Executive Summary | PCJ Structure | The Problem | Present Status of PCJ | Ideal Status of PCJ | The GAP |
Possible Solutions | Analysis of Solutions | Recommendation | Appendix
Prepared for:
Steve Schnitzler, Director of Operations
Port City Java, Inc.
Prepared By:
Trish Torkildsen, Melissa Ennis & Suesan Sullivan
Submission Date:March 17, 2005
Port City Java Incorporated (PCJ) is a retail and wholesale coffee company that serves a global market. The PCJ headquarters is located at
Currently, Port City Java baristas take an average of eight minutes per customer to complete an order. Port City Java stakeholders want baristas to decrease the time it takes to serve a customer by 25%, without compromising customer service. The average time for completing an order per customer should be six minutes, while level of customer service is maintained.
The mission of PCJ is to be a leader in the coffee market through stellar customer service. One aspect of customer service that the management feels is lacking is the time it takes to complete a customer’s order. By increasing the efficiency of its hourly employees (baristas) the company hopes to decrease the amount of time it takes to complete an order, thus increasing the overall number of customers that can be served. This gain is two-fold in that the customer should be more satisfied by having their order completed quickly, while the level of customer service is maintained at a high standard. The second gain is that if there are more customers coming into the stores because service is quicker, then the company is able to make a larger profit.
The likely cause of this problem is lack of an effective training program for store managers and lack of a structured guideline for how to increase the efficiency of employees who are highly skilled by focusing on their strengths during peak business hours. Stationing skilled employees during the busiest hours should decrease the amount of time per order.
There are several solutions for solving this problem including hiring an instructional designer to develop a new training program for all employees; upgrading out of date equipment that is slowing down the completion of customer orders; standardizing the layout of the working environments so that barista’s always know where everything is no matter which store they are working at during their shift; and improving upon the incentive system in order to increase the motivation of hourly employees, which may help to increase their efficiency given they are happier with their jobs and may want to fulfill the wishes of the company to decrease customer order time.
However, the recommended solution for solving this problem includes developing and implementing a training program, within the current training department, for the store managers that should consist of instruction on how to properly schedule employees who are training on consecutive days to help maintain the rate of information retention; instruction that includes rubrics or checklists that can be used to assess a barista for understanding and training effectiveness; and instruction that pertains to managers analyzing their hourly employees for strengths and weaknesses, then using that information to their advantage during peak hours. This aspect of the training program should be particularly effective in reducing the amount of time that it takes to complete customer orders because stationing employees in positions that play on their strengths should make the process of completing an order more efficient. This solution is also less costly than other solutions and should only require time with minimal monetary investment since there is already a training department established within the system.
Port City Java Inc. was established in March 1995 in
The identified system for the change management plan is Port City Java Inc., which includes the corporate headquarters, eleven corporate-owned stores and all salaried and hourly employees of those establishments. The top-down organizational structure (see Figure 1) of Port City Java begins with the Chief Executive Officer (CEO) and Chief Operating Officer (COO). The second tier of employees beneath the executives includes the Director or Training, Director of Operations, Chief Financial Officer (CFO) and the Roaster. The Director of Training oversees the field trainers and compliance. The Director of Operations is in charge of the Regional Managers, the District Manager, Store Managers and the Baristas. There is a CFO office with administrative support. The Roaster is responsible for the purchasing, manufacturing and distribution of coffee beans. The COO also oversees Franchise Relations, but the CEO does not share that responsibility. The COO and the CEO jointly oversee the Franchise Sales and Franchise Support, as well as the Marketing department and Human Resources. One employee is responsible for managing Marketing and Human Resources duties.
Port City Java’s stated mission is “to be the customer’s first choice in cafés and coffeehouses by providing an exceptional experience, socially responsible products in a clean, energetic and refreshing environment, and to exceed the expectations of every guest, every time.” Customer service is paramount to the company’s success and this is reflected in their mission statement. However, there are other aspects of the company’s mission that are not stated within the public realm, but are perhaps assumed. The company’s unstated mission is to increase their revenue without sacrificing customer service. PCJ would like to continue focusing their attention on maintaining a high level of customer service, while increasing their profits. The efficiency of their operations, which includes barista duties and structural layout, should be at the level of their customer service. The baristas should be able to keep the customer’s satisfied, while keeping the time it takes to complete an order to a minimum and still complete their other duties within the store.
Currently, Port City Java baristas take an average of eight minutes per customer to complete an order. Port City Java stakeholders want baristas to decrease the time it takes to serve a customer by 25%, without compromising customer service. The average time for completing an order per customer should be six minutes, while level of customer service is maintained. Currently customer service is currently measured by the number of complaints, or lack thereof, so the term is somewhat subjective. It is simply stated in the Barista Bootcamp Training Manual that “it’s our job to determine the needs of every guest who joins us and then strive to exceed their expectations. When we do that, we will be providing excellent customer service.”
Port City Java management wants to decrease the amount of time per transaction, without sacrificing the guest experience, as a means to increase revenue by increasing the number of customers that can be served. Corporate managers have recognized that business levels during peak time will match the stores ability to keep up. The corporate managers have identified several factors that inhibit maximizing business levels during peak times. These factors are individual speed and pace of an employee or ability to multi-task. The layout of some stores inhibits efficient workflow and inherently requires more steps to perform similar tasks as other stores, which also slows down service.
