Bulletins

  • Times Newslink Bestsellers - Business Bestseller List
    • #9 - week of October 8, 2007
    • #4 - week of July 9, 2007
    • #6 - week of May 21, 2007
    • #1 - week of May 7, 2007
    • #4 - week of April 30, 2007
    • #5 - week of April 23, 2007
    • #4 - week of March 19, 2007
    • #5 - week of March 12, 2007
    • #5 - week of March 5, 2007
    • #3 - week of February 26, 2007
    • #3 - week of February 19, 2007
    • #3 - week of February 12, 2007
    • #3 - week of February 5, 2007
    • #8 - week of January 29, 2007
    • #3 - week of January 15, 2007
    • #3 - week of January 8, 2007
    • #2 - week of January 1, 2007
    • #3 - week of December 25, 2006
    • #7 - week of December 11, 2006
    • #1 - week of December 4, 2006
    • #2 - week of November 27, 2006
    • #1 - week of November 13, 2006
  • BusinessWeek Magazine
    • #15 - April 2007 Hardcover Bestseller List
    • #8 - March 2007 Hardcover Bestseller List
    • #9 - February 2007 Hardcover Bestseller List
    • #8 - January 2007 Hardcover Bestseller List
    • #7 - December 2006 Hardcover Bestseller List
  • USA Today - Money Bestseller List
    • #22 - week ending March 1, 2007
    • #19 - week ending January 31, 2007
    • #20 - week ending January 18, 2007
    • #16 - week ending January 11, 2007
    • #10 - week ending January 4, 2007
    • #11 - week ending December 27, 2006
    • #11 - week ending December 11, 2006
    • #12 - week ending November 27, 2006
  • Rocky Mountain News - Business Bestseller List
    • #6 : 2/24/2007
  • Wall Street Journal - Business Bestseller List
    • #15 - week ending January 20, 2007
    • #12 - week ending December 30, 2006
    • #11 - week ending December 23, 2006
    • #13 - week ending December 9, 2006
    • #14 - week ending December 2, 2006
    • #13 - week ending November 4, 2006
  • Kinokuniya Bookstore Chain
    • #3 - Nonfiction Bestseller List, Thailand - week ending January 21, 2007
    • #6 - Nonfiction Bestseller List, Kuala Lumpur - week ending December 22, 2006
    • #3 - Nonfiction Bestseller List, Thailand - week ending December 21, 2006
  • Barnes and Noble.com - Business Bestseller List
    • #7 - week of January 21, 2007
  • Borders
    • Best Business Book List 2006

  • ceoread.com - Bestseller Daily Top 5
    • #3 - October 8, 2007
    • #1 - August 28, 2007
    • #2 - July 31, 2007
    • #1 - June 12, 2007
    • #5 - November 6, 2006
    • #1 - October 26, 2006
    • #1 - October 24, 2006
    ceoread.com -Monthly Bestsellers
    • #7 - August 2007
    • #11 - July 2007
    • #24 - June 2007

 Television and Radio Buzz

Pending Interviews

  • WHJJ-FM - with Helen Glover - TBD - Providence RI
  • Canadian Radio Tour - in process
  • European Radio Tour - TBA

Completed Interviews

Television
  • On the Money - CNBC - Listen - Interview in conjunction with Jim Alling, president Starbucks USA - Worldwide.
  • IQ Weekly Television Show - Fox Broadcasting affiliate KCPQ-TV - a weekly magazine of lifestyle, trends, entertainment, newsmakers, and other topics of popular culture - Seattle, Washington
  • Morning News - NBC affiliate KOAA-TV Channels 5 and 30 - Colorado Springs/Pueblo CO
    See each 2 minute segment below:
  • Adelphia Cable Television - The Mike Boyle Restaurant Show
Radio
  • KUOW Seattle - Listen to full hour segment regarding Starbucks unionization questions.
  • Canadian Broadcast Corporation - The Current with Anna Maria Tremonti - Listen to entire segment on Starbucks and Unionization (approximately 27 minutes)
  • BBC Radio News with Philippa Busby
  • Business of Success - Listen (approx 20 minutes) - with host Alan Rothman. The show has a conservative listener base of about 1.5 million listeners. It is entrepreneurial and educationally focused. Alan regularly interview Fortune 500 CEOs, self made billionaires, etc. and covers all aspects of business.
  • WSBA - Listen (approx 9 minutes) - with host Dennis Edwards - York, PA
  • Good Company - Listen (approx 22 minutes) - Sirius Satellite Radio and www.lime.com - one-hour weekly program produced by Business Ethics Magazine in partnership with Lime Media, a venture of Steve Case, co-founder of AOL- Worldwide 50,000 watt
  • WCBQ-WHNC-AM - Listen (approx 14 minutes) - The Paradise Radio Network with Dr, Alan Augustus Jones
  • WXYZ - Listen (approx 7 minutes) - BIz Radio Network with Brent Clanton - Houston-Dallas, TX
  • WKXL - Listen (approx 21 minutes) - Concord, New Hampshire.
  • ABC Radio Network – nationally syndicated program with Richard & Lori
  • 50,000 watt WHAM-AM 50,000 - with Chet and Beth, Rochester NY
  • KYMO-AM/FM - with the Morning Show - St Louis MO
  • FM KAIR - with Jason & Brian - Kansas City, KS
  • KVOR - The Mike Boyle Radio Show - Colorado Springs, CO.
  • WSDE-AM - with Kathryn Zox - Albany NY
  • KATC- FM - with C.K. - Colorado Springs, CO
  • 50,000 watt KNUS-AM - with Mark Crowley - Denver, CO
  • KCMN-AM with Tron - Colorado Springs, CO
  • 50,000 watt FM KRWM - with Kate Daniels - Seattle WA
  • WREC-AM - with Craig Robbins - Memphis TN
  • KKPK - with Jim and Tami - Colorado Springs, CO
  • KBOZ-AM - with Dave Visscher - Bozeman, MT
  • WDEV-AM&FM - with Mark Johnson - Burlington VT
  • KVOR - with Jim and Laurie - Colorado Springs, CO
  • Michigan Talk Radio Network - Michael Shiels - statewide in Michigan
  • KKOB-FM - Andrea Bon Giorno Show - Albuquerque, NM
  • Lifestyle Talk Radio - with Frankie Boyer - nationwide
  • KKJG - Adam Montiel Show - San Luis Obispo, CA
  • KXPS - AM - The Barbara Richards Show - Burlington, IA
  • The Business Shrink on Sirius Satellite Radio 132, Wisdom Radio, WBIG-AM in Chicago, WRTN in New York and on “The Buzz” in Puerto Rico and the Virgin Islands.
  • WKXL - Concord, New Hampshire.
  • CHQR - The Dave Rutherford Show - Calgary, Alberta
  • CFAX Radio - The Joe Easingwood Show - Victoria, B.C.

 Book Signings/Readings

Pending Book Signings/Readings

  • In Bubble Wrap Teleconference - TBD - International

Completed Book Signings/Readings

  • Thames Valley School District - October 20 - Hellenic Community Center - London, Ontario Canada
  • Baxter Healthcare - October 23 - Loews Miami Beach Hotel - Miami, Fl
  • Barnes and Noble - Pacific Center Mall - October 25 - Seattle, WA
  • Starbucks - Starbucks Support Center - October 26 - Seattle, WA
  • KVOR Listener Appreciation Event - October 27 - Mr. Biggs Family Fun Center 3-8pm - Colorado Springs, CO
  • Amazon.com - Amazon Corporate Office - November 1 - Seattle Washington
  • Wisconsin Parks and Recreation Association - November 11 - Regency Suites - Green Bay, WI
  • Veterinary Surgical Associates - November 14 - San Francisco
  • Barnes and Noble Briargate Store - Dec.17th - Colorado Springs, Co
  • Barnes and Noble Store #2039 - Phoenix, AZ - 21001 N. Tatum Blvd - January 24, 7pm
  • Barnes and Noble Store - New York City, NY - 160 East 5th Street (at 3rd Avenue) - February 6, 6:30pm

 Recent Print Coverage

Speaker: Emotions key to business
Source: Telegraph - Herald (Dubuque)
Date: 11/16/2007
Author: EILEEN MOZINSKI

Endowment fund The Hackett family set up the Meghan Hackett Young Professional Endowment Fund with distributions to be used for the support of Young Professionals in Dubuque, to hold a symposium for professional development that inspires, motivates and builds community leadership, and to provide funding to support internships for college students. Gifts to the fund are eligible for the State of Iowa 20 percent Endow Iowa Tax Credit. Gifts should indicate they are for Meghan's fund and be sent to: Community Foundation of Greater Dubuque, 700 Locust Street, Suite 195. P.O. Box 902, Dubuque, IA 52001. News You can use

Joseph Michelli knows the prominence of Starbucks Corporation puts many on edge.

"It is a machine now," he said, noting that six new Starbucks stores open daily.

Still, Michelli argues a certain amount of credit should be given to a company that has convinced so many to shell out $4 for a product only worth a few cents.

"Starbucks doesn't sell coffee, although it looks like it. They sell what happens above the cup. What is the value of being able to meet somewhere and not feel slummed out?" said Michelli, renowned author and keynote speaker at the first YP Symposium presented by the Young Professionals of Dubuque.

The event was held at the Grand River Center on Thursday in memory of Meghan Hackett. Hackett, project coordinator for the Dubuque Area Chamber of Commerce's Workforce Development division, died last year after suffering a brain aneurysm.

The 23-year-old was one of the driving forces in establishing YP Dubuque and hoped to launch an event like Thursday's symposium, which attracted nearly 150 young professionals for a day of personal and professional workshops.

In his speech, "Taking Your Business to the Next Level - Lessons for Growing People and Profit," Michelli focused largely on his most recent book, "The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary."

Michelli emphasized that businesses must learn to maintain a focus outside of their bottom line.

Many, he said, instead adopt an "inside out" model that starkly contrasts with surveys that have found seven out of 10 customers say their emotions count for the majority of their experience with a business.

Thursday's event, sponsored by the Telegraph Herald, also included the naming of Gina Gallagher as the Young Professional of the Year.

Gallagher was chosen because of her

efforts to carry out Hackett's plans for the Young Professionals group.

"The award was meant for someone who embodied Meghan's spirit and passion for the community," said Wendy Wheelock, part of the Young Professional's steering committee.

Copyright 2007 Telegraph - Herald (Dubuque)

 

 

 

Business workshop speaker touts Starbucks strategy.
Source: Lima News (Lima, OH)
Date: 7/26/2007

Byline: Bart Mills

Jul. 26--LIMA -- There may not be a Starbucks in town, but that doesn't mean the company can't serve as a model for local businesses.

Joseph Michelli, a psychologist and author of "The Starbucks Experience: Five Principles for Turning Ordinary into Extraordinary," spoke with local business leaders Wednesday in a workshop sponsored by Embarq. He discussed those principles and how the coffee chain grew to a business behemoth, opening a new franchise somewhere in the world every four hours by embracing what he calls the "experiential economy."

"They actually stage the experience of the coffee into an experience we would call the living room of the community. That is where the value of their commodity increases," Michelli said.

Starbucks may not be the first business to sell affordable luxury, but it's hard to argue they haven't been the most successful. The Seattle company actually began as a coffee wholesaler, then one day Howard Schultz came to work and decided to sell espresso. The shop's owners felt the machine was taking up too much space so Schultz quit and opened a coffee shop across the street. It wasn't long before Starbucks was up for sale and Schultz bought it, eventually turning it into one of the world's largest companies and providing a lesson to business owners everywhere.

"Those who are smart see change as an opportunity as opposed to something to be avoided, that's the lesson," Michelli said.

The Starbucks model includes five basic principles: make it your own; everything matters; surprise and delight; embrace resistance; and leave your mark. The truly successful business owner incorporates the five to take basic customer service to a whole new level.

"Customers are not just customers, they become customer evangelists," Michelli said. "You can buy advertising. An ad is the promise you make to your customer. Word of mouth is that promise delivered."

While most companies believe they provide superior customer service, most don't, Michelli said. In fact, 80 percent of companies, when polled, said they provided a superior customer experience, but just 8 percent of customers said they have received such an experience.

"We think we're doing it well because we make our businesses more efficient and we think that somehow helps customers," he said. "Too many businesses focus on themselves instead of taking the time to listen to their customers."

In the end, the truest measure of a company is its contribution to community. Good companies not only make money and provide jobs, they give back to the community in real and substantive ways.

