In a move that’s sending shockwaves through the business world, Howard Schultz, the former CEO and executive chairman of Starbucks, has stepped down from his post on the company’s board of directors. Schultz guided the coffee giant from a small Seattle-based chain to a multi-national powerhouse, and his departure from the board is seen as a tipping point for Starbucks’ future.
Before becoming the CEO of Starbucks, Schultz had worked as a sales representative for the Swedish pottery company Hammarplast in the 1980s. It was then when Schultz first encountered Starbucks, and it quickly became apparent that he could recognize the company’s potential to go beyond simply selling coffee. After joining Starbucks, he quickly rose through the ranks and was eventually appointed as the company’s CEO in 1987.
Throughout his career at Starbucks, Schultz has made some highly influential decisions. These include launching the “Frappuccino”, introducing a version of the famous Americano, creating the now-traditional red Starbucks take-away cups, and introducing the now-ubiquitous coffee shop experience.This strategy to court customers made Starbucks one of the most successful companies in the world.
Schultz, however, has now decided toleave the boardroom in order to focus on humanitarian efforts. Citing his need to “demand more of ourselves”, Schultz stated in a letter to the board: “I realise this is to the benefit of the company over the longer term.”
Schultz’s departure from the boardroom marks the end of an era for Starbucks. Though Starbucks has seen numerous changes in the past decade — such as new CEO Kevin Johnson and more interactive technology — the leadership that Schultz has brought to the company will not soon be forgotten. With his generous philanthropy and commitment to social responsibility, Schultz’s indelible legacy will continue to be a part of Starbucks.
