Lessons Learned in Business Continuity

Hot Topics In PreparednessHot Topics In Preparedness

Starbucks BeginningsStarbucks Beginnings

Starbucks TodayStarbucks Today

United Kingdom

Japan

Singapore

Philippines

TaiwanThailand

NewZealand

Malaysia

ChinaMiddle East

United States

Australia

KoreaContinental Europe•Austria

•Switzerland

•Germany

•Austria

•Spain

•Greece

•Cyprus

•France

•Bahrain•Kuwait•Lebanon•Oman•Qatar•Saudi Arabia•UAE•Turkey

Indonesia

Canada

MexicoPuerto Rico

Peru

Chile

Starbucks by the Numbers

12,142 locations world wide

128,197 partners (employees)

I estimate that the number of Starbucks I estimate that the number of Starbucks stores in my jurisdiction is between:stores in my jurisdiction is between:

A. 0 - 5

B. 5 - 25

C. 26 - 100

D. Who knows? They open so fast that I can’t keep track.

Poll Question 1Poll Question 1

Example of Previous EventsExample of Previous Events

• Triple Homicide, 1997Georgetown store Washington D.C.

• WTONovember, 1999 Seattle

• Nisqually Earthquake February, 2001Seattle

September 11, 2001September 11, 2001

Adding Value

Impacts of Catastrophes on Shareholder Value

By Rory Knight and Deborah Pretty

Poll Question 2Poll Question 2

A. Business recovery planning

B. Emergency response to events

C. Information technology recovery

D. All of the above

It is important for public health leadership to It is important for public health leadership to interact with large and small businesses interact with large and small businesses about their:about their:

International Training andOperations Awareness

Plan for the recovery of critical IT assets

including, network, hardware, and data to

meet RTO/RPO requirements.

I.T. Disaster Recovery

Emergency Response

Develop, implement and test policies, procedures and

actions to be followed in the event of an

emergency.

Business RecoveryPlan and implement procedures to restore Starbucks site operations at temporary locations and recover normal operations.

Starbucks Business Continuity Program TodayStarbucks Business Continuity Program Today

Business Continuity leads the enterprise through business disruptions caused

by incidents or disasters. The program protects our partners and customers,

guards company assets, and preserves brand integrity by evaluating risks,

developing ongoing strategies, and implementing and testing plans.

Critical Incident Goals

Goals– Protect partners– Contain the incident– Communicate to all

stakeholders, including media

– Assess the affects of the disaster correctly

– Decide on and implement optimal response plans Tsunami, Patong Thailand Dec., 2004Tsunami, Patong Thailand Dec., 2004

Poll Question 3Poll Question 3

A. The largest employers

B. Most small businesses

C. Both A. and B.

D. None of the above

My jurisdiction maintains a contact list (for My jurisdiction maintains a contact list (for emergency response) of:emergency response) of:

Hurricane KatrinaHurricane Katrina——Lessons LearnedLessons Learned

Hurricane Response ProtocolHurricane Response Protocol

• Pre-storm preparation checklists (starting 5 days out)

• Communications guidelines

• Store closing preparations• Store reopening criteria• Media relations guidelines• Red Cross/government

contact information

Levee Breech and ImpactLevee Breech and Impact

Response TeamResponse Team

• Business Continuity

• P&AP

• Global Communications

• Payroll

• Total Pay

• Facilities

• Operations

• Corporate Social Responsibility

• Marketing

• Retail Communications

• Regional Vice President

• Regional Director

• District Managers (on-site in Louisiana/Texas

• Regional Partner Resources

• Regional Facilities

• Regional P&AP

• Regional Marketing

Starbucks Support Team (Seattle)

Regional Field Office (Atlanta)

Locating PartnersLocating Partners

Office building off I -10

Temporary HousingTemporary Housing

New Orleans, Sept. 2, 2005, Jocelyn Augustino/FEMA

Pay and BenefitsPay and Benefits

• All Pay and Benefits continued for all partners through September

• A one-time CUP fund payout of $500 is granted to all displaced partners from the New Orleans

• $25,000 in Am-x gift checks are sent to leadership to disburse to partners

• EAP Meetings and counselors sent on site to Houston, Baton Rouge and Atlanta

CommunicationsCommunications

Community Support/MarketingCommunity Support/Marketing

Poll Question 4Poll Question 4

A. Yes

B. No

I was able to go to New Orleans within 30 I was able to go to New Orleans within 30 days of the Katrina catastrophe.days of the Katrina catastrophe.

