.akamai.com/22149/wmv/starbucksc1.download.akamai.com/16295/globalcomm/LCgallerypartners.asx
Posted by: | October 27, 2008 at 07:38 PM
Get a life BSR,I know who you you are and we are thrilled that you left our store!!!
On a happier note, I begged my SM to take me with her to the Leadership conference in her luggage; but no dice. I would love to be a fly on the wall for it though.
Posted by: I heart Clover | October 27, 2008 at 07:39 PM
Here is a video on the Pike Place Roast Special Reserve tasting they did....its incredible how they got all of those brewers there
http://mfile.akamai.com/22149/wmv/starbucksc1.download.akamai.com/16295/globalcomm/ppsrcoffeetasting.asx
Posted by: | October 27, 2008 at 07:40 PM
My ASM was going mental today sending people home early to save on labor. How can you run a high volume store properly without the appropriate staffing?? Then you get bitched at when customer voice numbers are down. Meanwhile great partners are leaving because they feel overworked and underappreciated.The managers get the leadership conference, the Shifts all got a free trip to six flags, and the baristas all get shit on.
Posted by: I heart Clover | October 27, 2008 at 07:48 PM
As many have said, a conference is a great way to send a message to a large group of employees all at one time. My issue with this whole thing is timing. I don't disagree that the SM's deserve something for all the crap that Howard has taken them through but I think it is more about him and less about the SM's. Find a local way to energize the team versus spending MILLIONS to send everyone to New Orleans. Seems very similar to Wall Street Exec's going to a conference after the bailout. That company got skewerd, why shouldn't Howard. He wants to look like he is the white knight when that is farthest from the truth. Having come to know a number of FORMER Sbux employees who were great that were let go to improve the bottom line, this is just another slap in their face. I see that earnings are going to be announced soon, anyone see 5 bucks a share? Sorry to be so negative, just highlighting the enourmous errors that Howard continues to make.
PS - So what is the shelf life for Thanksgiving Blend? 3 days? That is how long that holiday lasts. What moron came up with that one. Again, a great post by someone on this site asked wouldn't Harvest Blend be a better name? I think so but you think Howard would ever admit a mistake...nope ego too big.
Posted by: Cut out the Heart | October 27, 2008 at 11:02 PM
You know, if the US government gave Starbucks $700 billion, then you might have a leg to stand on with that silly comparison. It didn't, and you don't.
Posted by: Herman M | October 28, 2008 at 08:05 AM
I heart clover,
The managers get the leadership conference, the Shifts all got a free trip to six flags, and the baristas all get shit on?
Leadership is not a vacation. It is work.
You spend the week prior doing two weeks worth of work to set your store up for the week you will be gone, since, unlike when you are on vacation, there are no other store managers in town to watch your store for you.
If you don't have the proper wardrobe because all you usually wear is Starbucks dress code, you spend money you don't have on clothes to look professional while you are there. You are in meetings and conferences while you are there most of the day, and might get a few hours to see the town one night.
Don't get me wrong, it is a great opportunity for professional growth. And it is a great thing the company does. But, when your manager returns, don't expect him/her to be refreshed from a week out of the store. Expect to see someone who is wrung out from going full tilt all week to take in all that is there.
And if you want to go, move up. One of my old baristas is there right now.
How do you think I feel. 3 years ago, when I was a store manager, I sent in a mission review suggesting New Orleans as a site for a future conference and had several conversations with the head of partner involvement who plans the conference. Now I am no longer with the company and am not included.
Posted by: Tom | October 28, 2008 at 10:56 AM
OK, so what do the Baristas get for all of their hard work and dedication??? A mug award, maybe a green apron card, those stores would not run without the baristas.
Posted by: I heart Clover | October 28, 2008 at 01:17 PM
Oh and Puleeze...an all expense paid trip to New Orleans where my SM doesn't have to deal with irate customers or speed of service...I call that a vacation.
Posted by: I heart Clover | October 28, 2008 at 01:19 PM
I don't pretend to speak for anyone else, but the community service was more than just a public relations photo op. It was a life changing experience for me. To meet residents who lost everything to Katrina, and yet have the persistance and drive to come back and rebuild . . . and to know that I have had the chance to be a part of that rebuilding was life-changing.
As for the rest of the conference . . . I have been stretched and challenged to manange my store differently. I that's what I plan to do when I return from New Orleans.
Posted by: Really? | October 28, 2008 at 02:22 PM
I heart Clover -
You get to have a job and if you don't like it just look for another one.
