The project includes integrating two researched-based theories for change, developing a training program that uses job performance to measure the desired change, providing strategies to overcome resistance, creating a shared diagnosis plan, identifying challenges and benefits for teamwork, and offering an incentive plan for buy in and an enrichment program for commitment. Your Learning Team may review the case studies found in the readings in your course textbooks to gather ideas for the scenario.

3.  Organization Overview
 Scenario
 Starbucks
 Theories of Change
 Rationale for Theories
 How Will the Theories Promote Change
 Measurement/Assessment of Change
 Training Program
 Objectives
 Strategies to Overcome Resistance
 Strategies to Create Commitment
 Incentive Offers
 Use of Teams During Change
 Shared Diagnosis in the Change Process
 Data Collected for Continuous Improvement Monitoring
 References

4.  Organization Overview:
› American coffee company and coffeehouse founded in Seattle,
Washington in 1971
› Started as a single store in 1971 now there are 22,591 retail stores in 68
countries
› Starbucks mission: to inspire and nurture the human spirit – one person,
one cup and one neighborhood at a time.

5.  Scenario
› Effective April 12, 2016, Starbucks Rewards program (“Starbucks
Rewards")
› Members of Starbucks Rewards are able to earn and accumulate “Stars"
that can be redeemed for Starbucks Rewards benefits, also known as
“Rewards," at participating Starbucks®, Teavana® and Evolution Fresh™
stores in the U.S., Canada and Puerto Rico.
› Starbucks Rewards "stars" as a type of digital currency, reloadable card,
dubbed "Starbucks Rewards Prepaid Card from Chase” (Sharma, A.,
2016).

6.  JOINING STARBUCKS REWARDS
› 1. Activate a physical Starbucks Card, or Starbucks Card eGift is Five
Dollars ($5.00).
› 2. Download the Starbucks mobile app to your Android™ or iPhone®
device.
› 3. Purchase a specially marked Starbucks® product from a participating
grocery retailer, create an account and select a Starbucks Card.
› 4. Join Starbucks Rewards!

7. Beckhard & Harris's Change Management
 Organizational Analysis
› Evaluate the need for change by assessing existing organizational state.
 Why Change?
› Determine the underlying need for change, whether change is a choice, and define a
change vision
 Gap Analysis
› Assess the gaps between the existing state versus the desired end state.
 Action Planning
› Develop a plan to accomplish the tasks necessary for the change.
 Managing the Transition
› Execute the plan and manage resistance (Cawsey, Deszca & Ingols, 2012).

8. Lewin’s Change Management Theory
Unfreeze
 Preparing the organization for upcoming changes.
› Breakdown of existing practices, attitudes, and behavior. Creating motivation for
implementing changes.
Change
 Implementing of changes
› Development of new attitudes and behaviors.
› Time and communication are key to change success.
Refreeze
 Consolidating changes and reinforcement of new changes.
› Ensure changes are being incorporated and used.
(Lewin's Change Management Model: Understanding the Three Stages of Change, n.d.)

9.  Customer satisfaction
› Starbucks understood the need for change to help its customers learn
and use the rewards system
› They increased the reward to make it more appealing to customers
› Increased rewards attracts customers to make more purchases

10. After the uncertainty created in the unfreeze process, people begin to change
and look for new ways to do things.
 Communicate often
 Empower others
 Involve people in the process
 Address problems immediately

11.  Set clear definitions
 Collect data related to the objective
 Establish a clear target –quantitative data
 Consistently collect data
 Highlight success, challenges, and issues
 Ask questions

12.  The Turnaround and Transformation Program
Day 1: The Turnaround
Day 2: The Transformation

13.  Employees will understand the necessity behind the changes
to the reward program by:
 Communicating directly with management concerning the new changes.
 Directly addressing concerns with management.
 Multifunctional teams will be created to provide unbiased
opinions and solutions to the new rewards program.
 Roles and responsibilities of each employee will be changed
to accommodate their position within the pilot team for each
store.

14.  Effectively create a plan to advertise and market the new rewards program
to customers.
 This plan will also include an incentive plan for employees to encourage
participation.
 Determine the success of the plan by analyzing the usage increased of the
Starbucks App for ordering and payment.

15.  Use resistance from employees as a learning experience.
 Encourage participation.
 Be open, honest, clear about the upcoming changes.
 Understand the reasons for resistance (Spector, 2013).
 Use customer feedback on program to help employees develop answers to
possible objections.

16.  Explain the ultimate goal of the organization.
 Allow active involvement throughout the change process.
 Stress importance of professional growth and development opportunities.
 Create store goals to be reached

17.  Create a rewards program for employees that get the most customers to
enroll in a week.
 Create incentive program for managers of top selling stores
 Trickle down incentives for employees.
 Chase has confirmed that the rewards card will be free of some of the fees
often associated with prepaid debit cards, including loading, overdraft, and
monthly service fees (Sharma, A., 2016).

18.  Mutual Engagement
 Teamwork
› Accepting shared purpose and responsibility for interdependent tasks
› Enhances coordination
› Commitment
› Creativity
› Supports outstanding performance
› Learn from each other

19.  Discover the problem (s) together as a whole.
 Everyone is involved in the change process from beginning to end
 Everyone in the organization arrives at the same result – “The Change”.

20.  Surveys
 Observations
 Quarterly and Annual Sales Reviews
 Monitor of Starbuck app usage from reward members.

21. Cawsey, T., Deszca, G. & Ingols, C. (2012). Organizational Change: An Action-Oriented Toolkit, (2nd ed.). Thousand Oaks, CA: Sage Publications
Lewin's Change Management Model: Understanding the Three Stages of Change. (n.d.). Retrieved June 10, 2016, from
https://www.mindtools.com/pages/article/newPPM_94.htm
Spector, B. (2013). Implementing organizational change: Theory into practice (3rd ed.). Retrieved from The University of Phoenix eBook .Collection database.
Sharma, A. (2016). Why Starbucks Wants You to Load Up Its Prepaid Visa Debit Card. Retrieved from
http://www.fool.com/investing/general/2016/03/28/why-starbucks-wants-you-to-load-up-its-prepaid-vis.aspx
www.starbucks.com. (2016). Starbucks Rewards Terms of Use. Retrieved from
http://www.starbucks.com/card/rewards/rewards-program-ts-and-cs