Mar 26, 2023: Who is Laxman Narasimhan?Why does he want to work in the stores? How will this help the Company? Keep reading to know more!
In an effort to stay in touch with the company's culture and consumers, Starbucks' new CEO Laxman Narasimhan says he himself intends to work a half-day shift once a month in one of the company's stores.
Laxman Narasimhan is an Indian-American business executive who served as the CEO of Reckitt Benckiser Group, a multinational consumer goods company based in the United Kingdom. He took over as CEO of Reckitt Benckiser in September 2019, succeeding Rakesh Kapoor. Prior to joining Reckitt Benckiser, Narasimhan held various leadership positions at PepsiCo, including serving as the CEO of PepsiCo Latin America and as the Global Chief Commercial Officer. He has also worked at McKinsey & Company and at Johnson & Johnson.
Picture source: Starbucks
Howard Schultz, a longtime leader of Starbucks, steps down in favour of Narasimhan. Last spring, Schultz came out of retirement to act as temporary CEO as the business looked for a new CEO. Schultz won't be leaving the board of the business.
When previous CEO Kevin Johnson departed in April of last year, some investors felt that Starbucks should have had a stronger succession plan in place. On Thursday, shareholders voted on shareholder recommendations, one of which mandated that Starbucks' board start succession planning at least three years ahead of an anticipated change in leadership.
Addressing some of the company's shortcomings is Narasimhan's top focus. According to him, a rebranding strategy unveiled last autumn involves modernising store layouts and equipment to maximise productivity while also boosting staff morale and motivation through higher compensation and benefits.
The company's leadership team should be connected to and involved in stores, according to Narasimhan, who acquired leadership of Starbucks earlier this week. He made this statement in a letter to the company's employees on Thursday.
Having a CEO work in stores is not unusual for large companies.
How will this help?
If a CEO works in one of the stores, it can be seen as a positive sign that they are committed to the success of the business and are willing to lead by example. By working in the store, the CEO is demonstrating that they are not afraid to roll up their sleeves and get involved in the day-to-day operations of the business. This can show employees and customers that the CEO is willing to lead by example and it can also give the CEO a firsthand look at the customer experience and the challenges that employees face in delivering excellent service.
Just before the company's online annual meeting, Narasimhan, 55, wrote the letter. The former PepsiCo executive has been devoting himself to Starbucks for the past six months, becoming a certified barista1, and visiting stores, farms, and manufacturing facilities all around the world.
- A barista1 is a trained individual who prepares and serves specialty drinks like coffee and tea. They are in charge of collecting payments and orders from customers. Also, they sanitise and clean their tools, equipment, and seating locations.
Photo by Lee Campbell on Unsplash
Having direct contact with the partners is fundamental to the culture and the experiences of Starbucks, according to Mr. Narasimhan . He said that he still thinks that working directly with the partners is the best course of action.
The top management of a cafe chain working in the cafe can help them to gain firsthand experience and understanding of the daily operations of the business. A few ways in which it can help:
- Understanding the core business better: A new Leader for a Company could be from any business background. In a few cases they have expertise and experience of making businesses grow. As an example, Mr. Narsimhan's previous experience was with Reckitt Benckiser, a company known for retail hygiene, health and nutrition products. Even though he would be able to take Starbucks to new heights with his experience as a leader but he has no experience in Cafe business. Working in Starbucks stores will give him an insight into the core business.
Picture source: coffeeaffection.com
2. Understanding the customer experience: By working in the cafe, top management can better understand the customer experience and what customers expect from the cafe. This can help them make better decisions related to customer service and overall customer experience.
Picture source: Unsplash+ In collaboration with Getty Images
3. Understanding the employee experience: This will help the top management understand the daily challenges and issues faced by the employees. This can help them make better decisions related to employee training, retention, and overall job satisfaction.
4. Identifying areas for improvement: in the business processes, systems, and procedures. This can help them make better decisions related to operations and improve the overall efficiency of the business.
5. Building a culture of teamwork: Working alongside the employees can help top management build a culture of teamwork and collaboration. This can foster a sense of shared ownership and pride in the business among all employees.
6. Leading by example: can lead by example and demonstrate their commitment to the business. This can inspire and motivate employees to work harder and take pride in their work.
Photo by Josh Calabrese on Unsplash
Most big Fast Food restaurant chains also have a similar induction program as they feel that the even though the Management team will not be later involved in the day to day operations of the Restaurant or Cafe to understand the business and to lead it they need to understand the basics first.
Did you know that even in Pizza Hut the non Restaurant staff has to work in the kitchen and understand the core product, business and the entire process of making pizza?