Solving the efficiency problem is important to the stakeholders at PCJ because they want to increase revenue and improve upon the existing organization to increase their ability to be competitive in a global market. An additional factor is that the corporate units, which are located in
The outcome of the change is not only going to impact the PCJ stakeholders, by increasing revenue but it does positively impact the local and global economy. Today, coffee is the second most consumed beverage on the planet behind. It is the second most traded commodity behind petroleum. Coffee is currently produced in over 80 countries. Therefore, if Port City Java corporate headquarters are successful they will provide successful models for global expansion. The global economy will be positively impacted by the success of Port City Java.
Port City Java’s Present Status
To determine the present status of Port City Java several data collection methods were utilized. The Director of Operations, training department personnel, store managers and baristas were interviewed. A document analysis was conducted, which included the Barista Training Manual, the Coffee College Manual, PCJ website www.portcityjava.comand other documents provided by the Director of Operations. Field observations were conducted in nine corporate locations in
Real Objectives
Analysis of data indicates that the real objectives are to increase the efficiency of the baristas in order to service more customers, particularly during peak times. The outcome of this objective is to generate more revenue. After careful analysis the real objectives of PCJ appear to be that customer service is a priority. Efficiency of the baristas is a real objective that is not stated. Another real objective is increasing revenue through increase volume of customers that each location is serving.
There are a number of stated and real objectives for baristas. The first involves customer service. Each customer complaint is handled personally by the Director of Operations. The Director of Operations does make personal contact with the customer that is filing the complaint. However, at this time there is no customer service index or tool for qualitative or quantitative measurement. There is no apparatus for positive or negative feedback at this time for the barista who is involved in the incident.
The second objective involves food preparation. The recipes for menu items are posted in the training manual and some job aids are available for the more complicated and/or popular menu items. There is also an established procedure for using a freshness date. The “First In First Out” policy for maintaining freshness of items is enforced. Some items are formally dated, some items are not. There is no measure for actual or perceived quality of the food or drink items other than communicated expectations per store. Currently, the only system in place to measure food and drink quality is the informal communication between customers and baristas. During training there are two quizzes and one test that address the menu item recipes. The barista must pass the quizzes and tests with 100% accuracy. The assessments may be retaken as many times as needed. There is also a qualitative performance assessment where the trainer watches the training barista execute some recipes being made. The performance measurement for that particular assessment is not standardized or consistent implemented.
There are checklists in place to address sanitation and cleaning, which is another stated objective. There are checklists for the following that baristas are expected to complete during a specific shift that may include: weekly cleaning tasks, daily opening, midday prep, midday cleaning, closing prep, closing cleaning, bathroom cleaning, monthly cleaning and other daily operations. There are established procedures in the barista training manual for money handling. The performance measure that is currently used is the end of day report that is created by the cash register/credit card system. Teamwork is also listed as a primary objective. However, it is not addressed in the training manual. Therefore, it is not formally or officially. There is no performance measure for teamwork.
Present Activities
One of the things that make PCJ so unique and successful is that they use existing spaces instead of always building new stores. While this approach has its aesthetic and economic advantages, there are also some distinct disadvantages. Because PCJ uses existing spaces, they sometimes must compromise efficient placement of their trade tools (espresso machines, blenders, registers, etc.) because of the existing structural layout. This inefficiency may or may not cause immediate overt issues, but in the long run these inefficiencies can be quite costly when the number of sites is growing exponentially. The individual store’s need to be analyzed on a case by case basis for the particular set up of the store that would lead to optimal efficiency. The administration is very open to accepting this added step in their establishment of new stores in order to obtain their new objective of increasing efficiency.
Based on observations there are some very evident areas where efficiency needs to be addressed. During peak times the performance of the baristas is not adjusted to compensate for the higher volume of customers, therefore it does not contribute to improving efficiency but it takes away from the efficiency. During peak times of operation sometimes a manager is present on the line, sometimes they are not. Also during peak times of operation the baristas do not have a particular procedural plan to follow. Some teams of baristas automatically station themselves during peak times (possibly in their strength area, but not necessarily), some teams do not. These observations indicate that the efficiency was not previously an objective, but interviews with hourly employees do indicate that they would be open to having more structure in their duties especially during their busiest times.
Based on interviews with the baristas that participated in the current training program, the training methods are not effective. The training program contains extensive documents. In completing a document analysis it is evident that a good portion of the materials are verbose but are not created using research based instructional design/performance technology principles. Training is not based on performance objectives, nor is the assessment but rather the assessments are based on loosely associated pieces of information that are presented in a 139 page manual in addition to a thirty page Coffee College Packet that trainees receive.
Interviews with baristas also indicated that the training methodology is inconsistent among the store managers, as well as the corporate training program. When training needs to be done there may or may not be a training class at the corporate level for the barista to join. If there is a class the barista will participate in the class at the corporate training center for a few days. If there is not a training class available they will receive on the job training in a store location. This on the job training delivery method is apparently inconsistent as well. For example, some baristas report that they were trained in their hired store location. The on the job training method and evaluation is not standardized. Furthermore, the baristas that are new and are participating in the on the job training are not scheduled several shifts in a row (consecutive days). Therefore, their on the job training experiences are staggered. According to barista interviews, it would be more effective to receive their on the job training in cumulative days (three days in a row). That lack of immediate reinforcement reduces their learning and retention of their skills. The baristas indicated that having a more structured and well-organized training program would be very helpful to new employees, as well as current employees since they apparently feel responsible for filling in the gaps in the training as it is.