Partner & Asset ProtectionPartner & Asset Protection

FacilitiesFacilities

Canal Street Store, Sept. 2005

Canal Street Store, May 2006

The Last Partner…The Last Partner…

2005 Hurricane Season2005 Hurricane Season——Lessons LearnedLessons Learned

• Communication: Know all out-of-state partner contacts in advance. Make all partners aware of multiple communication channels.

• Clear Pay Expectations: Define how partners will be paid and for how long. Be consistent throughout the region and organization.

• Direct Deposit: Increase participation in direct deposit so that partners are able to be paid during any incident

• Distribution Expectations: Plan standing orders with vendors to be filled after the storm.

• Community Outreach: Donate product to key community groups prior to storm impact.

• Community Support Communication: Within 24 hours marketing to provide plan for local response to community and create ways for all internal partners everywhere to be able to help.

Rebuilding New Orleans, 2006Rebuilding New Orleans, 2006

Rebuilding New OrleansRebuilding New Orleans——Project AcornProject Acorn

Pandemic Planning Calls for a Paradigm ShiftPandemic Planning Calls for a Paradigm Shift

• Industries hit the hardest will include the health sector, service industries, transportation, travel, and businesses with time-sensitive supply chains. (CDC: Impact Of Pandemic Influenza report, 3/05)

• There is a real possibility of a dis-proportionate response due to public fear as a result of media coverage.

• A pandemic would not be a typical disaster.

– Widespread impact

– Not a physical disaster

– Duration

– Notice

– Primary effect is on staffing

CDC, 2005

Starbucks Pandemic Plan GoalsStarbucks Pandemic Plan Goals

• Ensure partners and their families security and safety.

• Remain the Third Place for customers and the community.

• Preserve the continuity of Starbucks essential business functions.

• Minimize the economic losses while adhering to our guiding principles.

Pandemic Planning Summit, Mar. 21, 2006,

U.S. Dept. of Education

Plan Development ProcessPlan Development Process

CDC Business Checklist Area CompleteIn

ProgressNot

Started

Plan for impact on business 6 2 0

Plan for impact on partners & customers 4 1 1

Establish policies and procedures to be implemented during a pandemic

6 0 0

Allocate resources to protect customers and partners during a pandemic

2 1 0

Communicate to and educate your partners

5 2 0

Coordinate with external organizations and help your community

4 0 0

Total 27 6 1

Current Project Status: 91% completeCurrent Project Status: 91% complete

Determining Our Pandemic ResponseDetermining Our Pandemic Response

• Monitor the influenza; it will be critical to staying ahead of the impacts.

• Create a series of increasingly restrictive responses to the spread of the pandemic.

• Use the WHO phases, and then base actions on whether a country is “affected” or “non-affected.”

Applying Lessons Learned to the FutureApplying Lessons Learned to the Future Example: Pandemic InfluenzaExample: Pandemic Influenza

• Plan components where we apply previously developed tactics• Manage Plan

• Global Communications Strategy

• Communicable Disease Travel Policy

• Work from Home Procedures

• Partner Resources

• Expatriate and Foreign Nationals

• Function Workaround and Recovery Plans

• Plan components where we must create entirely new tactics• Office Procedures

• Store Procedures

• Manufacturing Facilities Procedures

• Logistics and Distribution

Pandemic PlanningPandemic Planning——Global RolloutGlobal Rollout

• Overview of Avian Flu and pandemic influenza

• Risks and assumption

• Roles and responsibilities

• Market guidance document

• Table-top simulationPetal, Mississippi, Bill Tarpening/USDA

Questions?Questions?