Featured Corporate Story

Starbucks: A Leader Cultivating Leaders

Creating an entire industry requires leadership of the highest order, and from its beginning more than 30 years ago, Starbucks has continued to demonstrate that there are practically no bounds to what focused leadership can accomplish.

From its humble beginnings in the Pike Place Market, Starbucks has become one of the world's most recognized brands, with 6,600 stores in 30 countries and plans for a total of 7,100 stores before this year is over. The specialty coffee company just reported that same-store sales were up 7 percent in May over a year ago, and total revenues for the four weeks month ending May 25 increased 23 percent over the same period last year.

In his talk at Western Washington University's Seattle Business Forum, Starbucks CEO Orin Smith said the company has been able to achieve so much because its focus has always been on creating "a great work experience for our people" and treating them "with dignity and respect." He proudly noted the company's recent inclusion on Fortune Magazine's"Best Places to Work in America" as evidence that the approach has been effective in creating a culture that works.

Having recently acquired two Seattle competitors, Seattle's Best Coffee and Torrefazione Italia, Starbuck's clearly needs effective leaders as it continues to executes a plan for opening three stores per day for the balance of the year. Noting that leaders who climb the ranks but fall short of the senior level usually are people who do not fit well into the culture and its value of treating people well, Smith listed the leadership traits that the company looks for:

Integrity --"If people don't trust you, they won't perform for you."

Vision -- Leaders "know what they want to accomplish with their group.

Passion.

Ability to inspire others.

Courage enough to try--and to fail.

Communication skills -- effective both up and down the ranks.

Competence.

Humility.

Values -- shares and supports the organization's core values.