Tuesday, February 20, 2007

Starbucks: Strategy Drives Action

Almost every organization has a mission statement, but how many of them really mean anything? More of than not, they end up sounding like something out of the Dilbert Mission Statement Generator:

Our challenge is to globally network progressive deliverables in order to proactively utilize business solutions to meet our customer's needs.

Sure, it sounds important, but it's not really saying anything, and more importantly, it's not doing anything. One of the things we've learned at Kaleidoscope is that strategy is only useful when it drives action. It's easy to fall in love with the process and create volumes of elaborate documentation full of charts, graphs, and tables, but if they're not driving action, they're just a waste of time and money.

Starbucks does almost everything really well, and their mission statement is no exception. It's clear, powerful, and most importantly, it's obvious that it's the foundation for their everyday operations:

Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.

The following six guiding principles will help us measure the appropriateness of our decisions:

Provide a great work environment and treat each other with respect and dignity.

Embrace diversity as an essential component in the way we do business.

Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

Develop enthusiastically satisfied customers all of the time.

Contribute positively to our communities and our environment.

Recognize that profitability is essential to our future success

From HR to sourcing to pricing, these six guidelines provide a baseline for just everything they do, and give clear direction for action. It's also important to note that they work when facing both inside or outside of the company: they're a promise to consumers as much as they are directives to employees.

Use this mission statement as a benchmark for your next piece of strategic thinking. Ask yourself what it means to consumers, to internal personnel, and how it's going to drive action.

posted by Finn McKenty at 8:23 AM  

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• Brand Inequity