Podcast Summary: Work For Humans
Episode Title: Starbucks President: It’s Not about the Coffee – Leadership Lessons from Scaling Starbucks from 28 to 1,500 Locations
Guest: Howard Behar, former President, Starbucks North America & International
Host: Dart Lindsley
Release Date: February 4, 2025
Overview
This episode features a compelling conversation with Howard Behar, who played a pivotal role in scaling Starbucks from 28 stores to 1,500 across nearly 50 countries. The discussion centers on how servant leadership, values-based management, and a people-first approach shaped Starbucks’ culture and success. Howard and Dart explore how to maintain organizational soul when scaling, the universality of human-centric leadership across cultures, and the enduring impact of truly serving—rather than managing—people at work.
Key Discussion Points & Insights
1. Servant Leadership as the Foundation
- Howard Behar discovered his calling through Robert Greenleaf's concept of servant leadership, leading with service rather than authority.
- “I'm a leader, but I'm a servant first... we're not in the coffee business serving people, but we're in the people business serving coffee.” (Howard Behar, 00:03)
- Behar insisted on bringing this framework to Starbucks, influencing everything from management practices to how baristas worked.
2. Joining Starbucks & First Impressions
- Howard was introduced to Starbucks via Jeff Brotman (Costco co-founder). After a one-week trial working every job in the company, he recognized the people-centric essence at its core.
- “I smelled the beans, but more I smelled the people.” (Howard Behar, 04:03)
- The culture was not initially oriented towards people; Howard insisted and modeled this shift.
3. Living Core Values through Scale
- Starbucks’ strategy included:
- Above-market compensation
- Full healthcare benefits (for part-timers too)
- Equity for every worker, not just executives
- Equal treatment: “Same health insurance the CEO had, the barista had.” (07:21)
- Starbucks faced shareholder pushback but stood firm: “When people pushed too hard, we used to say, sell your stock.” (07:18)
4. Scaling Internationally: Universal Human Needs
- Behar was instrumental in Starbucks’ global expansion, starting with Japan.
- Human-centric leadership is universal: "Everybody wants to be treated with respect and dignity. Everybody wants to love and be loved. Everybody wants more for themselves and families. And those things are universal." (Howard Behar, 09:05)
- Pushed for gender equity in leadership, even in cultures less accustomed to it, resulting in female presidents of Starbucks Japan.
5. Developing and Living Your Values
- Behar’s leadership grew out of personal searching and a values exercise:
- Condense core values to 8–10, define them and use as a compass.
- Developed his “Six P’s”: Purpose, Passion, Persistence, Patience, Performance, People.
- On persistence: “There are rocks in our rivers...you have to figure out how to get over, around or through that rock...” (Howard Behar, 17:11)
- On patience: "The most important person you have to have patience with is yourself." (Howard Behar, 23:52)
6. Listening & Scaling Culture
- Listening is foundational: “People don’t work on work, they work on dreams.” (31:52)
- Howard’s questions for frontline workers: “What do you like about Starbucks? What don't you like? What would you change?” (Howard Behar, 33:50)
- Action on feedback was non-negotiable. Success correlated with joint venture partners who got the people-first approach.
7. Rules, Recipes, and Agency
- Differentiates between “toolbooks” (guides) and inflexible “manuals.”
- “I like recipes, not rules. But there are some recipes we have to follow...for safety, or cash management.” (Howard Behar, 50:53)
- Real-world story: Managers helped clean a store after hours and brought beer to celebrate. The strict following of the “no alcohol” rule led to unnecessary firings; Howard advocated for nuance and “thank you’s.”
8. Inclusion, Diversity, and Equity
- Diversity is primarily about thought, not just demographics.
- Equity: All get the same opportunity, not the same outcomes.
- Inclusion: Engage all stakeholders—employees, customers, communities, suppliers. (Howard Behar, 28:55)
9. Organizational Structure: People Experience
- The responsibility for experience was everyone’s, not just HR.
- Behar: “I gave two speeches...a thousand times. The first…about people, why we're here. The second...about coffee, how it serves other people...” (Howard Behar, 41:49)
10. Tough Leadership Decisions
- During 2007–08, Starbucks laid off people unnecessarily to “even out” earnings—Howard regrets this deeply.
- “I'm embarrassed about that...we got rid of people that we should never have gotten rid of. Their heart and soul bled Starbucks.” (Howard Behar, 61:16)
- Critique of short-termism and “inshitification” (making products worse for revenue extraction), calling for honesty and performance over time.
11. Personal Mission & Self-Knowledge
- Behar champions nurturing and inspiring the human spirit—his own as well as others.
- “Did he live his life trying to serve others?...If the answer is yes, then I will have accomplished what I set out to do.” (Howard Behar, 68:40)
- He discusses his own journey facing depression and anxiety, resolving it in later years with support.
Notable Quotes & Memorable Moments
- Servant Leadership Defined:
- “I'm a leader, but I'm a servant first. That was just who I was.” (Howard Behar, 13:16)
- Starbucks’ True Product:
- “We're not in the coffee business serving people, but we're in the people business serving coffee.” (Howard Behar, 13:28)
- Standing by Values:
- “We made our minds up early on...for the most part we stayed true to our values...if people push too hard, we used to say sell your stock.” (Howard Behar, 06:08–07:18)
- Mission Statement:
- “To be one of the most well known and respected companies in the world...known for nurturing and inspiring the human spirit.” (Dart Lindsley, 14:30)
- On Listening:
- “If you listen but don't act, it's worthless.” (Howard Behar, 33:50)
- On Leadership Qualifications:
- "I should never have had that job being the president of Starbucks International. I got it because I was persistent." (Howard Behar, 09:05)
- Agency and Rules:
- “I like recipes, not rules...Do what's right for the human being.” (Howard Behar, 50:53)
- On Trust:
- “Trust is what makes the world go round. No trust, no community, no family, no marriage, no organization, no nothing.” (Howard Behar, 56:06)
- Personal Mission:
- “At the end of the day...Did he live up to nurturing and inspiring the human spirit? Did he live his life trying to serve others?” (Howard Behar, 68:40)
Timestamps for Key Segments
- Servant Leadership and “People Business”: 00:03–05:08
- Public Company Values and Benefits: 06:08–08:21
- Global Expansion and People First: 08:45–11:39
- Developing Values and the Six P’s: 16:23–26:00
- Diversity, Equity, and Inclusion Explained: 28:55–31:30
- Listening, Dreams, Acting on Feedback: 31:52–36:04
- Performance, Rules vs. Recipes, Agency: 50:53–56:01
- Layoffs, Short-Term Thinking, and Regrets: 61:12–66:24
- Personal Mission, Impact, and Cost of Work: 68:40–75:21
Conclusion / Takeaways
Howard Behar’s legacy at Starbucks is not only about rapid global growth, but about building organizations where values are practiced, not merely stated. His challenge: treat all people—employees, customers, partners alike—with dignity and agency, and insist that business success and human flourishing are inseparable.
Resources:
- Howard Behar’s “It’s Not About the Coffee” Book
- Contact: Cell - 206-972-7776 | Email - h@howardbehar.com
- Work For Humans Podcast