Important Side Effects
Analysis has indicated a few potential side effects of the present activities of the system. The first side effect is more social time for the baristas, which for them is a positive. The casual, albeit inefficient in terms of time management, atmosphere at PCJ allows for more time for the baristas to talk to one another or to call someone on their cell phones, even in the presence of customers. In order to alter this negative (from the company’s standpoint) side effect, PCJ could create and enforce a policy that would address this sometimes inappropriate use if time. In relation to this side effect, the atmosphere and work ethic of some baristas allows for less time to complete other duties which may result in dirty bathrooms, dirty tables, and/or areas that are not being addressed. This may also cause the next shift baristas to have to compensate for their inefficiency by having to complete the duties/expectations of the previous shift. This side effect could be altered by implementing a check out system before baristas are able to leave their shift. This alteration probably won’t be well-received among the hourly employees and would probably be ignored by the managers since they too are guilty of socializing on the job.
Another negative side effect of present activities is due to the lack of efficiency and skills which result in waste and/or substandard product. This has been observed in various forms including making the wrong drink, making a drink without following recipe precisely or delivering a product that is substandard. This side effect would be altered by increasing efficiency, which will be addressed the proposed change.
Relevant Resources
Training is beginning to be a significant focus of the Port City Java operating system, however there currently is no set training budget. The training department consists of ten trainers and one head trainer. At the corporate headquarters, there is a mock café setup included in the training facility. The trainers currently work with store owners, managers and hourly employees across the
The corporate stores are located in a community that included several higher-education institutions. This is very advantageous to the company because they are not limited in their applicant pool with regard to college students. However, the applicant pool fluctuates seasonally because of spring, summer and winter breaks. College students generally have erratic schedules, which can impact scheduling issues within the system. PCJ capitalizes on these personnel resources in that they typically higher only college-educated individuals because they are so plentiful. These individuals are highly capable, in general, to fulfill the duties of a barista. However, with the poorly designed training, as it currently exists, some employees’ skills appear to be inadequate to carry out present activities.
Fixed Constraints
The structural layout of the stores is a constraint due to the inconsistent and sometimes inefficient placement of the trade tools (espresso machines, blenders, registers, etc.). The physical location of the stores impacts the applicant pool, based on how close or far away it is situated to the local college and university.
PCJ Management/Organization
The management of Port City Java is arranged in a top-down organization structure that includes the COO, CEO and administrative staff (see Figure 1). It appears as if decisions are being made by corporate managers that are not necessarily based on data and or research. Furthermore, the decision makers do not collect input from the individuals that their decisions will affect within the company hierarchy. Even the primary priority of the organization, the customer, is not asked for their input either. Based on observations and document analysis, there are no feedback systems/assessment tools being utilized and it is apparent that some decisions are based on assumptions. According to interviews and observations, the store managers make the decisions that directly impact their store and employees on a day to day basis. In the corporate store locations, the Director of Operations appears to “run the show” as far as the day to day operations, which may very frequently entail decision making. The system is likely to accept the idea of getting additional feedback from the customers and their employees, since they are open to hearing from these groups (especially customers) now. The hourly employees have an indirect feedback line through their store manager who meets with all other corporate store managers along with the Director of Operations on a weekly basis.
In order to determine optimal conditions, the Director of Operations and the Interim Director of Training were consulted. Both interviews brought to light that the “superstar” store was located in Barclay Commons on
Real Objectives
One of PCJ’s primary corporate objectives is for baristas to provide the ultimate in customer service. This objective is well reflected in all of the written training materials and also found collectively in the general ambiance of each café. This tone emanates from the top management down to front line employees. Project team observations revealed two defining characteristics in the performance of superstar baristas. Each superstar exhibited a special rapport with all of their customers, and each of them performed tasks with exceptional skill, finesse, and expediency.
Because personality comes into play, baristas will possess varying levels of ability to build rapport with customers. On the other hand, all baristas should possess 100% confidence in their knowledge and skills as baristas and ideally, the baristas should be clear about the corporate objective for efficiency. Only then will they be able do what it takes to maximize efficiency during peak times. The PCJ Barista Training Manualstates that teamwork is an objective therefore baristas need to be oriented to work as a team, particularly during peak times, to maximize efficiency. Then when a store is bombarded by customers, baristas can “man the battle stations,” so to speak, as a team and focus on working together to turn out a quality product with speed and customer service. Along these same lines, when managers are present and supportive on the line during busy times, the team is stronger, more cohesive and ultimately, more efficient. Efficiency is a real objective and should be incorporated more prominently into the training and culture of the system.
Present Activities
A company that lists customer satisfaction as a top priority needs a methodology for measuring success in that realm.
Important Side Effects
Ideally if the training and performance were more efficient and effective then the side effects that were identified in the present status of Port City Java should be eliminated or at least lessened in their effects on the system.
Relevant Resources
As of now, the PCJ Barista Training Manual is an overwhelming tome of information. All of the information included has value but not equal value when it comes to the objectives of training baristas. Furthermore, the quizzes are random enough to require that the trainee know EVERYTHING in order to pass. This is why there is some cheating going on. The ideal training manual should contain a well-designed progression of information and assessments that most effectively prepare the candidate at this point in their training.
In addition to knowledge, baristas must master a wide range of intellectual and motor skills. Because baristas are primarily trained and evaluated by managers, it would be advantageous for managers to have standardized, performance-based tools, designed to help them consistently manage both instructional tasks.
