Lessons Learned in Business Continuity

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Hot Topics In Preparedness

• Lessons Learned in Business Continuity

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Starbucks Beginnings
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Starbucks Today
Puerto Rico
Starbucks by the Numbers 12,142 locations
world wide 128,197 partners (employees)
Peru
Chile
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I estimate that the number of Starbucks stores in
my jurisdiction is between
Poll Question 1

1. 0 - 5
2. 5 - 25
3. 26 - 100
4. Who knows? They open so fast that I cant keep
   track.

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Example of Previous Events

• Triple Homicide, 1997Georgetown store Washington
  D.C.
• WTONovember, 1999 Seattle
• Nisqually Earthquake February, 2001Seattle

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September 11, 2001
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Adding Value
Impacts of Catastrophes on Shareholder ValueBy
Rory Knight and Deborah Pretty
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Poll Question 2
It is important for public health leadership to
interact with large and small businesses about
their

1. Business recovery planning
2. Emergency response to events
3. Information technology recovery
4. All of the above

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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.
Emergency Response Develop, implement and test
policies, procedures and actions to be followed
in the event of an emergency.
Business Recovery Plan and implement procedures
to restore Starbucks site operations at temporary
locations and recover normal operations.
International Training and Operations Awa
reness
Plan for the recovery of critical IT assets
including, network, hardware, and data to meet
RTO/RPO requirements. I.T. Disaster Recovery
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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
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Poll Question 3
My jurisdiction maintains a contact list (for
emergency response) of

1. The largest employers
2. Most small businesses
3. Both A. and B.
4. None of the above

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Hurricane KatrinaLessons Learned
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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

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Levee Breech and Impact
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Response Team
Regional Field Office (Atlanta)
Starbucks Support Team (Seattle)

• Business Continuity
• PAP
• 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 PAP
• Regional Marketing

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Locating Partners
Office building off I -10
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Temporary Housing
New Orleans, Sept. 2, 2005, Jocelyn
Augustino/FEMA
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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

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Communications
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Community Support/Marketing
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Poll Question 4
I was able to go to New Orleans within 30 days of
the Katrina catastrophe.

1. Yes
2. No

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Partner Asset Protection
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Facilities
Canal Street Store, May 2006
Canal Street Store, Sept. 2005
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The Last Partner
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2005 Hurricane SeasonLessons 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.

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Rebuilding New Orleans, 2006
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Rebuilding New OrleansProject Acorn
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Pandemic 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
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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
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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 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 complete
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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.

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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

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Pandemic PlanningGlobal 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
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Questions?