You really have no idea what SM's go through. Most SM's work more than 40 hours per week on a fixed salary (no paid by the hour), they are really on call 24/7, have to deal with people who show up late, don't want to work, want to do things their way, the list is endless. They have to deal with staffing issues, product issues, store issues, customer issues. They have numbers/goals they have to meet, reports that have to be done, payroll and scheduling that needs to be done. Plus much more...
You get to show up, work your scheduled hours and go home, get free drinks, good benefits, free coffee, discounts on all you desire to buy...gee that's hard. Yes, it can be demanding if you are busy but that's what you deal with. So maybe you just need to get off the "poor me...what do I get?" attitude!
Ughhhhh!
Posted by: | October 28, 2008 at 06:15 PM
I chuckle a little bit thinking about the shitstorm my SM is going to experience when she returns from the conference. Our store has had crisis after crisis from the moment she left town. Frankly, if she comes back "re-energized and drunk on the kool-aid" it's a certainty that she will get knocked down real fast. The team is burnt out. We feel unsupported (not just because she's away for a week) and unappreciated. It's all coming to a boil and there are a lot of people who are ready to voice their concerns.
For the person who stated that this conference is all about work...then you can you explain to me why every time I've talked to anyone down there, they've been drinking in the french quarter or getting ready to go out for the evening (at 5 pm no less?)
This conference is a slap in the face to those of us who are picking up the slack for managers who rarely even put in a full 40 hours/week and turn off their phones outside of work so they won't have to deal with managing their own business.
I'm tired of the bullshit.
Posted by: burntoutbarista | October 28, 2008 at 07:38 PM
I'm in N.O. as a part of this conference and for those of you who really care to know what is going on: You are all right. Some people are here and are being "fed" , or as you might say, drinking the Kool aid. And some of them are here to dodge as many meetings as they can, hoping they don't see their DM so they can go have their vacation on company time. I for one came thirsty and so far the kool aid has been pretty decent. My store is like many of my peers, I have such a desire to build a great store, and I fail a lot of the time. I suck at getting my partner's their formal reviews delivered on time, I struggle to manage my work/life balance and I would not survive without the SS and Barista's I have. I know they are tired, they have all the same work/life struggles I do, they have the same anxiety about the future of their paycheck, they see the same negative news I do in the world. We're in this together. I wish like hell I could bring every one of my partners here to have something to drink.
We all need to be motivated again and again. We all need a kick in the ass to remind us we can't take our company, our customers, or our partners for granted. I am not a blind supporter of Howard, I am however a huge believer in the philosophy he built this company on. It made him (and others) wealthy for sure, why do some people hate him for that? He deserves to have a bit of an ego don't you think? wouldn't you? Hell I would. The bottom line is that if I can make my store uber successful and influence my peers to be just as successful we all win. And yes that means howard makes more too. It was his gamble way back when that lets us all be here today.
For those of you that think we shouldn't get to be here right now in this economic situaion... again, i think all of you have valid points. Ultimately though, we are doing good things for the economy of New Orleans and the people here appreciate it. Even the people in the most low level jobs are happy to be working. I want them to sit and enjoy my lunch and I'll bus the tables while they eat. We need this conference and I hope those of you that work for the company will open your minds enough when your store managers come back to listen to a little bit of the re-motivation that might come back with them. All we have is each other, lets make it a little more fun to work together while we still have the chance.
Posted by: Julie | October 28, 2008 at 08:03 PM
I have to tell you, if it wasn't for my manager, i wouldn't be at my store at all, she busts her ass over 65 hours a week, all these big Shots in Seattle dump more and more work on her, like she is a machine, i only hope she get some time OFF to herself, because when she is home, she doesn't get a break. she is THE REASON I STAY. we as a team have such respect for her. I feel very blessed, and honored to help her out anytime i can, but as far as some of the partners i work with, thats a different story
Posted by: baristajack | October 28, 2008 at 10:36 PM
Herman,
You are correct, not an accurate correlation but the idea was more to talk about the timing in that don't you think that though they didn't get a bailout from the government, the shareholders have taken it in the shorts this year to the point that it may have been better to invest that money in something more sustaining in the short term? They cancelled the Costa Rica trip to give raises to the partners a couple of years ago correct? I am just thinking that this may have been another one of those opportunities. An innovative company like Sbux should be thinking out of the box and not doing the same old thing that every other company seems to do.
Sorry that I made such a silly suggestion that a company think about all stakeholders.
Thanks Herman for making this personal and not a discussion.
Posted by: Cut out the Heart | October 28, 2008 at 11:32 PM
NOLA needs the revenue, and conferences are a big earner for us. We'll welcome anyone who'll come.
