I recently had the privilege of giving a presentation on the Starbucks brand. I've followed the Starbucks journey closely over the years and it is a fascinating one: a long steady rise followed by a steep decline. Almost every great brand experiences this at one point in its lifecycle. And that truth is alarming - the shifts I might not be sensing due to present success.

Starbucks was gaining ground for two decades before their decline came along. What's most interesting to me is that the decisions that escalated their brand decline were made during a period of high growth and a growing stock price – decisions like: creating a record label, a magazine, they started selling too much merchandise (like stuffed animals) in their stores, and started making smelly breakfast sandwiches. Starbucks started looking and smelling less like a European coffeehouse, and more like a fast food chain. The romance was being lost as the brand was commoditized.

And when the economy did decline in 2007 & 2008 – the Starbucks brand was diluted to the point that it was seen as little more than an expensive cup of coffee at a fast food chain. Their stock price soon began to tumble and the brand saw some of its worst days.

When Shultz returned as CEO in 2008 – his first order of business was to return the brand back to their roots – back to the romance of the European coffee experience. He quickly retrained Barista’s on how to make a proper espresso, updated equipment, instituted a return to freshly ground coffee in stores, and attempted to reduce the smell of the breakfast sandwiches. All of this designed to return Starbucks to their brand’s essence.

Even with those changes, Starbucks spent some time in the valley before they began their rebound.

Paranoia may be unhealthy, but it can be a good thing in branding. Otherwise, a brand's best days may produce such a sense of anesthesia that no one can sense the cliff's edge coming.

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