When Howard Schultz returned to Starbucks as CEO in early 2008, after a hiatus of nearly eight years, he quickly concluded that growth had become a “carcinogen” and that the company needed a transformation in its culture and operating approach. As he was leading that change process, Schultz also chronicled it in his new book, Onward: How Starbucks Fought for Its Life Without Losing Its Soul. In this edited conversation with McKinsey’s Allen Webb, Schultz answers some of the questions raised in his book, describes the insidious impact of breakneck growth on Starbucks, and explains how he hopes to keep the company on a healthier growth trajectory. Emerging markets have a significant role to play in powering future growth. So does Starbucks’ transition into what Schultz hopes will be the first company to excel as both a retailer and a purveyor—in supermarkets and other mass-market channels—of consumer packaged goods.
Photo: Flickr/Miss Turner