Fixed Constraints
Retrofitting existing spaces has clearly caused constraints for Port City Java. However upon analysis the project team identified that the Barclay Commons location has the best line set up, therefore providing the most ergonomically efficient work environment in all of the observations. The most efficient model for customer flow through the condiment bar is the circular design at the
Location of the stores presents constraints on the hiring pool. Many of the current baristas working in corporate stores are college students because this population is where they focus their recruiting efforts. Some store locations are too far away from
How
In order to achieve corporate goals, Port City Java needs to implement team spirit and efficiency without losing the unique sense of fun and individuality that the baristas bring to the mix. Ironically, this challenge runs parallel to the ultimate challenge of increasing efficiency while maintaining customer service.
Discrepancies between Present Status and Ideal Status
There are several probable causes of the problem (GAP) (See Figure 2) as evidenced by a performance analysis and data gathering process. The first category of causes falls under lack of skills and/or knowledge. A complete analysis has revealed that the current training program and methodologies for training are ineffective. The training program was not created using performance objectives/assessments. It is also evident that research based methods were not used to design the instruction contained in training. In analyzing the contents of the training program it is clear that there is a good deal of extraneous information that is not necessary to include. The evaluation tools that are used for assessment are based on loosely connected information instead of on performance objectives. The training methods are somewhat inconsistent. All baristas are not trained using a uniform methodology or system.
A substantial amount of training is conducted following an on-the-job training method. However, this method is also not always consistent. It varies per store location, per manager and per barista. The content of the on the job training does have some consistent qualities, in other words there are some basic things that all baristas have to learn but again the manner in which that knowledge is conveyed is not consistent. The training schedule of a barista in training is intermittent, they are not necessarily scheduled consecutive days for training, therefore the skills and knowledge that are taught during the on the job training are not repetitive enough for effective knowledge acquisition. When the training that the baristas move through is complete the managers do not have or use a tool (system, procedure, protocol) to follow to determine if baristas are prepared (trained properly).
After training and while working the baristas are not trained to man a station during peak times based on their strengths. The skills and knowledge of the baristas are not necessarily utilized to their optimum effectiveness. There is no standard that is conveyed for the baristas to stay in one area where they feel the most comfortable during peak times.
The next type of cause for the identified problem falls under the work environment. The set up of the corporate stores vary significantly. This does serve a purpose for the PCJ Corporation. The corporate stores in
At this time there is not official procedure or diagram that is required to be followed for line set-up. There are some items to do have a consistent position on the line. These consistent equipment items include the cash register, espresso machines, cups, coffee carafes and so on. They are the items that tend to take up more space. However, the smaller items that are necessary to the line operation are not necessarily consistently positioned, which can make it very difficult for a barista who is not used to that set-up to efficiently fulfill duties.
Included in the work environment is the equipment that is located on the line. Analysis indicated that some of the equipment is not functioning properly. It is also evident that some equipment may not be the appropriate choice for the job, for example the toaster that is used is not an industrial toaster. The toaster was very clearly pointed out as a source of bottlenecking which increases the time of for the baristas to fill the order.
Analysis indicates that the credit card machine in the store locations that run a high volume of credit cards is not fast enough to keep up with the speed of the person that is working the register. This is also a source of bottlenecking in servicing customers in store locations that have a majority of their patrons paying with credit cards.
An additional aspect of the work environment that has been identified as a potential cause of the problem is the condiment bar location and design. Analysis indicates that in some store locations the hold up at the condiment bar affects the flow of traffic of the customers. During peak times, this perceived and/or actual hold up can impact customer service.
An analysis of current equipment that is described as the secondary equipment (smaller items) indicates that there needs to be more available/utilized pieces in order to increase efficiency. For example, there are not enough creamer pitchers available and full of creamer to increase efficiency of the baristas, thereby decreasing service time of each customer.
The final type of cause that has been identified through performance analysis is evident in managerial leadership. There is a gap evident between the expected or optimal performance of the mangers versus what is actually happening. Performance analysis indicates that managers are not always on the line as a barista team member during peak times. The baristas may have support and assistance from the store managers during peak times, but it does not happen every time in every store.
There is also a gap in the expectation of visibility of the managers. The store managers are expected to be visible to customers and baristas for a number of reasons including helping during busy times and knowing what is going on in their store in order to be a more effective manager. This does occur at frequent inopportune times depending on the manager, but whether it is consistent or not is irrelevant because the managers are not there to provide direct and immediate feedback and reinforcement to baristas when it is needed during those absences.
Currently there is no formal feedback system for guests to convey their attitudes and opinions to baristas, managers and/or corporate leadership. The only systems or procedures that are currently in place for barista feedback is based on informal verbal complaints or comments from guests. These are handled by the Director of Operations who handles each complaint or comment personally. However this may be described as a more reactive approach to feedback instead of providing a more proactive system for customer feedback.
Possible Solutions
There are several possible solutions to consider in addressing the problem that has been identified (See Figure 4). The first solution would be to restructure the training program for managers to use an evaluation tool to determine if the barista has been sufficiently trained prior to allowing them to work any shift. This solution would provide a rubric for the managers to follow. It could be in the form of a simple checklist to determine if the employee is ready to work independently. This solution will provide some level of consistency and standardization.
The next solution is for the PCJ Corporation to hire an instructional designer to develop the training program including its content, materials and the training implementation plan. Essentially this solution would streamline the process as well as the content of training. The instructional designer could be contracted by PCJ or due to the expansion of the company the PCJ Corporation could choose to create a position and employ an instructional designer full time to work in the training department. The intention and goal for the future training methods at PCJ would be for the instructional designer to develop a web-based training program. There could be access from home as well as available computers at the corporate training site.
