The recent announcement by Starbucks that they will no longer have decaffeinated coffee brewed every 30 minutes after 12pm created a bit of a buzz. Customers may still get their decaf on demand and wait four minutes for a fresh cup. Now each store manager will have the option to stop brewing decaf every 30 minutes, or continue, depending on their individual customer purchase demand.
MISSION
Starbucks has a mission statement that you can read here. Two key parts are:
Our Coffee
It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done.
Our Customers
When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers— even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.
Does this change to let store managers choose product offerings based on their individual customers align with the Starbucks mission? Yes. Does this change allow decaf-drinking customers a fresh cup of coffee? Yes (if they are willing to wait four minutes for the brew). Appears the change is in complete alignment with the mission of the organization.
LEGACY
“We have always offered decaf. It is what our customers want!” This type of statement is prevalent in many organizations. I expect at one time the drive for quality coffee at Starbucks negated any need for cost containment. GE was once known primarily for light bulbs and refrigerators. Those two product lines now account for less than 4% of revenue. Does it make sense to keep them?
Current economics requires a review of budgets and product/program offerings. What legacy products, programs or departments are being held onto in your organization?
DEMAND
“For many of our stores, the demand for decaf is greatly reduced in the afternoon,” the company (Starbucks) said in a statement to Bloomberg. “With our current standard of continually brewing decaf after 12 p.m. regardless of demand, we have seen a high amount of waste.”
Sounds to me like Starbucks is willing to reduce waste – even if they lose a few customers.
BALANCE
Does your organization have a clear vision and mission about who their customer is and what products they intend to deliver to that customer? When was the last time your products and programs were reviewed for their adherence to the mission, and demand, of ‘today’? How much flexibility is given at the ‘point of sale’ to managers?
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This is just another example of looking at the “we’ve always done it this way” approach and refining where possible to meet today’s demand, not yesterday’s plan.
Joe Raasch :: Feb.01.2009 ::
Change Management, Innovation, Leadership, Organizational Development, Uncategorized ::
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