Onward

About the Author

Howard Schultz, the renowned author of Onward, is not just a name but a force in the world of business. Born in 1953 in Brooklyn, New York, Schultz grew up in a working-class family where he learned the value of hard work and perseverance. His journey from a modest upbringing to becoming the CEO of Starbucks is nothing short of inspirational. Schultz joined Starbucks in 1982 as the Director of Retail Operations and Marketing when the company had just a few stores in Seattle. It was during a business trip to Milan, Italy, that Schultz experienced the vibrant coffee culture that would eventually inspire him to transform Starbucks into a global phenomenon.

Schultz's leadership is characterized by his deep commitment to the concept of "conscious capitalism," where businesses are seen as agents of positive change in society. Under his guidance, Starbucks became known not only for its high-quality coffee but also for its ethical sourcing practices, commitment to employee welfare, and environmental responsibility. Schultz stepped down as CEO in 2000 but returned to the role in 2008 when the company faced significant challenges, leading Starbucks through one of the most challenging periods in its history. His narrative in Onward is a testament to his leadership style—one that combines passion, vision, and an unwavering belief in doing the right thing, even when it’s not the easiest path.

Main Idea

Onward is more than just a business book; it is a manifesto for values-driven leadership. The book chronicles Schultz’s return to Starbucks during a time of crisis and his efforts to reinvigorate the company by returning to its core values. At its heart, Onward is about the importance of maintaining the integrity of a brand, even in the face of overwhelming external pressures. Schultz argues that true business success comes not from chasing profits but from creating meaningful value for all stakeholders—customers, employees, suppliers, shareholders, and the community at large.

The book is divided into three main sections, each detailing a critical phase in Starbucks’ journey: the rise and fall of the company, Schultz’s return and the strategies he implemented to turn things around, and the revitalization of the brand. Throughout, Schultz shares insights into the challenges he faced, the decisions he made, and the principles that guided him. His story is one of resilience, determination, and a steadfast belief that doing the right thing is ultimately the best business strategy.

Table of Contents

1. Introduction: A Return to Values
2. The Rise and Fall of Starbucks
3. Schultz's Plan to Shake Starbucks Up
4. How Schultz Revitalized Starbucks
5. Conclusion: The Road Ahead

The Rise and Fall of Starbucks

By 2007, Starbucks was a global brand, revered for its coffeehouse culture, yet it was underperforming. Schultz recounts how the company, under his initial leadership, rose to the top of the coffee industry. His passion for creating a space where people could connect over high-quality coffee was the driving force behind Starbucks' success. However, after Schultz stepped down as CEO in 2000, his successors focused heavily on rapid expansion, which ultimately diluted the Starbucks experience. As Schultz notes, "Growth became a strategy, not an outcome" (Schultz). This shift in focus led to a decline in the quality of the customer experience, which had been the cornerstone of Starbucks' success.

The financial crisis of 2007-2008 further exacerbated Starbucks' challenges. The company's stock plummeted, and customer satisfaction waned. Schultz felt that Starbucks had lost its way, and this realization drove him to return as CEO in 2008. His mission was clear: to restore Starbucks to its former glory by returning to its roots and focusing on the elements that made the brand special.

Starbucks’ Initial Success

Schultz’s initial success with Starbucks was built on a unique vision—one that was inspired by the coffee bars he encountered in Italy. He wanted to create a similar environment in the United States, where coffee was not just a beverage but an experience. This vision led to the creation of the "third place" concept, a space outside of home and work where people could relax and connect with others. This idea resonated with customers, and Starbucks rapidly expanded across the U.S. and then internationally. By focusing on providing high-quality coffee, exceptional customer service, and creating a warm, inviting atmosphere, Schultz positioned Starbucks as a leader in the coffee industry.