An individual’s leadership performance may depend on the ability, commitment, and values to effectively guide others to grow into self-actualizing members of the organization. Through the process of training, coaching, and collaboration, leaders may assist stakeholders to evolve and become empowered to sustain performance outcomes. According to Seligman and Katz (Watson, Papamarcos, Teague, & Bean, 2004), values are those traits that individuals posses that define desirable behaviors and actions. These values may determine an individual’s ability to perform in the workplace. Value-driven organizations create a cycle that through leadership efficacy feeds value creation to every stakeholder in the organization. Therefore, it is imperative the organization attracts and retains those individuals with values closely aligned with the organization (Watson et. al., 2004).
In 2008, as Starbucks stock prices continue to fall, Chief Executive Officer Jim Donald was dismissed giving way for the return of former chairman and architect of the world’s leading roaster of specialty coffee (Harris, 2008). Howard Schultz, who served as CEO from 1987 to 2000, retuned as president of the organization, promising to reconnect the business to customers by reestablishing the “emotional attachment” and value-driven structure the Seattle based company once experienced during his transformational leadership (Harris, 2008). The commitment of Schultz was to continue delivering a consistent experience that would create satisfied customers by creating a new customer loyalty program and leverage its resources and relationships with stakeholders (Harris, 2008). This paper will examine the company’s value-based structure and describe the organization’s value-based leadership practices. In addition, an analysis of the corporation’s vision, mission, and values will be discussed.
The restructuring at the executive level provided Starbucks an opportunity to make transformational initiatives focused on customer experience and leveraging of resources to maintain sustainability and a competitive advantage over external threats. Weatherup (as cited in Harris, 2008) a Starbucks board member acknowledged the contributions and visionary leadership to the unique and innovative value-driven focus on the customer experience Schultz has executed. In today’s volatile corporate environments, it is imperative for organizations to reestablish credibility and ethical practices by implementing value added strategies. Frederick (as cited in Klenke, 2005) suggests that an organization’s social role is to learn acceptable behaviors through volunteer social responsibility and ethical principles. Furthermore, Hitt (as cited in Klenke, 2005) suggests that leadership and values are conducive to effectiveness.
For this reason, as Burn (as cited in Klenke) posits, leadership is a process of values to the degree followers are engage, motives are shared, and...