Are Retail Execs Equipped For The Oval Office?
The retail and political realms occasionally collide, particularly when it comes to brands taking a stand on a particular issue. But rarely does a retail exec generate the buzz that former Starbucks CEO Howard Schultz produced when he told 60 Minutes he was considering an independent presidential run in 2020.
Naturally, Schultz’s admission has garnered plenty of publicity (much of it negative) from just about every corner, including both President Donald Trump and former New York City mayor Michael Bloomberg. Regardless of public and political opinion, Schultz’s potential run brings to light his own performance as CEO and whether it could translate to Washington.
The Retail TouchPoints team shares their thoughts on whether Howard Schultz, and retail executives in general, have the skills needed to make a successful transition to run for, and hold, political office.
Adam Blair, Editor: In an Editor Q&A published after Howard Schultz retired seven months ago, I wrote “one businessman president is quite enough for my lifetime, thanks.” That was not just a flippant dig at Big Orange. I’ve come to believe that the skills and mindset that make a successful retail executive are really not transferable to politics. For one thing, customers are not the same as citizens: Starbucks can afford to ignore those people who will never like its products, but a president has to represent everyone. That doesn’t mean agreeing with everyone, but it does mean keeping their concerns in mind. Additionally, political success is about patiently building consensus and being willing to listen to contradictory opinions. While those are both valuable traits in business, they are not primary sources of success. And I was surprised to hear Schultz knock universal health care proposals in his 60 Minutes interview as too expensive, when he had been instrumental in offering health insurance to Starbucks employees. If he is going to run — and I hope he is in this simply to sell some books — he should at least take his good ideas with him to the national stage.
Glenn Taylor, Senior Editor: I don’t doubt Howard Schultz’s capabilities as a leader — who really can at this point, given the success of Starbucks under his tenure? But every time I see anyone of his stature consider running for president, I always think of the knowledge (and decision-making) that the position entails. It’s one matter to understand your customer base across numerous regions, market to them effectively and scale growth across borders, all while providing a compelling and effective combination of brand and product. But when talking about the presidency, the duty involves understanding national security issues, effectively building economic relationships with foreign governments, preparing a budget, determining efficient means for taxation and who knows how many other tasks that surely prevent a good night’s sleep. I’m not saying Schultz isn’t capable of most of these things, but there’s a reason why it’s so difficult to spend your whole career in one field and jump to another. At the very least, those who haven’t already spent their working lives trying to refine those characteristics and skills must ensure they are working with plenty of people who do have that expertise.
Bryan Wassel, Associate Editor: I think Howard Schultz’s run is destined to be ill-fated, and it could possibly serve as a warning to other retail geniuses who think their expertise in one subject can carry over to another. I suspect that the hard lesson will be that love of the brand doesn’t translate into love of the people behind the scenes. People love their cup of coffee, and they may also love the missions Starbucks supports, but even a CEO as visible as Schultz isn’t automatically associated with all those positive feelings; they’d probably have more success running the mermaid in the Starbucks logo. That may be a bitter pill for a PR-minded leader like Schultz, who has consistently inserted himself into the limelight and has been taking stands on issues he cares about since before that was the cool thing to do, but he simply doesn’t have the cachet needed to capture the hearts and minds of an entire country. If he wanted to start small, using his fame and money to build a career in state or lower-level national politics, that would be one thing. As it stands, he will be just one quixotic hopeful among dozens in the 2020 elections.