Leadership - Howard Schultz on the importance of leading an innovative culture

I’m a big fan of Starbucks as a case study for business students which provides some great examples of linkages between the different aspects of business strategy. In this clip from a recent business conference (London 2011), Starbucks CEO Howard Schultz discusses the importance of innovation in a competitive environment where businesses that stand still face defeat.

Some of the key points made by Schultz

- Any business that expects business to stay stable - business as usual - is dead
- A time of significant change to consumer behaviour = greater need for greater innovation & more disciplined approach to looking for changes in a market
- Product line extensions are not the same as innovations
- Innovations are disruptive to the market (e.g. Apple & iPad; Starbucks going into instant coffee market dominated by Nestle)
- Organisational culture should encourage creative thinking & empower people to challenge the status quo
- Innovation can energise a business - create excitement; make it a better place to work

This talk was given a couple of months after the publication of a book by Howard Schultz titled “Onward” in which he describes the transformation process he has led since returning to Starbucks several years ago.

Here is a brief clip which introduces the book for those who are interested in Starbucks as a classroom case study: