Friday, November 23, 2007

Decisions, Decisions, Decisions

Good morning... What can I get for you?

Happy Black Friday! Today's story is about "knowing your business". As a store manager at Starbucks, you have all sorts of rules, standards and guidelines to help you run your business. Some are vigorously followed... others not so much. I was pretty good at following most of the rules... where it made sense. But as a child of the "Be Your Own CEO" era at Starbucks... there were times when you just made a decision for the good of your business.

I have mentioned before that I worked in the downtown Seattle market as a manager. Some of you may know that most stores in the downtown Seattle area are pretty quiet on the weekends. A few are open, but most are 5-day a week stores. Well, mine wasn't when I got there... we were also open on Saturdays... from 8am to 4pm. We never had more than 8-15 customers for the entire Saturday... for months. Of course, we had to pay for 2 people to be on... all day.

One day, in my one on one with Flanders, I brought him a business case for closing the store down on Saturdays. I used lots of data on customer counts and sales... labor costs and projected impact if we were to close. He looked very thoughtful and said...

Flanders: Well, let me think about it... until then, use the time to deep clean the store and as admin time.

Pat: O.K... The store gets deep cleaning during business hours and I have plenty of admin time, my real concern is my controllables line and my stats on ALS (Automated Labor System).

Flanders: Alright... I hear you.

So, a few months passed and still no decision. I asked Flanders every time we met to decide to which he declined to make a decision and "needed to see more evidence." After about eight times of having this discussion, I finally just put a plan into action. I adjusted my hours by calling the team in labor systems to explain the situation. They made the change on their end to the system. We put up a sign (done in Word and printed off on nice paper) to our customers letting them know... although we talked to them individually as well about the change. The solution was to walk to the other store a block away... which most of them were happy to do.

So months passed and I never said anything to Flanders. We had several meetings about numbers and performance and he noticed we were getting better... He was so proud. He had no idea we weren't open on Saturdays. So... I figured it was time to fill him in.

He was speechless and I don't remember him ever being at a loss for words.

Not one to leave a gap in conversation, I pulled out a sheet of paper with all of his comments about how great our business was doing etc.

Flanders (angry): You know... I need you to communicate these things from now on. That just really catches me off guard.

Pat: I understand... but I've been telling you for months... showing you data for months... asking you to make a decision for months... I need you to make decisions and not to blow off my ideas. I did my homework... you need to do yours... Let's throw our pride aside and look at what the harm really is. The store is making more money AND performing more efficiently.

Yes, this was probably the impetus for Flanders not liking me much... In retrospect, I'd do it again and I'd probably send him a voice mail. Now, some of you will be appalled... others will applaud... the point is that you have to do what makes sense for your customers and business... Act with your heart... after you've run the numbers of course.

We'll see you Monday for your usual...

Pat Nerr...

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