🌱 Introduction: A Story Every SME Founder Should Pay Attention To

In late 2025, a widely shared business narrative captured the attention of founders, operators, and investors: Starbucks reportedly lost around $30 billion in market value under former CEO Laxman Narasimhan — a leader with impeccable credentials but limited frontline retail experience.

When he stepped down and was replaced by a seasoned operator, the company’s value reportedly rebounded by $20 billion, reinforcing a simple but powerful truth:

Strategy means nothing without execution.
Execution is the real strategy.

This case became a global talking point not because of the numbers alone, but because it reflects a universal challenge faced by SMEs across Malaysia, Indonesia, and beyond.

✅ 1. What Actually Happened at Starbucks? (The Simplified Narrative)

The CEO: A Strategist Without Retail Instincts

Laxman Narasimhan came from McKinsey and PepsiCo — strong on frameworks, transformation, and corporate strategy. But Starbucks is a high‑volume, high‑pressure retail machine, and the CEO must understand the rhythm of store operations.

The Problem: Throughput Collapsed

During his 17‑month tenure, stores reportedly struggled with:

• Slow mobile orders

• Long queues

• Barista burnout

• Operational bottlenecks

• Inconsistent customer experience

In retail, these aren’t minor issues — they are profit killers.

The Shift: From Consultant Brain to Operator Brain

When Narasimhan left and a veteran operator stepped in, investor confidence surged. The market wasn’t reacting to a personality change — it was reacting to a capability change.

The Outcome: A Market Rebound

The reported $20B rebound symbolized something deeper:

Investors trust operators to fix real problems faster than strategists.

✅ 2. The Deeper Lesson: Strategy Is a Multiplier, Not the Foundation

This story resonates because it exposes a truth founders already know but often forget:

• A beautiful strategy cannot fix a broken workflow.

• A visionary plan cannot fix slow service.

• A digital transformation roadmap cannot fix staff burnout.

• A KPI dashboard cannot fix operational chaos.

Execution is not the “less glamorous” part of business.
Execution is the engine that makes strategy possible.

✅ 3. Why This Matters for SMEs in Malaysia & Indonesia

If you want to dive deeper into building stronger systems and operational clarity, explore more insights in our Founder Systems & Strategy section

Most SMEs struggle not because they lack ideas, but because they lack:

• Operational clarity

• Process discipline

• Throughput consistency

• Staff readiness

• Real-time problem solving

This Starbucks case is a mirror for local businesses:

✅ A. Hiring based on credentials alone is dangerous

A consultant mindset is useful — but only when paired with operational empathy.

✅ B. Digital tools fail without operational readiness

POS systems, mobile ordering, CRM, inventory apps — none of these work if the workflow behind them is broken.

✅ C. Throughput is everything

Whether you run a café, clinic, logistics company, or online store, throughput determines:

• Revenue

• Customer satisfaction

• Staff morale

• Scalability

✅ D. Leaders must stay close to the ground

Even at scale, founders must maintain “store-floor instinct.”

✅ 4. The MLS Framework: How Founders Can Apply This Lesson Today

Step 1 — Audit Your Throughput

Where are customers waiting?
Where are staff struggling?
Where are tasks piling up?

Step 2 — Identify the Real Bottleneck

It’s rarely the people.
It’s usually the system.

Step 3 — Fix the Workflow Before Adding Tools

Tools amplify what already exists.
If the workflow is broken, tools amplify the chaos.

Step 4 — Build Operator Instinct

Spend time on the ground.
Observe.
Ask.
Listen.

Step 5 — Balance Strategy with Execution

Strategy = direction
Execution = movement
You need both, but execution comes first.

✅ 5. The Takeaway: The Future Belongs to Operator-Led Leadership

The Starbucks case is not about Starbucks.
It’s about every business that confuses intelligence with capability.

Smart leaders build strategies.
Great leaders build systems that work in the real world.

For SMEs, this is liberating.
You don’t need a McKinsey deck.
You need operational clarity, consistent throughput, and leaders who understand the ground.

This is the foundation of sustainable growth — and the heart of what My Little Sharing teaches.

A Note From Me

I’ve spent over 30 years working side‑by‑side with business founders — from SMEs to public‑listed groups — helping them untangle operational messiness, rebuild financial clarity, and make digital tools actually work in real life. My style is simple: no jargon, no theory for theory’s sake. Just practical steps that fit your business and your people.

If this Starbucks story reminds you of challenges you’re facing, you don’t have to figure it out alone.

Let’s Talk

Reach out anytime if you want clarity, a sounding board, or help mapping your next move. I’m here to support you through the business, financial, operational, and digital challenges that every SME eventually encounters.