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August 2002
Master Your Domain
10 Steps to Successful Coffeehouse Management
by Don Holly
Illustrations by Shannon Wheeler


master Operating a successful coffeehouse depends on the proper execution of a million details in the right order. Certainly, the manager of a shop is responsible for determining which details to address and for allocating the appropriate resources so that each is addressed properly. The manager is also responsible for building and maintaining a team that will get the work done. The following 10 tips should help put coffeehouse managers on the road to success:

  1. Be an expert.
  2. Defend high quality standards.
  3. Be passionate about your concept.
  4. Define your culture.
  5. Attract good people.
  6. Train, train, train.
  7. Give your team the tools it needs.
  8. Observe and reward.
  9. Attend to the individuals on your team.
10. Give yourself time to think.

Be an Expert
The definition of leadership in every culture throughout history has included the concept of leader as expert. Mentors, guides, teachers, and managers all tend to maintain an aura of knowledge-they know more than the people they lead. It is a human trait to respect a person of authority-"the guru on the hill"-as long as his or her knowledge is genuine, relevant and humbly available. To consciously choose to be an expert on everything pertaining to your business is an important step toward developing your leadership acumen.

   Becoming an expert requires an open mind and an inquisitive hunger. There are no absolute truths. Everything is relative. Approach the acquisition of knowledge with the understanding that for each question you answer, you will uncover two more. All true experts I know freely admit that there is more that they don't know than they ever will know. This attitude, combined with the immense joy that comes from learning, will quickly drive you toward becoming an expert. Read, question other experts and personally experiment when appropriate. Recognize that what you think you know could be false and that personal knowledge is often based on a limited set of facts or perspective. Trust in direct experience, and never close down a new source of information. If you follow all these guidelines, you will soon become an expert.

   The basis of the specialty coffee industry is that knowledge and skill will yield something of quality, which is greatly appreciated by consumers. People have taken coffee for granted for so long that they apply more misconceptions and poor practices to its preparation than commonly known truths and good practices. In short, plenty of room for experts exists. Your capacity and effectiveness as a leader will be greatly enhanced if your team regards you as an expert.

Defend High Quality Standards
Despite the almost nihilistic attitudes of the youth in the labor pool, an innate desire still exists in our culture to adhere to high quality standards. Maintaining high standards is a noble purpose in which even the most pessimistic teenagers can find meaning and value. By conspicuously urging your employees toward ideals in quality, the resulting pride will reflect clearly in their attitude about their work, their service to the customers and their loyalty to you.

   Alternatively, it is easy to predict the poor attitude, service degeneration and disloyalty that result from managers who talk about quality standards and then constantly compromise them. Nothing kills the effectiveness of a leader faster than hypocrisy. As soon as employees learn that "quality" is nothing more than a freely used marketing term and that they have no "practical" means of accomplishing high standards, their job becomes just another job and you become just another "boss." With true quality comes pride, fulfillment and loyalty.

Be Passionate About Your Concept
Your concept is the embodiment of everything about your business that is in your control-the company name, décor, menu, location, themes, style of service, recipes, etc. The development of your concept and its constant refinement is critical to your company's sustainable success. You must be passionate about your concept-it's the energy that your staff must rally around, like the battle banner of an army. Passion is infectious, and your staff and customers will quickly adopt and multiply the joy and commitment you exhibit. A trademark of great leaders is the passion they foment.

   To be genuinely passionate about your concept requires that it be well developed. The details of design and creation must show craftsmanship. In typical "chicken or egg" manner, it's difficult to say whether craftsmanship comes from passion or passion comes from craftsmanship, but there is no doubt that they are interrelated and self-supporting. Understand how important it is to hone and consider every detail of your business. The aesthetic quality that such well-refined details exude yields an atmosphere that promotes passion. Once you apply passion, your concept will continue to improve.

   Because passion is an emotional expression rather than a physical one, it is not limited to the laws of physics and the limitations of space, energy and time. Instead, passion allows you to tap into a limitless resource for which there are no laws and sometimes no rational explanations.

