What's the lesson here? Well, being distinctive is important. However, we need to look for fundamental sources of differentiation, not eccentric leadership styles or vague talk about vision. We have to ask ourselves repeatedly: What is really different here? Moreover, we have ask whether there's a true moat around that castle. In other words, even if there is something distinctive about the strategy, the issue of imitability is critical. Will that source of differentiation and competitive advantage endure, or can others easily emulate it?
Musings about Leadership, Decision Making, and Competitive Strategy
Friday, May 17, 2024
The Unfounded Premium for Being Performatively Atypical
Wednesday, May 08, 2024
Succession Troubles at Starbucks
Source: zeebiz |
Now, Schultz may be exactly right in his diagnosis and recommendations for the company. However, one has to wonder about whether he should have publicly articulated these points. After all, Schultz has twice returned to the CEO role after stepping down. Each time, he has resumed leadership of the company after a successor stumbled. In this case, Laxman Narasimhan has only been CEO for a short time (he formally assumed the role in March 2023). Shouldn't Schultz give him a chance to put his stamp on the company before criticizing the firm so publicly? What benefit is there for the company, its employees, and its shareholders if he publishes this commentary on LinkedIn, rather than simply talking privately with fellow shareholders and/or directors and executives of the company? Knowing when and how to leave is a critical part of any succession. Starbucks has struggled mightily in this regard. The Board needs to navigate this situation carefully, lest they find themselves searching for a new CEO again far too soon.