A long-standing recommendation from trade books and popular press articles, as well as reality television, is that top management of any company should spend time working on the frontlines, assembly lines, or shop floor, so that they get a sense of what their employees really encounter. Following a recent real-life application of that recommendation, Starbucks’s relatively new CEO came away with just the sort of insights promised by such efforts. Those insights in turn promise to have implications for stores throughout the global coffee chain.

In particular, Laxman Narasimhan believes that there are too many combinations of cups and lids available. As a result of this variety, the chances of any one lid or cup being out of stock in a store is unnecessarily high. Ensuring appropriate stocking of the approximately 1,500 combinations also imposes significant labor, logistics, and tracking costs. By simplifying these basic packaging elements, Starbucks could both save money and improve customer satisfaction (by reducing stockout risks).

Beyond better matching the available cups and lids, Narasimhan wants to expand Starbucks’s sustainability efforts by innovating more ecologically friendly options. Citing its existing commitment to sustainability, including top innovations that reduce demands for straws, the CEO suggested that further efforts might focus on the cups themselves and how they could be made more efficiently.

But these insights reflect what he calls the “factory”—that is, the back end of operations. Narasimhan also explained his sense that on the frontlines, Starbucks is theater, and the goal of any theater should be to spark connections. He accordingly has initiated two-hour connection meetings for the entire company. During these connection opportunities, local employees and managers will join together to play games, taste test new coffee options, and participate in team-building exercises. Narasimhan hopes to prompt greater connections between employees (which Starbucks refers to as “partners”) and customers. In line with that goal, Narasimhan also introduced a new mission statement for Starbucks, timed to coincide with his ascension to the top of the global firm: “WITH EVERY CUP, WITH EVERY CONVERSATION, WITH EVERY COMMUNITY—WE NURTURE THE LIMITLESS POSSIBILITIES OF HUMAN CONNECTION.” The styling, with capital letters, boldface font, and italics, appears purposeful and repeated in various communication channels.

Finally, in addition to asking partners to engage in regular connection meetings and connections with customers, Narasimhan has committed to making his own ongoing connections: He promises to work at least one day a month as a barista in different stores. Signaling his attitude, he offers another interesting stylistic choice. Whenever Narasimhan refers to his job title in writing, rather than capitalizing the acronym, he denotes himself the “ceo.”

Discussion Questions

1. For Starbucks, which is more important to improve: the back end (factory) or the frontline (theater)?
2. Should all CEOs work regularly in frontline or operational capacities? Why or why not?

Sources: Haley Peterson and Gloria Dawson, “Starbucks CEO Worked in Stores and Said He Found Too Many Shortages and 1,500 Combinations for Cups and Lids,” Business Insider, May 3, 2023; Gloria Dawson, “Starbucks Is Holding 2-Hour Employee ‘Connection’ Meetings Amid Heightened Tensions with Some Baristas,” Business Insider, April 25, 2023; Nancy Luna, “New Starbucks CEO Says He’ll Work a Half-Day Behind a Store Counter Monthly as He Plans to Prioritize ‘Human Connection over Every Cup of Coffee’,” Business Insider, March 23, 2023; Starbucks, “A Message from Starbucks ceo: A Revitalized Mission for our Future,” April 24, 2023, https://stories.starbucks.com/press/2023/message-from-starbucks-ceo-a-revitalized-mission-for-our-limitless-future/