   It has often been noted that leaders are capable of yielding the impossible from a situation, and I believe this is due to a generated passion. When everything else is in place, add a little passion and you will generate magic. That's when fun becomes fulfilling, and at the end of a day, you and your team will have smiles on your faces from the magical work you performed together.

Define Your Culture
Culture, from an anthropologist's point of view, is defined as the ideas, values and beliefs that members of a group share to interpret experience and generate behavior. Every culture has "rules," both conscious and unconscious, that it applies in a given context to guide activity and the interaction of individuals. A leader must take responsibility for defining the culture of his or her business. In effect, all of the issues related to leadership are about defining the culture of your business, and it is inappropriate to treat this subject as a subset of the big picture-it is the big picture! But it's also important to approach leadership like a task, consciously choosing the desired result and the manner in which you will attain that result.

   A team with a well-defined culture will perform better than a team with a poorly defined culture. A well-defined culture implies that everyone on the team knows the overall purpose of the group, shares the same goals and values, and understands the specific role that each individual plays in the performance of tasks. But you must reason and spirit the organizational activity in a way that is consistent with the shared purpose and personality of the team. You will know you have succeeded at defining and cultivating a culture when your employees exhibit a tangible pride in belonging to your team.

Attract Good People
The magnetism of a successful team draws recruits like moths to a light. With a talented team in place, applications for employment will flow in without a "Help Wanted" sign. Referrals come from other employees, business acquaintances, friends, and relatives. Everyone wants to work for a winning team. But you have to earn this laudable condition through hard work, and it takes time to get there.

   Hire on the basis of character, work ethic and intelligence-in that order. Unfortunately, you can't determine any of these qualities in a written application, and interviews are never as revealing as you hope. I recommend several interviews, if you can afford them, with several of your key staff sitting in on the process. Listen to their reactions and insight. I like interviewing in the "kitchen" during the hubbub of activity, because it reveals the person's comfort and focus in the intensity of a work environment. Balance your intellectual judgment of the person's qualifications with your "gut" instinct. If both evaluation methods agree that this is a person you want to try out on the team, then make the offer. But if one evaluation method suggests that you pass, then pass.

   With very few exceptions, you can tell within two weeks after hiring whether a person is going to be an asset or a liability. Do something about it! Nothing drags the team down like a few bad performers, so for the sake of your good employees, let go of the bad employees as soon as you identify them. Employing a team of universally good workers is a sure-fire way to succeed.

Train, Train, Train!
Whenever my former partner and I had extra money to spend on our business, we would ask ourselves where we should spend those dollars-on advertising or training. We chose training every time. Over a 10-year period, our sales increased at an average annual rate of 65 percent, and we never spent any money on advertising (except for a small Yellow Pages expenditure).

   Training yields value for many reasons. The easiest to understand is that training improves the quality of your product and the efficiency of your operations. Better product increases demand, and better efficiency increases the capacity to satisfy that demand. But from a leadership perspective, training is a conscious and greatly appreciated investment in your staff. Worker surveys consistently reveal that employees value training above all other company "investments." Why is this? The fact that the company "invests" in the staff is seen as confirmation that the staff is truly valued. Also, making staff members more competent and knowledgeable gives them greater pride and fulfillment in their work. All of this translates into better morale, more loyalty and higher performance. There is no better investment.

Give Your Team the Tools It Needs
One of the leader's principal responsibilities is to equip the team with the necessary tools, materials and information it needs to perform. This task of "thing fulfillment" must always take precedence over optional activities. The lights and water must be on. Coffee must be in the bins, milk in the refrigerator. The staff schedule must be posted. Paychecks must clear the bank. Failure in any of these fundamentals immediately and fatally erodes the mantle of leadership. When your staff needs you to do something, do it. Yes, your employees will take it for granted, not recognizing the full cost of your effort. Instead, you will have to find fulfillment in the knowledge that they would have roasted you had you had not done what they asked.

