• SHRM Foundation’s 5th DVD

• Filmed at Starbucks Headquarters,

Seattle

• Featuring Wayne Cascio, Ph.D.

• Comprehensive Interviews

• Officers, Managers and Employees

Video OverviewVideo Overview

• SHRM Foundation’s 5th DVD

• Filmed at Starbucks Headquarters,

Seattle

• Featuring Wayne Cascio, Ph.D.

• Comprehensive Interviews

• Officers, Managers and Employees

Video SynopsisVideo Synopsis

• Introduction

• A Business of People

• Description of Starbucks’ Business

• Mission and Guiding Principles

• Corporate Social Responsibility

• Working Environment and Trust

• Health Benefits and the Relationship with Partners

• The Role of HR

• Advice for Small Companies

Company OverviewCompany Overview

United States:

• 50 States + D.C.

• 6,281 Company-Operated Stores

• 3,533 Licensed Stores

International:

• 39 Countries

• 1,553 Company-Operated Stores

• 2,361 JV & Licensed Stores

United States:

• 50 States + D.C.

• 6,281 Company-Operated Stores

• 3,533 Licensed Stores

International:

• 39 Countries

• 1,553 Company-Operated Stores

• 2,361 JV & Licensed Stores

Company OverviewProducts

• 30 Blends of Coffee

• Handcrafted Beverages

• Merchandise

• Fresh Food

• Starbucks Entertainment

• Global Consumer Products

• Starbucks Card

• Brand Portfolio (Tazo, Ethos, Seattle’s Best)

Company OverviewProducts

• 30 Blends of Coffee

• Handcrafted Beverages

• Merchandise

• Fresh Food

• Starbucks Entertainment

• Global Consumer Products

• Starbucks Card

• Brand Portfolio (Tazo, Ethos, Seattle’s Best)

Company Overview

Headquarters: Seattle, WA

IPO: 1992, 165 Stores

2006 Sales: $7.8 billion

Employees: 140,000

Company Overview

Headquarters: Seattle, WA

IPO: 1992, 165 Stores

2006 Sales: $7.8 billion

Employees: 140,000

DiscussionQuestions

How can companies build a relationship based on trust with their employees?

• Provide support

• Share success

• Extend ownership

How can companies build a relationship based on trust with their employees?

• Provide support

• Share success

• Extend ownership

How does a company live by its guiding principles?

• Use them as a point of reference

• Make decisions based on them

• Embed them in interactions with customers and partners

How does a company live by its guiding principles?

• Use them as a point of reference

• Make decisions based on them

• Embed them in interactions with customers and partners

What does workforce diversity mean for an organization?

• Diverse leadership• Different styles• Impact on value

What does workforce diversity mean for an organization?

• Diverse leadership• Different styles• Impact on value

• Audit management decisions

• Survey employees

• Act based on frontline feedback

How does a company remain faithful to its mission?

How does a company remain faithful to its mission?

• Audit management decisions

• Survey employees

• Act based on frontline feedback

With whom does the company interact through Corporate Social Responsibility?

• Customers• Suppliers• Communities

With whom does the company interact through Corporate Social Responsibility?

• Customers• Suppliers• Communities

• Put people first

• Accessible top management

• Homogeneous organizational environment

How do companies create a “Top-100” environment?

• Put people first

• Accessible top management

• Homogeneous organizational environment

How do companies create a “Top-100” environment?

What should companies know about trust?

• Trust is earned• Trust is fragile• Trust needs to be nurtured

What should companies know about trust?

• Trust is earned• Trust is fragile• Trust needs to be nurtured

How can health benefits contribute to build trust?

How can health benefits contribute to build trust?

•They safeguard employees’ well-being

•They create engagement

•They are valuable for the employee, for the company and for the community

•They safeguard employees’ well-being

•They create engagement

•They are valuable for the employee, for the company and for the community

What is the role of HR in a business made of people?

What is the role of HR in a business made of people?

• Provide strategic input

•Assist the organization’s line managers

•Promote organizational culture

• Provide strategic input

•Assist the organization’s line managers

•Promote organizational culture

Financial HistoryFinancial History

Annual Sales

Com

pound A

nnual G

row

th

Rate

s

1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 Q1’07 Q2’07 Q3’07

ComparisonComparison

Five ImportantLessons

5 Lessons5 Lessons

1. Trust is the foundation of performance 2. Trust is fragile3. Communicate often in ways that support

core values 4. Involve employees in decisions that affect

them5. Survey employees regularly about how

leaders’ behavior supports the company’s mission and values