"It's not enough to do well in business, you've got to do good," he said. "You can do well and do good at the same time."

You can comment on this story at www.limaohio.com. Copyright (c) 2007, The Lima News, Ohio

 

 THE STARBUCKS EXPERIENCE
  Source: Strategic Communication Management
  Date: 4/1/2007
  Author: Nolan, Sara

  THE STARBUCKS EXPERIENCE

  by Joseph Michelli, McGraw-Hill, 2006

This is an inspirational rather than instructional read. It offers an insight into the success factors behind the Starbucks brand and business with strong emphasis on people management policies - through anecdotes gathered by the author from customers and partners (the term used for Starbucks' employees). Michelli provides analysis through his definition and exploration of the five principles that have turned "ordinary into extraordinary" at Starbucks, and there are ideas and action points sprinkled throughout the book. However, they are quite general and more often than not provide food for thought rather than tangible steps for achieving the "extraordinary".

Although potentially frustrating for anyone looking to understand the nuts and bolts of the Starbucks business, this book is for people interested in the power of corporate culture and the role that people management policies play in creating a motivating work environment.

Reward and empowerment are recurring themes: for example, Starbucks' founder Howard Schultz's decision to   share stock options with all partners working 20 hours a week or more, rather than just senior management, is one of the leadership decisions designed to create "a culture in which employees can soar".

This "shared gain" approach makes profitability an acceptable motivator and Michelli says partners are given the training and knowledge and empowered to create a customer experience that brings people back. He points out that Starbucks consistently spends more on training than on advertising, which leads to high staff-retention levels, and therefore consistent customer service and relationships.

Impact on customer satisfaction

There are anecdotes from satisfied customers throughout the book. There's the customer in Bangkok who hadn't visited Starbucks for two months, yet on his return one of the baristas remembered his order. There's the overwhelmed customer who was having a bad day and was given a special coffee blend on the house. She subsequently sent flowers and became a regular.

If this all sounds a bit Utopian, Michelli does touch on the challenges that Starbucks faced along the way. For example, Starbucks struggled with finding strategies to engage its partners passionately and to combine individual differences into a uniform customer experience. The solution is in the principle "Making it your own," and the "Five ways of being" structure, with the latter guiding partners to be welcoming, genuine, considerate, knowledgeable and involved.

The focus is on helping individuals to create a good customer experience in their own way, rather than setting rigid rules. These examples make this an enjoyable and helpful read for anyone in the people management business.

"THIS BOOK IS FOR PEOPLE INTERESTED IN THE POWER OF CORPORATE CULTURE."

Review by Sara Nolan

Editor, Strategic HR Review, www.melcrum.com/products/journals/shrr.shtml

Copyright Melcrum Publishing Apr/May 2007

 

 

The Starbucks experience was in the spotlight as Retail City Conference opened today. Retail City, the region’s largest international retail real estate event, opened with acclaimed US business psychologist and author of ‘The Starbucks Experience’, Dr Joseph Michelli, delivering the international keynote address at this year’s Retail City Conference. 

Dr Michelli shared his invaluable research and experience into how Starbucks has become one of the most recognised and the largest chain of coffee shops in the world today.   

Explaining that the Starbuck’s principle can be applied successfully to any retail business, Dr Michelli recognised five distinct principles (Make it your own; Everything matters; Surprise and delight; Embrace resistance; Leave your mark) that, if implemented, can transform a company from the inside out.

It is difficult to argue with an organisation with 11,000 outlets in 37 countries, that pours coffee from a new outlet every four hours and each $1 invested in 1992 would be worth $65 today.

However the secret behind their success is that their staff turnover rate is 60 per cent per annum against the industry average of 200 per cent or more.

That loyalty is echoed by their customer retention. An average Starbucks customer makes 18 visits per month.

'The Starbucks Experience reflects principles that are simple, yet not simplistic,” said Michelli.  

“They are results-oriented and can be deceptively powerful when applied.

“A typical Starbucks customer like me would drink two coffees per day at say $6 per day.

“That works out at $2, 190 per annum, which over 35 years is $76,650.

“Businesses should look at the power of customer retention in this way, not just one item or in this case one coffee.
  
“Starbucks’ miniature employee handbook ‘The Green Apron’ may go someway to explaining this.

“The distinct lack of rules, are replaced by suggestions, goals, and the empowerment to make every customer’s experience a memorable.

“Throughout the Middle East a retail revolution is taking place with the retail sector currently valued at $100 billion.

“Retail is second only to residential property in the non-oil economy and Sheikh Sultan bin Sulayem, head of Dubai Ports World, commented at the opening: “The retail sector is vital to the growth of Dubai and we will continue to support events such as Retail City.” 

The show will also feature the prestigious Retail City Awards, which recognise excellence and innovation throughout the industry, acknowledging outstanding achievements.

The awards will be presented during a glittering gala dinner at The Fairmont Hotel, Dubai.

Retail City 2007 project manager Naomi Koningen said:

“Retail is rapidly expanding, but more importantly, it is sustainable.

“With 68 million visitors expected to visit the region by 2020 and population growth estimated to hit 50 million during the same period, retail has a long way to go before reaching saturation levels.” TradeArabia News Service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

When Counting Beans is the Bigger Picture

Retail City Conference opens up with Dr. Joseph Michelli author of 'The Starbuck's Experience' - expert explains how to turn beans into billions by delivering exceptional customer experience

Retail City, the region's largest international retail real estate event, opened on 3 June 2007 with acclaimed U.S. business psychologist and author of 'The Starbucks Experience', Dr. Joseph Michelli, delivering the international keynote address at this year's Retail City Conference. Dr. Michelli shared his invaluable research and experience into how Starbucks has become one of the most recognised and the largest chain of coffee shops in the world today.

Explaining that the Starbuck's principle can be applied successfully to any retail business, Dr. Michelli recognised five distinct principles (Make it your own; Everything matters; Surprise and delight; Embrace resistance; Leave your mark) that, if implemented, can transform a company from the inside out.

It is difficult to argue with an organisation with 11,000 outlets in 37 countries, that pours coffee from a new outlet every four hours and each US$ 1 invested in 1992 would be worth US$ 65 today. However the secret behind their success is that their staff turnover rate is 60 per cent per annum against the industry average of 200 per cent or more. That loyalty is echoed by their customer retention. An average Starbucks customer makes 18 visits per month.

"The Starbucks Experience reflects principles that are simple, yet not simplistic. They are results-oriented and can be deceptively powerful when applied. A typical Starbucks customer like me would drink two coffees per day at say US$ 6 per day. That works out at US$ 2, 190 per annum, which over 35 years is US$ 76,650. Businesses should look at the power of customer retention in this way, not just one item or in this case one coffee," said Michelli.

Starbucks' miniature employee handbook 'The Green Apron' may go someway to explaining this. The distinct lack of rules, are replaced by suggestions, goals, and the empowerment to make every customer's experience a memorable.

Throughout the Middle East a retail revolution is taking place with the retail sector currently valued at US$ 100 billion. Retail is second only to residential property in the non-oil economy and HE Sheikh Sultan bin Sulayem, Head of Dubai Ports World, commented at the opening, "The retail sector is vital to the growth of Dubai and we will continue to support events such as Retail City."
The show will also feature the prestigious Retail City Awards, which recognise excellence and innovation throughout the industry, acknowledging outstanding achievements. The awards will be presented on Monday night during a glittering gala dinner at The Fairmont Hotel, Dubai.

Naomi Koningen, Project Manager, Retail City 2007 commented, "Retail is rapidly expanding, but more importantly, it is sustainable. With 68 million visitors expected to visit the region by 2020 and population growth estimated to hit 50 million during the same period, retail has a long way to go before reaching saturation levels."

 

Book Review:
The Starbucks Experience

Joseph Michelli’s new book gives readers a unique insight into one of America’s strongest brands and it got here.  By Fred Minnick

There have been several books written about Starbucks, but none are more practical for the restaurant operator than The Starbucks Experience (McGraw Hill, $21.95) by Joseph Michelli.

Although the manuscript was read by Starbucks officials before publication, the well-written business book objectively illustrates how the coffeehouse turned ordinary into extraordinary. The Starbucks Experience should be required reading for any operator who hopes to emulate the chain’s 13,000 locations around the globe or annual sales of $7.8 billion (Starbucks 2006 figures).

Says the Library Journal: “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.”

Great Employees Make the Difference
The Starbucks name is synonymous with coffee. Forty millions customers visit each week and the most loyal customer visits “their” Starbucks store 18 times per month. Employee turnover is 250 percent lower than the industry average. That’s not an accident.

“Legendary service comes from a genuine desire and effort to exceed what the customer expects,” Michelli writes. “Repeatedly, customers have shared experiences of Starbucks partners doing the extraordinary—making a connection well beyond some formulaic greeting.”

“One of the reasons that Starbucks employees are often so pleasant and helpful is that Starbucks is a great company to work for,” says Starbucks partner Joy Wilson in The Starbucks Experience. “It takes care of employees and treats us with respect. That mind-set trickles down from the executives to the thousands of baristas worldwide.”

According to the book, leaders create a unique culture for employees in which empowerment, entrepreneurship, quality, and service define the values. As an example of this leadership style, Michelli recounts how when employees brought up the lack of paid leave for adoptive parents, Starbucks leadership responded by providing this parent group a two-week benefit.

“If leaders expect staff to meet and exceed the expectations of their customers, those same leaders must respond to concerns and exceed expectations on behalf of their staff,” Michelli writes.

 

Joseph Michelli, author of The Starbucks Experience

Joseph Michelli

Of course, it doesn’t hurt that Starbucks offers stock programs, retirement plans, and healthcare benefits for its employees. Its formal training program empowers partners to help customers appreciate the fresh, high-quality coffee profiles and educates them to understand coffee-growing regions. As if they needed anymore convincing about the quality of their brand, employees are given one pound of free coffee a week.

Good Environment

The Starbucks Experience allows you to be Howard Schultz, former chief executive, and other executives for a moment and understand the interior design, soft suede couches, and the slow music, and grasp how these amenities complement the brand. The book also makes you appreciate every detail and how they offer a competitive advantage by building intense loyalty among patrons.

“Starbucks could very well operate without even selling coffee,” says customer Devin Page in the book. “They could charge an entrance fee and offer nothing else but a room and mellow Bob Marley music softly playing in the background, and people would still come.”

Embrace Resistance

Few companies have had more damaging rumors spread about them than Starbucks. The world’s largest coffeehouse is often a target for anti-corporate culture.

In 2004, an email floated the vast and never-ending internet saying Starbucks did not support the war, soldiers, and that it won’t send servicemen coffee. (In fact, Starbucks stores sent troops the coffee long before this damaging email surfaced.) Suddenly, Starbucks had a major image crisis on its hands.

The Starbucks Experience should be required reading for any operator who hopes to emulate the chain’s 13,000 locations around the globe or annual sales of $7.8 billion.”

In The Starbucks Experience, Michelli uses that episode to illustrate the system Starbucks has in place to handle public relations issues. In the end, Starbucks was able to use the incident to its advantage by bringing attention to its philanthropic donations.

“The reputation of a business or brand can be seriously affected by rumors, half-truths, and misinformation,” Michelli writes. “Before errant information gains momentum, leaders urgently need to find ways to communicate the whole truth to set the record straight.”

The experience continues
S Lakshmi Chopra / New Delhi April 04, 2007
 
Reading The Starbucks Experience is a bit like riding the old manually operated giant wheel. The speed and sense of adventure doesn’t compare with the latest mechanised roller coasters, but the little joys and pleasures such as waving to people as you go up and down the manual giant wheel are quite different. The Starbucks Experience, just like the manually operated giant wheel, has a slow start, and as you navigate through the five principles that the book is built on, you experience the little anecdotes based on simple pleasures and joys that both employees and customers have experienced during their associations with Starbucks.
 
It must be said, though, that the book’s central premise is quite the opposite of the internal memo sent by Starbucks’ Chairman and CEO Howard Schultz that reportedly raised issues of how the Starbucks experience had been watered down over the years. The memo was recently leaked in a website and sent Starbucks’ stocks down.
 
In the book, Joseph A Michelli is convinced that the company’s “phenomenal success” stems from its generous HR policies and lively work environment, its attention to detail and genuine concern for social causes. And, to demonstrate this, the author uses real-life stories of Starbucks customers and partners (read: employees) to explain the five principles that he has derived and according to him, these are the tenets that have driven Starbucks’ “phenomenal success”. The five “simple, yet not simplistic” tenets that he derives are: make it your own; everything that matters; surprise and delight; embrace resistance; and leave your mark.
 
