New Starbucks CEO Brian Niccol Used a Confident 5-Word Phrase to Help Him Get the Job. It's a Lesson in Emotional Intelligence

Starbucks' board of directors was worried.

Sales at the world's largest coffee company were slipping. An activist investor was clamoring for change.

And Starbucks founder and former CEO Howard Schultz wasn't happy, sharing his displeasure in an open letter on LinkedIn criticizing the company's direction and leadership.

So, in July, according to Starbucks chair Mellody Hobson, the board started a conversation about a potential change in leadership. Soon after this, Hobson says she reached out to Chipotle CEO Brian Niccol through a third party.

"We thought we had the opportunity to engage with one of the biggest names in the industry," Hobson told CNBC. "He know this industry, and we thought he would be the right leader for this moment."

Niccol took the call. And Hobson says she clearly remembers what Niccol told her when they spoke.

"I know what to do," Hobson says Niccol told him. "This is a speed bump in this company's history. This is not something I fear going into."

Those five words aren't just confident, but also emotionally intelligent- because they helped convince Hobson, and likely the Starbucks board, that Niccol was the right person for the job. 

The biggest reason why? Because Niccol had the track record to back his words up.

Experts laud Niccol for the turnaround he led at Chipotle, which saw sales double in his first year as CEO and its stock price climb drastically over the next six years. Before that, Niccol experienced success at Pizza Hut and Taco Bell.

It was experience like that Starbucks was looking for, which would be a stark contrast to that of Niccol's predecessor, former Starbucks CEO Laxman Narasimhan.

Hobson described Narasimhan as a "brilliant mind" who pushed Starbucks forward on a number of initiatives, but she also admitted that the now-ousted CEO was "coming into an industry cold." Most of his career was spent at consulting firm McKinsey, where he spent 19 years. While Narasimhan also spent time at consumer-goods company Reckitt, food service was an entirely different ballgame.

In contrast, Niccol is a proven operator at the highest level. He made key changes at Chipotle while CEO, including a new way of making orders that essentially created two teams in kitchen: one that would focus on walk-in customers, and another that would focus solely make orders submitted online. Not only did this improve efficiency, it reduced frustration on the part of customers who felt online orders were responsible for longer wait times.

"What we saw with Brian was someone who's quite honestly been there, done that," said Hubson. "Through all sorts of market environments, all sorts of cycles."

Niccol also had a reputation as an innovator. At Taco Bell, Niccol is widely credited for spearheading the successful "Live Mas" brand campaign, which the company continues to use today. Niccol is also credited for introducing Doritos Locos Tascos, a wildly popular menu item that Doritos-flavored taco shells.

Also playing a role in Niccol's hire is his reputation as a culture carrier.

"That is something that is very big at Starbucks," Hobson explained. "Our culture means a lot. He understands how much the people affect the outcomes. And he is taking care of his people. He is a beloved leader."

All of these were good reasons for Starbucks to be interested in hiring Niccol. And that simple phrase no doubt helped convince the board: He knows what to do.

Of course, time will tell if Niccol can repeat his success on a much larger scale. Starbucks has more than 38,000 stores worldwide, compared with just over 3,400 for Chipotle. And Starbucks's global footprint is also much larger than Chipotle's, with more stores located outside North America than inside.

But Niccol's biggest endorsement comes from the person who cares most about Starbucks: Schultz himself. When Hobson told him the news of Niccol's hiring, Schultz responded with excitement, communicating his confidence in five-word phrase of his own: "Mellody, that's a home run."

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Source: Inc.com