When Leadership Misses the Mark: Starbucks’ CEO Shuffle

You might have seen the leadership changes happening at Starbucks recently. From an outsider's perspective, it seems a bit chaotic.

It all started about a month ago…

Let’s take a step back and look at this.

On one hand, you have to appreciate what Laxman was trying to model—a commitment to work-life balance. He was prioritizing family time, and that’s important. So, kudos to him for leading by example in that way.

On the other hand… he’s responsible for 400,000 employees across the globe, working in every time zone. When he's “signing off” for the day, tens of thousands of employees are just starting their shift. And with a $50M salary, it raises the question: is signing off at 6 pm every day the best approach in such a high-responsibility role?

If you believe in the idea of the CEO serving the entire organization—like an upside-down org chart—then wouldn’t that mean being available when your team needs you, without them feeling guilty for reaching out?

Clearly, this approach didn’t quite work, and now Laxman is moving on.

Enter Brian Niccol, Starbucks' new CEO (formerly of Chipotle). One of the first things the news highlighted was that he wouldn’t be relocating to Seattle but instead working from a satellite office in Southern California.

I have to admit, that raises some concerns.

If leadership truly matters, wouldn’t being closer to your leadership team and spending more time with the people at HQ be important, instead of relying on trips via corporate jet?

Of course, I recognize that much of a CEO’s role is external—working with the board, investors, shareholders, and the media. But at the same time, there’s an undeniable responsibility to your internal team, too.

So, why share all of this?

Because it boils down to one simple fact: Leadership Matters.

How we show up, matters.

Being available for our teams, matters.

Prioritizing people and culture, matters.

I don’t claim to have the answers on what it takes to be the CEO of Starbucks, but I do believe this: management alone is no longer enough. Healthy, effective leadership is the way forward.

When the demands of leadership and personal priorities collide, how will you choose to show up for your team?

Thanks for reading,

MT