In his exploration, Michelli first stops at the Green Apron Book that Starbucks management developed as a pamphlet that would fit neatly into a partner’s apron pocket. Innovatively developed, the book offers five ways of be-ing—be welcoming, be genuine, be considerate, be knowledgeable and be involved with the customer. This is surely something that is applicable to most businesses, particularly those in the service industry even if the “partners”’ do not don the green apron.
 
The book is short enough to finish in one sitting, but it is definitely not easy to digest the contents in one go. For, in some places, the author’s tenets tend to become a little vague. For example, in its attempt to delight customers, the company distributed books on poetry written by authors from the places where coffee comes from—Indonesia, Africa and Latin America for Starbucks. This may not have to be taken so literally. For, some things are just meant to be in the background. They silently assist; they draw no attention to themselves per se.
 
There are also many narratives that just seem too good to be true. For example, a tea drinker in Michigan goes to Starbucks to have her tea, because for her it is the company’s value systems that matters more.
 
Throughout the book, the author provides several questions to consider under the heading “create your own experience” and tips in the form of “ideas to sip on”. Certainly, customer experience is determined more by the people who develop the product or the service, and those who represent the same in the market. Michelli urges the reader to distil the Starbucks experience into a single sentence and then ponder why that has led to the company’s success.
 
Truly, the essence of Starbucks is Howard Schultz’s leadership. He is known to be hanging out at two dozen stores a week. He pulls a hat over his eyes and puts on a pair of jeans and hopes he isn’t recognised. Often he is; still, it is very different from knowing that Howard Schultz is coming to your store with an entourage of fifteen executives from Seattle.
 
The company just seems to have grown along with its partners and customers. From building drive-throughs for customers who do not have the time to sit and experience the coffee, to building packages that kept the coffee powder fresh came from customers who pointed out these little nuances to the respective store managers.
 
Before he closes, Michelli points to the most sensitive topic of today—how to embrace criticism. While a negative column posted by a journalist is usually dismissed as the opinion of an angry journalist, the management of Starbucks willingly participated in a candid self-exploration in response to the column.
 
The to-do list given by the author towards the end of the book, perhaps, best summarises the whole Starbucks Experience for us. The company’s management practices are undeniably innovative and inspiring. Even if most of them aren’t directly relevant, there’s surely something in this book that’s applicable to most businesses today. But, going back to the memo, how do you explain the contradiction between it and what the book says? Only Shultz can answer that.

 

Book Review
April, 2007
The Starbucks Experience

 

Book Review
by Robbi Hess

 

Running a profitable enterprise is certainly a laudable-and necessary-goal of any business owner, but embracing diversity and creating a great work environment should be part of the guiding principles as well. In Jospeh Michelli's The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, Jim Alling, president, Starbucks U.S. explains, "profitability is essential to our success, but it's not the first item on the list..." 

Michelli, an outsider to the Starbucks industry, offers readers a look inside the boardroom strategies, employee motivation tips, community involvement, and customer satisfaction served up by the coffee giant. He offers a "full-bodied" experience that pays off for the readers and serves up tips for a perfect business model.

The author's two-year odyssey into the inner workings of Starbucks began with a call to the customer service number on the back of his Starbucks card. His persistence pays off for readers who want to know more about the inner workings of the company that opens five new stores a day, 365 days a year, and for business owners looking to imitate some of the company's successful strategies. Starbucks also boasts an employee turnover rate that is 250% lower than the industry average. And every small business owner knows the time and effort that goes into not only recruiting, but the hiring and training of a new employee. 

This book is for anyone who has stood in line at a Starbucks and wondered "how do they do that?" "That" being the ability to draw in consumers all day everyday with only the promise of a cup of coffee? As Michelli found in his research and conversations with Starbucks officials, it all starts with the employees-leadership must focus on creating a culture in which employees can soar. Their enthusiasm carries over to the experience your customers enjoy, whether you sell widgets, coffee, paper goods, or consulting services.  While no manager can change an employees' individuality, they can infuse their work experience with what Michelli explains as the "Five Ways of Being"-Be: welcoming, genuine, considerate, knowledgeable, and involved.

The book offers Starbucks' principles to success which include:
* Principle 1: Make it Your Own!
* Principle 2: Everything Matters
* Principle 3: Surprise and Delight
* Principle 4: Embrace Resistance
* Principle 5: Leave Your Mark

Your business may not offer a storefront in which your customers can stop in to enjoy the "Starbucks experience"-a concept that signifies offering customers a "comfortable setting, where they are valued on a personal level and where a meaningful connection is made." Regardless of the setting of your business, your company should strive to give your customer-or potential customer-a positive experience.

Michelli-via Starbucks-urges entrepreneurs to create their own experience by finding ways for their business to leave a powerful mark, whether through volunteerism, community grants, or by a more overarching commitment to examining the impact of their business practices. Consider ways in which your might incorporate social responsibility into your business.

While your business will likely need to tailor the Starbucks framework to its own particular niche, ask yourself, "What can I learn from a company like Starbucks?" The answer might infuse your own organization with fresh-brewed life in fostering a culture that embraces customer loyalty, rewards faithful employees, and offers an opportunity to make a difference in the world.  

 

Starbucks author to address Retail City
Dubai : Mon, 26 Mar 2007
 
 

Acclaimed US business psychologist and author of 'The Starbucks Experience', Dr Joseph Michelli, will deliver the keynote address at the Retail City conference in Dubai.

Dr Michelli will share his invaluable research and experience into how Starbucks has become one of the most recognised international brands and largest chain of coffee shops in the world today.

The Retail City is set to take place at the Dubai International Exhibition Centre (DIEC) from June 3 to 5, 2007.

'The fact that Dr Michelli has agreed to deliver the keynote at our conference, is a clear testimony to the strength of our own brand. His extraordinary insight into Starbucks' success story will be invaluable,' said project manager, Retail City 2007, Naomi Koningen.

During his presentation 'The Ultimate Customer Experience', Dr Michelli will recognise five distinct principles (Make it your own; Everything matters; Surprise and delight; Embrace resistance; Leave your mark) that, if implemented, can transform a company (or an individual) from the inside out.

Elsewhere on the three-day conference agenda, expert retail speakers will share their experiences, such as, Rolf G Kirst, vice-chairman, European Franchise Association, Germany - 'Franchising The International View'; Walter Kleinschmidt, president, R2E Consultants Inc, Canada - 'Enforceable Leases - Key to more successful retail and retail real estate'; Fadi Jabbour, chief operating officer Retail, Chalhoub Group, UAE and Dr Majed Abdulsamed Enany, deputy manager, Abnia Design Consultants, KSA - Retailing in the Middle East - Trends and strategies in a developing market'.

Other speakers include, Rob Davie, principal, Fitch, UAE - 'Creating and Exporting Innovative Retail Brands, The Pressure to Deliver'; Susil S Gungarwal, head - retail, Emaar MGF, India - 'Eye on India - The unstoppable growth of one of the world's 10 largest retail markets' and Barbara Wold, Global Retail & Consumer Guru, US -'Marketing progressions - What's happening in retail marketing?'

Four dedicated pre and post conference workshops will go in depth examining, 'Keeping Customers For Life'; 'Retail Finance And Investment'; 'The Third Place' and 'Successful Planning And Development Of Shopping Malls'

The show will also feature the prestigious Retail City Awards, which recognise excellence and innovation throughout the industry, acknowledging outstanding achievements. The awards will be presented during a glittering gala dinner at The Fairmont Hotel, Dubai.TradeArabia News Service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How Starbucks Strayed
Case Study: Automatic Espresso Machines, Day-Old Food and Plastic Chairs
By Kate MacArthur
Published: March 05, 2007 CHICAGO (AdAge.com)

In the wake of the Starbucks "Memo Shot Round the World" from Chairman Howard Shultz on the looming commoditization of its brand, we asked the experts how they would restore the mythical Starbucks Experience.

Here's what Joseph Michelli, author of "The Starbucks Experience: Five Principles for Turning Ordinary into Extraordinary," had to say: "They can make sure the sensory experience at Starbucks is rich" by bringing back coffee aromas with fresh grinding and reinforcing the notion of affordable luxury by making sure knowledgeable baristas French-press coffee. It also means nixing plastic chairs and bringing back the living-room feel. "It is all the details of the physical environment."

Seth Godin, author of "Small is the New Big" said, "They have to bring the audience with them as they move the masses back to authenticity," starting with "fixing the coffee and figuring out how to sell something you can eat." He said the bigger question is: "Should Starbucks be willing to take a short-term stock and market-share hit in order to return to its authenticity?" When it comes to brands, "shareholders, in the long run, are always wrong," he said, adding: "In order to be big, they have to give up stuff."

Mark Gobe, chairman-CEO of Desgrippes Gobe and author of "BrandJam: Humanizing the Brand Through Emotional Design":

Starbucks should ask its consumers why they went there in the first place and what is missing now, he said. The chain needs to decide whether it is mass or luxury mass. "Brands have to find their limitations. ... You have to know where you're going to disconnect from consumers."

Bob Goldin, exec VP of food consultant Technomic:

"The company needs to better understand how the customer point of view has changed" in the past decade. While he isn't convinced McDonald's will supplant Starbucks as the place for Gen Y consumers to park their laptops on a Saturday night ("That place smells like french fries"), he does agree Starbucks needs to make "significant improvements" to its food program, including managing its ubiquity and push for turning out specialty beverages at a rapid pace.

Larry Wu, VP-consumer strategist food and beverage, Iconoculture:

Of all the experts we polled, perhaps Mr. Wu knows the brand best. A former director of research and development for Starbucks, he said, "It used to be about great service, knowledgeable expertise and love of coffee. Now it's about love of profit, margin and growth." He said stores are too small and understaffed: "That's why [baristas] make shortcuts now." The chain "should look at capacity instead of just speed." Finally, he said, Starbucks "should pull back on the food and make coffee the core again."

David Aaker, VP of Prophet and professor of marketing at University of California at Berkeley's Haas School of Business:

"This is a portfolio problem. Once you get into supermarkets, it's not easy to pull back." But he said it's possible. "One option would be to create a sub-brand for an upscale Starbucks." It's an idea much like the Hallmark Gold Crown concept, where the chain could create an experience around the original Starbucks for customers who want that level of service vs. the grab-and-go business the company has developed.

Bryant Simon, professor of history and director of American studies at Temple University, who visited 400 locations to research his coming book, "Consuming Starbucks":

"There's no reason not to put a semi-automated machine in the drive-thru," and then push its notion of authenticity and coffee theater in its flagship stores. "Give up some of the volume and, like Nike, make it a [showroom] store about coffee."

To speed service, Starbucks added flavor-locked packaging that killed the fresh-ground-coffee aroma, not to mention the sound of beans being scooped and ground onsite.

Trying to do it all created an identity crisis: Is Starbucks mass or mass luxury? Are customers hooked on the caffeine, the convenience or the circus?

Once a cozy respite from reality, it traded in comfy chairs for plastic, and every square inch is selling products, such as games, instead of an authentic coffee experience.

Starbucks went for ubiquity over uniqueness, at the airport, the grocery store, the hotel, on every corner. Omnipresence = common.

Who has time to French-press a steaming cup when there's a line out the door for multi-syllabic beverage orders, egg sandwiches, gift cards and movies?

Installing automatic espresso machines solved speed and efficiency but destroyed in-store ambiance.

Fighting fast food by adding prepackaged deli foods and day-old pastries flies in the face of its café culture.


The $6 billion gorilla
by Peter Romeo

Espresso, historians tell us, was given to the world by Italians in the early 20th century. It would take a quirky Seattle retailer with New Age proclivities to move it into storefronts, malls, airports and book stores - not to mention bowling alleys, gyms, the concession areas of gas stations, parent-teacher nights, baseball stadiums, the nearest 7-Eleven, Aunt Susan's dinner party, restaurants and several major quick-service chains. Wherever consumers gather today, chances are they'll have access to a freshly made espresso or its fellow travelers, the latte, the cappuccino or the straight cup of premium.

Coffee geeks equate that near-universal availability of high-caliber brew to America's virtual changeover from mild-tasting robusta beans to the darker-roasted, more complex arabica variety. The more reasonably caffeinated recognize it as the Starbucks Effect.

