Hot Topics In Preparedness
Lessons Learned in Business Continuity
Starbucks Beginnings
Starbucks Today
United Kingdom
Canada
• Austria
United States
• Switzerland
Mexico
• Germany
Puerto Rico
• Austria
• Spain
Starbucks
by the Numbers
12,142
locations
world wide
128,197 partners
(employees)
Korea
Continental Europe
• Greece
Peru
• Cyprus
• France
Chile
Middle East
•
•
•
•
•
•
•
•
Bahrain
Kuwait
Lebanon
Oman
Qatar
Saudi Arabia
UAE
Turkey
Japan
China
Taiwan
Thailand
Philippines
Malaysia
Singapore
Indonesia
Australia
New
Zealand
Poll Question 1
I estimate that the number of Starbucks
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.
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
Emergency
Response
Plan and implement
procedures to restore
Starbucks site
operations at temporary
locations and recover
Internationalnormal operations.
Develop, implement
and test policies,
procedures and
actions to be followed
in the event of an
Operations
Plan for the recovery of
critical IT assets
including, network,
hardware, and data to
meet RTO/RPO
requirements.
I.T. Disaster
Recovery
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
Locating Partners
Office building off I -10
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
• 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
CDC, 2005
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
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
27
6
1
CDC Business Checklist Area
Total
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?