The next solution is more on a micro level then the two previously mentioned solutions. This solution would encompass training the managers and baristas to station themselves during peak time automatically. This decision to station baristas during peak times would be more formalized than it is currently and it would be based on a more systematic decision making procedure. This would allow for the baristas to be specialized based on their skills, knowledge and comfort level.
A third solution would be a logistical solution that would be incorporated into the barista training. This solution would be to schedule the on-the-job training for baristas several days in a row. Interviews with seasoned employees indicated that this was a methodology that was utilized several years ago when they were going through their training process. However, due to several unknown factors (i.e. college class schedule) barista training is not necessarily done on consecutive days. The days may be spaced out intermittently. It is understandable and commendable that store managers and corporate leaders are striving to be flexible with employee schedules. However, this method does not allow for repetitive exposure to information. The lack of consecutive days affects the knowledge acquisition process. The skills and knowledge acquired do not become rote for move to long term memory as easily because of the intermittent exposure to the information. The solution would simply require that baristas do not begin training until they can agree to be trained for several days in a row.
There are also a few solutions that specifically address the work environment. The first solution would be to standardize the set up of the line per store. The set up of the existing line are constrained by the architecture and construction that were completed based on space requirements. Each store needs to be reevaluated for clutter on both sides of the line. There could be a diagram that is created that would illustrate where equipment, appliances and small tools need to be located. In order to overcome the line variation, this diagram could be created on a per store basis. These adjustments can be made considering each store set up while still maintaining some level of consistency.
Another modeling solution that would improve the traffic flow of customers would be for the condiment bar to be redesigned and/or relocated to comfortably accommodate more than two people at a time. An identified model for an effectively designed and positioned condiment bar is the one at the
The next solutions pertain specifically to equipment. Analysis indicates that some equipment/appliances are not functioning optimally or may be the inappropriate type of equipment for the job. One identified appliance that evidently needs to be replaced is the toasters. An inventory of equipment and appliance functioning should be conducted. In some situations additional pieces of small equipment are needed. Observations revealed that a few additional cream dispensers being available for use should decrease the amount of time that it takes for barista’s to maintain condiment areas.
Interviews and observation indicated that the credit card machine in some locations is not adequate for the amount of credit card sales that the store does. This area also has been identified as a source of diminished efficiency. There are some store locations that serve a majority of customers who pay via credit card. The store locations that generate a good deal of credit card business need new credit card machines that are faster. An analysis of each store to determine if it is necessary to replace the credit card machines or add additional machines should be conducted. A cost analysis of the new machine versus the profit of serving more customers per day/week should also be conducted.
The next solution involves management and leadership. Analysis indicates that there is a gap between what is expected of store managers and what actually occurs. The managers should be present on the line as well as in the dining area for several reasons. The store manager is also a barista. During peak times the store manager needs to be present and working on the line. The manager working as a team leader should help boost morale and make the baristas feel supported, particularly during peak times. The managerial presence should also provide the baristas with a more immediate feedback system.
The final solutions would be to create and utilize a standardized incentive system. The present incentive system consists of an employee of the month award that is based on manager nomination. It is given out monthly across all corporate PCJ stores. The incentive is a fifty dollar gift card to Best Buy. There is also a salary review process that allows employees to be considered for a dollar raise one time per year. Analysis indicates that the salary review process may be subjective and not standardized. The process would be more effective if an instrument were developed and used to objectify this process.
It is evident that there are many possible solutions to address the problem. The first solution would be to restructure the training program for managers to use an evaluation tool to determine if the barista has been sufficiently trained prior to allowing them to work any shift. This solution would provide a rubric for the managers to follow. It could be in the form of a simple checklist to determine if the employee is ready to work independently. It would be effective for the store managers to meet with the training team to develop this instrument that they will use with each barista. It may also be effective to have a barista as a representative on the team that creates the instrument. The managers would then move through some training on how to properly and effectively use the instrument so that the instrument is used as objectively as possible. This solution should prove to be an effective solution to solve the organizational problem.
This second training solution would encompass training the managers and baristas to station themselves during peak times automatically. This decision to station baristas during peak times should be more formalized than it is currently and it should be based on a more systematic decision making procedure. This would allow for the baristas to be specialized based on their skills, knowledge and comfort level. This procedure would also be done prior to the rush that occurs on store locations. In other words, baristas will know ahead of time which station that they will work that shift. They can then check their station to be sure that it is prepared for the rush. Again, this streamlines the process in order to increase efficiency. This solution should prove to be an effective solution to solve the organizational problem.
A third solution is to schedule the on-the-job training for baristas on several consecutive days. Interviews with seasoned employees indicated that this used to be a methodology several years ago when they were going through their training process. However, due to several unknown factors (i.e. college class schedule) barista training is not necessarily done on consecutive days. The solution would simply require that baristas do not begin training until they can agree to be trained several days in a row. This solution should provide some level of consistency and standardization. This solution also is not costly; it would not disrupt the organization or the environment. The solution is very likely to be easily accepted by corporate stakeholders. There is already a facility in place that could be utilized to help execute this training process. This training solution would require some development and delivery preparation. However, the design and development of the training would not extend beyond current organizational capacities. This training option would be concise and abbreviated in order to specifically address the problem. It also would not intrusive to the functioning of the organization. This solution should prove to be an effective solution to solve the organizational problem.
