The week that passed by was abuzz with the news of the sacking (or so it was announced in the media) of Laxman Narasimhan, who was handpicked for the job by the former Chairman of the Board and Founder of Starbucks Coffee, Howard Schultz.
Laxman has been on the job for a less than 2 years, after he took over full time in Mar. ’23, followed by a 6-month’s immersion period of going through rigorous training across cafés in the US, Mexico, Japan and China, to understand the processes undertaken in the chain that runs over 33,000 outlets worldwide, almost 30% of them operating in the United States.
With not just one but several challenges to face, the ousted CEO was doing good, at least as it looked like supported by corporate PR.
The Indian-origin professional had earlier worked at McKinsey & Co where he served for 19 years, followed by stints with FMCG powerhouses such as Pepsi and Reckitt, before joining Starbucks in Oct. ‘22. He went on a global tour to acclimatise himself with the way coffee (and other local beverages) are consumed.
His pitstop in India was in early 2024, when he announced that TATA Starbucks, the JV company would operate over 1,000 cafés in India (from over 400 currently) by 2028.
On social media portals, especially on the professional platform Linkedin, Laxman was a popular figure, doling out various snippets of how his life revolved in the new role.
There were several issues the ousted CEO was working on – labour challenges being the most important one. Over 400 cafés in the US alone have been unionised. The Gen Z and Millennials were not preferring in-café dining as much.
Digital-first customers as they are termed, ordering online and preferring takeaways were trends being witnessed over all in the Quick Service Restaurant Industry worldwide, especially in the US. The inconsistency of service experience, especially that of its mainstay, the hot coffee was being questioned by ardent consumers of the Starbucks, who have patronised the chain for several decades.
In a recent video interview to Fortune magazine, when asked about "how does work-life balance look like for a Fortune 500 CEO", Laxman had said, “If there’s anything after 6pm, and I am in town, It’s got to be a pretty high bar to keep me away from the family”.
“Anybody who gets a minute of time after that, they better be sure that it’s important. Because if not, I’ll just wait for another day.”
The role of the CEO is something that every young management trainee, a first time job seeker, looks up to in their lifetime. No matter how small the company, the title of “CEO” is a mission accomplished for several millions worldwide. While many may say they do not chase titles, they do, they certainly do.
The life at the top and in the corner room is complicated, I must admit.
I have seen in close quarters, the lives of atleast 4 such Executives in my own personal life. They need to look in to various issues pertaining to life – personal, professional, a public life that is useful for business networking and so on.
Yet, the life of an Executive at the top is a lonely journey at best. There are so many things that the Chief Executive cannot speak in public or can confide to anyone, not even with their spouse or close friends.
There are diktats from the Board or the Management. And then, there are these smallest of things that impacts their popularity among those working for the company.
As exciting it looks to be, it is one thing to get in to the chief executive socks.
And to get beaten up by life every other day, yet putting up a brave smile and to keep moving on as though nothing much happened (nerves of steel) – and eventually, a sad, sudden exit such as being sacked (as the media announces), is the least one yearns for!
