Summary
1. Sexy products sell when they're young, but watch out for middle age; while, 2. Operation-centric organizations may be the ones to marry.
Analysis
What to do? What if it sinks or is stagnant? What if it rockets upward?
Once we objectively strip the emotional elements away from our beloved Starbucks, we see in the purest sense: a restaurant! That almost hurts just to write.
I've coined the term Crocs-Syndrome, having watched from 30 miles away, the sexy Crocs organization believe that it actually was operationally excellent, its leadership team, excellent and its strategy to be excellent as well. All the while, appearing to be oblivious to the concept that it is: a shoe company; competing with some quite well run shoe companies.
The sexy run-up was exciting, almost like when you were a teen dating the popular, sexy person in High School. If you married this person, you came to realize over time, that he or she still had the same education and job he or she had in High School! He or she stopped improving, elevating and striving for excellence in the next phase of life. This is analogous with buying and holding the Crocs stock, which had about a $75, 52-week high and closed at $8 (2nd quarter 2008).
Starbucks, a victim of the dreaded, debilitating Crocs-Syndrome? Frankly, I don't know and deep down, emotionally, I hope not.
Unfortunately, history reminds us, seldom do leaders see their organizations as mediocre in the areas of strategy, operations or leadership. I believe this to be dangerous, but only the first strike.
The second strike, a jugular one, comes when you ask the CEO to rate the organization in these areas. The same, consistently mediocre decision making process that put the organization in harms way is the same decision making process that overrates the organization in these areas (and the CEO is oblivious to the full impact of this major flaw).
The third strike, basically a called strike while hoping for a walk, is when leaders unfortunately don't try to figure out the "who" vs. the "what" to help turn it around. The right "who" figures out "what" needs done and gets it done.
Infrastructure strategy, execution-excellence and disciplined performance accountability aren't sexy, but quite attractive over an extended period of time.
Best regards - make you business and community one of excellence ~ Jim
