Are you stuck in a local maxima? (A coffee store example will explain all)

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Are you at the top of the mountain? Is it the right mountain?

In simple terms a local maxima is similar to the highest point on a small hill within a larger landscape. Imagine you’re hiking in a hilly area. You climb up one of the hills and reach the top. From your vantage point, this hilltop is the highest point around you. However, it might not be the highest point in the entire region—there could be taller mountains elsewhere. But, within your immediate area, you can’t go any higher without first going downhill. This hilltop is a local maxima.

In mathematics and calculus a local maxima is described thus: A local maximum point on a function is a point (x,y) on the graph of the function whose y coordinate is larger than all other y coordinates on the graph at points “close to” (x,y). https://www.whitman.edu/mathematics/calculus_online

The local maxima has ramifications for our lives, careers and business.

Ankesh Kothari describes the trap: “Many of us fall in the local maxima trap. Perfecting our skills but in a limited scope. Only if we could see things from the top, we would realize that it’s the wrong hill that we’ve climbed.
Because you can only climb higher hills if you’re willing to get down from your current peak.”

The experience of Howard Schultz, the Starbucks CEO, explains how someone went from the top, from being in a successful position to getting down from his peak into an entrepreneurial venture in coffee.

In the early 1980s, Howard Schultz was a sales executive for a Swedish housewares company named Hammarplast. His job was to sell kitchenware products, including coffee machines. One day, he noticed that a small coffee bean retailer in Seattle was purchasing an unusually large number of his coffee machines. Curious about this, Schultz decided to visit the store on his next business trip.

The store was called Starbucks, a cozy shop located in Seattle’s Pike Place Market. It was run by three partners, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who were passionate about selling high-quality coffee beans and equipment. Schultz was immediately struck by the shop’s dedication to quality and its potential.

During his visit, Schultz noticed something intriguing: the rich aroma of freshly brewed coffee and the passionate conversations between the staff and the customers. Although Starbucks was primarily a coffee bean retailer, it was clear to Schultz that there was an opportunity to create something more—a place where people could gather, enjoy a cup of coffee, and feel a sense of community.

After his visit, Schultz couldn’t stop thinking about Starbucks and its potential. He approached the three partners with a proposal to join the company as director of retail operations and marketing. Initially hesitant, they eventually agreed, and Schultz began working for Starbucks in 1982.

Schultz’s vision for Starbucks was inspired by a trip to Italy, where he observed the vibrant coffee culture in Italian espresso bars. He saw people enjoying their coffee, engaging in lively conversations, and savoring the moment. Schultz wanted to bring this experience back to America, transforming Starbucks from a retailer of coffee beans into a place where customers could enjoy freshly brewed coffee and connect with others.

However, his vision was met with resistance from the original founders, who were more focused on selling high-quality beans and equipment. Undeterred, Schultz decided to take a leap of faith. In 1985, he left Starbucks and started his own coffee company, Il Giornale, to bring his vision to life.

Il Giornale was an immediate success, and Schultz’s concept of a coffeehouse as a social hub began to take shape. In 1987, with the financial backing of investors, Schultz purchased Starbucks from the original owners and merged it with Il Giornale. He became the CEO and began to expand the company, opening new stores across the United States and eventually around the world.

Under Schultz’s leadership, Starbucks transformed into a global brand, known not just for its coffee but for its commitment to creating a welcoming environment where customers could relax and enjoy a high-quality coffee experience. What started as a small store in Seattle selling coffee beans and kitchenware grew into a worldwide phenomenon, changing the way people consumed coffee and interacted with each other.

Howard Schultz’s journey from selling kitchenware to founding Starbucks is a testament to his vision, determination, and belief in the power of coffee to bring people together. His story is a reminder that sometimes, the smallest observations can lead to the biggest transformations.

Sometimes we need to look out of the window and see where we are. Are we at the top of a mountain going nowhere? Perhaps we have to climb down and start something new. By starting something new, although it will be difficult in the beginning, we may climb a higher mountain.

Writing about complex subjects needs research and simplification. The challenge is that you can’t dumb down something into such a simple form that it loses the original meaning. It’s also important to acknowledge sources when you are researching. If you need help with any of this, let me know. I’m only a chat or an email away.

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