That's not to say the effect is limited to Starbucks anymore. What started as a stall in the Pike Place greenmarket in Seattle has grown into a money machine with unit sales growing year-over-year in high single-digit jumps, to a systemwide intake expected to top the $6.1 billion mark for 2006.

Seeing that proof of alchemy, eating places of all stripes have been quick to synthesize their own versions of Starbucks' coffee. Consumers yearning for a high-quality caffeine fix can readily find it today at Dunkin' Donuts, Jack in the Box, Burger King, Shari's, 7-Eleven and McDonald's. And those are merely the places that have added topspin to the effect in recent months.

But just as the effect no longer stops at Starbucks, by all appearances it extends beyond the chain's signature product as well. "It's not just about having a good cup of coffee anymore," says Joseph Michelli, author of the book, "The Starbucks Experience." "It's about having the right music, the right lights, the right design, the ambiance, the service, the whole package."

In that respect, he and others attest with church-revival zeal, the brand remains the sterling standard to which other businesses aspire. Coffee choices may abound, Michelli says, but "Starbucks enjoys 97-percent unaided brand recognition, and 18 visits a month from a typical customer. No other brand could put a store across the street from another unit and have them both do well. It's almost an evangelical brand."

The reason, enthusiasts are quick to note, is an influence that goes well beyond the restaurant industry, to American life and business in general. They note how the brainchild of three bookish coffee fanatics has up-ended conventional thinking about employment practices and the role of restaurants in present-day society.

"A key concept for the brand is the idea of the `third place,' " says John Simmons, who studied the phenomenon in his book, "My Sister was a Barista: How They Made Starbucks a Home Away from Home."

He refers to the assertion of some sociologists that people want an alternative in their lives to the places where they work and live, a third locale that incorporates elements of the other two but offers a distinct experience. "People working in an office say, `Let's go out of the office and have our meeting in a Starbucks,'" Simmons says. "Or someone might buy a coffee and sit there to get out of the house. It's been absolutely key to their business success."

"There was a case in the New York area of a guy who brought a desktop computer into a Starbucks - not a laptop, a full-sized computer - and stayed there all day," Michelli says. "I know of pastors who don't even have their own churches who go to a Starbucks to be with their congregations. It's the new town square, the living room of the community."

The distinction has not gone unnoticed by other foodservice brands. McDonald's currently is retrofitting units with a new design that includes a "linger zone," where youngsters can sink into cushy armchairs and sofas while using a wireless Internet connection to send instant messages and surf the Web.

Panera Bread Co. attributes its head-turning success in part to what executives have termed "hangout time" or "a gathering-place solution." Translation: The concept strives to conjure that third-place sensibility that Starbucks has made a part of its DNA. Customers stop by in the afternoons for a break from work or to delay facing the rigors of home life.

Copying Starbucks has become as common in the restaurant industry as hot-cup sleeves and serve-yourself milk and sweetener stations. After the company started selling music CDs at its service counters - and subsequently changed some artists' and music labels' distribution strategies - a number of other concepts gave music retailing a try, sensing a big opportunity. Among them was McDonald's, which wasn't exactly lacking in capital, marketing power, operations know-how, research or any other ingredient of a successful business launch. Yet it pulled the plug on its in-store CD-burning venture in a matter of months.

Few competitors have since followed Starbucks' lead in selling books and movies at their walk-up counters.

"In my opinion, others attempt to imitate specific elements of Starbucks without the ability to create the overall Starbucks experience," Jim Alling, president of Starbucks' 8,500-store domestic operation, says in an e-mail response to submitted questions.

The reason why the copycats fail, says former Starbucks marketing executive John Moore, is evident to anyone who has worked there.

"Companies can replicate its products and systems," Moore says of his previous employer. "But they can't clone the people, and the people are the difference."

After leaving Starbucks to join Whole Foods, the natural-foods retailing chain, Moore tried to capture what was different about working at the coffee company. He wrote a book specifically on its employee culture, entitled, "Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture."

"It's different because you're at a company that cares, that genuinely, truly cares," he says. "They have a clear mission, which is to change the way people drink coffee. You believe that making money is a byproduct."

Michelli either has swallowed the same hook or arrived at the identical conclusion independently.

"The leadership at Starbucks really cares about the people," he says. "It's in the quick-service restaurant market, which had been merely transactional in nature. There really was not much service to that world. Starbucks comes along, hires people who might have ended up behind a counter at one of those places and says to them: `You could do something different. You could become an expert on what you sell. You could help make a difference in their day.' "

Oh, yeah, he adds, "they also offer a good benefits package, with health coverage if you work 20 hours or more a week, and stock options."

He and others trace that employee-centric mind-set to Howard Schultz, the one-time New Yorker who, reminiscent of Ray Kroc and McDonald's, first noticed Starbucks because it was buying so much of the beverage-making apparatus he was selling at the time. As a boy, Schultz watched his family slip into poverty after his father, a driver for a diaper delivery service, was injured on the job. He had no benefits, leaving the family without an income or any way to pay his medical bills.

Even as a kid, Schultz writes in his autobiography, "Pour Your Heart Into It," "I knew in my heart that if I was ever in a position where I could make a difference, I wouldn't leave people behind."

He saw an opportunity to indulge that yearning when he joined Starbucks at the four-unit mark. It had been founded a decade earlier by English teacher Jerry Baldwin, history teacher Ziev Siegel and writer Gordon Bowker, who initially declined to hire Schultz because they feared his go-go style would change their painstakingly nurtured culture. But he prevailed, subsequently codifying the personnel attitude that observers say is still evident within the company's present management.

"They take better care of their employees than they do their guests," Moore says, "and it's the employee who delivers the experience to the guest. So the employee ends up giving the guest a good experience."

Indeed, he says, "their greatest challenge moving forward is not finding the right locations, it's finding the right people to put behind the counter."

By automating functions formerly performed by a barista, he says, the brand might have muted some of its flavor. "The automation has given Starbucks the power to have less charismatic employees," he says.

Moore wonders if concessions to the times and the company's size will temper the brashness that made Starbucks such a much-copied innovator. "Even in the 1990s, they were doing things that just weren't done. They took chances," he says. "Now, because it's so big, it's more a matter of risk being tolerated."

Not so, Alling insists in his e-mail. "Starbucks has a culture of innovation," he writes. "We also know that our customers look to us to introduce them to new favorite things, whether that be a new espresso beverage, a new food item, or a new CD or book."

Michelli rattles off Starbucks' past mistakes: Publishing a magazine called Joe. Adding an effervescent coffee, "probably the worst thing to ever happen to coffee." Introducing a super-rich hot chocolate drink that started in tests as Chocofino, and ended up being introduced as Chantico - "a failure."

"They stumbled and they fell and they failed," he says. "But they learned."

The resulting success, he says, has shaped Starbucks into far more than a brand with a phenomenal market share.

"It has become part of the very fabric of our society," Michelli says.


Starbucks experience more than caffe lattes


By JOHN STANCAVAGE World Business Editor
2/11/2007

Although I'm not a coffee person, I'm married to one. This means frequent trips to Starbucks.

Usually, if my wife is going into a store where I'm not interested in the primary product (cosmetics retailers, for instance), I'll stay in the car.

But not at Starbucks.

I've got to hand it to this national chain. I'm usually the first one in the door.

There always seem to be interesting people to observe, both in front of and behind the counter. I'll also check out the compact discs and DVDs, and often buy one or two, along with a non-coffee drink and The New York Times.

Hooking not only coffee fans, but also those outside the target market undoubtedly is how Starbucks has grown from a shoestring operation in Seattle to a worldwide phenomenon that today has 35 million customers and stores in 37 countries.

In Tulsa, Starbucks has become ubiquitous since establishing its first free-standing store at Utica Square in 2002. You don't have to go far to find its distinctive logo.

A new book by Joseph Michelli analyzes the chain's success. "The Starbucks Experience: Five Principles for Turning Ordinary Into Extraordinary" (McGraw Hill, $21.95) also outlines how these winning strategies can be applied at other companies. Instrumental in building a business where few customers blink at a $4 cup of coffee is the cultivation of a unique corporate culture.

I've always been fascinated by companies, such as Southwest Airlines, where employees seem to be almost excessively happy to be at work. Although it's a rare thing, Starbucks has figured it out, too.

Michelli explains that the coffee company puts a lot of effort into making employees feel empowered. They are encouraged to make suggestions, design improvements for their stores and even go outside the box.

An example of the latter is an idea from one employee, a former music store owner, to program song playlists for stores. The next step was introducing unique compilation CDs for sale at Starbucks.

Soon, the chain was partnering with major artists such as Elton John and the Rolling Stones to sell special CDs available nowhere else, and also helping launch new artists such as Antigone Rising and Sonya Kitchell.

Getting employees to feel that Starbucks is their company, not just a place to work, is what drives most of the chain's five principles -- the secrets that Michelli says almost any business can learn from:

Make it your own. Employees are encouraged to connect with customers and elevate interactions.

Specifically, Starbucks gives each worker -- or partner, a term the company prefers -- the "Green Apron Book," a pamphlet that fits into their apron pocket.

In it, Starbucks reminds its partners to be welcoming, genuine, considerate, knowledgeable and involved.

Obvious, maybe, but Starbucks makes it a point for its employees to carry those words with them every day.

Everything matters. While the company takes heroic measures to make sure each cup of coffee is of the highest quality, its attention to detail goes far beyond that. Everything from stocking the store to cleaning up crumbs is scrutinized.

To make sure both the big things and little things are attended to, Starbucks invests heavily in employee training.

Managers and workers are drilled on both positive and negative real-world case studies. This gives them the tools they need to anticipate situations in the field.

Surprise and delight. Consumers can become so blasé about even the best products that sellers need to add the occasional unexpected twist or extra value, Starbucks believes.

As a result, the chain sometimes does things like give away free ice cream, unadvertised, to delight customers.

Consumers today, Starbucks contends, are looking for the "prize in the Cracker Jacks." Offering that surprise regularly helps build loyalty.

Embrace resistance. Whether it's a customer complaint, or a slam by a national columnist, Starbucks tries to respond positively, not defensively.

For example, when Starbucks entered China, there was a media backlash about the arrival of the capitalistic operation.

Instead of panicking, Starbucks officials listened to local officials and customers and made adjustments. Stores were enlarged to meet the desire for more room, especially since the Chinese preferred to drink their beverages there rather than get them to go.

Within a few years, Starbucks had turned the corner and now is viewed as a prestige brand by many Chinese, Michelli notes.

Leave your mark. Starbucks wants local managers and employees to get involved in their communities, and at the corporate level has sought to support a number of causes, particularly those involving the environment.

The company also believes in following up on commitments it makes in a market. In China, for example, it recently donated $5 million to support educational efforts.

Overall, Starbucks' leaders admit the chain still is far from perfect. You might occasionally get a disappointing cup of coffee or be served by a cranky partner. But, in my experience, that's amazingly rare.

Starbucks, it seems, has accomplished the tough feat of both building a hugely profitable business and also putting just as much thought into motivating its work force and aiding good causes.

That's a pretty strong brew.


Review of the Week
The Starbucks Experience
Joseph A. Michelli, PhD

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.


Interface: Joseph Michelli

An organizational psychologist interprets Starbucks’ brew of business acumen and customer-focused market approach.

By Kate Leahy, Associate Editor

It wasn’t only a coffee addiction that attracted organizational psychologist and business consultant Joseph Michelli to the coffee behemoth as the subject for "The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary" (McGraw-Hill, 2006). He also was taken by its management and branding strategies. Michelli is co-author, with John Yokoyama, of "When Fish Fly" (Hyperion, 2004), a study of workplace dynamics at Seattle’s Pike Place Fish Market, and host of a daily business radio program in Colorado Springs, Colo.

Q. Are there similarities between the Pike Place Fish Market and a Starbucks store?

A. The similarity is the commitment to creating an experience. At the Pike Place Fish Market, you buy fish and hand them money, but that’s not what it’s all about. It’s about watching [vendors] throw fish and getting the customers involved. People come there to watch the show and buy fish in the process. The Starbucks experience is more about affordable luxury, being in a homey environment. You walk in and it just feels like the living room of the community.

Q. What inspired you to write this book?

A. A couple of things. I hated coffee as a kid. My uncle brewed it every morning when I would work on his dairy farm and I would load it up with as much cream and milk as I could just to survive. I hated the taste. I never drank it as an adult. And then, all of a sudden, for some reason, I decided to check out what was going on at Starbucks. I didn’t like coffee and wanted to know why people were into it. Then I became a two-latte-a-day guy. I looked at my own self and thought how did this happen? Why did I become a consumer of a product that I originally didn’t like?

