Hot Topics In Preparedness Lessons Learned in Business Continuity
Starbucks Beginnings
Starbucks Today Canada United States Mexico Starbucks by the Numbers 12,142 locations world wide 128,197 partners (employees) Puerto Rico Peru Chile United Kingdom Continental Europe Austria Switzerland Germany Austria Spain Greece Cyprus France China Middle East Thailand Bahrain Kuwait Lebanon Oman Qatar Saudi Arabia UAE Turkey Malaysia Singapore Korea Taiwan Japan Philippines Australia Indonesia New Zealand
I estimate that the number of Starbucks stores in my jurisdiction is between: A. 0-5 B. 5-25 C. 26-100 Poll Question 1 D. Who knows? They open so fast that I can t keep track.
Example of Previous Events Triple Homicide, 1997 Georgetown store Washington D.C. WTO November, 1999 Seattle Nisqually Earthquake February, 2001 Seattle
September 11, 2001
Adding Value Impacts of Catastrophes on Shareholder Value By Rory Knight and Deborah Pretty
Poll Question 2 It is important for public health leadership to interact with large and small businesses about their: A. Business recovery planning B. Emergency response to events C. Information technology recovery D. All of the above
Starbucks 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. Business Recovery Plan and implement procedures to restore Starbucks site operations at temporary locations and recover International normal operations. Operations 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. Training and Awareness
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., 2004
Poll Question 3 My jurisdiction maintains a contact list (for emergency response) of: A. The largest employers B. Most small businesses C. Both A. and B. D. None of the above
Hurricane Katrina Lessons Learned
Hurricane 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 Impact
Response Team Starbucks Support Team (Seattle) Business Continuity P&AP Global Communications Payroll Total Pay Facilities Operations Corporate Social Responsibility Marketing Retail Communications Regional Field Office (Atlanta) Regional Vice President Regional Director District Managers (on-site in Louisiana/Texas Regional Partner Resources Regional Facilities Regional P&AP Regional Marketing
Office building off I -10 Locating Partners
Temporary Housing New Orleans, Sept. 2, 2005, Jocelyn Augustino/FEMA
Pay 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
Communications
Community Support/Marketing
Poll Question 4 I was able to go to New Orleans within 30 days of the Katrina catastrophe. A. Yes B. No
Partner & Asset Protection
Facilities Canal Street Store, May 2006 Canal Street Store, Sept. 2005
The Last Partner
2005 Hurricane Season Lessons 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, 2006
Rebuilding New Orleans Project Acorn
Pandemic Planning Calls for a Paradigm Shift CDC, 2005 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 disproportionate 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
Starbucks 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 Process CDC Business Checklist Area Complete In Progress Not 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 Allocate resources to protect customers and partners during a pandemic Communicate to and educate your partners Coordinate with external organizations and help your community 6 0 0 2 1 0 5 2 0 4 0 0 Total 27 6 1 Current Project Status: 91% complete
Determining 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 Future Example: 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 Planning Global Rollout Overview of Avian Flu and pandemic influenza Risks and assumption Roles and responsibilities Market guidance document Table-top simulation Petal, Mississippi, Bill Tarpening/USDA
Questions?