Servant Leadership and Kevin Johnson's Leadership Style at Starbucks

This article discusses the concept of servant leadership and evaluates Kevin Johnson's leadership style at Starbucks. It explores the challenges and benefits of servant leadership and its impact on the company's stakeholders. The article also highlights Kevin Johnson's strong brand and provides recommendations for further improvement.

Leading Business
Organisations

Table of Contents
PART 1 – REFLECTIVE STATEMENT ......................................................................................3
Covered in PPT...........................................................................................................................3
PART 2 – MANAGEMENT REPORT...........................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
OVERVIEW OF THE ‘SERVANT’ LEADERSHIP STYLE AND THE CHALLENGES
ASSOCIATED.................................................................................................................................3
Define Servant Leadership..........................................................................................................3
Examples of good practice “Servant Leadership”......................................................................4
Potential Difficulties and Challenges of Servant Leadership.....................................................4
CRITICAL EVALUATION OF KEVIN JOHNSON’S LEADERSHIP STYLE ..........................5
Identifying Johnson’s leadership style........................................................................................5
The positive elements of Kevin Johnson’s leadership style........................................................5
The negative elements of Kevin Johnson’s leadership style.......................................................6
Identify Starbucks’ key stakeholders..........................................................................................6
KEVIN JOHNSON'S STRONG BRAND ......................................................................................7
RECOMMENDATIONS.................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

PART 1 – REFLECTIVE STATEMENT
Covered in PPT
PART 2 – MANAGEMENT REPORT
INTRODUCTION
Leading an organisation is a tedious and a chaotic task to be performed that involved
small chores and with potential influence over the company's profitability and performances.
Leaders are the professionals performing the managerial actions for leading the staff and the
whole firm (Schleich and Fleiter, 2019). Leadership is a crucial task that leaders undertakes for
managing the workforce and leading a successful business organisation. In the report itself,
Starbucks leader Kevin Johnson's case study is used for developing a management report. The
assignment acknowledges number of aspects beginning with understanding the term Servant
leadership and moving along to determine KJ's leadership styles by performing critical
evaluation. At the end recommendations are provided for development of KJ's personal
leadership practices.
MAIN BODY
OVERVIEW OF THE ‘SERVANT’ LEADERSHIP STYLE AND THE
CHALLENGES ASSOCIATED
Define Servant Leadership
Servant leadership is defined as a philosophy or a practice under which leaders not really
work for organisational success or for directing it towards the targets. Rather than that leaders
dedicate their services to the organisation and to others. In simpler words, servant leadership is a
phenomena adopted by leaders in which they dedicate themselves to the firms benefits and focus
over their followers interest keeping aside their personal aims and interests (Arnold, Beauchamp
and Bowie, 2019). The leaders embodies this form of leadership do not lead and work for
reasons like their status, money, popularity or power but they work for others and for bringing a
positive change in others lives which benefits them and the society. Moreover, a servant leader
adopts this style with their will and knowingly on their personal risks and bearing costs by

themselves. Every leaders are not servant leader but some of them are who work for others and
to make others benefited through their actions.
Examples of good practice “Servant Leadership”
There are number of examples in the world organisation who's leaders are Servant
Leaders and who have surrendered their benefits for the sake of organisation and their followers.
One of the most famous and inspiring leader of this kind is Bill Gates, co-founder and a
successful leader of Microsoft a leading technology company which was founded by Bill with
Paul Allen. Bill Gates is not just a leader, he is an inspiration to many aspiring leaders and those
who have worked with him (Gellner and Hirsch, 2020). Bill Gates have just surrendered
everything for the sake and goodwill of Microsoft, working as the CEO and on other leading
position in the organisation. Bill Gates always inspired people and workers working under and
performing the respective tasks. Bill Gates is a renowned example of a Servant Leader who gave
up everything to make the company a success and grow continuously.
Potential Difficulties and Challenges of Servant Leadership
Servant leadership is selfless form of guidance and direction leaders provide to the
organisation and to their team members. But as facts matters everything has two aspects, thus
servant leadership is a very positive form of leading but it do have its consequences and
challenges. Some of such challenges which company and others faces are as follows:
 Decreased Motivation and Productivity- The major challenge created by servant
leadership practice is lack of motivation (Henry, Buyl and Jansen, 2019). Employees are
being helped on every level and leaders being their on their support tempts to ease of
their energy levels and enthusiasm. And this eventually develops a pattern of decreased
level of motivation following with lower productivity of staff members.
 Undermines Authority- Like every other leadership servant leadership is an effective
tool despite sometimes leader have to be more firm and strict with employees and other
parties involved in the business. But the challenge occurs when workforce stops taking
leaders seriously. As well as this leadership style also do not allow leader to be stricter
and which leads to imbalance between organisational practices and its targeted
objectives.

