DISASTER! Business Continuity Issues are Most Often Caused from Within…

The current bout of fear surrounding Swine Flu brings to mind the experiences I have had with designing and delivering business continuity (AKA Disaster Recovery) projects for clients.

Over the years the business has conducted a number of projects where a client has requested a Disaster Recovery Plan.

When asking for this the client is typically talking about—and thinking about—all those things that happen external to the business that are out of their control…fire, flood, labour unrest, storm damage, flu pandemics and the like.

Without exception however an objective risk analysis typically shows that, while the impact of these types of events can threaten the existence of the business, the probability of them happening is relatively remote.  Sometimes there are particular environmental circumstances that indicate more planning and preparedness needs to be in place to deal with such externally-generated eventualities, but—mostly—a standard response plan will do the trick.

The big risks identified usually fall into a few key areas:

Commercial & Strategic

Typically this addresses the organisation’s position in their market.  How much power do they have and how do they negotiate their positions with suppliers and customers as well as place themselves against their competitors.  The ability to balance demand and capacity are also core areas of high risk—especially for organisations in growth phases.

The issue here is sometimes a lack of understanding or analysis of their situation and opportunities but, most frequently, it is a lack of forward-thinking plans that link into everyday delivery.

Internal Structure, Process & Systems

Risks to continuity we find in this area generally result from the natural way in which  organisations grow.  Ad hoc development of structure, process, new product and service creation often leads to gaps in competency, communication and function.  Where there are no gaps there is often replication—just as bad in terms of generating positive cash flow and maintaining high levels of productivity.

Processes work across functional—and, today, organisational—boundaries.  In many markets it is value chains that compete with value chains to gain share.  Organisations that cannot seamlessly operate internally stand little hope of participating in a sustainable way in these types of markets.

We find that systems frequently are poorly suited to the people and processes they are meant to support—again threatening continuity of the business!

Pathways

Most businesses don’t see the internal threats—because they live with them every day, they seem normal.  The problem with such threats is that, when they hit, there is no preparedness.

My business has worked with clients facing these type of issues to address and overcome them in a measured and timely fashion.  This often means significant change within the business—but, whether you undertake such a project internally or with assistance it is critical you ensure that the pathways are clear, the plan is known and the end result is always measurable.

Love to hear about your own experiences – please comment below…