Q. What was this company doing better than others?

A. First off, they gave an outsider access, which is pretty unusual. Which was a starting point. And then once I got in I realized that the brand loyalty that people had with Starbucks was not driven by advertising but it was driven by the personal experiences people were having with the brand. Something was going on that people would come back 18 times a month. It was more than caffeine. What I saw when it went right—and it didn’t always go right—was that a customer walked into a Starbucks unit and they felt good. It was part of their routine. They felt like this was a special experience; that they were treating themselves to something nice.

Q. So brand recognition doesn’t come through advertising. It comes through day-to-day interaction.

A. That’s right. And about 20% of the customers actually sit down and have conversations over a cup of coffee. There is a minister who doesn’t even have a church; he just works out of a Starbucks. We found people who met each other in Starbucks and went on to get married. These stories really reverberated with me. You know it’s happening in all kinds of businesses and good restaurants throughout the world. But we need to be reminded that this is coffee. We’re talking about an ordinary product that they created an experience around and revolutionized an industry. If we just remind ourselves of the simple things, we can revolutionize a moment with a customer, our store, or our business.

Q. Was this something that really surprised you about Starbucks?

A. I was surprised by how personal the brand is for people. When we solicited stories from consumers, Starbucks was beloved to a lot of customers. Now, there’s a whole bunch of people who don’t like them, but the regular customers don’t just like Starbucks, they really feel warmly towards the company. Part of that is that they attract the right employees because of their benefits. They pay above minimum wage and [provide] healthcare. If you treat your employees with compassion, then I think it transfers out to the customer experience too.

Q. You write about Starbucks marketing itself to its employees. How do they do this effectively?

A. They have a program called Make Your Mark. Let’s say you’re an employee at Starbucks and you want to go read at your kid’s school. You get it approved by Starbucks and they will donate the salary equivalent for your time to the organization where you volunteer. There are large companies that do some great corporate volunteering, but when you support the employees’ personal involvement, it makes a difference.

Q. How has Starbucks influenced the foodservice industry as a whole?

A. I think it has raised the bar. But let’s talk about the downside. The mom-and-pops versus Starbucks. What I’ve been able to determine is that, clearly, some mom-and-pop operators closed as a result of Starbucks coming to town. But the absolute number of independents hasn’t decreased. You increase awareness of the product and you actually increase the market for the product. It has forced niching and made independent operators better at branding themselves.

In terms of salaries, a lot of communities are looking for Starbucks to come in. By doing so, it pushes other foodservice operators in the area to think about their price point for entry-level employees.

Q. It seems that employees give back to Starbucks, even creating new drinks. How is this encouraged?

A. They’ve taught their front-line leadership to listen to ideas. If they get ideas that are interesting, they can test-market them in a small number of stores to determine viability. I talked to a guy in Japan who started making hand-cut gelatin cubes and putting them in Frappuccinos. And people loved it. Clearly the R&D had to be done later, but they could play with it in a very limited scope. So why not try a new-product offering if you’re a solo restaurant? Take a chance. And if it doesn’t work, what are you out? Not much.

Q. What can chain restaurants looking to operate outside the United States learn from Starbucks’ global expansion?

A. They invest in goodwill in the communities. There is a lot of skepticism about global expansion, that American QSRs see the incredible number of people but really don’t care about those people. In China, which is where Starbucks is looking for its second-largest market outside of the United States, the company is doing really well.

Chinese President Hu Jintao quipped that if he weren’t doing his job, he would want to be a regular at Starbucks. The company started investing in various social programs and because of that it got support. There was a goodwill feeling that this was about creating affordable luxury in a country where more and more people are becoming moderately affluent.

Q. Certainly Starbucks has its critics. What has it done right in responding to criticism?

A. They know when to fold them. When they have done something wrong, they apologize fairly swiftly and take responsibility. There have been exceptions to that. After 9/11, one store near the former World Trade Center sold water to firefighters. And those sales overshadowed a lot of the free giving that many other stores did. Starbucks didn’t do a great job handling the complaints. But they took responsibility. They admitted that they were wrong. Also, they’re not afraid to confront misinformation about them.

Q. As Starbucks grows, it expands its customer base. How does it do this without alienating its early adopters?

A. You have to be true to your core values. [Starbucks Chairman] Howard Schultz in the early days said no to nonfat milk because it doesn’t provide as flavorful a cup experience. And he also said he would only sell high-quality beans that weren’t [roasted with flavor enhancers]. As the company went on, he realized that there were a lot of health-conscious customers who wanted milk without fat. So he yielded to that. But he has yet to yield on providing a vanilla-roast bean.

You have to decide when you have to modify your product offerings, and if you do, will you alienate your traditional market? You don’t want to bend to the point of breaking.

Q. What is the downside of Starbucks’ success?

A. They’re growing so fast that the ability to attract the kind of employee who creates the consistent Starbucks experience is a huge challenge. There still is plenty of uncharted territory. There’s plenty of land for that. But I think the bigger challenge is making sure that as it grows, the company doesn’t just put up stores but creates experiential environments for people with a staff who can generate that experience.


Turning Ordinary Into Extraordinary
By Michelli, Joseph

BookPage Notable Title
Featuring fresh-brewed, piping-hot leadership strategies that have made Starbucks a robust company worldwide, this book presents a rich mix of ideas for businesses that want to learn how to apply the secret behind Starbucks' phenomenal vision, creativity, and leadership within their company and in their field.

Can Starbucks teach us anything?

Review by Linda M. Castellitto

The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary is a design standout: The book's jacket mimics the to-go cup and cardboard sleeve immediately recognizable to Starbucks devotees and detractors alike. The cleverness continues inside, from coffee bean page number icons to quotes set off in italics and tinted espresso brown.

It's details like these--sometimes whimsical, always carefully chosen--that contribute to Starbucks' success. As author Joseph A. Michelli notes, there are 11,000 Starbucks stores in 37 countries, with five new stores opening each day. The company also boasts a turnover rate that is reportedly 120 percent less than the industry standard. From promoting stores as a “third place” (first and second are home and work) for people to spend a significant part of their lives, to artfully orchestrated musical selections and extensive coffee selections, Starbucks pays close attention to its customers and employees, and innovates accordingly.

That's where the five principles come in. As Michelli explains, Make It Your Own, Everything Matters, Surprise and Delight, Embrace Resistance, and Leave Your Mark are mantras uttered companywide, from the headquarters in Seattle to store locations around the world. Michelli, who has a doctorate in organizational psychology, seems to have had plenty of access to the Starbucks corporate headquarters, as well as a number of store locations, while researching this book. Certainly, it is written from the point of view of a Starbucks aficionado: Michelli composed his acknowledgements in “his” Starbucks in Colorado; his author photo shows him holding a venti, a.k.a. large, cup as he leans on a Starbucks counter; and Jim Alling, president of Starbucks U.S. Business, contributed a foreword to the book.

Not surprisingly, then, there is a certain degree of boosterism in the book's tone, but Michelli provides facts and figures to illustrate his five principles and his assessments regarding why and how the company attracts and retains so many employees and customers. Of course, Starbucks has its detractors--they're covered in the “Embrace Resistance” chapter--but this book is focused on what the company's doing right.

Michelli employs numerous anecdotes to illustrate the Starbucks approach to employee empowerment and customer service--from the barista who gave a free latte to a customer who'd dropped the one he purchased (without having to ask a manager first!) to a clever Tax Day promotion (free Calm tea for every customer). However, if you're looking for specific steps for building or improving a business, this may not be the book for you. Michelli's principles are overarching theories and general approaches to corporate culture and business practices, but there is a lot to learn here regarding the positive, profitable results of focusing on employee training and benefits, social causes, and a culture that encourages customers to feel like they're part of the Starbucks family--even if the relationship initially is a transaction-based, caffeine-fueled one.

Linda M. Castellitto, a former Starbucks barista, doesn't drink coffee. She recommends the Caramel Apple Cider.

© 2007, All rights reserved, BookPage


FIRST UP

Columbus readers drink up coffee tale

Tuesday, December 19, 2006

Several months after being named one of the "drunkest" cities in the U.S. by Forbes-.com, Columbus is going ga-ga for the story of a more sobering brew. According to bookseller Barnes & Noble, Columbus has become one of the top markets for sales of Joseph A. Michelli’s The Starbucks Experience. The book, released last month, examines how the Seattle company "has turned a cup of coffee into a billion-dollar business." Starbucks has more than two dozen locations in central Ohio.


Malasia

Saturday December 16, 2006

Top reads for top people
Compiled by THEAN LEE CHENG

BOOKS, when chosen carefully, can make great gifts. They enrich, open up closed minds and immerse the reader in another world other than his own. But before books can please, there must be a pleasure found in reading.

All of us have that privilege; it is only whether we want to make time to nurture it. Because reading takes up so much time, it tends to compete with other seemingly more interesting pursuits.

Depending on style, language and other dynamics, there will be certain titles and authors who will appeal to us. The onus is on us to find the time to sate that need within us, for he who reads is richer for it.

In the season’s spirit of giving, here is a selection of hardcover books, ...

The Starbucks Experience by Joseph Michelli, RM87.80 (ISBN: 0071477845)

Michelli interviews Starbuck’s leadership and pinpoints five principles driving the chain’s success: Make it your own, constantly look for ways to add customers, increase efficiency, sell more to existing customers, and generate breakthrough products and service. A rich mix of ideas for businesses that want to learn about Starbucks’ phenomenal vision, creativity, and leadership within their company and in their field....


The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary | Review

It's a Starbucks World; We Just Live in It
J. Alan Sharrer

Quick— what's the first thing you think of when someone says the word "Starbucks" Coffee? A comfortable place to meet? The color green? A highly successful global business?

Have you thought about Starbucks being an example to follow, not only in business, but in normal life?

This concept was brought to my attention a few months back. I stopped by the local Starbucks and was standing in line when I noticed a magnet to the left of the sales counter that said, “Be welcoming; offer everyone a sense of belonging.” Although it was intended for the partners (employees), I asked Sarah, the store manager, about it. She explained that the magnet encapsulated one aspect of the company’s business philosophy. Then she went to the back of the store and returned with a small booklet. Known to Starbucks partners as The Green Apron Book, it was an employee manual in miniature. After reading it that afternoon, what impressed me the most was the absence of rules. In their place were suggestions, goals, and the empowerment to make every customer’s experience a memorable one. It was at that moment that I realized the significance of Starbucks’ philosophy—not only for business, but for life in general.

Not everyone has access to The Green Apron Book, but Joseph Michelli’s book The Starbucks Experience is an excellent alternative. In it, the author shares five distinct principles that, if implemented, can transform a company (or an individual) from the inside out.

Since Starbucks is not a franchised company, it is able to create a predictable experience for the customer. Part of this lies in the store layout, the coffee drinks, the music, and the people working there. In fact, the people are so critical to the business philosophy that the company treats them incredibly well (health benefits for those working over 20 hour/week, for starters). In turn, they work hard, are knowledgeable about their main product (coffee), and will sometimes go to great lengths to make a customer’s experience memorable.

To the people of Starbucks, everything matters—from the farmers growing the coffee beans used to the environmental impact of using paper cups and sleeves. Complaints and criticisms are addressed head-on, responsibility for errors is taken, and opportunities to learn and improve as a company are seized. Sometimes predictability is thrown out the window in favor of surprises, such as free samples. As a result, the company and its store partners are able to leave a positive impression on the communities they are in, despite Starbucks’ nearly ubiquitous presence.

In addition to business concepts and principles, Michelli provides numerous real-life examples of how the Starbucks philosophy works. These stories are well worth the price of the book. From baristas devising a unique way to serve drinks at their flagship location in Seattle to a training method used to help partners create the Starbucks experience for customers (it’s a game), the Starbucks way is shown to be both distinctive and effective. Michelli includes both successes and failures, providing a refreshing change of pace as well as proof that the largest coffee company in the world sometimes makes mistakes.

Although The Starbucks Experience is geared for businesses, its ideas can also be powerful for the individual desiring to make a difference in life. One of the central tenets of the Starbucks way is relationship building. Anyone can add coffee grounds to water and call it a drink. But the relationship that is built between barista and customer, over time, can transcend coffee and pastries. Likewise, humanity was not meant to live in a vacuum or on a deserted island. We crave relationships and will acquire them as best we know how. This is only natural, considering that God created people in order to be in an active relationship with them. Perhaps churches and other business organizations should take a good look at the value of relationships to Starbucks, because they’re obviously heading in the right direction.