The next solution is for the PCJ Corporation to hire a trained instructional designer to develop the training program including its content, materials and the training implementation plan. Essentially this solution would streamline the process as well as the content of training. The instructional designer could be contracted by PCJ or due to the expansion of the company the PCJ Corporation could choose to create a position and employ an instructional designer full time to work in the training department. The intention and goal for the future training methods at PCJ would be for the instructional designer to develop a web-based training program and/or interactive video. There could be access from home as well as available computers at the corporate training site. This solution is not quite as feasible as other solutions due to the expense and the time that it would take to facilitate. It would be a comprehensive solution that would be effective; however the practicality would not make it as feasible as other solutions. This solution would prove to result in an improved overall training program. However, this solution does have several negative side effects. It could take a good deal of time to hire a qualified designer. It may not be readily accepted by organizational stakeholders. The corporate structure of PCJ would be impacted by this solution. The position would be costly and currently there is no space or equipment for the designer to use. The creation of the space and equipment would add to the costs. This would not be the most effective solution to solve this organizational problem at this time.
There are also a few solutions that specifically address the work environment. The first solution would be to standardize the set-up of the line in each store. As previously discussed the line set ups do vary significantly. The set up of the existing lines are constrained by the architecture and construction that were completed based on space requirements. Also as noted, the corporate locations in
Another modeling solution that would improve the traffic flow of customers would be for the condiment bar to be redesigned and/or relocated to comfortably accommodate more than two people at a time. An identified model for an effectively designed and positioned condiment bar is the one at the
The next solution involves upgrading equipment. Analysis indicates that some equipment/appliances are not functioning optimally. One identified appliance that evidently needs to be replaced is the toasters. Analysis clearly indicated that some of the toasters that are used simply are not fast enough for the location or the business that they handle. Observation revealed that the toasters do not appear to be designed for high volume or industrial use. Interviews indicate that the toaster’s capabilities are sources of diminished efficiency. Interviews and observation revealed the credit card machine in some locations is not adequate for the amount of credit card sales that the store does. This area also has been identified as a source of diminished efficiency. There are some store locations that serve a majority of customers that pay via credit card. The store locations that generate a good deal of credit card business need new credit card machines that are faster. An analysis of each store to determine of it is necessary to replace the credit card machine should be done. A cost analysis of the new machine versus the profit of serving more customers per day/week should be conducted. An inventory of equipment and appliance functioning should be conducted. It is recommended that the baristas who operate the equipment on a daily basis will be asked their opinion about the functioning of the equipment. In some situations additional pieces of small equipment are needed. Observations revealed that a few additional cream dispensers that are full and available for use would decrease barista serving time. This solution has many positive aspects. It is not too costly nor will it take much time to execute. The additional equipment or the replacement of the equipment will not be obtrusive to the work environment. This solution is likely to be accepted and will not disrupt the organization or its individuals. However, this solution is not a comprehensive enough to solve the problem independently. This solution may be combined as an aspect of a training solution.
The next solution involves management and leadership. Analysis indicates that there is a gap present between what is expected of store managers and what occurs. The managers need to be present on the line as well as in front of the line for several reasons. The store manager is also a barista. During peak times the store manager needs to be present and working on the line. This is an expectation of store managers but is not always done. Interviews indicate that this is not only detrimental to serving customers during busy times by decreasing efficiency but it also can lead to resentment. The manager working as a team leader will boost morale and make the baristas feel supported, particularly during peak times. The managerial presence can also provide the baristas with a more immediate feedback system. At this time the only system for customer satisfaction feedback is based on informal communication between customer and barista, except in the case of formal complaints. If the manager is on the floor and behind the line more frequently they can provide the baristas with positive reinforcement and feedback as well as constructive criticism when necessary. The managerial leadership can also implement a more tangible incentive system. The present incentive system consists of an employee of the month award that is based on manager nomination. It is given out monthly across all corporate PCJ stores. The incentive is a fifty dollar gift card to Best Buy. There is also a salary review process that allows employees to be considered for a dollar raise one time per year. Analysis indicates that the salary review process may be subjective and not standardized. The process would be more effective if an instrument were developed and used to objectify this process.
At this time there is a salary review process in place where employees have the potential to get a raise. The system does not appear to be standardized at this time, there is no written criteria or checklist established. This solution does have many positive aspects. The time required to create and implement this system would not be too extensive. The environment would improve and the individuals in the organization would benefit. There would be no additional space, equipment or organizational restructuring required. However, some individuals and/or stakeholders may not accept this solution because it would cost money and it may not fit with the existing conditions. This solution also does not provide the support needed to solve the organizational problem.
Instructional Development and Delivery Capabilities
The solution will entail development and delivery of the training program by the Port City Java Training Department. There are ten trainers and one head trainer currently employed. The training department was created by the PCJ Corporation and its stakeholders therefore it is directly linked to the system. The corporate headquarters and training facility are located in
The trainers are individuals that have a variety of hands on work experience within the PCJ Corporation. The trainers have worked as baristas and store managers. This provides them with direct knowledge of the subject matter of the training. Their capabilities vary but analysis indicates that each trainer is highly qualified to develop and deliver this particular training. The trainers are very knowledgeable about the PCJ Corporation in general. Their primary job responsibilities and expertise are to train individuals. In this particular training situation the trainers will be working with their own corporate managers. In other word, the trainers should work out of the
The corporate headquarters will be utilized fro the development and delivery of this training solution. The trainers have all needed resources located at the corporate offices. They have accessibility to equipment and materials needed to develop and deliver the training. They will not require additional materials because the corporate training department currently has all needed equipment and materials. The corporate leadership is open to and will support this training program. The system personnel have the required abilities to complete this training which include basic skills reading, problem solving and communication.
