Pour Your Heart Into It (48 page)

Mission Statement and Mission

Review system, 94, 131–32, 139, 180, 256, 283, 285, 290

Mizrahi, Yves, 144, 192

Moix, Laura, 183

Monk, Thelonius, Jr., 213

Moore, Dan, 206, 208, 209

Moore, Daryl, 108–9

Morogiello, Frank, 20

Morris, Kathleen, 311

Morris, Roly, 194

Mt. Hood Group, 131

music, 210–14, 252

Newsweek,
280

New York, 192, 213, 243, 312

New York Times,
19, 306

Nike, 77, 248, 260, 261–63, 264

Niven, Gay, 60, 101, 289

Nordstrom, 258

North American Coffee

Partnership, 222

Northern Michigan University, 17–18

Oldenburg, Ray, 120

Olsen, Dave, 81, 137, 160, 170, 175, 213, 249, 250, 278

Café Allegro run by, 81–82, 84, 103

CARE and, 294, 295, 296, 298

coffee extract and, 218

coffee prices and, 231, 233–34, 236, 238

coffee workers and, 298–99

at Il Giornale, 72, 74, 81–87, 88, 89, 90, 154

Il Giornale-Starbucks merger and, 103, 104

nonfat milk issue and, 166, 167

Open Door, The
(Keller), 267

Open Forums, 158–59, 283

passports, 256

Peet, Alfred, 29–30, 33, 34, 35, 55, 117

Peet’s Coffee and Tea, 29, 30, 33–34, 84, 192

Starbucks’ acquisition of, 55–57, 58

Starbucks’ expansion and, 116

Starbucks’ sale and, 90–95

Pepsi-Cola, 196, 208, 221–25, 300, 331

Peters, Tom, 190

Pew Charitable Trusts, 304

Pinaud, Dawn, 82, 88

Poer, Vivian, 296

Porras, Jerry I., 140, 164, 332

posters, 253

Prentice, Arnie, 71–72, 75, 79, 151

Price Club, 148

Procter & Gamble, 328

Purcell, Ken, 150

Pursuit of WOW!, The
(Peters), 190

Redhook Ale Brewery, 226

Reed, Barbara, 251

restaurants, 272

Reynolds, George, 221

Rickey, Branch, 54, 55

Ripken, Cal, 336

Ritt, Steve, 147

Roberts, Harry, 211,212, 226

Rodgers, Jack, 76, 77-78, 79, 112, 154, 172

Rogers, Greg, 207, 209

Roosevelt, Theodore, 153

Rothko, Mark, 306

Rubinfeld, Arthur, 117, 144-45, 192, 311, 312, 315

Saint-Exupéry, Antoine de, 11

San Francisco, 116-17

Sarkowsky, Herman, 78-79

Sarkowsky, Steve, 78, 79, 93

SBC, 192

Scenic America, 280

Schroder Wertheim, 184

Schultz, Elaine “Bobbie”

(Howard’s mother), 3, 13, 15-17, 18, 39, 45-46, 63, 123, 130

Schultz, Fred (Howards father), 3-4, 7, 8, 13, 14, 15, 16-17, 63, 124, 125, 130, 138

illness and death of, 45-46, 123-25

Schultz, Howard:

childhood of, 3-4, 12-20, 73

at college, 17-18, 20

first coffee-bar enterprise of,
see
II Giornale at Hammarplast, 22-23, 25

sports played by, 13-14, 16-17

Starbucks acquired by,90-95, 99-100, 111, 112, 143, 144

Starbucks joined by, 4, 38-48

Starbucks left by, 63-64

at Xerox, 21

Schultz, Michael (Howard’s brother), 3, 13, 18, 19, 45

Schultz, Ronnie (Howard’s sister), 1 3

Schultz, Sheri Kersch (Howard’s wife), 22, 23, 38, 40, 42, 44-47, 53, 63, 6 9, 147, 198-99, 230-31, 232-33, 320

career of, 22, 23, 40, 45

Schumacher, E. F, 275

Seymour, Dave, 101, 282

Shattuck, Mayo, 184

Shaughnessy, Martin, 1 36-37

Shaw, George Bernard, 38

Shennan, Jamie, 150-51, 183, 245

Siegl, Zev, 29, 31, 32, 33

Simon, Ralph, 213

Sinegal, Jim, 148

small businesses,
276-77

Small Is Beautiful: Economics as if People Mattered
(Schumacher), 275

Smith, Charles E., 330–31

Smith, Orin, 135, 154–56, 160–63, 175, 183, 282, 327

background of, 154

Christmas of 1995 and, 319, 320, 321

coffee prices and, 231–32, 233, 237, 239–40, 241

made Starbucks president, 196, 203–4, 230

profit improvement plan of, 239–40

Solo, 89

Stafford Award, 280

Starbucks Coffee Company (original company), 25–37

coffee drinks and, 33, 52, 55, 58–62

expansion of, 39, 40–41, 43

founding of, 11, 17, 29, 31–35

Il Giornale merged with, 104–5, 106–8, 307–8

as investor in Il Giornale, 66, 67, 71

logo of, 33, 108

name of, 32–33, 106–7

Peet’s Coffee and Tea bought by, 55–57, 58

roasting plant of, 27, 144

Schultz’s buying of, 90–95, 99–100, 111, 112, 143, 144

Schultz’s joining of, 4, 38–48

Schultz’s leaving of, 63–64

selling of, 90–95

Starbucks Corporation:

advertising by, 245–46, 247, 250, 262–66, 270, 275

annual reports of, 256–57

birth of, 100–109

brand reputation of, 228–29, 243–66, 273, 277

causes supported by, 255–56, 281, 292–93, 294–97, 300

community awareness of, 254–56, 259, 281, 292–93

competitors and, 165, 167, 172, 191–92, 259, 278, 279, 280, 311

criticisms of, 277–81, 293–94, 300, 306, 311, 333

design personality of, 306–17

employees of,
see
Starbucks employees financing of, 5, 149–51, 154, 172, 186

franchising eschewed by, 145, 165, 172–73

future of, 330–33, 334

growth and success of, 5, 19, 54, 57, 68, 104, 105, 113–19, 122, 138, 142–45, 154–56, 172, 190–204, 219, 244, 247, 257, 275–77, 279–82, 286–88, 295, 300, 306–7, 311, 312, 332

identity crisis in, 259–60

logo of, 108, 309

Mission Statement and

Mission Review system of, 94, 131–32, 139, 180, 256, 283, 285, 290

money lost by, 140–43, 146, 148–49, 295

name of, 106–7

new markets entered by, 111–14, 115–17, 190–92, 243–44, 254–55, 279–80, 312

offices of, 144, 195–96, 259

origins of,
see
Il Giornale;

Starbucks Coffee Company partnerships of, 173–74, 196, 208, 221–25, 258, 267–71, 272–74, 300, 331

profit improvement plan at, 239–40

public stock offerings of, 105, 143, 162, 180–89, 190, 219

quality control of, 36, 171–75, 238–39, 242, 250, 259, 262, 268–69, 273

research and development facilities of, 219–20

roasting facilities of, 144, 195, 197

self-renewal moves in, 215–16

size and ubiquity of, 259, 263, 265, 275–77, 282, 321, 325

stock prices of, 185, 186, 187, 188, 189, 235, 319, 327, 329

stores of,
see
Starbucks stores values and guiding principles of, 5, 6, 8, 83, 102, 105–6, 157, 158, 160, 165–66, 173, 175, 179–84, 197, 200–201, 276–78, 292–94, 300–301, 331, 332, 335

Starbucks employees (partners), 5–6, 100–103, 108–9, 138, 157–60, 193–94, 245, 282–91

baristas, 5–6, 59, 173, 194, 246, 249, 250–51, 262, 282, 286–87

benefits for, 125–30, 283, 285

comment cards for, 132

direct communication among, 285

diversity in, 284–85

Open Forums and, 158–59, 283

in original company, 56–57

part-time, 126, 127–28

senior managers, 283–84

stock option plan for, 132, 133–37, 172, 283

surveys of, 286

training of, 194, 250–51

Starbucks Foundation, 7, 300

Starbucks International, 196, 204

Starbucks stores, 251–54

breve bars, 316

brochures in, 256, 294

design and construction of, 108, 145, 252, 253, 278, 306–17

doppios, 316

Grand Cafés, 311–12

Grand Opening events at, 255

merchandise in, 253–54, 255, 296, 318–20, 325–27

as oasis, 119

romance of, 119

site selection for, 144–45

social interaction at, 119–22

as Third Place, 5, 120–22, 252, 265, 281, 294, 311–12

Stroum, Sam, 78–79

supermarkets, coffee sold in, 32, 34–35, 165, 235, 246, 247

Starbucks and, 258, 316, 328

Sweete, Brian, 224

Table Talk
(Coleridge), 243

Tisdel, Jennifer, 211, 254–55

Tokyo, 244

United Airlines, 267–71, 272, 273, 274

Valencia, Don, 216–20, 222, 226–27, 229, 296, 329

Vancouver, 89–90

Aquarium in, 300

Verona, 52–53, 59, 68

Wager, Deidra, 160, 194

Wall Street Journal,
188

Wal-Mart, 280, 306

Walters, Tom, 101

Washington, D.C., 190–91, 192

water, 249–50, 269

Watson, Thomas J., Jr., 164

Weatherup, Craig, 221, 224

Wertheim Schroder & Co., 184

Williams, Mary, 213, 238, 249

Winfrey, Oprah, 265

Wollner, Howard, 195

Xerox, 21

Young Presidents

Organization, 330

Zion Preparatory Academy, 281

ACKNOWLEDGMENTS

Collaborating on a book about something as personal as a life story and the internal struggles involved in building a company requires a high degree of mutual respect and trust. Dori Jones Yang and I were fortunate to develop that early in the writing process, which proved to have lower lows and higher highs than we could have anticipated. What kept us centered during the two-year experience was a strong, shared belief that others could benefit from, and perhaps be inspired by, the stories and insights behind Starbucks’ success.

Dori and I both would like to thank the seventy individuals, inside and outside Starbucks, who agreed to be interviewed during the research for this book, as well as the fifty people who read and commented upon early drafts of the manuscript. Without their memories, stories, insights, and suggestions, this book could not have been nearly as lively or complete. In my office, Georgette Essad, Nancy Kent, and Christina Prather helped us in innumerable ways with this book over the course of two years.

Although many Starbucks partners are named in this book, many others who are not named here have made invaluable contributions to the company and have shown by example what it means to “pour your heart into it.” My thanks to them for their efforts and for their commitment.

We are also profoundly grateful to Joel Fishman of Bedford Book Works, our literary agent, who sprinkled stardust on this project and transformed it forever. And we’d like to express our appreciation to Rick Kot, our editor at Hyperion, who embodies the balance described in this book: meticulous and professional as an editor, sensitive and thoughtful in human relations.