Hrm 310 - Change Management - Customer Rewards Program

Change Management Memo

HRM/310

Change Management Memo

To: Supervisory Team

From: Sarah Jones

Re: Customer Rewards Program

This memorandum is in response to the upcoming change Starbucks will implement regarding the rewards system. Starbucks is letting everyone know about the program enhancements coming soon. Currently My Starbucks Rewards™ program comes in a plastic card or postcard via mail. In the future, customers can receive and redeem rewards faster via smartphone. To keep up with technology with the right apps and a smartphone, life will be much easier for customers. Starbucks currently offers two scan-and-go ways to pay for purchases via Starbucks Card mobile app on his or her smartphone. This memo it will discuss the needs for change in the current rewards system and help prepare the supervisory team for upcoming changes. It will explore the type of change, examine the change models, and explain the reason this specific model is applicable to the new My Starbucks Rewards™ program. The program will be available on Starbucks Card mobile app.

The new Starbucks Rewards app will give ease to customers and allow them to receive rewards more quickly. There are different types of rewards customer can earn. Our customers will be able to get a free drink or food for their birthday, earn welcome rewards, green rewards, and work his or her way to Gold. When a customer has green, they will earn free refills at participating Starbucks store which include brewed coffee, iced coffee, and tea refills. Collecting 30 stars within a 12 month period the customer will earn Gold. Once the customer reaches Gold he or she is eligible to retain these benefits for another 12 months by earning an additional 30 Stars. With Gold, the customer will also receive the Welcome and Green benefits. With Gold benefits the customer can enjoy any free food or beverage item of his or her choice.

Starbucks organization is changing the business model currently in place. There are four types of change models that Starbucks must choose from. The four types of change models are tuning, adaptation, reorientation, and recreation (Leban & Stone, 2008). Starbucks current plan to change the punch and postcard system to an instant message is an example of adaptation. Starbucks use tuning as a change model that is appropriate for this situation. The tuning model is similar to the adaptation model; however, the tuning model prepares for future changes and the adaptation model adapts past systems to meet the current demand (Leban & Stone, 2008). Starbucks change model is not reorientation or recreation. The reason that Starbucks change model is not reorientation