Tuesday, February 1, 2011

Effective communication of the Starbucks I

With Howard Schultz’s vision, the Starbucks was created for people who would enjoy coffee drinking as a romance experience. Starbucks wanted to be the “Third place” between home and work where people can gather, relax and interact freely. The Starbucks offered various coffee drinks that could be created by customers in many different ways and result in unique beverages for each customer. The Starbucks wanted its customers to not only enjoy the final product but also the process of ordering their drinks.
To make the Third place, the leadership thought that the store employees’ ability to engage the customers was the heart of the Starbucks experience by two-way communication. Without flowing in only one direction from the leadership to the employees, the employees listen to the customers’ voice and apply their opinions in the operation. The employees deliver the customers’ feedback to the leadership and make the stores as local cultural events place. The interiors of Starbucks are artistic, and there were many opportunities for local artists and singers in the store bulletin board.
The employees are essential to provide the customers with valuable experience in Starbucks culture. To make this possible, the Starbucks focused on the employee benefits. Howard Schultz’s vision shaped how Starbucks treated its employees. The Starbucks treated the baristas as the “partners” in the business and offered health insurance to all partners, even the part-time employees.
The benefits to the employees enhance the upward communication. Employees get the motivation through the benefits, give the feedback to upward and provide better service to the customers. The Starbucks’ effort to involve the employees in the success of the business paid off. The Frappuccino idea came from the store managers in California. They tested the idea of cold blended beverage with different ingredients and tried with the customers. With customers’ approval, the company reversed its initial refusal and came around. Since then, Frappuccino became an instant hit and drove the store sales and represents the Starbucks as a successful drink item. Seasonal products such as a strawberry and cream Frappuccino and gingerbread latte also came from the stores with employee initiative.
For the Starbucks’ efficient downward communication, open-book management and coaching can be useful approaches. Sharing the company’s vision, financial information and benefits with every employee and coaching and educating the employees to pursue the company’s goals can make effective communication in organization and enhance employee identification with the Starbucks objective.