Building a Successful Business: Building a Team Smarter Than The Founder

Shah Mohammed
5 min readDec 13, 2023

In the dynamic and competitive world of startups, success hinges not only on visionary ideas and unwavering passion but also on the strength of the team steering the ship. One paradigm-shifting approach that has stood the test of entrepreneurial wisdom is the concept of hiring a team smarter than the founder. This counterintuitive strategy emphasizes the invaluable role of a strong, intelligent executive team in propelling a startup to new heights.

Renowned entrepreneur Howard Schultz, the visionary behind Starbucks’ global success, has been a vocal advocate for assembling a team of individuals with diverse skills, experiences, and, most importantly, intelligence. Schultz understands that while the founders may possess the spark of innovation, they cannot possibly encompass all the skills required to transform a groundbreaking idea into a thriving business.

According to Schultz, an intelligent executive team is not just beneficial but fundamental to a company’s prosperity. This perspective challenges the conventional notion of leadership, where the founder is expected to be the sole source of direction and decision-making. Schultz contends that a team comprising strong, creative minds capable of independent thought and strategic decision-making creates a more stimulating and innovative environment than a group of mere “yes men.”

Howard Schultz’s perspective underscores the pivotal role of an intelligent executive team in shaping the destiny of a startup. The ability to recognize and embrace the strengths of individuals who excel in areas where the founder may lack expertise is a hallmark of strategic leadership.

The Common Entrepreneurial Mistake

A common pitfall that entrepreneurs often encounter is the reluctance to bring in individuals with superior skills and experience. This hesitancy stems from a desire to maintain control, a fear of being overshadowed, or an unwillingness to delegate significant responsibilities.

Entrepreneurs, driven by passion and a sense of ownership over their ideas, may find it challenging to delegate key responsibilities to individuals with greater expertise. The fear of losing control or the assumption that only they can fully understand and execute their vision can hinder the growth and potential success of the startup.

Schultz emphasizes that while it’s natural for entrepreneurs to be protective of their ideas, fostering an environment where only like-minded individuals are present can lead to stagnation. Surrounding oneself with a team that mirrors the founder’s skills and knowledge may create a harmonious echo chamber, but it lacks the diverse perspectives and expertise necessary for overcoming complex challenges.

The mistake lies in underestimating the value that individuals with greater skills bring to the table. Schultz contends that hiring a team smarter than the founder is not a sign of weakness but a strategic move to fill the gaps in knowledge and experience. It’s an acknowledgment that success requires a collective effort, and each team member contributes unique strengths that, when combined, enhance the overall capability of the startup.

Overcoming the reluctance to hire individuals with superior skills requires a shift in mindset. Entrepreneurs need to view such hires not as a threat but as an opportunity for growth and learning. Embracing diverse talents fosters a culture of innovation and resilience, positioning the startup for long-term success.

Strategic Hiring for Starbucks’ Success

In the early days of Starbucks, Schultz recognized the importance of hiring individuals who not only shared his passion for coffee but also brought a depth of knowledge that complemented his own. Dave Olsen, an individual already well-versed and passionate about coffee, was an early addition to the team. Olsen’s experience running a coffee shop prior to joining Schultz provided invaluable insights, enriching Starbucks’ approach to its core product.

However, Schultz soon faced the challenge of rapid expansion into new markets to stay ahead of the competition; Schultz recognized his own limitations in the experience and skills required for opening more stores. In response to this need, he strategically brought Howard Behar, a seasoned executive boasting twenty-five years of retail experience. Behar’s extensive background in the furniture business and his prior role at Thousand Trails, an outdoor resort developer, endowed him with a distinctive skill set perfectly aligned with the evolving needs of Starbucks. This strategic hiring decision emerged as a pivotal factor in driving the company’s sustained growth.

Behar’s impact on Starbucks went beyond operational expertise. He played a crucial role in shifting the company’s focus from products to people. Under his leadership, Starbucks adopted a customer-oriented culture, emphasizing agility and the abandonment of outdated beliefs. This strategic shift allowed Starbucks to respond swiftly to changing customer needs, contributing significantly to its rapid growth.

Behar’s influence extended to the organizational culture, where he introduced radical candor. This cultural shift fostered a loyal and engaged workforce, leading to increased innovations, the introduction of new products and services, and a notable improvement in customer service. Starbucks, under Behar’s guidance, reached new heights of success.

In 1987, Howard Schultz made another strategic hire by bringing Lawrence Maltz on board. Maltz’s wealth of experience played a crucial role in the strategic expansion of Starbucks, expertly navigating the challenges associated with scaling the business efficiently. At 15 years older than Schultz, Maltz brought 20 years of business experience to the table, including eight years as the president of a profitable public beverage company. Maltz significantly contributed to streamlining internal processes, transforming the company into a highly efficient machine.

Another notable addition was Orin Smith, who joined Starbucks as it sought to further elevate its position. Smith, having managed larger and more complex organizations, brought a wealth of experience to the table.

Schultz’s decision to hire individuals older and more experienced than himself was a deliberate strategy, demonstrating a commitment to assembling a team that could navigate challenges and contribute to Starbucks’ success in ways he couldn’t alone.

These early strategic hires were pivotal in transforming Starbucks from a local coffee shop to a global brand. The diverse backgrounds and experiences of individuals like Olsen, Maltz, Behar, and Smith contributed to a rich tapestry of leadership, fostering an environment of innovation and adaptability.

To summarize, in startups, the success of visionary ideas hinges not just on passion but on the strength of the team. Howard Schultz’s advocacy for hiring a team smarter than the founder challenges conventional notions, emphasizing the pivotal role of an intelligent executive team. The transformative journey of Starbucks, underpinned by strategic hires, illuminates the power of diverse talents. Overcoming entrepreneurial hesitations and embracing this approach cultivates a culture of innovation, propelling startups toward enduring success.

--

--