This paper will focus mainly on the initial stages of the organization's formation.
At the core of any successful organization is effective communication. It is the underlying theme of effective change management, decision making, human resource practices, and this paper. The main reason why starbucks is as successful as it is today is because the top executives created open lines of communication with each other, employees, and especially with customers. It is the belief of any successful manager that the correct establishment of effective communication of an institution will greatly affect the outcome and ability to reach their goals and vision.
From the very beginning, Starbucks coffee had been a small, retail store in Seattle, Washington. It was open for nine years with four profitable stores that exclusively sold the fresh dark-roasted coffee that later became a signature for success. It wasn't until chairman and co-founder Howard Schultz had been introduced into the picture in 1981 that he envisioned Starbucks as a successful coffee bar similar to the ones he had seen in a business trip to Milan, Italy. At first, the owners were pleased with their business and did not want to change into a beverage-serving establishment. He knew he needed to change the management in order to fulfill the dream he had envisioned. When Schultz became head of marketing for Starbucks, it was then that he took key steps to building a successful empire by using the most powerful tool in change management: creating a vision, having effective communication with key stakeholders, and finally building rapport with employees.
Schultz began by communicating his vision to the owners of Starbucks, and how this vision could create a thriving organization. He saw how successful coffee bars were thriving in Italy and wanted to model this by creating many coffee shops where people could meet and conduct business. For any successful change of management, there must be a vision. This vision will act as the foundation for change and the desired goal or outcome. Once the vision is illustrated, the next step is communicating with the key stakeholders.
Communicating with key stakeholders ensures that everyone is on board with the vision and shares the desire or passion to see the goal. This is often a very difficult aspect of getting everyone "on board", and can make or break the outcome of the management change. In this case, Schultz used the common goal that he knew his partners had in common: the passion to make the highest quality coffee. Schultz assured that they would be able to maintain the quality of coffee production regardless of how many stores they opened.