Delivering World -Class Customer Service Click To Edit .

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ClicktoeditMastertitlestyleDelivering World-Class Customer ServiceThrough Lean ThinkingStarbucks Mission:To inspire and nurture the human spirit – oneperson, one cup, and one neighborhood at a time1

CustomerServiceClick toedit VideoMaster title style 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only2

StarbucksHasSomeInterestingTo OvercomeClick toeditMastertitleChallengesstyleTypical ChallengesStarbucks Challenges May not think about details of 17,000 unique store situationswork method May not have work methodteaching process Engaging employees inimprovement process Traditional batch thinking withcommand & control managementsystemglobally with more than 200,000partners Customer value by providinginspired moments of connection Unmet demand at peak Work method not part of historicculture Problem solving not a corecapability 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only3

StarbucksDefinitionof Leantitle styleClick toedit MasterPartnerMore EngagedPartners Burdensome Work Mentally EngagedCustomerBusinessImprovedCustomerExperience Faster service qualityImproved Business Motion Productivity Sales / Transactions Waste Training / Turnover 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only4

StarbucksLeanVisionClick toeditMaster title styleA relentless focus on delivering value from the customer’s perspective .Build theFoundation- Lean team- Key concepts2008-2009A StandardWay ofWorkingLean as aSystem- Routines- Integrated into howwe work and lead- Capability- Innovation pipeline- Processimprovement- Continuousimprovement20102012IncreasedCustomer Value&A Culture ofProblem Solvers2013and beyond Enabled through an environment where problems are good and leadersdemonstrate skills in observation and inquiry. 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only5

Click to edit Master title styleExperienced Based Learning andTeaching: A Recipe For Success 2011 Starbucks Corporation. For internal use only. All rights reserved.6

LeveragingtoMasterachieve ourGoalClick hod ofWorkConsistentMethod ofTeachingStore LevelImprovementHigh quality,HandcraftedBeveragesHighly SatisfiedCustomers tell us: Taste Speed Friendliness AccuracyEngaged Partnersmatter most.StarbucksTeachingModel 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only7

WorkRoutineStructureClickto editMaster title styleConsistentMethod ofWorkAn organizing tool for the teacher – not for handing over to the learnerMajorSteps A logical segment of the work that advances the processNot meant to be a complete time motion studyKeyPoints A key for doing a particular step properly Most parts of the job are quite easy to learn – but 5% to 10% are difficult ortrickyAnything that might Make or break the job. Injure the partner (safety factors are always key points). Make the work easier to do.ReasonsWhy Explains the “why” behind each Key Point 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only8

Click to edit Master title styleStarbucks Teaching Model 2011 Starbucks Corporation. For internal use only. All rights reserved.9

StarbucksTeachingModel –titleFour styleStepsClick toedit MasterConsistentMethod ofTeaching1.Prepare2.Present – twice Major steps Major steps key points reasons why3.Practice – three times Silent demonstration only Verbalizing and demonstrating major steps Verbalizing and demonstrating major steps, keypoints and reasons why4.Follow-up 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only10

StarbucksTeachingModel title styleClick toedit MasterConsistentMethod ofTeaching View T-Shirt Folding Video 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only11

StarbucksTeachingModel DemonstrationClick toedit Mastertitle styleConsistentMethod ofTeachingObjectives Describe the Starbucks Teaching Model Learn, understand and demonstrate the Starbucks Teaching Model 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only12

Activity:TheMasterTeachingtitleModelClickUsingto editstyleConsistentMethod ofTeachingActivity Set Up1.Each table will do this activity as a group. Ensure that each table has one teacher and one learner.2. Teacher teaches learner to fold a t-shirt.3. If time permits repeat steps 1-3. Select a new learner and teacher. 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only13

In Summary:A RecipeFor SuccessClick to editMastertitle styleConsistentConsistentMethod ofWorkConsistentMethod ofTeachingStore LevelImprovementHigh quality,HandcraftedBeveragesHighly SatisfiedCustomers tell us: Taste Speed Friendliness AccuracyEngaged Partnersmatter most. 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only14

ResultsDateClicktotoedit Master title styleOverall CustomerSatisfactionProductivityWaste81% 21% 15.3%66%200811.69.820122008201220082012Partner View Survey Of 12 changes rolled out in our stores, Lean was one of the most positivelyrated changes by all store partner levels Majority of partners at all levels agreed they feel encouraged to try/suggestbetter ways 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only15

What’sdifferentClickto editnow?Master title styleWhat we’ve learned Experienced-based learning is themost effective way to shift thinkingand create engagement Enabling partners to improve theirwork is the highest form of respect Waste exists everywhere – you justhave to learn how to see it Focus on “technical” and “social”together It’s a journey, not a sprintWhere we are going Becoming a learning organizationrequires embracing asking questionsas part of our culture Moving from creating a case forchange to change leadership –requires leaders getting close to thework Balancing a desire to “get it outthere” while doing it in a way thatachieves sustainable results throughbehavior change 2012 Starbucks Coffee Company. All rights reserved. Confidential for Starbucks business purposes only16

Click to edit Master title styleQuestions & Answers17

Confidential for Starbucks business purposes only . 4 . Starbucks Definition of Lean . Partner . Customer . Business . More Engaged Partners Burdensome Work Mentally Engaged. Improved Business Motion Productivity Sales / Transactions Waste Training / Turnover. Improved Customer Experience Faster service