Servant Leadership Vs Starbucks

The modern workplace is rapidly changing. The rigorously evolving economic environment continually disrupts the traditional way of doing things for modern organizations (Parris & Peachey, 2013). An important aspect of organizational change is leadership. In the wake of increased competition and uncertainty, organizations continue to try varied approaches to leverage their competitiveness, productivity, and sustainability. One major factor impacting the success of organizations in the twenty-first century is employee retention due to the changing demographic factors (Jaramillo, Bande & Varela, 2015). Organizational leadership determines employee behavior, level of satisfaction and motivation, and commitment. Organizations have shifted from traditional leadership models to new ones such as servant and transformational leadership models, which seek to empower employees and creating an open environment for free organizational communication (Parris & Peachey, 2013). Servant leadership is utilized by several organizations where it is integrated with the mission or vision statements to spur collaboration and overall success. This paper compares the mission statements of the Starbucks Coffee Company that adopts servant leadership and the Helmsley hotel chain that utilizes

autocratic leadership style.
Mission Statements
A mission statement is a clearly written statement that aims at communicating the mission of the organization to the various parties affiliated to it (Hossain, 2004). These parties include customers, employees, suppliers, investors, and strategists among others. A clear mission statement establishes effective objectives and aids in the formulation of organizational strategies (Hossain, 2004).Different organizations use varied channels to communicate their mission statements (Parris & Peachey, 2013). These channels include annual reports, internal reports, and leaflets among media outlets.It should define the organization’s aspirations and what it is. It should be restricted enough to prohibit some ventures and expansive enough to permit creative growth (Parris & Peachey, 2013). Additionally, the mission statement distinguishes one organization from many others and serves as a framework for evaluating the company’s current and prospective endeavors (Hossain, 2004). The Starbucks’ mission statement: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. The City Bank Limited of Bangladesh mission statement: To enjoy the trust and confidence of customers through cultivation of relationship banking.
Similarities and Differences
Mission statements for organizations differ in various aspects including length, format, and specificity. However, according to Though David (1999), mission statements should contain various components, including customers, markets, products, technology, concern for sustainability and growth, self-concept, philosophy, and public image. There are several similarities inherent in the mission statements for the two companies. First, both statements include customers, products and services. Additionally, they both include an aspect of a corporate culture and philosophy. It is worth noting that the two companies utilize different forms of leadership models. While the Starbucks Coffee Company adopts servant leadership, the City Bank Limited employs transactional form of leadership.
The difference in leadership style forms a strong basis of parity in the components of their mission statements.

First, the servant-led organization includes the concept of service in its mission statement (Parris & Peachey, 2013). The terms ‘to nurture the human spirit’, is a broad terminology with the notion of provides service of empowerment to the parties attached to the organization.On the other hand, the mission statement of the City Bank Limited seems more focused on the customers than other stakeholders. It does not provide any concept of leadership, rather it centers on the organization’s services to the customers – ‘to enjoy trust and confidence of customers through relationship

banking’.
Servant Leadership Principles of the Starbucks Mission Statement
The Starbucks Coffee Company professes servant leadership model. This leadership style emphasizes on serving others, including customers, employees, or community. Servant leadership gives service to these stakeholders the first priority (Hossain, 2004). This concept is well integrated in the core errands of the entire business. It is a holistic approach to work that was coined by Robert Greenleaf to promote a sense of togetherness and the division of power in decision-making (Sipe & Frick, 2009). The Starbucks Coffee Company mission statement includes all these values of servant leadership. The term human spirit touches on all the parties affiliated to thee organization including employees, community, suppliers, and customers (Jaramillo, Bande& Varela, 2015). The company’s most valued values includes empathy, listening, awareness, persuasion, stewardship, and community building. The clear and concise mission statement uses universal words to incorporate the above values of servant leadership model. The ‘One Cup, One People, One Neighborhood’words are strong enough to encompass the components of servant leadership as proposed by the Robert Greenleaf (Parris & Peachey, 2013).
The Companies Commitment to the values expressed in Mission Statements
The Starbucks Coffee Company’s success stems from its commitment to servant leadership values that are clearly expressed in its mission statement. It creates room for free opinion from the suppliers, customers, and the employees and input to the leadership. Its Chief Executive Officer (CEO) Howard Schultz is regarded as a democratic and transformational leader who values the opinions and contributions of others towards the creation of a successful organization (Jaramillo, Bande & Varela, 2015). The leadership motivates its followers through intellectual consideration, inspirational motivation, idealized influence, and individualized consideration – all of which foster a sense of collaboration, respect, open communication, listening, and involvement.
On the other hand, the City Bank Limited of Bangladesh adopts the transactional leadership style that is underpinned by rewards for employees’ accomplishments. The model allows the followers to reap the benefits of their achievements and suffer the consequences of underperformance (Hossain, 2004). In this regard, employees are only motivated on the basis of desired rewards and the need to avoid penalties. This is a traditional form of leadership that has continually been criticized in the modern business times. Its limitations include low motivation, poor communication, low employee involvement, and sometimes poor performance (Jaramillo, Bande & Varela, 2015).
If the City Bank Limited adopts servant leadership instead, it can realize numerous achievements, especially in the contemporary world characterized by changing workforce demographics. As the organizations thrive to establish a competitive edge in a rapidly changing environment, leadership plays an integral role in determining success. Its mission statement only mentions customers and services. It excludes employees and community, which have become key factors of organizational success (Hossain, 2004). The company seems more focused on its customers and products. Adopting servant leadership implies, including the concept of service to others in the mission statement. Like the Starbucks, the mission statement should feature employees and community (Sipe & Frick, 2009). This inclusion will guide the company to treat employees well through incentives, involvement in decision-making, valuing their opinions and offering room for them to contribute to the leadership of the organization.
Conclusion
Organization’s mission statements play a key role in communicating the goals and objectives of the organization to the parties, including employees, strategists, customers, and investors. The organization’s leadership style has become a vital component in the mission statements. It sheds light on the way leaders associate with their followers and the company’s relationship with other stakeholders. The paper has shown that traditional leadership models such as autocratic and transactional styles have little contribution to creating favorable relationships with the followers. Today, companies that adopt servant leadership and express it in their mission statements, such as the Starbuck Coffee Company are unmatched leaders. Organizations such as the City Bank Limited of Bangladesh that utilizes transactional leadership continue to face employees’ conflicts due to poor relationships. There is a compelling need for such companies to abandon such leadership models and embrace servant leadership that aligns seamlessly with the modern changing business environment.