building & sustaining a culture of trust the starbucks story dave pace evp, partner resources...
TRANSCRIPT
![Page 1: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/1.jpg)
Building & Sustaining a Culture
of TrustThe Starbucks Story
Dave PaceEVP, Partner Resources
Starbucks Coffee CompanyOctober 3, 2006
![Page 2: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/2.jpg)
Building and Sustaining a Culture of Trust
October 3, 2006 2
Discussion Framework
• The Crisis of Trust
• The Starbucks Story
• The Evolving Role of HR
• Q&A / Discussion
![Page 3: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/3.jpg)
October 3, 2006 3
Building and Sustaining a Culture of Trust
Overview
• Institutions are facing a crisis of trust
– Business
– Government
– Sports
– Religion
![Page 4: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/4.jpg)
Building and Sustaining a Culture of Trust
October 3, 2006 4
Overview
• However, trust is at the foundation of exceptional performance
– Risk-Taking
– Accountability
– Service
– Creativity
– Continuity
![Page 5: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/5.jpg)
October 3, 2006 5
Building and Sustaining a Culture of Trust
The Challenge
• How can organizations build and leverage trust as a competitive advantage?
• What is the role of Human Resources in supporting this movement?
![Page 6: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/6.jpg)
Building and Sustaining a Culture of Trust
October 3, 2006 6
The Starbucks Story
• Founded in 1971 / In current form since 1986
• Fiscal year 2005 revenues - $6.4 billion (+20%)
• 36 countries
• 11,000+ stores / opening 5 per day
• Over 130,000 partners / Hiring more than 200 per day
• Stock has grown 6,500% since going public in 1992
![Page 7: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/7.jpg)
October 3, 2006 7
Building and Sustaining a Culture of Trust
The Starbucks Story
• Our business is multi-faceted• Retail – the Starbucks you know• Manufacturing – 4 roasting plants around the
world• Consumer Products
– Grocery– Ice Cream– Ready-to-Drink– Liqueurs
• Entertainment– Music– Film
![Page 8: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/8.jpg)
Building and Sustaining a Culture of Trust
October 3, 2006 8
The Starbucks Story
• Our Work Environment– Fortune Most Admired Companies– Fortune 100 Best Places to Work– World Class engagement as measured by Hewitt &
Gallup– Astonishing employee involvement in communications– Broad based support for our partners
• Healthcare
• Stock Options
• 401K Match
• Tuition Reimbursement
• ESPP Discounts
• Partner Connection Clubs
• CUP Fund
![Page 9: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/9.jpg)
October 3, 2006 9
Building and Sustaining a Culture of Trust
The Starbucks Philosophy
• We don’t do these things for our partners because we are a successful company …
We are a successful company because we do these things for our partners
![Page 10: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/10.jpg)
Building and Sustaining a Culture of Trust
October 3, 2006 10
How do we bring it to life?
• Define what you stand for- Our Mission and Guiding Principles
• Communicate it broadly and often- Leadership Conferences
• Use it as a decision filter- What you don’t do is as powerful as what you do
• Allow your organization to hold you accountable - Mission Review
• Measure your progress- Partner View Surveys
![Page 11: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/11.jpg)
October 3, 2006 11
Building and Sustaining a Culture of Trust
Making It Global
• Trust travels
• Values travel
• Defining a Best Place To Work
• Flex on the tactics, not on the values
![Page 12: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/12.jpg)
Building and Sustaining a Culture of Trust
October 3, 2006 12
Fragility
• Trust is an easily violated relationship
• Actions must be consistent with words
- Labor Hours
- Apron Pockets
- Facility Maintenance
• Recovery is not impossible, but it takes a long time
![Page 13: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/13.jpg)
October 3, 2006 13
Building and Sustaining a Culture of Trust
The Evolving Role of Human Resources
• The function is overly fixated on being a “Strategic Partner”
• Many in the function stop there
• Must be equally balanced with “Employee Advocate”
• Once at the table, advocacy is more critical
• Focus on enabling, not controlling
![Page 14: Building & Sustaining a Culture of Trust The Starbucks Story Dave Pace EVP, Partner Resources Starbucks Coffee Company October 3, 2006](https://reader035.vdocuments.site/reader035/viewer/2022062409/56649cd05503460f9499c2c6/html5/thumbnails/14.jpg)
Building and Sustaining a Culture of Trust
October 3, 2006 14
Summary
Trust is possible, but it’s hard
It requires you to be humble and stay humble
The benefits are substantial