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“Starbucks is values-driven, and as a result of those values, we have become very profitable.” — Howard Schultz

When your business scales massively, you’re going to touch lives on many different levels. You impact employees, customers, entire communities. Depending on your business, your choices can impact their mood, the quality of their interactions, their outlook on their own future. You have the opportunity to shape the world, for better or for worse.

And these touchy-feely concerns shouldn’t just be side effects of your business. If you’re strategic about it, they will become the beating heart of your business. It’s not about saying, “I’m a good person, so my company will do good things.” It’s about asking: “What kind of positive impact can I have that will also support my core business?”

So, if you want to scale your impact, you have to be as innovative about this as you are about your business itself.

And struggling start-up founders may think that’s a nice idea for later on — something they can think about after they scale. But we’d argue that the best scale entrepreneurs think about their social impact from day one.

Howard Schultz has navigated these questions while tackling truly massive challenges of scale.

This week’s featured episode:

How to do good and do good business, w/Starbucks' Howard Schultz

You can make your social impact and your bottom line work hand-in-hand. But you'll have to be as creative and innovative about your company's values as you are about the business itself. Howard Schultz, chair and former CEO of Starbucks, not only changed how America wakes up, but set new standards for employee benefits. From offering college tuition to American employees to providing health care for employees' parents in China, Howard has always been one step ahead of the social impact curve.

Listen now

Building on this...

General Catalyst Partners’ Ken Chenault:

“I believe that corporations can be a force for good – and they can also be very successful."

Listen >>

Chobani’s Hamdi Ulukaya:

“Businesses can solve, especially the right-minded businesses can solve a lot of issues in these small towns and communities."

Listen >>

Nextdoor’s Sarah Friar:

“Growing up in Northern Ireland, there's a recognition that you can only get to a peaceful outcome when people are willing to recognize that every part of the community has to be at the table.”

Listen >>

Action Item: Set your impact/profit sliders

Today's exercise is going to help you approach the social impact of your business with a mindset of intentionality.

Get a sheet of paper, something to write with, and a ruler – if you like to keep your lines straight. Orient the paper landscape-style, with the long side horizontal. Now, across the page, draw three lines, one below the other. Make sure to leave a good amount of space in between. Draw little arrows on each end of each line, and a notch right in the middle. What you’ve just done is create three horizontal sliders.

Think of the left side of the sliders as pointing toward MAXIMUM SOCIAL IMPACT. Maybe write that on the left side of the page now. The right side of the sliders point toward MAXIMUM PROFITABILITY. Write that on the right side of the page now. Next, underneath each slider, write a product, service, feature, or initiative your company is considering taking on. You should have three in all.

Now for the tricky part. For each proposal, you are going to mark where on the slider you think it lands in terms of social impact versus profitability. Is this a feature that's going to help lots of people, but at an astronomical price? Is it something that will make tons of money but do no good in the world? Mark its place on the slider accordingly. No need to pull out market research or line-item budgets here. Just use your best back-of-the-napkin estimation.

Look at your results. Do the sliders show a lot of extreme positions? Is the needle way to the left or way to the right? If so, take a moment and think of one adjustment you could make to bring more balance to the equation.

This Action Item appears in Day 29 of The Mindset of Scale course. You can find it in the Masters of Scale Courses app, available for iOS & for Android.

NEW on Rapid Response:

Rally a team in turmoil, w/NFL Raiders president Sandra Douglass Morgan

As a new leader, how do you honor an established brand while trying to shepherd it into the next era? Las Vegas Raiders’ president Sandra Douglass Morgan took the helm amid a front office scandal and a team new to the desert. Morgan talks about prioritizing customers over all else, taking risks at the beginning of a new venture, and why to bet on yourself from the moment you apply for a job.  

Listen here >>

Summit livestream tickets on sale now!

The Masters of Scale Summit is happening this week, and livestream tickets are still on sale!

The Summit will be the largest gathering of the global Masters of Scale community, convening a diverse group of leaders and change-agents for a business event like no other.

It's uniquely designed to deliver an exceptional experience for both executives in the room and their teams back home, with every detail intentionally designed to inspire and empower teams.

Livestream tickets include:

  • Access to beautifully filmed program sessions featuring an extraordinary lineup of speakers, thought-provoking content, and inventive formats. Each session is filmed via a multi-camera setup and produced to the utmost standards of quality.
  • A dedicated livestream host and ample opportunities to connect with other attendees, ensuring a seamless and community-oriented virtual experience.
  • An action-oriented toolkit with pre- and post-event materials designed to empower you and your team to bring new ideas to life within your organization.

Learn more here >>

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