An Analysis of the Customer Service Issues at Starbucks, Part 1
In this Assignment, you will integrate your systems thinking and management skills and you will prepare an organizational improvement plan based on your analysis of a case study. With this case in mind, this week you will put yourself in the shoes of a paid consultant and perform a thoughtful systems analysis. Then, based on that analysis, you will write an effective and concise plan that you believe would help improve the performance of the organization.
After reviewing the latest marketing data, Christine Day, senior vice president of administration at Starbucks, is concerned with the company’s performance in meeting customer expectations in the area of customer satisfaction. She is contemplating an annual investment of $40 million to increase the weekly labor hours in the North American stores, but before she makes this recommendation, she wants to better understand the cause of the decrease in customer satisfaction. She calls on your consulting service to investigate the cause of this issue and to recommend improvements. You are selected for this consulting job based on your knowledge of system thinking. After reviewing the case, you will compile an improvement plan, using the template provided.
The final plan will include two parts plus an executive summary. This week, you will submit Part 1, and next week you will submit Part 2 and your executive summary. As you develop your plan, be sure to include specific examples from the case as well as relevant citations from the Learning Resources, the Walden Library, and/or other appropriate academic sources to support your analysis.
To prepare for this Assignment:
· Read and review the following case study:
o Moon, Y., & Quelch, J. (2018). Starbucks: Delivering customer service. HBS Case 9-504-016. Harvard Business School Publishing. http://hbr.org
· Refer to the following article:
o Kim, D. H., & Lannon, C. (1997). Applying systems archetypesLinks to an external site.. The Systems Thinker. https://thesystemsthinker.com/applying-systems-archetypes/
· Download the Module 2 Assignment Template (Word document) Download Module 2 Assignment Template (Word document). Note: Be sure to keep a copy of your completed Assignment this week, as you will be adding to the same file for your Week 6 Assignment.
Submit Part 1 of your improvement plan, to include the following:
Part 1: Tools for Improvement: Causal Loop Analysis
In Part 1 of your improvement plan (pp. 2–4), you are to analyze the customer service issue identified at Starbucks using causal loop analysis. You should address the following:
· Create a robust causal loop diagram to capture the fundamental system behaviors, outcomes, and causes of the customer service issue at Starbucks. The causal loop diagram should identify with one of the common system archetype patterns. The diagram should describe fundamental system behaviors and outcomes. The diagram itself can be drawn by hand or with software. Tables are not appropriate; it must be in the form of a diagram.
· In addition to the diagram, explain why you chose this particular archetype as the best fit for the situation. (Reminder: The concept of systems thinking and its associated tools may not be understood by your audience.)
· Analyze the root cause(s) of the low customer satisfaction being experienced by Starbucks. Your analysis should be substantiated by the causal loop analysis, discussing the causal flow of the chosen archetype.
Improving Business Performance
Week 5 Learning Resources
Casual Loop Modeling
Through these resources, you will explore causal loop modeling and how it is used as a method to illustrate a dilemma within a system. Once the causal elements are identified, circular diagrams provide visual representations of the cause-and-effect interrelationships and interactions of those elements. These diagrams serve as diagnostic tools as well as prospective tools that can illustrate unforeseen interactions or consequences of future actions.
· Johnson, L. K. (n.d.). In search of the perfect causal loop variable Links to an external site. . The Systems Thinker. https://thesystemsthinker.com/in-search-of-the-perfect-causal-loop-variable/
· Kim, D. (n.d.). From causal loops to graphical functions: Articulating chaos Links to an external site. . The Systems Thinker. https://thesystemsthinker.com/from-causal-loops-to-graphical-functions-articulating-chaos/
· Kim, D. (n.d.). Graphical functions: “Seeing” the full story Links to an external site. . The Systems Thinker. https://thesystemsthinker.com/graphical-functions-seeing-the-full-story/
· Lannon, C. (n.d.). Causal loop construction: The basics Links to an external site. . The Systems Thinker. https://thesystemsthinker.com/causal-loop-construction-the-basics/
Introducing the Archetypes
Using these resources, you will explore some of the common archetypes of causal issues that arise within business systems. If you can recognize which archetype is reflected in the system and illustrate a dilemma using the archetypes, you may be able to gain a stronger insight into the underlying behavior of the dilemma. By familiarizing yourself with archetypes, you can become more effective in using causal loop modeling, both as a diagnostic and remediation tool.
· Clancy, T. (2018). Systems thinking: Three system archetypes every manager should knowLinks to an external site. . IEEE Engineering Management Review, 46(2), 32–41. https://doi.org/10.1109/EMR.2018.2844377
· Kim, D. H. (2000). Systems archetypes I: Diagnosing systemic issues and designing interventionsLinks to an external site. . The Systems Thinker. https://thesystemsthinker.com/systems-archetypes-i-diagnosing-systemic-issues-and-designing-interventions/
· Kim, D. H., & Lannon, C. (1997). Applying systems archetypes Links to an external site. . The Systems Thinker. https://thesystemsthinker.com/applying-systems-archetypes/
· Senge, P. M. (2006). Nature’s templates: Identifying the patterns that control events. In The fifth discipline: The art and practice of the learning organization (pp. 92–112). Doubleday.
· Senge, P. M. (2006). Self-limiting or self-sustaining growth. In The fifth discipline: The art and practice of the learning organization (pp. 113–125). Doubleday.
· Senge, P. M. (2006). Systems archetypes. In The fifth discipline: The art and practice of the learning organization (pp. 389–400). Doubleday.
· Wolstenholme, E. F. (2003). Towards the definition and use of a core set of archetypal structures in system dynamicsLinks to an external site. . System Dynamics Review, 19(1), 7–26.
Important Documents and Resources
· Landel, R. D. & Timoshin, D. (2001, March 8). Rise and demise of the innovative entrant . Darden Business Publishing. http://hbr.org Note: This resource will be used for this week’s Discussion.
· Moon, Y., & Quelch, J. (2018). Starbucks: Delivering customer service . HBS Case 9-504-016. Harvard Business School Publishing. http://hbr.org Note: This resource will be used for this week’s Assignment.
· Document: How to Analyze a Business Case Study (PDF) Download How to Analyze a Business Case Study (PDF)
· Document: Module 2 Assignment Template (Word document)