We would do well to note that one the pillars of Lean is "respect for people," and one of the first, and most important, steps is to define value from the customer's perspective. By not turning to it's front-line employees to understand the root causes of it's financial problems and by substituting "shareholders" for "customers," Starbucks is not so much implementing Lean as it is transforming itself into a McD's competitor.

This is a classic example of the application of Lean without the understanding of how your market or markets define value. Lean focuses on cutting non-value adding costs (muda). Good so far. Yet too many organizations do not have clear line of sight to the customer and cut those costs that actually add value to the customer experience. The result is a short term gain in profitability but longer term damage to their competitive value proposition and future profitability. Look before you cut!

It's kinda like going in to Starbucks ... a coffee house ... and ordering a tall, skinny, non-fat, decaf cappuccino with a skinny blueberry muffin... It's not what Starbucks is about... IMHO. BTW I recently had a trip to Hong Kong / China and I can honestly say that they have the most helpful, kind, sincere and friendly staff I have experienced in a long time... no offence to my local Starbucks here in the UK - you're fab too!!

Starbucks is, or was, all about an enjoyable experience. I don't have to pay $5 for a cup of coffee if I want McD atmosphere. I'll just go to a cheaper competitor. Or finds a coffee house that puts relaxation and respite ahead of revenue and run-charts.

Let me preface this comment with an acknowledgment that I have never had a cup of coffee in my life, so I have watched the Starbucks phenomenon from afar. It sounds to me like Ms. Carey and her peers have defined the Starbucks' operations based on past experience, that their previous pursuit of overpriced java was just fine when the baristas made them the center of attention while being served. Mind you, this is not a criticism of Starbucks patrons, because the old adage of , "Rule #1: the customer is always right," still holds. Rather, I see this as a good lesson regarding lean principles. Applying the 5S methodology does not mean that "quality" will be achieved. No one can argue with the fact that Starbucks has taken the time (and errors) out of the process. However, they seem to have sucked the "value" out at the same time. I am sure they undertook the "lean journey" to stave off the erosion of their stock price, return to profitability, and ensure their continued existence as a publicly-traded company. The senior leadership would be wise to remember, "quality" is, the "totality of features that completely satisfy the customer requirements"--expressed or implied. If the "huddled masses" are looking for an alternative, Micky D's delivers its liquid caffeine at much less cost, and they clearly mark the cup with the fact that, hot coffee is in fact, hot!

There have been a lot of comments online where people have jumped to the following conclusions about Lean at Starbucks. It seems the WSJ only got the story half right (which is what tends to happen with the WSJ and lean).

1) Starbucks isn't ignoring the people side
2) Starbucks isn't turning people into robots
3) Starbucks isn't emphasizing speed over customer experience and quality

Their goal is to free up barista time so they CAN have a pleasant interaction with you and not make a fast food experience.

John Shook, from the LEI, who has worked closely with Starbucks has a blog post about it:

Shook Link

And I blogged about it on my blog:

Graban Link

A lot of what you're seeing - "robotic staff" and people NOT having time to provide good service is exactly what they are getting from NOT being Lean. So I'd suggest the headline of your blog post should be "Lack of Lean Ruins the Starbucks Experience."

I think a large portion of Starbuck's customers want to be in and out yesterday. Those are probably who this initiative is geared towards. I prefer the coffee house experience made famous in Vienna as apparently does the author so I am sympathetic to the issue. As long as the brew staff don't rush the entire visit hopefully we'll be OK.

Ms. Carey, well said and good observations. I visit my neighborhood Star Bucks daily. I see confusion, extended paths and reaches. I see inconsistencies in the application of the order-make-pay-deliver process, many time there is confusion and people running into each other. Being sensitive to waste this hurts my experience. If I flow through the line and to my favorite table, I still have a chance to chat w/ my favorites on duty... and be happier all the more. Cheers!

The core of TPS to me is the customer - it is intimately linking the customer into what we do. Then removing waste as mentioned in other comments using methodologies developed by other organizations or creating new ones that may fit your unique culture. But non-value added work in a situation like Starbucks is very different than manufacturing. And if the customer and the employees that serve the customer aren’t pulled into the equation up front, it will be another example of Lean completely miss-applied.

My experiences as a customer, I don’t see them honestly asking what does the customer want?? And a diverse group of customers at that – a cookie cutter approach won’t work for them. From the article and my personal observations ordering coffee at Starbucks they aren't looking into what the customer wants and reacting to it. I personally avoid the place as it is pricey, service inconsistent (though I have had a few good experiences) and agree with a German friend of mine – doesn’t serve very good coffee.

Using methodologies to streamline the coffee making at Starbucks is great if I as a customer get something out of it - I haven't seen that. There hasn't been lower prices, free wi-fi, better coffee, or better service. I don't see or feel the atmosphere of a high performing organization using its entire workforce to excel.

Jim Schwarz

Yes I'm a caffeine junkie and SBX fills that need well.
Actually, I'm impressed with how Starbucks is working at re-inventing their operations/offerings/company.
Let's be fair ...This is no small operation. We all know that developing any strategy AND implementing it is difficult.
My personal experience as a Starbucks customer has been very positive since these changes have been made.
You quality guys need to get out there and adequately SAMPLE the experience before you critique.

Great article! By the way, speaking of music industry, there was a huge stink at the MTV Awards– probably because Kanye West has lost his mind.