In January 2000, Howard Schultz stepped down as CEO at the height of a breakneck run. Starbucks had just closed the decade with more than 3,500 stores serving over 12 million customers a week across 17 countries. The company appeared unstoppable.
In seven years, shares slid over 30% from their peak as same-store sales slowed. By 2008 the stock had fallen over 40% from the prior year, and management began pulling back expansion plans. Within months, Starbucks announced closures of 100 U.S. stores (and later 600 more) cutting 12,000 jobs.
The board made a dramatic move, bringing Schultz back as CEO to lead a reset of the business.
In fact, Schultz served as CEO on three separate occasions. He first stepped down in 2000 but was called back in 2008 to steer the company through the financial crisis after its stock price had plummeted. He left again in 2017, handing the reins to a hand-picked successor, only to return for a third stint as interim CEO in 2022.
Why couldn’t Starbucks get it right?
What is the Destiny Dimension?
This “boomerang CEO” pattern highlights a gap in the Destiny dimension around legacy and succession. For a company of Starbucks’ size and stature to not have a solid, long-term succession plan was surprising to many analysts. It suggests an organization that remained deeply dependent on its visionary founder, unable to build a leadership structure that could carry the mission forward without him.
This creates instability and uncertainty, and it puts the long-term legacy of the company at risk.
In the 7 D’s Business Alignment Framework, Destiny is the culminating component, focusing on the organization’s long-term purpose, strategic direction, legacy, and eventual succession. Destiny defines why the company exists and where it’s going.
It compels the founder to move beyond the immediate pressures of running the business and answer the deepest questions about what game they’re playing, why it matters, and what “winning” looks like in the long run.
A clear sense of Destiny informs long-range strategy, shapes leadership development and succession, and sets the context for every other D–from the culture you build, the structure you design, how you decide, what you delegate, what you measure, and the kind of experience you create.
Every Dimension of a Business Must Work in Harmony
A lack of Destiny is often the root of a founder’s identity crisis.
- If the company’s Destiny is only to serve the founder’s immediate needs, that small purpose will inherently limit its DNA.
- The Design will be built around the founder, making them a bottleneck.
- Key Decisions will prioritize short-term gain over long-term health.
- The founder will struggle with Delegation, fearing that no one can replace them.
- The Data will focus on immediate survival, not sustainable growth.
- And while the company might create temporary Delight, it lacks the foundation to endure.
Symptoms of Destiny Misalignment
Are you building a company that can thrive without you? Or are you heading for an existential crisis? Here are the signs of misalignment:
- “I don’t know what my ‘end game’ is.” You have no clear vision for your eventual exit, whether it’s selling the company, passing it on, or transitioning to a different role.
- The Business is You. Your personal identity and the company’s identity are completely enmeshed. The thought of leaving feels like a loss of self.
- No Succession Plan. You haven’t identified or developed the next generation of leaders. The company’s survival depends entirely on your presence, as was the case for years at Starbucks.
- Short-Term Focus. All of your strategic planning is focused on the next quarter or the next year. You aren’t making investments in the long-term health of the organization.
Consequences of Ignoring Destiny
A company without a clear Destiny is fragile. It cannot withstand a leadership transition, whether planned or unexpected.
The failure to plan for succession is a primary reason why many successful companies falter.
For the founder, this ambiguity creates immense personal stress and can lead to poor decision-making as the prospect of an exit looms. It can lead to an identity crisis where the founder feels they are losing a massive part of who they are.
How to Achieve Destiny Alignment
- Begin with the End in Mind. Ask yourself the hard questions early. What is the ultimate vision for this company in 20 or 50 years? Do you want to sell it, pass it on, or have it run by employees? Having a clear answer provides a north star for long-range planning.
- Build a Leadership Bench. The most critical step in ensuring a company’s Destiny is to make the founder’s departure a non-event. This requires a deliberate, long-term commitment to identifying and developing high-potential leaders within the organization.
- Make Yourself Redundant. The ultimate goal for a founder focused on Destiny is to systematically work themselves out of a job. This means replacing yourself in every key function with capable people and robust systems. This is the greatest act of stewardship a leader can perform.
A Case Study in Destiny Done Right
The transition of leadership at Microsoft from co-founder Bill Gates to Steve Ballmer is a compelling case study in successful succession planning. Microsoft’s board and leadership team had a well-crafted plan that identified and groomed internal talent long before the transition was necessary.
This foresight ensured a smooth handover of leadership, allowing the company to maintain its momentum and innovation without being dependent on its iconic founder.
By cultivating leaders from within and planning for the long term, Microsoft demonstrated a commitment to its enduring Destiny, not just the tenure of a single leader.
Quick Wins to Strengthen Destiny Alignment
- Write Your “Founder’s Letter.” Imagine it’s 10 years from now and you have successfully exited your company. Write a letter to the new CEO. What do you want them to know about the company’s purpose? What legacy do you hope they will carry forward? This exercise helps clarify what truly matters to you.
- Identify One “Successor Task.” Choose one critical task or responsibility that only you handle. This month, identify one person on your team and begin training them to take it over. This is the first small step in building a business that can outlast you.