Currently, the related personnel do not have a very positive attitude toward training. This is one reason to support the development of a short, concise, streamlined training program to solve the problem. Analysis indicates that the negative attitude comes from two primary sources. The first is a lack of exposure to good quality training. The training program for managers is perceived as including information that is not necessarily useful to the manager. The view is that it is not as pragmatic in nature as it needs to be. The second factor is that communication has been a problem, as perceived by store managers. In other words, they are not always properly informed when changes are going to be made. This negatively impacts their “buy-in” to the change as well as their perception of future change efforts. The trainers should include the store managers in the process of developing this training program. The trainers should create a communication plan with the Director of Operations. Despite the current negative attitudes toward training, the involved personnel are open to change procedures if they are perceived as useful and if they are involved in the process. They want to know that their voices are heard in the implementation of changes that will affect them and their employees. Both of these issues should be remedied through the implementation of the proposed training program.
There is one identified constraint that needs to be addressed, which is time. The store managers are willing and able to participate in the training program, however their schedules are very busy. This constraint leads to the one resource that will be necessary to conduct the training. The recommendation is that the team that will be trained be given a stipend for their time. Therefore, some additional funds will be needed as a resource from PCJ. They will be given a stipend because they will not be participating in the training program during a normally scheduled shift. The training time will be in addition to their schedules. Analysis has indicated that it would not be logistically possible to have all corporate store managers miss the same shift to be trained. This illustrates another positive quality of the proposed training program. Due to the content and nature of the training it will only take one day to deliver. This time consideration takes into account an hour for lunch, the regularly schedule meeting as well as a period of questions and answers. The idea that PCJ stakeholders are supporting by spanning the training across one day is that it is going to be perceived as an enjoyable day. The PCJ corporate leaders would like the store managers to feel as if the lunch, stipend and additional time to spend with other managers are a bonus for attending the training. This should help maintain positive attitudes, buy-in and morale. Therefore, the stipend for that one day will not be as expensive as a longer training session. There are no other constraints present for the successful completion of this training program as the Director of Operations for PCJ will oversee the support of carry over and transfer of the training back to each specific store location.
Comparing Solutions
As demonstrated in Figure 4 there are several solution possibilities that are feasible choices to solve the problem. However, after careful analysis and consideration the most appropriate solution is to provide a specific training program for the store managers, which will entail the following:
· Training on how to properly use a tool/rubric that store managers should utilize to determine if barista has been effectively and successfully trained.
· Training that demonstrates the procedures to follow during peak hours when baristas should man specific stations with the manager on the line placed in a strategic station as well.
· Training on proper scheduling of consecutive shifts for newly hired barista’s.
After analyzing all potential solutions this training solution will be the most effective for the desired change. The baristas should decrease their serving time by 25% per customer by increasing their level of efficiency. The solution outlined above is the least intrusive solution for the organization. This training will not be extensive; therefore this particular solution should be somewhat inexpensive. This solution is pragmatic in nature. Training the store managers on the specific skills, knowledge and attitudes will provide a logical solution to the problem. This solution will be precisely designed to target the areas that the analysis revealed need to be targeted.
The solution that will best precipitate the successful change should entail an abbreviated training program. The methodology is as follows: The training department should choose one to two trainers to lead this training project. They should begin with a team meeting which includes each corporate store manager, the Director of Operations, the trainers and a barista. The trainers should present the problem to the individuals in the group meeting and begin a brainstorming session. In other words, the store managers will have input into the specific needs and content of the instruments that will be used in training. The trainers should gather all needed data to design the instruments and the training. This initial meeting will be two hours. The store managers already attend regular team meetings at the corporate headquarters, so this should not disrupt scheduling very much.
They should take the information provided by the managers and create the instruments that have been proposed. The trainers should then design the training. The scope of this training is minimal in relation to other trainings that the trainers have designed and implemented. This particular training solution should incorporate some new procedures and policies that need to be followed. It should not be focused on covering gaps in cognitive skills and knowledge. In other words, the content of the training should not be complex. The breadth and depth of the training is minimal because it is very specific. The content, information and instruments that should be delivered during training should be very useful to each store manager. It should not be an additional set of duties that they have to fulfill. It should make their jobs easier, therefore perception and reception of the training should be positive. A good deal of the training should be focused on the importance of objectively using the instrument that is created to evaluate barista preparedness. An aspect of the training should also address the equipment and line set-up suggestions that will accompany the primary problem’s solution.
The trainers should use a brief print material packet to deliver the training because that is the delivery method that the learners are most familiar with at this time. The training program should be delivered by the Port City Java head trainer, therefore it will be instructor led. The Director of Operations should be present at the training because they will be the person responsible to help support carry over of the training to each store location.
Due to the nature of this training the trainers should not have to spend many hours on the design and development of the training. Therefore, it should be implemented fairly quickly. The cost of the training program should be approximately $1,000.00. That is a $100.00 stipend times ten store managers. The trainers obviously do not get paid additional funds beyond their current salary because this is their job. The Director of Operations also does not require a stipend. The level of simplicity of the training program is very user friendly and will positively affect the buy in and follow through of the training content.