I can think of no better example than one Halloween when I stopped by a Starbucks on the way home. The cashier addressed me by the character’s name I was dressed up as; the barista did the same when the drink was ready. That cup (with “Mr. Wonka” written on it) remains on my desk as a reminder of the importance of relationships and turning an ordinary experience into an extraordinary one.

Joseph Michelli has done us a valuable service by writing The Starbucks Experience. You would be well-advised to order your favorite coffee drink and read the book for yourself.


BOOK REVIEW BY John C. Maxwell (author of great leadership books such as "The 21 Irrefutable Laws of Leadership", "The 360 Degree Leader", "Developing the Leader Within You", "The Difference Maker", "The 17 Indisputable Laws of Teamwork", "Leadership 101","Winning with People", "The Choice is Yours" and so many more.)

"The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary"
By Joseph A. Michelli (McGraw-Hill, 2006)

Aside from the advent of the information age, in the past 20 years, perhaps no cultural phenomenon has gripped society like Starbucks coffee. From a smattering of Ma and Pa shops spread thinly across the country in the 1980s, the coffee industry has been transformed by the Starbucks juggernaut to the point where Starbucks stores adorn street corners across the globe.

How did Starbucks grow from a small business in the Seattle area to one of the best recognized brands in the world? How did Starbucks capture the loyalty of customers who visit an average of 18 times per month? What accounts for the demand enabling Starbucks to open five stores per day, every day of the year? How did Starbucks convince coffee drinkers to abandon their usual routine and pay prices six or eight times higher for specialty coffee blends?

In his recent release, The Starbucks Experience, Joseph A. Michelli uncovers the management principles guiding the exponential growth and wild popularity of the Starbucks brand. The book is the culmination of two years of research during which Michelli immersed himself in the stories of Starbucks. As part of his research, Michelli extensively interviewed Starbucks personnel—from top executives to the baristas making the beverages. He listened to customers describe their affinity for Starbucks, studied the company’s business model, and even visited one of its coffee farms in Costa Rica.

Even before opening the book, its appearance gives the reader an impression that Michelli is well-versed in the ins and outs of the corporate coffee giant. The jacket of the book smartly resembles a cup of coffee from Starbucks. The black and green lettering of the title sits upon a white background, and an imitation cardboard sleeve encircles the middle of the cover, prominently displaying the Starbucks logo. Even the look and feel of the pages is very “Starbucks.”

What makes The Starbucks Experience come alive are the stories of how the company has positively connected with its clientele. From baristas caring for an injured American in Kuala Lumpur, to partners helping a widow cope with the loss of her husband, to patrons assisting an armed forces battalion in Afghanistan piece together a makeshift Starbucks café, images of the powerful connection of Starbucks abound.

As with any ubiquitous brand, Starbucks has been accused of trampling on the little guy. Critics cite corporate greed when claiming Starbucks is ruining the livelihoods of small business owners. In perhaps the most instructive chapter of the book, “Embracing Resistance,” Michelli blows apart the notion of Starbucks as an uncaring mega-corporation. By considering the environment, serving the community, and protecting the well-being of its partners, Starbucks strives to practice the values it professes and win over its skeptics.

Michelli spreads examples of Starbucks’ corporate conscience throughout the text. To encourage volunteerism, Starbucks donates $10 per hour, up to $1,000 per project, to qualifying organizations where a Starbucks employee volunteers. To shield coffee workers from exploitation, Starbucks pays over $1.25 more than its competitors when buying coffee to ensure partnerships that embrace Starbucks’ values of fairness and good employee treatment. With respect to the environment, Starbucks has also taken the initiative to reduce its carbon emission, use a higher percentage of recycled materials, and increase its usage of renewable wind energy.

If there is any criticism of the book, it’s Michelli’s focus on the positives. He glosses over negative aspects in The Starbucks Experience, and only briefly mentions the company’s shortcomings. However, in doing so, he rightly highlights the unique strengths of the brand and bypasses the generic, unglamorous qualities held in common by Starbucks and all worldwide businesses.

The Starbucks Experience is a bountiful collection of innovative management philosophies. The book offers great insights into Starbucks' remarkable ability to connect with customers by offering consistent products and ambience, while suiting every store to the strengths of its partners and the flavor of its locality. Readers of LW will be able to extract several ideas from The Starbucks Experience to apply in their own places of employment.


Careful now, this book is extremely hot
By Ching M. Alano

The Philippine STAR

You’re probably one of a legion of Starbucks hounds around the world. You’re probably one who can’t start – and end and go through – a day without a shot of java. Now, that’s a whole latte love. You’re probably one whose idea of heaven is a tall glass of vanilla frappuccino with lotsa caramel drizzle. Well, this one’s not about you. This book’s about the people (called "partners," not attendants or waiters or storekeepers) on the other side of the counter who hand you your Starbucks coffee, served hot or cold, with the warmest and biggest smile ever, rain or shine.

It’s a sip-by-sip account of how Starbucks grew from a small store to a giant company with more than 10,000 locations worldwide (in some places, there are Starbucks outlets located across the street from each other).

Allow us to pour some facts about Starbucks:

In 1971, the first Starbucks was opened in Seattle, Washington by three partners – English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker (oh, well, where there are two or three gathered together, there must be coffee). It was called Starbucks Coffee, Tea, and Spice. Before that, there was a corner coffee shop which drew a horde of caffeine addicts for its 50-cent cup – and free refills!

Writes Joseph Michelli, founder of Lessons for Success, broadcaster and author of The Starbucks Experience – 5 Principles for Turning Ordinary into Extraordinary (available at Powerbooks):

"For some of us, the morning was not complete without a visit to the convenience store, where we poured our own black, murky brew into a white foam cup. To kill the taste, we doused the mixture with gobs of powdered cream and sugar, and stirred it with a thin red plastic stick (which was supposed to double as a straw). We would hand our change to an apathetic cashier who performed the job just well enough to earn the minimum wage. It was an unvarying and uninspired customer ritual and transaction."

Until Starbucks came along and a new coffee culture was born. Suddenly, coffee lovers discovered a whole new way to enjoy coffee – with or without company. And a whole new coffee jargon came to be: Tall, grande, and venti (instead of medium, large, and extra large). Starbucks former CEO and current chairman Howard Schultz spills the beans, "What would happen if you took the quality coffee bean tradition of Starbucks and merged it with the charm and romance of the European coffeehouse?" The answer: Yes, Starbucks can – that is, transform a traditional American coffee experience from the ordinary to the extraordinary. But comes another question: Who would pay six or eight times more for rich, exotic coffee blends when "ordinary" is what a coffee drinker has always known? This was the brewing controversy of the day. An article in Fortune magazine by Cora Daniels notes, "The Starbucks story epitomizes ‘imagine that’ in every sense. When the company went public ... it had just 165 stores clustered around Seattle and in neighboring states ... skeptics ridiculed the idea of $3 coffee as a West Coast yuppie fad."

As you and I know, it’s more than a yuppie fad. The sumptuous figures tell the Starbucks story: Stores in over 37 countries; 35 million customer visits each week, with loyal patrons typically returning 18 times a month. The Starbucks chairman will probably be the first to say that the company owes much of its success to its "partners," the people who create a special experience for every single customer who walks into a Starbucks store.

In his foreword to The Starbucks Experience, Starbucks US Business president Jim Alling writes, "The Starbucks Experience contains a robust blend of home-brewed ingenuity and people-driven philosophies that have made Starbucks one of the world’s ‘most admired’ companies, according to Fortune magazine... " For behind a hot cup of Starbucks coffee is a heartwarming tale or two. For instance, the book tells the story of a customer, Lydia Moore from Oakland, California, who met the love of her life – and future husband – at Starbucks. Lydia had forged a special friendship with the Starbucks staff that when she got married, she invited them to her wedding. The staff put up the picture of the couple on the board and closely followed their life together, cup after cup after cup of Starbucks coffee. Sad to say, Lydia’s husband was one day diagnosed with cancer. Through it all, the Starbucks partners were there, there to bring Lydia’s husband his favorite Grande Drip and Hazelnut Sticky Bun. Lydia was devastated when she lost her husband and there to share in her loss were her Starbucks friends.

Indeed, unique is the experience that is Starbucks. Michelli points out, "The Starbucks Experience reflects tenets that are simple, yet not simplistic. They are results-oriented and can be deceptively powerful when applied."

And the five principles are:

1) Make it your own.

2) Everything matters.

3) Surprise and delight.

4) Embrace resistance.

5) Leave your mark.

"They remind all of us –you, me, the janitor, and the CEO – that we are responsible for unleashing a passion that ripples outward from behind the scenes, through the customer experience, and ultimately out into our communities. Let’s take a closer look at each of these principles with an eye to how they work inside Starbucks and how we can tap into their transformational power."

Thanks for that hot tip, Mr. Michelli. Now, can you think of an experience hotter than this? Make mine venti.


BOOK OFFERS INSIGHT ON BUSINESS SMARTS, EVEN IF YOU DON’T KNOW BEANS ABOUT COFFEE
By ANDREW WINEKE THE GAZETTE

Starbucks Coffee’s greatest accomplishment may not be its phenomenal growth or its success in selling $4 double talls to an adoring and caffeine-addicted public.
The true Starbucks miracle is that the company did all that while pushing a roast that’s much too bitter for many coffee drinkers.

Joseph Michelli, the KVOR 740 AM radio host, organizational psychologist and now author of “The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary", d oesn’t deny it.

Starbucks roasts to the “third pop of the bean,” he explains, while milder brews, such as the Starbucksowned Seattle’s Best Coffee, roast only to the second pop. But it’s all part of the Starbucks magic, he argues.

“I drank Sanka when I was a kid,” Michelli said. “Those coffees have very, very little taste. We were used to stale coffee and now (with Starbucks), we’re going up to the richest roast.”

What his book is about, Michelli says, is explaining that the business smarts that made Starbucks a household name could help companies that don’t know a hill of beans about coffee.

“They took the most ordinary product, coffee, which you used to get for 50 cents at your convenience store” and built a global empire, Michelli said.

That Starbucks pixie dust is in demand these days: Steve Barrett, associate creative director for the Starbucks Global Communications Group, is speaking today to a sold-out crowd at the monthly Pikes Peak Advertising Federation luncheon. And Michelli’s book reached No. 13 last week on the Wall Street Journal’s business best-sellers list.

For Michelli, the idea for the book came in Washington state, where he was working on a book about the famous fish throwers in Seattle’s Pike Place Market.

The very first Starbucks location is in the market, and every time Michelli walked by, he thought about how Starbucks transformed a cheap, bitter beverage into a lifestyle.
After talking to baristas, bean growers, agronomists and executives, Michelli distilled what he learned about the company into “The Starbucks Experience.”

OK, sure Starbucks has turned a 50-cent beverage into a custom-crafted $3 work of art — and yes, the company manages to sell CDs and books alongside beans and coffee mugs, but what can a widget maker really learn from it?

“It’s really not about coffee,” Michelli said.

If a company can create the right atmosphere for its customers and employees, success naturally follows. It’s as true for computers or cars as it is for coffee, he says.

“From the moment you walk in the door (of my business), I have an opportunity to change your life,” Michelli said.

He offers a small example: “Starbucks could save millions of dollars if they went from double-ply toilet paper to single-ply, but that wouldn’t be the Starbucks experience.”

That example isn’t in the book, but it could fall under Michelli’s principle No. 1: “Make it your own,” or under principle No. 3: “Surprise and delight.” Customers are no doubt pleased it doesn’t fit into principle No. 5: “Leave your mark.”

Coffee is merely the medium through which Starbucks delivers an experience, Michelli says, including the CDs, the books, the magazines, the scones and the cushy chairs from which to watch the brew perk.

Starbucks Chairman Howard Schultz sums up the secret this way: “We’re not a coffee company serving people; we’re a people company serving coffee.”

And, not surprisingly, a big part of being a people company is the people who work there. Michelli notes in the book that Starbucks is the rare company that spends more on training than it does on advertising, and that it does little things such as encourage even its accountants and office drones to become experts in roasts and things like the third pop of the bean — whatever that actually means.

The people who design the stores also spend time behind the counters, and the people who run the counters get a say in designing the stores.

“What is the optimal customer experience you can have for your internal customers, your employees?” Michelli asked. “What if everything went right in how we respected them every day?”

Why, you’d sell an ocean of coffee, is what.