Posted by: Therese | October 29, 2008 at 04:39 AM
I chuckle a little bit thinking about the shitstorm my SM is going to experience when she returns from the conference. Our store has had crisis after crisis from the moment she left town. Frankly, if she comes back "re-energized and drunk on the kool-aid" it's a certainty that she will get knocked down real fast.
You know, I have to say something here. You have one terrible attitude. You actually sound HAPPY that another person will face some hardship. What about being a part of a TEAM? You should be supporting your team, not laughing at the fact that when your SM comes back she will be knocked down. Sorry, this post really pissed me off, if you are so BURNED OUT, why don't you just find something where you won't burn out and drag everyone else down with you? You laugh at other people's hardships, how would you feel were the shoe on the other foot? I would've hated having someone with an attitude like yours on my team, but honestly if you were on my team with that attitude, you wouldn't be there for long....
Posted by: Darleen | October 29, 2008 at 07:17 AM
As long as I'm on a rant, what have you or your TEAM done to help with the crisis after crisis that you say has happened???? You say managers barely work 40 hrs? HA! If you ever get to that level you will see just how much gets put on the SM's plate, though that's doubtful from your post. Do you think you are the only one who deserves a day off? Maybe when your SM turns her phone off it is because she has other things to get done on her time OFF. Stop being so selfish and be a part of your team, it takes everyone, not just the SM to run a store. You can either be a part of it, or not. But to come on here and laugh at the fact that when your SM gets back she's going to be KNOCKED DOWN, just is horrible, in my opinion.
Posted by: Darleen | October 29, 2008 at 08:47 AM
I have to tell you, if it wasn't for my manager, i wouldn't be at my store at all, she busts her ass over 65 hours a week, all these big Shots in Seattle dump more and more work on her, like she is a machine, i only hope she get some time OFF to herself, because when she is home, she doesn't get a break. she is THE REASON I STAY. we as a team have such respect for her. I feel very blessed, and honored to help her out anytime i can
This is the true example of being part of a TEAM. I'm sure your SM appreciates you more than you know. Store Managers have a hard job right now, EVERYTHING that goes on is now on their shoulders. I'd love to see some of the baristas work 30 days as an SM. Maybe then you would see that it's not the cake walk you think it is and you might show some support. Sorry guys, but that post just pissed me off! I busted my ass at sbux, so did my team, because we were a TEAM. To know that someone who is supposed to be on your team has so much contempt for you is a horrible thing, I hope not everyone in your store burntout barista has the same attitude you have. Maybe your SM will come back and realize she has some partner changes to make, like getting rid of the ones who laugh at her expense....
Posted by: Darleen | October 29, 2008 at 08:55 AM
Julie,
Thanks for your post. It sounds like the conference is meeting a deeply felt need, for you and others there.
I don't think you're drinking the kool-aid though. You're honest about where you've struggled and with your desire to do better, to work differently. That's good stuff. It shows that you are growing and ready to take even more responsibility for your life so that reviews are on time and you have work/life balance. When you can look at what you're doing or how you're living and say I haven't been my best and I want to own everything I do because it all matters? That is huge.
In the company Starbucks used to be, conferences were what the company relied on to make change happen. In many ways folks thought that the conference was like a switch, "if you come and see what we're really like or what x goal is, you will go back and be different." That's the kool-aid mentality right there. It worked because the challenges that faced Starbucks were never great. It is different now. The challenges are serious and real.
Starbucks has to point to the future, yes. The "Shared Planet" initiative is cool. But naming and stating that commitment doesn't change anything that is happening in the stores. It doesn't relieve pressure folks are feeling. It doesn't grow sales.
It may be that the great lesson of the N.O. MYM is that Katrina hit in 2005. Three years have passed and there is still much work to be done.
I want to encourage you to own the desire to build a great store. Take the last day of the conference and the flight back to think about all the little things that you do in the course of the day. All the interactions you have with your partners and customers and how you might do the equivalent of "bussing their tables" in your store.
Think about the MYM. Did it finish the recovery process from Katrina? Of course not. It is one of many steps, some smaller and others larger that will get the city there.
Building a great store means that yes, reviews have to be completed on time and you have good work/life balance. It means you're hiring the right people and training them well too. And there a lot of little things in between that are just as important.
The recovery of New Orleans is a process. It's not an event. The Leadership conference in New Orleans is an event.
The commitments you make there. The desire that it re-awakens regarding what you want your store to become and who you want to be as a partner in the role you have is a process.
Here's to leveraging your inspiration as you apply the commitments you made every day in your store. Do that and the event that is Leadership becomes a step in the process of building the store you want to manage. Do that and you're closer to being the partner you want to be-- a partner with a rich and full life outside of work. How wonderful would that be?
Posted by: 20secondshotguy | October 29, 2008 at 10:17 AM