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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?