Observe and Reward
A popular management style of the '80s was Andrew Grove's (CEO of Intel Corp.) "Management by Walking Around." The idea is that direct and personal observation is the only way you can develop anywhere near a complete understanding of what's going on. An additional benefit is that your presence proves your interest, again boosting the pride and fulfillment of your staff. They want to know you care, and nothing confirms that better than your physical presence.

   What do you do with what you see? The worst thing you can do is to pull out a piece of paper and start writing down criticisms. Do this just once and your employees will cringe whenever they see you coming. This is not leadership, this is bullying, and the results are devastating. Your staff won't want you around. If you do give praise, it will strike shallow. In our contemporary society, you must conduct criticism within the framework of the "hamburger" approach, the meat of which is carefully placed between soft, warm buns. You want to do some good? Observe what is going right, and write it down without being obvious.

   One of the best management tools developed in this century is the Post-it Note. Unassuming and convenient, Post-its offer an excellent means of giving pats on the back to your staff. Place them on time cards or workstations, recognizing good performance or expressing appreciation. Cards or books are also great rewards. Think about ways to reward your staff that are communications of the heart. Thoughtful rewards tend to mean more than gifts of money. Money is okay, too, when appropriate, but it is not the foundation for building a strong team. That only comes from building a meaningful relationship.

Attend to the Individuals on Your Team
Employer paranoia and the belief that the "captain should be the loneliest person on the ship" has led many managers to disassociate themselves from their staffs. This is a shame. Frankly, unless you know your employees well, your opportunity to guide them effectively is limited. What are their values? What are their goals? Although your responsibility as a leader is to the whole team, it is important to understand that your team is made up of individuals, and individuals, at some point, like to be known and treated on the basis of their personal uniqueness.

Give Yourself Time to Think
With all the demands placed on you as a business person and manager-as well as by your own individual and family needs-it is hard to find time to think. The alarm rings in the morning, and the day is a blur until you get horizontal again, and then you wake up and do it all over again the next day. You have to schedule time to think. People who practice meditation know they have succeeded in that practice when they can clear their minds or focus on one idea or task. Meditation can yield solutions to everyday problems, because with a clear mind you can focus and find answers. The exercise is meaningful and well worth the time.

   Give yourself some uninterrupted time to think, where you can focus on the team and your responsibility as its leader. How is each individual progressing as a human being and as a contributor to the team? Do you have a plan of development for each individual? How are the relationships between team members, and how can they be improved? It is your job to think about these things and to come up with strategies and lists of tasks to make things better. Your role as a leader can be fulfilled only by such conscious focus. It will not happen accidentally, and planning "on the fly" will not be nearly as effective as planning that results from a concentrated effort.

Developing Your Own Leadership Style
Leadership is relative. What needs to be done and how it is carried out will depend on a unique set of circumstances, including the genuine representation of your own character. Have the confidence that you can become an effective leader. Devote the necessary time to study, planning and implementation. A common trait of great leaders is their ability and diligence in communicating; everything else is up to your own personal interpretation.

   So dedicate yourself to developing a personal leadership style. Of all the possible management venues, I am convinced that none is more fulfilling than a coffeehouse. During my coffeehouse tenure, the balance of challenges and enjoyment almost always made me go home with a smile on my face. To be a successful coffeehouse manager requires a broad array of skills and a solid philosophy of altruism.

   Certainly, part of the joy comes from the wonderful role a coffeehouse can play in enhancing the quality of life of your community. But the most rewarding aspect is the part you can play in guiding and developing the people who work with you. A successful coffeehouse leader is one who actively builds and manages a team of people who effectively and efficiently deliver high-quality products and outstanding service, resulting in tremendous growth and profitability for the operation.

Don Holly is corporate quality manager for Green Mountain Coffee Roasters, a wholesale specialty roaster based in Waterbury, Vermont. Prior to joining GMCR, Holly was administrative director for the SCAA and vice president of operations for Diedrich Coffee.

This article was adapted and reprinted from
Achieving Success in Specialty Coffee, published by Bellissimo Coffee InfoGroup. For more information, call 541/683-5373 or visit www.coffeeuniverse.com.



This Issue: $5 U.S.




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