MORE MICHELLI

THE BOOK: “The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary

GUEST APPEARANCE: On the Mike Boyle Restaurant Show at 10:30 a.m. Dec. 1 on Adelphia Channel 2. The show repeats at 7 p.m. Dec. 1 and 4:30 p.m. Dec. 2.


Book Review:

The Starbucks Experience:

5 Principles for Turning Ordinary into Extraordinary

Cherie Burbach
November 20, 2006

The Starbucks Experience attempts to explain the reason behind Starbucks’ success using customer anecdotes, insider stories, and the occasional business strategy thrown in for good measure. The book is a fascinating study; stressing the very unique mindset this organization has over most of the businesses in our market today. For example, they offer benefits for part-time employees working as little as 20 hours a week, including adoption assistance, stock options, and health insurance. They build stores in such close proximity that they are oftentimes competing directly with one another. And they sell a product that until a few years ago most of us just brewed at home or paid a few cents at a gas station for on our way to work.

To put perspective on Starbucks’ success, author Joseph Michelli states, “if you had “invested $10,000 in the Starbucks IPO on the Nasdaq in 1992, your investment would be worth approximately $650,000 today.” If that weren’t enough Michelli tells us “Starbucks opens five (5) new stores every day – 365 days a year.” And yet through all this, they have maintained their level of quality – oftentimes a tough thing to do when a company expands at such a level.

The Starbucks Experience reads more like an autobiography than it does a business case study, and that alone should give you some insight into just how unique an organization Starbucks is. The book outlines five “experiences” that Starbucks uses to drive their company. Note that these principles are vague in description, making them easy to apply to any aspect of the company – from management through R&D to customer service. They are:

1.Make it your own

2.Everything matters

3.Surprise and delight

4.Embrace resistance

5.Leave your mark

Each one of these principles are given more attention, for example under the first principle of “Make it your own” the company further lists “be welcoming, be genuine, be considerate, be knowledgeable, and be involved” and stresses that these aren’t just for the retail level folks but for every area of the company. At the end of each principle is a “create your own experience” segment which rephrases the principle in a way businesses can apply to their own brands, and an “ideas to sip on” thought that gives an overview of the chapter.

Still, with all of these insights there is no surefire list to follow, no defined strategies. All in all The Starbucks Experience serves more to add to the mystique of Starbucks’ success than it does to define it in a way other organizations can emulate. However, the author’s eighteen-month study of the chain does provide enough information to at least get you inspired and looking at your business an entirely different way.


The Associated Press State & Local Wire

BYLINE: By DOUG ESSER, Associated Press Writer

Every successful company must have a business book.  "The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary," by Joseph A. Michelli looks at how a company changed the perception of a cup of coffee and built a global corporation.  It's a tall order, but Michelli delivers in grande style with chapters on each principle: 1. Make it your own, 2. Everything matters, 3. Surprise and delight, 4. Embrace resistance, 5. Leave your mark.  Michelli is a business consultant and speaker from Colorado who had the cooperation of the management in Seattle in writing the book.  Jim Alling, president, U.S. business, wrote the foreward and says Michelli hit on the right blend of conventional business acumen and storytelling.  (McGraw-Hill, New York, 208 pages, hardback, $21.95)


Colorado Springs Business Journal (Colorado Springs, CO)
November 17, 2006

Commentary: Local authors are examples of what's good about Colorado Springs

BYLINE: Lon Matejczyk

Despite some recent negative publicity and some crazy ballot initiatives that thankfully were rejected by the voters, let's not forget that we live in arguably the best city in the United States. We have two local people who have published books that are well worth your time.  

Joseph Michelli's "The Starbuck's Experience," made the Wall Street Journal's best-seller list, coming in at No. 13, and beating out our own columnist Jeffrey Gitomer's "Little Red Book of Selling," which is No. 15. Steve Bigari, who owns several McDonald's franchises and Mr. Biggs, also has a new book, "The Box You Got. "  

I have not read these books all the way though - and finding the time to start doing book reviews won't be happening anytime soon - but I wanted you to know about these books by local people. Don't forget that there are plenty of good things going on and good people in our city.

Michelli's introduction is titled "Taking you and your business to the extraordinary. " Bigari's introduction goes like this: "Author's warning: Reading this book will create feelings of passion and a desire to change your life. This author strongly encourages, but takes no responsibility for, your action. " Bigari believes that "everybody is a leader" and tells us to "throw out the idealized notion of leadership" because we're all leaders. It took Bigari four-and-a-half months to write the book. I asked him what our local business community could learn from reading it. He responded: "People always tell me, 'Think outside the box. ' That's wrong. Real success depends on what you do with the box you got - your circumstances of your life right where you are. "In my book, I present 'Bigg Ideas' that will help you get inspired, instigate change and innovate in your life. You can transform the world you live in - and be the kind of visionary leader who helps your co-workers, family and friends apply these ideas to their own lives. "  

Michelli received cooperation from Starbuck's senior management on his project. He writes, "While at first I was amazed by the grace, openness, and free rein they gave me, I later came to realize how much of their willingness to grant me access was at the core of their success model. " Both of these local authors deserve the Springs business community's support. So go buy their books. Michelli's is available at most bookstores, and Bigari's is available at www.theboxyougot.com. We can learn from them.


Article Written by Joseph for the November 2006 print edition of the magazine entitled "The Starbucks Experience: From Ordinary to Extraordinary"

I invite you to discover a rich mix of ideas that will help you apply the Starbucks vision, creativity and leadership practices to your company.......



Jacksonville's largest entertainment weekly

The Starbucks Experience: Five Principles for Turning Ordinary into Extraordinary by Joseph Michelli is the newest Starbucks informed business success book. An easy, high energy read, it freshens a formulaic read by injecting a little coffee panache.


Springs author writes on Starbucks
November 3, 2006 by Kathryn Mayer
 
Looking for success in business? Take a few pointers from the coffee giant that's on almost every corner.

After all, with almost 12,000 stores worldwide and five new ones opening every day, Starbucks must be doing something right.

So says Joseph Michelli, author of "The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary" ($21.95, McGraw-Hill, 2007).

Although he writes about leadership strategies, Michelli, who owns training and consulting firm Lessons for Success in Colorado Springs, says anyone "from a business owner to a coffee lover" can appreciate his book.

In it, he explores five principles:

  1. Make it your own, explaining that Starbucks has tremendous customer service.
  2. Everything matters, saying they pay attention to every detail.
  3. Surprise and delight, looking for ways to "surprise and engage customers in a process of delivery."
  4. Embrace resistance, learning to benefit from criticism.
  5. Leave your mark, acting socially conscientious by way of philanthropy and gift giving.

Michelli says that besides pleasing customers by providing a relaxing environment, and employees with benefits and stock options, Starbucks does the unthinkable -- it listens.

Innovations such as frappuccinos and getting involved in the music business were generated by ideas suggested by customers and employees.

And they are never afraid to take risks, he said.

Now, Starbucks is distributing books, CDs and DVDs.

"Their footprint can only get bigger," Michelli says.

"The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary," by Joseph A. Michelli looks at how a company changed the perception of a cup of coffee and built a global corporation.

It's a tall order, but Michelli delivers in grande style with chapters on each principle: 1. Make it your own, 2. Everything matters, 3. Surprise and delight, 4. Embrace resistance, 5. Leave your mark.

Michelli is a business consultant and speaker from Colorado who had the cooperation of the management in Seattle in writing the book. Jim Alling, president, U.S. business, wrote the foreward and says Michelli hit on the right blend of conventional business acumen and storytelling.

(McGraw-Hill, New York, 208 pages, hardback, $21.95)


GOOD GRIEF! Here's a company that's using its bean
Sentinel Staff | Posted October 3, 2006

How many leadership principles does it take to brew a latte?

We're not sure, but the answer might be hidden in The Starbucks Experience, a book that promises "fresh-brewed, piping-hot leadership strategies that have made Starbucks a robust company worldwide."

Author Joseph A. Michelli delves into the company philosophy based on five principles, and offers up Zen-like nuggets of wisdom.

Take the advice to "Make It Your Own": "We are not in the coffee business serving people," says Starbucks Chairman Howard Schultz, "we are in the people business serving coffee."

If you think about it, that's deeper than a Venti.

But a book this big on ideas might not help with the small stuff. Another of its principles is "Everything Matters."

OK, that narrows it down a bit.

Then again, it's coming from a company that opens new stores at a rate of five a day, or one every five hours. So maybe there's something to it.

"Surprise and delight," it advises.

Who knew so much thought went into each cup?

Copyright © 2006, Orlando Sentinel


The Experience. Learn From It

Hello in BubbleNation. I'm Carl, and I just have to tell you about this company I recently became acquainted with. It's call Starbucks. Have you heard about it? I've been going to my local Starbucks for about 2 weeks now, and wow, it's more awesome than West Wing marathons on the Bravo channel. I mean, there's great coffee drinks, couches, atmosphere, and yummies, but what I love most is that it seems like this little store is some sort of gathering place. Like, I've seen one business dude already have business meetings there. And this one college girl, she not only goes there everyday to study, but it's also where she tutors other people. It's an all around amazing experience.

What? Everybody knows about Starbucks? Where was I? Oh, that's right, I fell into a deep dark, seemingly bottomless hole behind my barn. Oh well, now I know. And apparently, there's a great new book out for people like that guy who has business meetings a my Starbucks. It's called The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary.

Hey everyone, it's in BubbleGuy. Sorry about my friend. He made a chariot out of an old rusty claw foot tub and had his wife lower him into that hole. He fell in and has been in there for 5 years. We thought he was gone, but thank Irkle he made it out OK. So let's talk about this book. We've heard the story of Starbucks over and over again from journalists and Seth Godin and even in other books that use the Bucks as an example of greatness. But never has there been a book where a writer has been given such unfettered access to the Starbucks Experience and how it's run. Joseph Michelli was given that access.

Michelli main goal with the book is not to simply tell the Starbucks story, it's to extract everything that makes the company so great and spin those characteristics into a valuable learning tool for everyone else - YOU and me. He doesn't simply say, "Well Starbucks is great because they reach out to the community while creating a community." Nope, Joseph uses lessons from the coffee giant to tell us HOW to do it. He tells us just HOW TO LISTEN to individual employees and customers.

With great stories and anecdotes, Michelli has made learning great business lessons for modern times a real joy with The Starbucks Experience. You get a little history, you get the stories, you get the knowledge, and you get the strategies. I can't imagine, even if you don't prefer Starbucks as your local caffeine supply, why any business person serious about success in this day and age would not want to read this book.

The Extra Offer:
So not only am I giving away 25 copies of this book (Carl will help me ship them), Joseph Michelli has agreed to partake in a teleconference with all the winners. That's pretty awesome cuz this dude can talk. Aside from writing this book and founding a consulting and training firm called Lessons for Success, he also hosts his own radio show...sorry, AWARD WINNING daily radio show on KVOR-AM in Colorado. Should be fun.


Book details Starbucks' five core principles for success
Thursday October 12, 2006

When Starbucks set out to create a customer experience that nurtures loyalty - not only to the product but to the brand itself - the company drew up five core business principles that brought about its success, according to the new book, 'The Starbucks Experience', by Joseph A. Michelli, Ph.D.

In the book, The Starbucks Experience - 5 Principles for Turning Ordinary into Extraordinary (McGraw-Hill Industry), Michelli explores the coffee seller's rich mix of ideas and techniques that define the Starbucks vision and creativity.

The Starbucks name is now synonymous with coffee. Some 40 million customers visit a Starbucks location on a weekly basis, and the most loyal customers visit an average of 18 times per month. Moreover, the company's employee turnover rate is 250% below the industry average. The company now opens an average of 5 new locations every day of the year. This, Michelli argues, suggests that Starbucks is doing something right. Very right.

The right combination
The book shows how employee motivation, excellent customer service and satisfaction, and community involvement all go together to build a great company.

"Whether you're the CEO of a Fortune 500 company, a part-time entry-level worker, a middle manager, or the owner of a small business, Starbucks' five core business principles can be applied to your career, workplace, and company," explained Michelli.

