GREG: So I'm going to assume you and I have some similarities. Just listening to you, like TikTok and some of the other stuff I've heard you say —leaned into mobile early on, you got social very quickly — it all feels very familiar. And I think in my now long history of life, looking back, I go, okay, I like change. I love change. I'm always willing to change. But where I sit on that bell-shaped curve means there's somebody on the other side of that bell-shaped curve. What I've had to think about — and I don't know the answer — is how do I manage to help those who don't like change? Because it is imperative that we do get there. Do you have any secrets? Have you thought about that? What do you do? Corporations have a tendency to have a natural resistance anyway. There's just a friction in them, so that's true of small companies, big companies. But I don't know, boy, some people really just don't like change.
TRESSIE: If you don't like change, marketing is not a good career path. (laugh) That's what I would tell people. Point blank. When I go to talk to college students, I tell them that. I'm like, here's a warning. If you are here and choosing marketing or communications or advertising as your career journey and you don't like change, find a new major. Because look, it's not just turnaround mode that brands are going through disruption. Every brand, no matter what business you're in, you are going through major disruption right now, and we always will be, but it is very intense right now with the acceleration of AI and social media and technology. And so you have to embrace that. And if you don't like that, truly, I don't think that it's going to be an enjoyable experience, but there's different levels of how much people love change. A big part of my job is setting the vision, creating the culture, being that enthusiastic, passionate cheerleader that's like, we can do this. Let's go and I'll show you, I'll show you the wins. And I think once people start to see the outcomes of taking some of these bets and taking some risks, they love it too. And they're like, oh, let's do the next one. And then it starts to move through the organization. Then it's not me saying, Hey, let's go do this. And everybody's begrudgingly following along. It's other people then go, I want to do this. I get it now. So I'm a teacher as much as I am a marketer.
GREG: Do you have an approach, a plan, or whatever, when you run into resistance? Listen, people still disagree. I'm the CEO of a company. I have a title that allows me to get away with far more implications or implementations of change than most get a chance to do. And yet I constantly find myself having to go, okay, how do I get them from A to B? Do you have any secrets how you do that?
TRESSIE: Well, I love it when people are pushing. So I do try to create a culture of debate in a good way, a healthy debate. And I would like to say, I think part of my journey and success has been surrounding myself with truth tellers. Like the 23-year-old that's out of school, I want him or her to be able to challenge me and be like, I don't know if that's a good idea. Because you've got to create that real healthy debate.
But I always try to get to the "and." It's kind of like the Second City training where it's "and," it's not a "no," oh, this isn't going to work because of X, Y, Z. Okay, well then show me something better. If that's not going to work, how could we approach it? How might we do this? I think "how might we" is one of the best words to lean into because there are so many possibilities and I want people to be open-minded. I want to have the growth mindset and I don't want people in the team that have the closed mindset. We're never going to get where we need to go if you can't see the possibilities.
GREG: I want to ask you how much resistance there was at Starbucks to creating change given now how far you've come.
TRESSIE: Starbucks is the biggest organization I've ever worked in and it's also quite complex because we have a global brand, we have our ready-to-drink beverages, we have licensed locations as well as corporate, and there's a lot of passion for it. I always say you want to work for a brand that people love or hate, but don't have any feeling towards. People love Starbucks. People also love to hate Starbucks. So it was a complex system to come into, especially when you're trying to move at the speed of culture, bring in curiosity, and drive change. I think for me it was a lot to learn too. It's a business where it's really in the details. You think about even just the customization, it's in the details. We have a lot of different launches as well. The way that I did it was, one, I think we had a really clear strategy from Brian across the executive team, and a very united team on that.
GREG: He very quickly came out with his public vision of it. I saw that. I thought ... I was impressed with that.
TRESSIE: And it was clear and it was simple and everybody knows it and plays it back. When you go into our coffeehouses, people are talking about getting back to Starbucks, and so there was a commitment in that, but trying to show the big vision of what's possible and believing in it and then giving people the opportunity to go for it, and you really just do try to start getting wins on the board. That's where the brand over time, sales overnight, you make some big changes. One of the first things we did was we stopped charging for alt milk, as an example. That was a big change, and it signaled, okay, we're going to go for it, we're going to shake it up. And then we brought in —
GREG: Wait, I don't pay extra for my breve latte anymore?
