Bean Stock... Bean Crock

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

Well, yesterday was sort of a partner story with a bit of "customer service-ry" advice thrown in for good measure. Today will be a little different. Still positive... and solution-oriented.

Many of you have heard that the 2007 Bean Stock grant hit an all-time low of 10%... it's usually been 14% and only once (maybe twice) has it been anything less than 14%... There are probably many reasons why the Board decided to demoralize the partners this year... and I don't want to go into that... because it's Positive Starbucks Week! Instead, I'd like to suggest the following plan for scrapping Bean Stock and offering up a new performance carrot for the partners of Starbucks.

First, we need a snappy, coffee-related name... Crema Bonus? Pour Your Heart Into It Profit Sharing?? Riposa Rewards? How about First Pop Payout?? Or FPP for short.

Ok, so here's how it works... This rewards program is based on company performance. Things like sales goals, product goals, customer service goals... you get the rest... Here's the catch. Make it based on the company's overall performance... get rid of Manager Bonus, Bean Stock and the like.

Make the bonus payouts once or twice a year for retail employees and once a year for SSC and RP folks. In fact, make it twice a year for retail folks. They have the higher turnover.

One of the problems with the original Bean Stock program is that it is currently worth nothing... and you can't motivate performance with the half-fast promise of some possible future gain any longer. You need to use cash to motivate. It's the only way.

So let's take an example of an 8.00/hr barista. If said barista works 22 hours per week, they gross about $9,100/yr. You set up your rewards program to do a bi-yearly cash bonus of say... 6% of their yearly wages (before taxes) or $546 every six months. That's an extra $1,000 in their pocket and your carrot to attract and retain folks. There's no "stock" on the books... there's no vesting periods... and more importantly, you have your employees eyes set on a tangible prize. One that matters to them.

Right now, there are 20-30 SSC partners doing the math for their own salaries and shaking their heads. Don't worry, there needs to be some concessions made for you. You don't have the luxury of having such clear, concise and measurable goals. Things can be a bit squishier for you. I know this because somehow the manager level and above keeps getting their bonus payouts even though the company has trended downward. So... what to do. You adjust the payout percentage somewhat as the salary range gets higher. I know this doesn't seem fair, but it is... SSC folks are being paid for their skills and you need them too. It's also a carrot for baristas to think about continuing their education and striving for a role in the SSC or in a market office.

There is one more thing that needs to happen to make this all work. Retail needs to get their heads around reporting sales on a weekly basis to each and every store. Each store manager needs to get their heads around reporting their store sales to each and every partner in their store... They have to... The partners need to know how close or far they are from their carrot.

Every employee should know and have available to them, the latest performance numbers. Leadership should be talking them through and explaining the progress and course adjustments.

I always get a chuckle when folks send me an e-mail with instructions of how to "stop living in the past" and "that was the old Starbucks"... blah, blah, blah... maybe so... but if that's the case, then you need to move your programs and incentives forward as well. You can't ask for more if you keep giving the same old thing or less. I'm sure there's a few partners hanging out at the SSC with some time on their hands that can fill in the blanks and run the numbers for what makes sense to make this happen...

It only takes one partner to ask "when are you going to create the next Bean Stock?"...

There you go... a good and viable solution for turning the ship around. Something to get partners all over the company excited to come to work and do a great job for the right reasons. Something to get everyone involved and vested in their own and others performance.

Starbucks... I give you this idea out of love... now take it like I know you can and make it happen. Rally the troops and become great and special again.

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

Pat Nerr...