Figure 1: PCJ Organizational Chart
Figure 2: The Gaps between PCJ’s Current and Ideal Status
|
What is currently happening |
What should be happening |
Gaps |
|
Lack of data, regarding overall customer satisfaction. |
Customer satisfaction surveys are routinely administered |
No apparatus in place to measure customer service |
|
Opportunities for customers to provide feedback are insufficient |
Comment box is available in all store locations |
No apparatus in place for soliciting positive or negative feedback |
|
Performance measurements for assessing the execution of tasks by baristas is subjective and inconsistent |
Training for baristas is consistently implemented and based on performance objectives and matching assessments. |
Training deficiency—Performance measurements for assessing the execution of tasks by baristas is neither standardized nor consistently implemented. |
|
Stated objectives for baristas do not match real objectives of the corporation |
Baristas clearly understand how to achieve the real objectives of the organization, including expectations for efficiency and teamwork. |
Fuzzy performance expectations for baristas |
|
Incentive programs are subjective and inconsistent |
Employees perceive reward system to be fair and consistent |
Lack of definition and consistency in employee incentive programs. |
|
Bathroom checklist is enforced however daily, weekly, and monthly store cleaning and sanitation checklists are not always used |
Employees follow and sign off on all store cleaning and sanitation checklists |
Lack of consistency in procedures for accountability of store cleaning and sanitation, (i.e. weekly, monthly checklists) |
|
Placement of some trade tools is impeding flow |
Placement of trade tools makes the best use of space. |
Problems with efficient placement of trade tools |
|
Some of the auxiliary pieces of equipment, such as toasters and microwaves, are inferior and impede efficiency |
Toasters, microwaves and all equipment are safe, efficient and in optimum working order. |
Problems with quality of auxiliary pieces of equipment, such as toasters and microwaves |
|
During peak times, baristas move faster but basically, function the same as they do during slow times |
When a store is slammed, the baristas man stations where their skills are strongest. |
Performance of baristas is not being adjusted to compensate for higher volume of customers. |
|
Baristas call out orders by type of drink or food |
Baristas call out orders by the customer’s name. |
Lack of clarity and enforcement of performance expectation |
|
During peak times, sometimes a manager is present on the line; sometimes he/she is not. |
When a store is slammed, the manager is present on the line. |
Lack of clarity in performance expectations of managers |
|
The on-the-job training methods and evaluation of baristas is inconsistent among managers. |
Managers consistently deliver standardized training to baristas that is based on performance objectives and matching assessments |
Training deficiency |
|
139-page Training manual is a loosely assembled document of information with three quizzes and Final Exam. |
Training manual is based upon sound instructional design principles |
Ineffective training materials |
|
Corporate decisions are being made without research and the benefit of internal and external data. (i.e. input from employees, customers, non-customers, etc.) |
Corporate headquarters makes decisions based upon input from all stakeholders, including employees and customers, even non-customers. |
Insufficient apparatus for collecting data from stakeholders |
Figure 3: Possible Causes of Performance Deficits
|
Lack of Skills/Knowledge |
Environment/Context |
Managerial Leadership |
|
Improper training/preparation for Bartistas-inffective |
Set up of stores vary significantly-space on line/counter issues (clutter, workspace, surface area) |
Manager visibility, participation and support during peak times is not optimal |
|
Managers do not have or use a tool (system, procedure, protocol) to follow to determine if baristas are prepared (trained properly) |
Some equipment/appliances are not functioning optimally or may be inappropriate type of equipment for the job |
Lack of effective incentive system |
|
Baristas are not trained to man a station during the peak times or operation –improper/ineffective use of skills and knowledge |
Credit card machine is not fast enough to handle capacity/quantity of people that pay with card |
Little opportunity for feedback for employees from guests or from leadership |
|
Training schedule is intermittent therefore the skills and knowledge that are taught during the on the job training are not repetitive enough for effective knowledge acquisition |
Line set up varies significantly, unclear system or procedures for set up |
More visibility of managers to provide interaction/feedback and reinforcement that is more immediate |
|
Training program was not created using performance objectives/assessments, research based methods were not used to design the instruction contained in training—training program and materials are not effective |
Condiment bar design needs to be reevaluated |
|
|
|
Additional equipment as needed to increase efficiency (i.e.—cream pitchers) |
|
Figure 4: Possible Solutions for Performance Deficits
|
Possible Solutions |
Time |
Environmental Considerations |
Organizational Change |
Space Equipment Requirements |
Cost |
Benefit & Loss Individuals |
Benefit & Loss Organization |
|
Structured training checklist for managers to evaluate employees |
+ |
+ |
+ |
+ |
0 |
+ |
+ |
|
Stationing during peak times-specializing work, structuring work schedule |
+ |
+ |
+ |
0 |
0 |
+ |
+ |
|
Training shifts on consecutive days |
0 |
+ |
+ |
+ |
0 |
+ |
+ |
|
PCJ employ instructional designer to design training program |
0 |
+ |
0 – |
0 |
- |
+ |
- |
|
Quicker credit card machine |
- 0 + |
+ |
+ |
+space – equip. |
- |
+ |
+ |
|
Update quicker appliances & additional small tools |
+ |
+ |
+ |
- |
- |
+ |
+ |
|
Diagram layout of line including small utensils |
+ 0 - |
+ |
+ |
0 |
+ |
+ |
+ |
|
Standardized/ Reorganize lines (remove clutter) |
- + 0 |
+ |
0 |
+ |
0 |
+ |
+ |
|
Reposition/redesign condiment bar |
- |
+ + |
0 |
- |
- |
+ |
- |
|
Improved incentive system, systematic salary reviews |
+ |
+ |
0 |
+ |
0 |
+ |
+ |
Key
+ uses less time and resources
- uses more time and resources
0 uses about the same amount of time and resources