CRITICAL EVALUATION OF KEVIN JOHNSON’S LEADERSHIP
STYLE
Identifying Johnson’s leadership style
As per the evidences collected form the case study through number of statements and
arguments it is clarified that Kevin Johnson, current CEO of Starbucks adopts Servant
Leadership style. A leadership approach in which the leader that is Kevin Johnson though more
of employees and the whole organisational benefits rather than of personal benefits. This
leadership style is common like other traditional leadership styles holdings its pros and cons of
the organisations, employees and leaders as well (McLean and et. al., 2019). With this Servant
leadership style Kevin Johnson is placing all the focus over development and betterment of
individuals or employees working in the organisation. Servant leadership have rendered a new
approach to Starbucks as Kevin is deeply invested in improving financial performance of
company and working towards more ethical considerations. Training and development
programmes are being developed for employees for higher knowledge and employability skills.
The positive elements of Kevin Johnson’s leadership style
In accordance to the case study of Starbucks and as told by the former CEO Howard
Schultz in an interview that the current CEO Kevin Johnson lead the company in an effective and
efficient manner. The CEO is undertaking every aspect which is weakening the firms
performance one by one and making arrangements for bringing improvement. In accordance to
the financial results gathered after Kevin's joining are better then before and increased % of
improvement is being predicted for future too (Labaki, Bernhard and Cailluet, 2019). Few
specific benefits of Kevin Johnson's leadership style are as follows:
 Customer centric approach is being adopted by Kevin that is people are being offered
more than 87,000 different types of drinks that is coffee. As well as product management
is working over developing more healthy food options with low sugar. This customer
centric approach being used will showcase higher attraction and customer base as people
are being offered value added service according to their preferences and with ample of
options and the best ambience in restaurants.
 More benefits to stakeholder as at the time of Howard Schultz's leadership the company
made promise to induce earnings per share in between 15% to 20% which was not kept as

a promise. But Kevin Johnson have appointed a new finance chief and have developed a
new target of 10% growth at least will be offered to stakeholders through earnings per
share. As well as employees in the firm are known as partners offering several benefits,
like health care coverage to those who work 20 hours or more per weak and likewise
many other.
The negative elements of Kevin Johnson’s leadership style
As discussed and identified through discussion above there are pros and cons to all types
of leadership attached to them (Pushpakumara and et. al., 2019). In the same manner the servant
leadership style adopted and practised by Kevin Johnson do have some negative elements
attached and which affects firms regulations. Few of these are mentioned below:
 Employee engagement is the major negative element which is affecting the firm and
operations. This is the major negative aspect of servant leadership which becomes a
challenges for organisations. As employees stops taking initiatives and their innovative
ways of working deteriorates with time. The main reason behind is excessive
involvement of leaders in organisational tasks and excessive support being provided to
employees. This results in reducing will of workforce to take initiatives and engage
themselves in operational work. They start becoming more and more comfortable with
directive approach and those who wants to be involved but do not receive any
opportunities gets demotivated (Hartley, Parker and Beashel, 2019).
 Dissatisfied employees, as evidence shows in the case study in employee perspective
section where they have shared their experiences of working in Starbucks after Kevin's
involvement. People are not happy and satisfied with the working environment and
styles, as they mentioned the firm is being understaffed and they have to do multiple
tasks while running the store. The changes made under servant leadership is not
satisfying the employee as they are seem to having no benefits of any practice or any
favourable factors.
Identify Starbucks’ key stakeholders
Stakeholders are those parties who have influence over company's decision making and
over its profitability. Stakeholder are part of organisation either internal or external with
potentials of bringing change and development. Some key stakeholders of Starbucks are:

