Sunday 21 August 2011

Business Leaders Failure to Protect


More than 50% of Business Leaders Fail to Plan for Disaster!


The growth of a successful business is rarely rapid, but its demise may well be.

According to statistics supplied by the Business Continuity Institute more than 40% of businesses do not recover following a terrorist attack or, I suspect, civil riots. In fact, the demise of the business could be overnight!

So why is it that, more than 53% of businesses have failed to put together a Business Continuity Plan? Is it that the business leaders are complacent, inept perhaps? I’ve had a number of conversations with CEO’s and Managing Directors who have volunteered that their recovery plan is to work from home on their laptop, keeping contact with other business colleagues who are likewise working from home, until they can re-group.

‘Expecting the Unexpected Business continuity in an uncertain world ‘ a booklet published by the UK’s National Counter Terrorism Security Office, London First and the Business Continuity Institute as far back as 2003 defined business continuity management as:

‘A holistic management process that identifies potential impacts that threaten an organisation and provides a framework for building resilience with the capability for an effective response that safeguards the interests of its key stakeholders, reputation, brand and value-creating activities.’

Laptop – Home….I think not.

Having a robust, proven business continuity plan is absolutely fundamental to a professional, well run organisation. Size has no part to play in this, big or small, there is no excuse for not expecting the unexpected. The aims and objectives of the plan should be hammered out and agreed at the outset and everyone within the organisation should not only know what to expect but be encouraged to actively contribute to the plan. The fact that you have taken the time to prepare for recovery is a factor that should be commonly known and shown. This is important for two main reasons. Firstly, because in the search for recognition and support, in these competitive times, potential investors, customers and service/product users will want to know that the business is sustainable and can continue to perform through adversity. Secondly, each member of the organisation will have his or her own ‘hidden’ concerns and worries. They need to feel that their overall contribution to the business success is seen as worthwhile and that they will continue to have a job, a wage and continuity of employment. That’s the responsibility of quality business leaders, there’s nothing worse than dissent and lack of confidence in a workforce and in uncertain times it is the leadership that has to remain steadfast, laptops at home is not steadfast leadership.

Critical Path Planning.

Planning is a relatively simple process, initially taking into consideration three main areas, People, Physical Assets and Systems. This in mind, the start can be an uncomplicated affair, a pencil, piece of paper and quiet corner is all that is needed. Pause for a while, and let your mind think about the possible outcomes if you do not have a plan. You could lose your business position as your competitors move in on your customers, taking advantage of your inability to perform leading to a loss of reputation, not to mention the effect on your staff and loss of expertise, also, possibly to your competitors as your workforce migrates to those who did have a plan. Then there is the probable health and safety claims and the inevitable increase in insurance policies, for the future, if there is a future.

Having realised the effect of not having a plan you now need to begin the process of putting one together. This is universally recognised as a five point checklist beginning with, Analysis of the Business, and secondly Assessing the Risk both of these you will know better than anyone else. Developing your strategy is the third stage and here you could bring in outsiders with relevant experience. That experience may well be worth the investment as the fourth and probably most crucial stage is the actual Development of the Plan. Finally, you should rehearse your plan to ensure that it is in fact workable. For example, let us say that your plan includes using a ‘Hot Site’ agreement. This is office space with equipment usually provided by specialist continuity companies such as Internet Central based at Keele University in the UK. They advocate that they will have desks and facilities available within four hours of the need arising. It is no use waiting for the disaster to happen and then expecting your plan to work. You need to test and experience the plan in the cold light of day without the trauma. Once tested you may well have to go back to the paper and pencil stage and re-think your plan. But that is certainly better than it going wrong at a critical moment.

This is a brief article by way of introducing you, the reader, to the concept of:

Proper Planning Preventing Poor Performance.

If you need any further information please do contact the author.

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