The five principles
In summary, the five principles used by Starbucks include:

  1. Make it your own
    Starbucks "partners" (employees) think about customer service in a way that allows each of them to connect with their customers on a very personal level. According to Starbucks chairman, Howard Schultz, "We are not in the coffee business serving people; we are in the people business serving coffee."
  2. Everything matters
    Paying attention to absolutely every detail gives Starbucks a competitive advantage because it builds loyalty among patrons. "Managers have to constantly put themselves in the shoes of their customers, seeing everything from the other side of the counter," explained Michelli.
  3. Surprise and delight
    Starbucks insists that it is critical to deliver consistent product and service to delight customers. But on top of consistent quality, Starbucks partners look for ways to surprise and engage consumers in a process of discovery. In an example of the importance of surprise, Starbucks gave out free cups of Calm tea on 15th April - in anticipation that their customers would be frazzled by their tax deadline.
  4. Embrace resistance
    Starbucks encounters many forms of resistance from communities, international organisations and, at times, customers. Both at the leadership and front line levels, Starbucks has benefited from criticism and used it to become stronger and better able to meet the needs of those who share their input.
  5. Leave your mark
    People want to do business with and work for companies that are socially conscientious. In addition to its corporate philanthropy and grant-giving programme, Starbucks encourages employees to be more involved in their community, by matching cash contributions in support of their local efforts. Furthermore, Starbucks leadership makes business decisions in accord with their own social values.

More Info: http://books.mcgraw-hill.com


As seen in the phenomenal success of Starbuck’s Chairman Howard Schultz’s book Pour Your Heart Into It, business readers want to learn about what’s driving this international business success story. But this book only shows one side of this amazing success story. Really it’s all of the people at Starbucks—known as “partners”—who continue to take this company to great heights and who make going to Starbucks an actual “Experience” instead of just getting a cup of Joe. In order to fully understand what is driving Starbuck’s success and how they create this Experience, business readers need to know what’s happening at every level, from the C-Suite all the way down to the “customer evangelists,” with all the coffee farmers and baristas in between. And they also need to know how to apply this knowledge to their own businesses.

Now, for the first time, an outsider has been given unprecedented access to Starbucks personnel and resources. Joseph Michelli has interviewed top Starbuck’s leadership, including Schultz and CEO Jim Donald; traveled to Costa Rica to meet with Dub Hay, senior VP of coffee; visited Starbucks roasting plant in Kent, Washington; attending “Coffee Cuppings” (tastings) in two of the three cupping rooms worldwide; and had hundreds of conversations with Starbucks partners, regular patrons, and more. through this remarkable access, Michelli has pinpointed 5 principles driving the success of Starbucks, each of which he attributes to the Starbuck’s partners.


The Starbucks experience
October 24, 2006

Dear Artist,

Recently I wrote a letter about the similarity of running a business and being an artist. As usual a whole bunch of artists agreed with me, and a whole bunch of others told me I'd been drinking my turps. Then yesterday I picked up a reading sample--that's book-talk for a preview of an upcoming book. The Starbucks Experience, Five Principles for Turning Ordinary into Extraordinary by psychologist Joseph Michelli will be out next month.

Michelli was granted unlimited access to the inside workings of Starbucks. In case you didn't know, Starbucks is the biggest chain of coffee shops in the world. There are now more than 11,000 outlets in 37 countries--five new ones start pouring coffee every day. Howard Schultz, the founder, began in Seattle, Washington in 1971 with one shop. If you'd invested $10,000 when stock was first offered in 1992, you'd now have $650,000. Starbucks is regularly voted one of the best run companies. Starbucks has changed coffee culture from dullsville 50 cent mugs of murky brew to $4.00 specialties like "quad, two-pump vanilla, one-and-one-quarter sugar-free hazelnut, ristretto latte, half soy, half nonfat, extra hot, with whip." Staff at Starbucks are real friendly taking dough out of your pocket, and customers love the custom treatment. Who would've thought? Even Howard Schultz was surprised. His second big idea had been to open another shop in Portland.

Michelli found the Starbucks culture to be an overflowing cup of empowerment. All employees, from the top brass to the 20-hour-per-week "baristas" are offered a stake in the company. But this is only part of what makes the company so different and so successful. When I read the five principles I almost gagged:

1. Make it your own
2. Everything matters
3. Surprise and delight
4. Embrace resistance
5. Leave your mark

I'm inviting you to take a look at those principles and see if they don't apply every time you go into your studio and pick up your tools. Think about those principles, and then let's meet at Starbucks. It's just down the road.

Best regards,

Robert

PS: "The Starbucks Experience reflects tenets that are simple, yet not simplistic. They are results-oriented and can be deceptively powerful when applied." (Joseph Michelli)

Esoterica: Starbucks goes to a lot of trouble to train employees to be both skilled in the culture and happy in their work. Unlike most companies, Starbucks spends more on training than advertising. Job satisfaction translates into an emotional customer connection. For example, when "Surprise and delight" happens during the making of something, the effect is transferred down the line. In any creative endeavor, "How can I delight myself?" is a most important question. It's hard for some of us to believe, but more than one person has a stake in the outcome of our work. "Double double, please."


The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary
by Joseph A. Michelli

I just started reading “The Starbucks Experience” and believe this book will be extremely beneficial for church planters and church leaders to learn some valuable insights from. One of the aspects that they discuss is the type of real community that Starbucks and its team has created - not just for eachother but for us as well. As I read the first couple of chapters I immediately thought about how many churches have never been able to build a genuine community and how so many people have been disconnected from “church”. Here is a quote from Howard Schultz; pg.12:

“The success of Starbucks demonstrates that we have built an emotional connection with our customers. We have a competitive advantage over classic brands in that every day we touch and interact with our customers directly. Our product is not sitting on a supermarket shelf like a can of soda. Our people have done a wonderful job of knowing your drink, your name, and your kids’ names”.

Starbucks knows that branding is ALL about the connection! Is your church connecting with your audience? Do you touch and interact with people daily? Are you sitting in the church building or going into the community? There are a lot of applications here and maybe we should take a page (or two) from this book and learn from Starbucks so that we can build a better church “experience” for the people we want to reach.


   

Tuesday, October 17, 2006 - THE STARBUCKS EXPERIENCE
Posted at 5:42 PM by Robert

5 Principles for Turning Ordinary into Extraordinary

“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…” – Library Journal

“The company’s practices are undeniably innovative and inspiring…” – Publishers Weekly

Fresh-brewed, piping-hot leadership strategies that have made Starbucks a robust company worldwide

The Starbucks name is synonymous with coffee. Forty millions customers visit each week and the most loyal customer visits their Starbucks store 18 times per month. The Starbucks employee turnover rate is 250 percent lower than the industry average. From a single store to five new stores opening EVERY DAY (one every 5 hours) 365 days per year – Starbucks must be doing something right.

The Starbucks Experience shows readers how employee motivation, excellent customer service and satisfaction, and community involvement build a great company. Joseph Michelli, Ph.D. has been given unique access to Starbucks, offering readers an in-depth look at a company that has re-written the conventional rules of management. Whether you’re the CEO of a Fortune 500 company, a part-time entry-level worker, a middle manager, or the owner of a small business, Starbucks’ five core business principles can be applied to your career, workplace, and company:

§ MAKE IT YOUR OWN Starbucks partners (employees) think about customer service in a way that allows each of them to connect with their customers on a personal level. According to Starbucks Chairman Howard Schultz, “We are not in the coffee business serving people; we are in the people business serving coffee.”

§ EVERYTHING MATTERS Paying attention to absolutely every detail gives Starbucks a competitive advantage because it builds intense loyalty among patrons. “Managers have to constantly put themselves in the shoes of their customers, seeing everything from the other side of the counter,” according to Michelli.

§ SURPRISE AND DELIGHT At Starbucks, it is critical to deliver consistent product and service to delight customers. But on top of consistent quality, Starbucks partners look for ways to surprise and engage consumers in a process of discovery. In an example of the importance of surprise, Starbucks gave out free cups of “Calm” tea on April 15 in anticipation that their customers would be frazzled by the tax deadline.

§ EMBRACE RESISTANCE Starbucks receives many forms of resistance from communities, international organizations, and at times, customers. Both at the leadership and front line levels, Starbucks has benefited from criticism and utilized it to become stronger and better able to meet the needs of those who share their input.

§ LEAVE YOUR MARK People want to do business with and work for companies that are socially conscientious. In addition to their corporate philanthropy and grant-giving, Starbucks encourages its employees to be involved in their communities; matching cash contributions in support of their partners’ efforts. Furthermore, Starbucks leadership makes business decisions in accord with their social values.

Few companies have rallied their employees to participate in a corporate vision that creates a worldwide story of business success. The Starbucks Experience offers a rich mix of ideas for individuals that want to learn how to apply the secrets behind Starbucks phenomenal vision, creativity, and leadership. It’s the perfect business model for anyone with a taste for success.


News Released: September 30, 2006

(PRLEAP.COM) “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…” – Library Journal

“The company’s practices are undeniably innovative and inspiring…” – Publishers Weekly

Fresh-brewed, piping-hot leadership strategies that have made Starbucks a robust company worldwide.

The Starbucks name is synonymous with coffee. Forty millions customers visit each week and the most loyal customer visits their Starbucks store 18 times per month. The Starbucks employee turnover rate is 250 percent lower than the industry average. From a single store to five new stores opening EVERY DAY (one every 5 hours) 365 days per year – Starbucks must be doing something right.

The Starbucks Experience shows readers how employee motivation, excellent customer service and satisfaction, and community involvement build a great company. Joseph Michelli, Ph.D. has been given unique access to Starbucks, offering readers an in-depth look at a company that has re-written the conventional rules of management. Whether you’re the CEO of a Fortune 500 company, a part-time entry-level worker, a middle manager, or the owner of a small business, Starbucks’ five core business principles can be applied to your career, workplace, and company:

• MAKE IT YOUR OWN Starbucks partners (employees) think about customer service in a way that allows each of them to connect with their customers on a personal level. According to Starbucks Chairman Howard Schultz, “We are not in the coffee business serving people; we are in the people business serving coffee.”

• EVERYTHING MATTERS Paying attention to absolutely every detail gives Starbucks a competitive advantage because it builds intense loyalty among patrons. “Managers have to constantly put themselves in the shoes of their customers, seeing everything from the other side of the counter,” according to Michelli.

• SURPRISE AND DELIGHT At Starbucks, it is critical to deliver consistent product and service to delight customers. But on top of consistent quality, Starbucks partners look for ways to surprise and engage consumers in a process of discovery. In an example of the importance of surprise, Starbucks gave out free cups of “Calm” tea on April 15 in anticipation that their customers would be frazzled by the tax deadline.

• EMBRACE RESISTANCE Starbucks receives many forms of resistance from communities, international organizations, and at times, customers. Both at the leadership and front line levels, Starbucks has benefited from criticism and utilized it to become stronger and better able to meet the needs of those who share their input.

• LEAVE YOUR MARK People want to do business with and work for companies that are socially conscientious. In addition to their corporate philanthropy and grant-giving, Starbucks encourages its employees to be involved in their communities; matching cash contributions in support of their partners’ efforts. Furthermore, Starbucks leadership makes business decisions in accord with their social values.

Few companies have rallied their employees to participate in a corporate vision that creates a worldwide story of business success. The Starbucks Experience offers a rich mix of ideas for individuals that want to learn how to apply the secrets behind Starbucks phenomenal vision, creativity, and leadership. It’s the perfect business model for anyone with a taste for success.


THE STARBUCKS EXPERIENCE

5 Principles for Turning Ordinary into Extraordinary “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.


The Starbucks Experience

Speaking of new books... "The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary" by Joseph Michelli has just hit the stands... It's a new book about... Starbucks with focus on what Joseph has found to the five key principles that create an extraordinary experience.

Horn tootin' time... I'm proud to have a smart-sounding quote on page 11 of Joseph's book... I'm also proud of the fact that a good chunk of the book is dedicated to talking about the Starbucks "Green Apron Book" - a pocket-sized partner (employee) guide developed to firmly establish and communicate the language of customer service at Starbucks.

Other Notable Publications available at:

Foreign Translation Rights

Rights Sold:

  • Arabic
  • Bulgarian
  • Chinese (Simplified Character Mandarin)- for sale mostly in China
  • Chinese (Complex Character Mandarin) - for sale in Taiwan and Hong Kong
  • Chinese Short Form McGraw-Hill Singapore
  • German
  • Greek
  • Indonesian
  • Japanese
  • Korean
  • Lithuanian
  • Portuguese- for sale in Portugal, Brazil, Cape Verde, Angola, Mozambique
  • Russian
  • Spanish
  • Thai

Sample Covers:

 

Portuguese

Russian

Chinese

Hong Kong Version

 

Copyright © 2007, Joseph Michelli, PhD. All rights reserved.