The Wall Street Journal-20080112-Starbucks Realigns Its Executive Ranks
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Starbucks Realigns Its Executive Ranks
Starbucks Corp. on Friday reshuffled several top management positions as part of Howard Schultz's plan to turn around the coffee giant.
The company named Michelle Gass senior vice president, global strategy, responsible for implementing the turnaround strategy that Mr. Schultz began outlining on Monday when he retook the chief executive position from Jim Donald, who left the company. The Seattle chain had seen its stock fall almost 50% in the past year as heavy growth took a toll on its stores.
Ms. Gass has had a steady ascent at Starbuck since joining the company in 1996 to manage its blended beverage category. Among other things, she expanded the chain's Frappuccino offering from a two- flavor product into a full line that's become one of Starbucks's signature products, as well as helped increase its food offerings.
Terry Davenport was named senior vice president, marketing, a new position. Mr. Davenport also is responsible for food and beverage innovation. Starbucks has struggled to create exciting new products, and Mr. Schultz has identified it as an area he intends to improve.
Harry Roberts, a former Starbucks executive, is returning to the company as senior vice president and chief creative officer, also a new position. He will be responsible for improving store merchandise, as well as the look and feel inside the stores. Most recently he ran a small Italian restaurant chain.
The company said Chet Kuchinad was named executive vice president, partner resources. Starbucks refers to its employees as "partners." He succeeds David Pace, who left that position for personal reasons at the end of 2007, a Starbucks spokesman said.
Chris Bruzzo was named vice president, chief technology officer as well as acting chief information officer. Previously, Brian Crynes was the company's CIO and he is leaving the company. Also gone in the shakeup is Sandra Taylor, who had been Starbucks' senior vice president, corporate social responsibility. A Starbucks spokesman wouldn't elaborate on the reasons for their departures.
The moves are likely the first in a series of management changes at Starbucks. In announcing his return to the corner office, Mr. Schultz, the chairman who oversaw the business's growth from four stores into 15,000 locations, said he will streamline management as Starbucks pulls back the throttle on its aggressive U.S. store openings, improves the customer experience, and funnels resources toward faster growth overseas. Mr. Schultz indicated this week that the bureaucracy Starbucks created to handle its fast growth had stifled the organization.
Starbucks also indicated that two other top executives are staying put for now. Chief Operating Officer Martin Coles and Chief Financial Officer Pete Bocian, both of whom got those jobs last year, will continue to work with Mr. Schultz, the company said. Starbucks said it also plans to hire an executive to lead global real -state design and architecture, as well as an executive to head the public-affairs function, which includes overseeing the company's corporate social responsibility efforts.
