MANAGEMENT REPORT
Abstract.
This paper shall entail the general overview of the management of the Starbucks organization under the leadership of Kelvin Johnson who has been appointed as the CEO after Schultz who was the former key leader. Kelvin Johnson’s aspect of servant leadership style is clearly illustrated. His approaches to different issues like marketing, human resources, business strategies, and ethical consideration are to be admired. There is a critical evaluation of Johnson’s leadership style; appreciative inquiry technique, on how he has successfully used it despite the few challenges. Johnson’s possession of a strong personal brand that qualifies him as a global leader has been discussed in depth. Two major recommendations to kelvin on his leadership style are discussed. Finally, Johnson is seen as an effective servant leader whom all aspiring future leaders should emulate.
Introduction
Leadership is paramount and essential to the current growth of an institute, company, or a nation. For the success of any institute, a leader plays a great role to ensure its mission and vision are achieved. A leader should be able to share his vision, motivate the team, and have a commitment that will inspire performance. The leader should credible and have inspirational qualities. This can only be achieved when the leader is approachable, have trust, competent, diligent, and supportive. The ability and capability of any leader make one earn confidence with the teammates. One to qualify as a successful leader it is key to always assess oneself and comprehend the knowledge one has in a given area. This help one to identify the strengths and any areas for development, consequently able to set realistic goal and major on the strengths, interests, and capabilities. Leaders aware of the abilities and capabilities in them can do great to see any organization’s mission and vision manifest. This paper shall discuss a leadership style for Kelvin Johnson the CEO of Starbucks who has made a name in leadership. Immediately he gets into power a tremendous impact is felt. The paper also looks into the different approaches he uses and the leadership skills he effectively employs to grow the organization.
Kelvin Johnson’s Servant leadership style.
Servant leadership style is clearly illustrated in the life of Kelvin as his major aim is serving the needs of others. His primary aim is to grow employees and help them achieve their goals. ABDURAHMAN, 2017 Kelvin can put the employees first by understanding their personal needs and desires, empower them in knowledge and this helps them grow their careers Sfakianaki, and Sevdali,2018. Kelvin feels an obligation to serve his employees, customers, and the community at large when he even allows the employees to study and can freely work elsewhere in the nations after attaining their bachelor’s Degree. He sacrifices his well-being to aid employees to succeed Bokhari, and Hyder, 2017. Kelvin can create a conducive environment of fairness in the working places and this leads to high levels of interpersonal helping behavior. He is more information-driven and analytical in every area he decided to venture in Cathro, and Gilbertson, D., 2017. He can employ more disciplined strategies based on priorities which have resulted in a wider growth of the store in the USA. Kelvin has also worked to improve customer service pushing the company. A stronger financial performance has been created with his good methodical tactics put in place de Lourdes Viloria,2017. Kelvin’s ethical consideration in support of his customers to make informed and improved nutritional choices which have formed a part of the foundational change to the global business Sfakianaki, and Sevdali, 2018. His desire to help the employees have seen the organization grow into the level it has risen to. A few challenges have been experienced, for instance, a case of racial discrimination of one of the clients where he was quick to apologize.The partners a time work under stress because of too much work and this leads to underperformance.He would prefer a few shorthands that will see the partners have good pay.
Critical Evaluation of Johnson’s leadership style
Leadership is key to any organization’s growth. Kelvin Johnson uses the appreciative inquiry method to run the Starbuck’s and this caused the tremendous growth experienced. In this form of leadership, he can work with the partners well after realizing their strength. ABDURAHMAN,2017 Johnson has taken a more measured approach in rolling out of the Reserve and roaster store which would see a move to more financial discipline to the business and a higher return to the shareholders Nuñez, and Palma., 2018. The opening up of mobile order app to people who are not members of the rewards program and this has expanded the delivery service Cathro, and Gilbertson, D., 2017. This has marked a great track record in terms of turning financial performance around.
He is in great support for customers to make informed and improved health choices and this has formed the part of a foundational change to the global business. There is an increased healthy option and the communication to customers made clear so as they can understand how to make informed choices Bokhari, 2017. There is full transparency to the customers on the nutritional value of its food and drink offering. All this has brought the promotion of healthy eating and drinking patterns de Lourdes Viloria, M., 2017. Managers can experience the intended Starbucks organizational culture, the suppliers who provide nutritional supplies have an increased demand for their products.
Johnson can take immediate action the moment two blacks were arrested loitering. He was able to address the potential discrimination issues methodically by also apologizing on time Sfakianaki and Sevdali, I., 2018. The innovation of more beverage products and services have seen the coffee market register higher returns to the shareholders Cathro, and Gilbertson, 2017. Johnson is customer-focused as he prioritizes customers’ needs by ensuring all that concern them is given more weight to make them feel part of the growth. He has come up with ease in communication to ensure customers make informed choices ABDURAHMAN, 2017. Through the appreciative inquiry technique, he can influence the partners to own up and run with the organization’s mission and vision. Starbucks has good relations with the employees whom they refer to them as partners as this fosters a sense of equality and a shared vision de Lourdes Viloria, 2017. The slogan in the company: we are all partners in the shared success; help members develop a sense of belonging in the company.
