Starbucks: Back to its roots and the board's role in strategy

In September 2022, Starbucks founder Howard Schultz presented the company’s new strategy—Starbucks Reinvention—at Investor Day. As he explained, the new plan was designed to revitalize the company after the challenges of the previous few years. The road map addressed the key challenges the company was facing: rising tensions with its US employees, the need to adapt its value proposition to changing consumer habits, the implementation of greater automation in its stores, and renewed international expansion.

Analysts agreed that the coffee giant needed a complete overhaul. A few months later, Schultz announced his permanent departure, stepping down as interim CEO and from the board of directors, and named Laxman Narasimhan as his successor. Narasimhan took over as chief executive with the challenge of consolidating the reinvention strategy with the support of a renewed, more diverse board.

However, in April 2024, Narasimhan left the company and was succeeded by Brian Niccol, formerly of Chipotle Mexican Grill. The new CEO set out to maintain the goals of the reinvention strategy but with a more pragmatic approach focused on operational efficiency, profitability, and regaining the trust of customers and employees.

In this new context, Niccol  wondered what role the board of directors should play in making Starbucks’s sustainable growth strategy a reality. He also reflected on what kind of board would be best suited to support him in this new phase. What industry and geographic expertise would be most valuable for driving global expansion? More broadly, how could this body help preserve the company’s purpose and corporate culture beyond Schultz’s historic leadership?