1. THE BALANCED SCORECARD I Starbucks Inc.
Efe Abighe - Yasin Gonenc - Panagiotis Panas - Chenyang Shao - Ding Wang
2. Starbucks Inc.
1 INTRODUCTION
Mission
- To inspire and nurture the human spirit – one person, one cup and
one neighbourhood at a time
Background
- Premier roaster, marketer and retailer of specialty coffee
- Founded in Seattle, Washington in 1971
- 23,768 retail stores in 68 countries
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4. Starbucks Inc.
3 BSC l IMPLEMENTATION OF BSC
People do not know, what they do not know.
- Methods of order and meetings guide people to continuously question
our strategy, keep our core values in their mind, and in the end
employees figure out what they don’t know
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Executive Meetings
6 & 2 Month
Frequency
Operational
Meetings
Weekly Frequency
Informal Meetings
Potlucks and Happy
Hours - Monthly
5. Starbucks Inc.
4 BSC l OBJECTIVE OF BSC
BSC, to be able to deliver our strategy to the lowest level of our
organization
- Balanced way. Through Classification
- Ordered of Assessment
We believe in constant development and flexibility.
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Integrating people and give them chance to act.
6. Strategic Imperatives
5 BSC l STARBUCKS Inc.
Financial
Perspective
Internal
Business
Perspective
Customer
Perspective
Innovation,
Learning &
Growth
Perspective
Corporate Strategic Imperatives
Penetrate Global Markets
Leveraging Brand
Social Gathering Place
Environmental Leader
Invest in our People
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7. Can we continue to Improve and Create Value?
6
Innovation
Objectives Measures
Social Digital Growth (Mobile Order and
Pay, My Starbucks Reward Loyalty
Program)
• Number of Mobile Application Users
• Number of Orders placed using the
Mobile App
• Number of Sign ups on the Loyalty
Program
• Rate of Increase in Revenue from
mobile orders
• Total contribution of Mobile orders to
revenue
BSC l INNOVATION, LEARNING AND GROWTH PERSPECTIVE
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8. Can we continue to Improve and Create Value?
6
Innovation
Objectives Measures
Store Design experimentation (Express Stores
and Drive thrus)
• Number of New designed stores launched
• Number of customer visits to new stores
• Processing time of customer orders at new
designed stores
Retail Tea Ambitions- (Teavana Brand Tea,
Oprah Chi Tea)
• Increase in Number of Teavana Stores in tea
drinking countries in the Asia Pacific- India,
China
BSC l INNOVATION, LEARNING AND GROWTH PERSPECTIVE
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9. Can we continue to Improve and Create Value?
6
Improving Operating Efficiencies
Objectives Measures
Employee (Partner) Satisfaction • Rate of employee turnover
• Length of employee tenure
• Rate of employee absenteeism
Empower employees (College
Achievement Plan)
• Number of training sessions completed
• Number of employees completing their
Undergrad degree while in Starbucks
BSC l INNOVATION, LEARNING AND GROWTH PERSPECTIVE
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10. What must we excel at?
7 BSC l INTERNAL BUSINESS PERSPECTIVE
Consumer satisfaction
Objectives Measures
Improve product quality • Coffee beans quality
Improve service quality • Numbers of employees’ training
session
• Percentage of trained staff
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11. What must we excel at?
7 BSC l INTERNAL BUSINESS PERSPECTIVE
Consumer base
Objectives Measures
Product diversification • Number of new products
• Number of Starbucks Reserve Roastery &
Tasting Room
Geography diversification • Number of new stores in key emerging
markets
Strategic alliance and acquisitions • Percent of revenue from acquisition
• Success rate of acquisition
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12. What must we excel at?
7 BSC l INTERNAL BUSINESS PERSPECTIVE
Resource utilisation
Objectives Measures
Increase employee productivity • Net revenue per labour hour per
employee
• Number of coffee processed per hour
Improve asset utilisation • Average using life of machines
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13. How do Customers see us?
8 BSC l CUSTOMER PERSPECTIVE
Markets
Objectives Measures
Increase customer’s loyalty • Regular customer
• Percentage of loyal member
Expand into new market • New type of selling/market
Increase Market share • Percentage of market share
• New stores
• Promotion to new customers
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14. How do Customers see us?
8
Customer Satisfaction
Objectives Measures
Pre-purchase & Service satisfaction • Time spent in the waiting line
• Explanation for the products
• Number of complaints per year
Post-purchase & Product satisfaction • Tailored product, customization
• Sales of new product
• Number of returned drinks
Environmental effort • Clean, safe stores
• Tables, Wi-Fi connection
BSC l CUSTOMER PERSPECTIVE
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15. How do we look to Shareholders?
9
Growth
Objectives Measures
Increase in Sales • YoY % Increase in Sales
Increase in Market Share • % Increase in Market Share
• New Stores
• New Products
Profitability • EPS
• ROE
BSC l FINANCIAL PERSPECTIVE
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16. How do we look to Shareholders?
9
Cost Reduction
Objectives Measures
Administration Costs • YoY % Reduction
Cost per Unit/Services • % reduction in cost per unit
BSC l FINANCIAL PERSPECTIVE
Objectives Measures
Improve Asset Utilisation • ROI/AT
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Asset Utilisation
17. Financial
Customer
Internal
Learning
17
Asset Utilization Cost Eff.
Customer
Loyalty
Social Digital
Growth
Employee
Satisfaction
Empower
Employees
Store Design
Experimentation
Product
Diversification
Geography
Diversification
Improve Product
&Service Quality
Increase Consumer
Base
Customer
Satisfaction
Environmental
Effect
Net $ Growth
Resource
Utilization
10 ACTING STAGE OF MIDDLE MANAGERS
Penetrate Global
Markets – $
Leveraging Brand
Social Gathering
Place
Environmental
Leader
Invest In Our
People
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18. 11 BALANCED SCORECARD l STARBUCKS Inc.
CORPORATE STRATEGIC
IMPERATIVES
Penetrate Global Markets
Leveraging Brand
Social Gathering Place
Environmental Leader
Invest in our People
INNOVATION, LEARNING &
GROWTH
PERSPECTIVE
FINANCIAL PERSPECTIVE
CUSTOMER PERSPECTIVE
INTERNAL BUSINESS
PERSPECTIVE
• Net Revenue Growth
• Cost Reduction
• Asset Utilisation
• Customer loyalty
• Increase Consumer Base
• Customer Satisfaction
• Environmental Effect
• Product Diversification
• Geography Diversification
• Improve Product & Service
Quality
• Resource Utilisation
• Employee Satisfaction
• Store Design Experimentation
• Mobile App Growth
• Retail Tea Ambition
• Empower Employees
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