Starbucks and the Science of CEO Transitions: Lessons from the First 90 Days
Leadership transitions are pivotal moments in any executive’s career. The early days in a new role are fraught with complexity, expectation and risk. The choices made in the first 90 days can set the stage for long-term success—or create the conditions for a quick departure. Nowhere is this more evident than in the recent leadership change at Starbucks, where Laxman Narasimhan’s short-lived tenure was swiftly followed by Brian Niccol’s decisive entrance. This contrast offers a compelling case study of what new leaders must get right from the start.
The High Stakes of a Leadership Transition
Based on decades of research and experience, I propose five critical things new leaders must do to transition effectively, make a powerful first impression and build a foundation for lasting impact.
Secure Early Wins that Matter
Momentum is a leader’s best friend in the early days. Narasimhan struggled to produce visible early wins for Starbucks that could generate confidence. His initial strategic moves, such as revamping mobile ordering and adjusting the menu, created operational disruptions without delivering a corresponding customer experience lift. These missteps are magnified for a consumer-facing brand like Starbucks, where service experience is paramount.
Niccol, on the other hand, went back to basics. He reintroduced ceramic mugs and self-serve condiment stations—simple yet symbolic gestures that signaled a return to Starbucks’ roots. The ceramic mugs, in particular, became a centerpiece of his message. During Starbucks’ January 2025 earnings call, Niccol mentioned them three times, coining the term “mug hug” to describe the comforting, slow-down experience he wanted customers to enjoy. He explained, “They’re holding on to that ceramic mug and enjoying their moment in the café… It’s just a much more pleasant, peaceful coffee experience.”
The change was part of a broader effort to reduce congestion from mobile orders and reclaim Starbucks’ identity as a welcoming, in-store destination. He also simplified the menu, helping improve operational efficiency while making life easier for frontline employees. These small but tangible wins helped establish credibility and created a sense of positive change. Early victories like these are vital not just for optics but for building trust, improving morale and signaling that better days are ahead.
Align Strategy with Company Culture
One of the greatest traps for new leaders is misaligning their strategic approach with the company’s culture. Narasimhan’s background in consumer goods did not translate seamlessly into Starbucks’ high-touch, people-first environment. While perhaps well-intentioned, his focus on efficiency and digital transformation overlooked the company’s identity as a “third place”—a space between home and work where community and connection flourish.
Culture isn’t a veneer; it’s the soul of the organization. Leaders who ignore it do so at their peril. Niccol has demonstrated a more substantial cultural alignment. His strategic resets have focused on enhancing the in-store experience, reflecting an understanding of Starbucks’ heritage. He did not just change policies; he changed narratives. For example, making ceramic mugs the default isn’t just about sustainability—it’s about slowing down the experience and encouraging customers to savor their time in-store.
Niccol’s changes resonated because they honored what the brand stands for. Cultural alignment empowers employees, reassures customers and accelerates adoption of change. For any leader, success lies not in imposing change but in aligning it with the shared values that already drive the organization.
Control the Narrative
Leadership is as much about perception as it is about action. Effective leaders know how to shape narratives that mobilize stakeholders. Narasimhan’s message often came across as technocratic, emphasizing operational reforms over emotional connection. This approach felt cold and disconnected in an environment where employees and customers value empathy and purpose.
Niccol has been more effective in managing the message. He communicates a clear and consistent vision—returning to what makes Starbucks special while making pragmatic changes. His early actions and internal messaging conveyed humility and purpose. He spoke less about transformation and more about restoration, framing his efforts as a renewal of the company’s best traditions rather than a wholesale reinvention.
Managing the message is about more than PR. It requires leaders to be transparent, inspiring and responsive. Stakeholders want to know where the organization is going, why it matters and how they can be part of the journey. New leaders must be intentional communicators, using every touchpoint—from town halls to social media—to reinforce a coherent and motivating narrative.
Build a Team that Reflects Your Vision—Quickly
No leader succeeds alone. Establishing a high-performing leadership team is foundational to long-term impact. Narasimhan made few visible moves to build or reshape his senior team, missing an opportunity to inject new energy and align leadership with his vision. When existing leadership isn’t aligned, even the best strategies falter.
Niccol has taken swift steps to reorganize and streamline Starbucks’ corporate structure. He has eliminated bureaucracy and clarified accountability, trimming over 1,100 corporate positions. These moves, while difficult, demonstrate decisiveness and signal a commitment to execution. More importantly, they reflect a clear vision of the kind of leadership culture he wants to build—one based on speed, empowerment and clarity.
Trust is built through competence, consistency and candor. Leaders must quickly assess their teams, identify key players and make necessary changes. But beyond that, they must foster an environment where people feel valued, heard and challenged. Investing in leadership development, establishing shared goals and creating open channels of feedback all contribute to building a cohesive and committed leadership team.
Show Up Where It Counts
Leaders who immerse themselves in the day-to-day realities of their organizations earn credibility and gather invaluable insights. Narasimhan maintained a more top-down leadership posture, which may have distanced him from Starbucks’ frontline culture—a crucial miss in a company so deeply rooted in store-level experiences. This created a disconnect not only with employees but also with the brand’s identity.
Niccol, in contrast, prioritized store visits and direct engagement with partners (employees) early in his tenure. By spending time with baristas and listening to their stories, he reinforced a culture of openness and modeled the behavior expected throughout the organization. These actions sent a powerful message: leadership is about service, not command.
Frontline engagement offers leaders a direct window into operational realities and customer sentiment. It also boosts employee morale, signaling that their work matters and that leadership is paying attention. For organizations built on customer experience, there is no substitute for a leader’s visible presence where the action happens.
The Real Legacy Behind the First 90 Days
Leadership transitions are defining moments. They demand clarity, courage and compassion. As we’ve seen in the Starbucks case, even the most credentialed leaders can stumble if they misread the culture, miss the quick wins or mismanage messaging. Conversely, leaders who enter with humility, prioritize alignment and act decisively can chart a path to enduring success.
Navigating transitions requires balancing reflection with action, strategy with empathy and short-term wins with long-term vision. It’s not about making noise—it’s about making meaning. New leaders who embrace this mindset will not only survive their first 90 days—they’ll thrive in the years to come. Get this right, and a new leader can turn a fragile beginning into a powerful legacy.
Michael Watkins is a professor of leadership at the IMD Business School, co-founder of Genesis Advisers, and a bestselling business author of books including The Six Disciplines of Strategic Thinking and The First 90 Days.