HOWARD SCHULTZ :

TRANSFORMATIONAL
LEADERSHIP

BY: MELISSA YOU

Idealized Influence
■ By being strong role model for followers, they identify
with the leader and emulate them.
■ Howard Schultz stated that Starbucks isn’t just another
coffee company, but it is about creating a company that is
designed to strengthen economic and social development
in local communities, while along caring for the
environment.
■ The goal exceeds many product-based companies as it
strives to create opportunities for employees, farming
communities, investors, and consumers.
Inspirational Motivation
■ Inspiring through motivation to commitment and
engagement in shared vision
■ Howard uses his blue-collar upbringing and struggles that
still motivate him to this day
■ He is very open about his personal views
■ Howard Schultz’s speeches are genuine and emotionally
evoking, he uses stories to portray the goals and the
climate of the company
– A barista became friends with a regular customer who
needed a kidney transplant and they ended up being a
match.
Intellectual Stimulation
■ Leaders encourage follower to voice the opinions and
stimulates their innovation and creativity
■ Despite the profit opportunities for Starbucks, Howard
Schultz refused to lower the quality of the products
■ Found an approach for the company that would be the
“third place” in the most visited site after home and work.
His plan to attract consumers to come to the coffee shop
was with inviting decors, calming music, and speedy Wi-Fi
so customers feel at home.
Individualized Consideration
■ Leaders who provide supportive climate in which they
listen carefully to the needs of followers
■ Howard Schultz made Starbucks the first company in the
United States to offer health insurance and benefits to
both full-time and part-time employees
■ The College Achievement Plan helps employees cover
100% tuition coverage for a first-time bachelor’s degree
through Arizona State University’s online program ranging
from 80 different undergraduate programs to choose
from.