The Book Report – January 2007
by Rolf Crocker
In their book ‘The Experience Economy’ (© 1999, Harvard Business School Press) Joseph Pine and James Gilmore outlined how businesses (among them Disney, Progressive Insurance, Starbucks and Nordstrom) were taking products and services that have been historically ‘commoditized’ and differentiating their offerings through providing the customer with an ‘experience’ – a unique sensory perception where tangibles and intangibles combine to deliver an experience that customers soon learn they can’t live without. Can this concept be applied to Community Associations and their Service Providers? Without a doubt. In fact, since we work with clients literally ‘where they live’, there is no better stage from which to make a positive impact. Our book this month singles out one of the above-referenced companies. Chances are that most of you have enjoyed one of their beverages sometime within the last week, perhaps even as you read this. At some point, you have asked yourself, ‘How do they do it?’ The author of the book and I say, “I’m glad you asked…”
The Starbucks Experience – 5 Principles for Turning Ordinary into Extraordinary by Joseph A, Michelli (©2007 Joseph A. Michelli/Mcgraw Hill). I’ll tell you right from the start – this book has the feel of a corporate PR piece wherein everyone drinks the Kool Aid (or in this case, the double-cupped Venti extra-hot non-fat Carmel Macchiato with 2 pumps of Vanilla). That having been said, there is much of value to be found within its pages. Few could argue the success of Starbucks, even rivaling McDonalds as one of the world’s most ubiquitous franchises. The consistency of the product, the inviting warmth of their stores and the friendly, knowledgeable baristas are all driven by Starbucks ‘5 Ways of Being’ that serve as the core of their business philosophy:
- Be welcoming
- Be genuine
- Be considerate
- Be knowledgeable
- Be involved
Author Joseph Michelli, based on 18 months of research and interviews with corporate officers, partners (employees) and customers derives five results-oriented business principles that drive Starbucks success:
- Make it your own
- Everything matters
- Surprise and delight
- Embrace resistance
- Leave your mark
Chocked full of ‘real world’ anecdotes from Michelli’s interviews, he shows how each of these business principles are practically applied within Starbucks. In addition, Michelli provides several ‘Create Your Own Experience’ sidebars and closes out each chapter with ‘Ideas to Sip On’ – ways to apply these principles in your environment.
If you can get past the self-congratulatory tone, there is a wealth of information that can help you transform the experience you provide your clients from ‘ordinary into extraordinary.’ 4 Stars | 