 Employees- The first and major stakeholder of Starbucks is their employees. As
mentioned in the case study, workers are addressed as partners in Starbucks and are key
elements associated with the company executing all plans and strategies developed by
leaders and management in the practical situations and experiencing new outcomes as
well as managing them too (Franklin and Marshall, 2019).
 Shareholders- Another major stakeholders of Starbucks are its shareholders form whom
company raise funds and regular capitals. The evidence of shareholders being major
stakeholders of Starbucks is the major focus that is being provided by both the CEO's
over their earnings per share. Kevin made sure that the shareholders receive at least 10%
increase in their earning through company's shares in near future. As well as former CEO
also made assurance of around 15% to 20% growth in EPS.
KEVIN JOHNSON'S STRONG BRAND
Kevin Johnson a servant leader as working with the servant leadership style as a new
CEO of Starbucks. Kevin Johnson have worked in many large and renowned organisation, 16
years of Kevin's career are invested in Microsoft a organisation who's CEO is known for
inspiration and hard work done for the company and for the development of employees as well
as the society too. Kevin then expanded the professional portfolio by serving President Barack
Obama and Gorger Bush through a telecommunication advisory committee (Harmon, 2019).
Then moving along Kevin Johnson became part of board of a non-profit organisations for
fulfilling social mission and serving to the society. Kevin worked for rights of women too by
supporting a company which is specially developing opportunities for women in business.
Form the knowledge and evidence collected through the case study these were the
achievements which are part of Kevin's personal brand and professional career. With
engagement of Kevin in Starbucks and adopting Servant leadership is definitely imposing a
strong impact on Kevin's personal brand as well as over the career developed as CEO and a
responsible member of the society. Few of the factors which reflects upon the effectiveness of
this leader over strong brand of Kevin Johnson are as underneath:
 Transformation- Through case presented it is clearly states that Kevin Johnson will be
working over transformation of Starbucks and its business practices along with its
policies. Kevin made number of major changes in the operations such as introducing a
nutritious value to bakery products and making coffee more healthier by reducing sugar

content to around 25%. Another major change which was introduced was closure of 8000
stores due to lack of performance and outcomes provided from just the United States
market. The company's dynamics to be changed and which is a transformational approach
introduced and implemented by Kevin and this will definitely going to bring strength to
his portfolio and his personal brand (Lashitew, Bals and van Tulder, 2020).
 Calculative Approaches- Another evidenced based factor which will be offering
strength to Kevin's personal brand as all the calculative and systematic approaches are
adopted while transforming Starbucks operations and functioning styles. The resulted
increase in Starbucks competence is visible through its financial performance report and
it reflecting its influence over goodwill and popularity of Kevin as well.
RECOMMENDATIONS
Starbucks is prominently indulged within the multinational chain undertaking small scale
in bid to develop its whole process in front its supervisors as it is helpful in terms of
communicating among their staff members at that time when the problem arises. For this,
company has various stores and through this they tends to offer various services to
approximately 50 million consumers each and every week and have several types of employees
undertaking the personalities across the world. Along with this, from the above discussion few
major recommendations are given as they are needed in terms of adhering the Kevin Johnson's
style which is useful in terms of overcoming the weak points in the leadership. Furthermore, it is
also required to develop the positive culture and situation in company that can become more
favourable as per the growth and success of company. For this, various recommendations are
mentioned as underneath:
 It is suggested to company that they need to take prominent feedback from their
customers and for this, they can get appropriate information regarding their products and
services and when the significant modifications and changes occur in the commodity.
Hence, feedback from customers is helpful in terms of taking corrective action at the
right time that is useful for company in terms of achieving competitive advantage.
 Furthermore, they also need to enhance their marketing as it is useful in order to boost
and increase their overall revenues and sales that can become more profitable and helpful
for company in terms of achieving sustainability within the market.

 In addition to this, Starbucks also need to consider the personalised employee feedback as
it tends to enhance the leadership style of KJ which is more concern with the feedback of
employees that is the subject matter of understanding and listening the overall problems
of the employees which they face among the company including insecurities within the
job, discrimination at the workplace and so on (Hooper and Potter, 2019).
 Furthermore, another factor is also related with the leadership style of Kevin Johnson in
terms of enhancing the leadership approach as it is useful in order to make sure the
regular overseeing and monitoring of functions within an organisation. For instance, the
scandal that occur in the workplace would not arise if proper and effective monitoring is
conducted of employees and also tends to undertake various aspects that are required in
terms of learning things in an effective manner. Hence, it is also helpful for the Kevin
Johnson's leadership style in an effective manner.
 Lastly, Kevin Johnson need to prominently involve the employees within the decision
making process of company that leads to positively influence the working ability,
competence and working pattern of employees. As it leads to increase the performance of
employees and productivity of company in terms of earning good image and reputation of
company in dynamic business environment.
CONCLUSION
From the discussion made in the above management report according to the case study its
is concluded that leaders are the vital part of the organisation playing critical roles which has
longer and even permanent influence over firms a development and functioning. Servant
leadership style is being evaluated in the report as the leader of the organisation is practising it. It
is determined that this is an efficient approach of leadership just like all other traditional
leadership methods. Moreover, CEO that is leaders of the company adopted this style to enhance
the productivity and performances of company and reduce the impacts of past decisions which
are negatively being acting till now.

REFERENCES
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Online:
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<https://thriveglobal.com/stories/top-5-servant-leadership-challenges/>
What is Servant Leadership?, 2018. [Online] Available Through:
<https://online.stu.edu/articles/education/what-is-servant-leadership.aspx/>