TRESSIE: You don't. Well, no. No, you're getting half and half so alt milk, oat milk, and almond milk, soy milk, there's no upcharge.
GREG: The example that I use —
TRESSIE: Protein milk is the milk to get now.
GREG: Oh, okay.
TRESSIE: That was another big thing we did was bring in protein.
GREG: Oh, okay, okay. I go to conferences, I see the seven milks on, I go, yeah, we are too rich a country, that sort of thing else. All the choices we have, it's good for business.
TRESSIE: Yeah. But I think just starting to experiment and getting people along for that journey. We did this "starting five" approach where we started to pull things into our coffeehouses with just five locations to get real-time feedback and move faster. It's just really getting speed inserted into the organization that we don't have two years to launch something. Let's listen now and respond to what customer's needs are. So it's just been a daily series of putting in the reps, showing up, and then taking people with you on that journey as well. It's one team, one dream.
GREG: So harder than pizza, harder than Mexican food, whatever. Harder than Chipotle, harder than all of them. Feels like it. And very public.
TRESSIE: Yeah. I don't know if it's harder. It's the most energizing and it's so much fun. The big difference is the frequency of how often people come to Starbucks and so you get a lot of feedback.
GREG: True, true.
TRESSIE: You get a lot of feedback. I actually ... I'm a big believer that feedback is a gift and it's helping us get sharper and get better. I think I have the best job in the world. It's really fun.
GREG: You know what? I think Starbucks is equally should be excited to have you there, Tressie, it's sort of obviously so. It's pretty incredible. I get the whole orientation, what you're doing, it's amazing. And I think risky too, because you're right, it'd be pretty easy in that kind of orientation to ... There'll be little missteps here and there. And like you said, between the partners and the customers who are very vocal, they believe Starbucks is a part of their ... It's their third place in life.
TRESSIE: Yeah, well, we make a huge impact. When I was about to take the job, I was listening to a podcast from a Harvard business study about happiness and they were talking about a little interaction with a barista at Starbucks — they mentioned Starbucks — can have a meaningful impact on your happiness levels. It's that daily connection. And I do think that we have a really important place to play in the world with being able to see that barista every day, know you by name, get you around people in community, hanging out, having a meetup at Starbucks, and even just the little joy you get by going and getting the holiday experience, being a part of the fall launch, being able to talk about your favorite order. There's just a lot of joy in this brand and I think we really need it right now. So I think we have a bigger place to play in the world too.
GREG: Well, there we go. I think we just said Tressie for president, I think is maybe where we just went. [laughter] Too far?
TRESSIE: Can you be my hype guy?
GREG: Too much. Too much too soon. Okay, let me work on that a little bit there. I think we'll take that into committee and see if we can turn it around. Tressie, I can't thank you enough for doing this. Super interesting. I mean, it's courage even for you just to come on so that I understand the implications of business, your scale and the thing you're doing, but it is impressive what you guys have done. So congratulations.
TRESSIE: Thank you.
GREG: Well done.
TRESSIE: Just getting started.
GREG: It's just get started. Great. And more cherry, that's all I have to say. Just more cherry.
TRESSIE: You never know what we have coming, Greg.
GREG: Okay.
TRESSIE: You'll be the first to know.
GREG: There we go.
TRESSIE: I take your feedback seriously.
GREG: (laugh) Okay, well there's others you should listen to too, but thank you.
TRESSIE: Awesome. Good to see you.
GREG: Thanks again to Tressie Lieberman from Starbucks for coming on Building Better CMOs. Check the description of this episode for links to connect with Tressie.
If you liked this episode, you might also enjoy my conversation with Regan O’Kon, SVP of Commercial Marketing at Moët Hennessy. We talked about the art of bringing brand strategy to life, creating luxury through small acts of human connection, and the story of how Aperol Spritz became a global sensation.
You can find that episode on YouTube, Spotify, Apple Podcasts, or wherever you’re hearing us now.
At the Marketing + Media Alliance, we are working to make marketing matter more through conferences, research and education. If you want to know more, please visit mmaglobal.com. You can also email me directly, greg@mmaglobal.com.
Now don't forget, Building Better CMOs is also on YouTube. Just go to bettercmos.com/youtube to start watching.
Our producer and podcast consultant is Eric Johnson from LightningPod.fm. Artwork is by Jason Chase. And a special thanks to Angela Gray and Dan Whiting.