There is a clear disconnect between what Starbucks believes that all should work with them and the negative experiences of the previous and current partners are going through Nuñez,2018. Partners feel overworked as they are always running around like crazy people and receiving less pay. There is an initial warm welcome to new hires who feel valued and honored as they are made to love the brand but after a time they realize mistreatment of little pay. The stores are highly understaffed and Starbucks demands the partners to do several tasks at a go which is quite overwhelming Bokhari and Hyder, 2017. Previous employees say that Starbucks tends to use people up and spit them out. The slow and careful de-staffing has created real problems during peak business hours. Unfair compensation, inappropriate staffing and untrue cooperate service is a problem that needs to be fixed for a smooth stay of a partner in the company Cathro and Gilbertson,2017. Some shareholders would prefer Schultz’s strategy for growth as they were due to benefit from him for growth employees and suppliers associated with Teavana stores.
Johnson’s strong personal brand as a global leader.
Johnson is a passionate servant leader who proudly carries on Starbucks legacy of the great human connection. He has a strong personal brand as a global leader because of his long experience in scaling global business as CEO de Lourdes Viloria, 2017. He is committed to the invention and has a heart that goes beyond the world business. He has not only dealt with profit-making organizations but also a nonprofit organization with a connection to technology and skills needed to meet their social missions ABDURAHMAN, 2017. Johnson’s Servant leadership style is clearly expressed by his transparency, authenticity, and ethical considerations in various instances Sfakianaki and Sevdali, 2018. He is committed to helping customers make informed and improved choices on nutritional health matters which have formed the foundational change to the global business. This has become a success with the introduction of healthy options and improving how it communicates with the customers on making good choices Bokhari and Hyder, 2017. He can come with sales growth in challenging market conditions which he does by introducing varieties of beverages. This is also seen when he takes an approach to promote more food and drink as key elements of the Starbucks brand. His quick response to the racial discrimination scenario shows the ability to take tough decisions based on sound analysis as he apologizes in the media on time Cathro and Gilbertson, 2017. Johnson is a servant leader who wants the well-being of the partners when he ensures 70% of them who are students and aspiring students receive full tuition to their academics and on completion can work in other sectors in the nations.
Recommendations
Kelvin Johnson is a true servant leader who is to be admired and trusted as described by Schultz the former CEO. Kelvin should build on the current success, maintain Starbucks’ sustainability and competitive advantage by giving more focus to the partners and inventing in more areas in line with the advanced technology. Current and former employees are up in arms complaining of the poor pay Sfakianaki, and Sevdali, 2018. Given a chance, they would not prefer taking the free college fee paid for their academics which is only necessary for a base level but they seek better pay. The employees cannot afford to pay for their basic needs i.e. rent and groceries. The employees are stressed as they are overwhelmed by hard labor in the given shifts ABDURAHMAN, 2017. The organization’s mission and vision to be actualized in the now and future, the partners should be made to be part of the success of the company and also their personal lives.
I would recommend Johnson employ leader-member exchange theory which is key to how the leader influences employees. There should be a good relationship between leader and employees and between employees and other employees de Lourdes Viloria,2017. Johnson should ensure fair compensation to the partners who should be paid well in line with the growth of the organization as a former employee put it that, ‘it’s a cult that pays$9 per hour. ‘Appropriate staffing should be made Bokhar and Hyder,2017. A current employee complains that it is exhausting being only alone on the floor and expected to do much. This lead to a burn out that result in poor working conditions as there is also no customer connection. On is expected to do several tasks ago as most staffs are understaffed. There should also be true to cooperate support ABDURAHMAN, 2017. The employees should not be seen as machines in place but should be supported in taking care of their personal development. Johnson should also advance in technology to get updated in the technical know-how in marketing, human resources, mobile and digital platforms. This would see kelvin on top as he can easily have a competitive advantage.
Conclusion
Kelvin Johnson is an effective role model to be emulated by aspiring leaders. He is a passionate leader who proudly carries the Starbucks legacy and of great service to many partners in the world. His servant leadership style is based on transparency, authenticity, and ethical consideration. He can take tough decisions based on sound analysis. The great desire in him to meet the needs of his partners, customers, and the community at large is overwhelming. His skill to use technology to enhance the customer experience is to be emulated. Change is registered in Starbucks immediately he got into leadership. For instance, turning financial performance around shown by a track record made. He can influence the partners to embrace the organization’s mission and vision around. His technological know-how gives him a better chance to invent new product services. Johnson is an effective leader as he can demonstrate good practice ethics, authenticity, and entrepreneurial skills. He has put his employees first, understood their personal needs and desires, has empowered them at the base level with free college fee, and has aided them to develop their careers.
References
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