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Preparedness and Continuity… After the horrific scenes that day after day worsen before our very eyes on international television, we can hear everyone's questions "How can this be happening to us?" How can the leading nation be impacted in this manner and have such poor preparation in handling the rapidly worsening situation? How can this pain and suffering be taking place on American soil? From the world of Business Continuity Management, our questions go a bit further in search for answers: Where is our Crisis Management and Communication Team? Where are our Emergency Response Coordinators? How are we minimizing and controlling the impact; how are we recovering and restoring? Where's the Command Control Center? Where's the leadership? Who's got the responsibility to do what, when, where and how? What resources are available and are they in place or easily accessible? And another tough question for 'senior management' is where was the money for establishing preventive measures that would have helped mitigate, if not prevent, a disaster and tragedy of this magnitude? Part of my job is to promote Business Continuity Management (BCM) awareness in countries throughout Latin America, the Caribbean and Spain. The greatest obstacle to most organizations is the same - budgets are not allocated for this type of program. When there are budget cuts, BCM efforts are cut, reduced or totally eliminated. Solid business continuity management programs begin with a clear understanding of the risks facing the organization. Those risks are then assessed, measured, and either insured against, assumed and preventive/reduction procedures established. Any of these strategies require a budget. We all know it's about reaching the equilibrium point between the well-known 'cost/benefit' analysis. Following a risk analysis, a Business Impact Analysis, should be conducted to place a potential financial or operational impact on the organization (or cities and states in this case) on each risk should it occur. An old friend's frequent saying was, 'one never has time to do things right; but always has time to do things over'. In this, as well as many other instances, the same concept applies. Federal budgets were cut and redirected and, consequently, Louisiana for example, suffered millions of dollars in state budget program cuts, some of which were earmarked for local state civil engineering firms to work on improving the infrastructure that could have minimized the impact caused by Katrima. One assumes that budgets are cut because such monies are unavailable or simply a well enough business case wasn't presented…whichever reason it was…the bottom line is that the monies are forthcoming now…no longer in the millions, as was requested for preventive measures, but rather in the billions for damage control, recovery and restoration efforts. There are many lessons to be learned if we take the United States of America and see it as a leading, multinational organization that it is. First, we learn that just because it is the largest, the leading, the best organization in the world, it is not infallible. Its leaders, its executive management and its board of directors are not infallible. Second, we learn that even the largest, leading, richest organization in the world can be mismanaged and its greatest corporate assets, which are its people, are not always the ones that come first. Third, we learn that while any institution can do all the right things to get itself to first place, to the leading role of the world's largest economic condition, its institutional image can be irreparably harmed and damaged by an incident that is mismanaged, where all the eyes are on you and you're not prepared. The legacy of an institution, its fortitude and image, depends on the manner in which the media is handled during a crisis, the quickness of your response; the immediate actions following any calamity. It is measured by how prepared the institution was in the event of a contingency…any contingency. We don't have to remember too far back to the nation's response to 9/11. And when we do, we see a leader amongst the ashes; we see a man with a vision and a commitment to get involved, to encourage, to fight back, to take control and responsibility and to continue business no matter what. Rudy Guiliani has forever created a legacy of his performance under fire. That's the CEO who led in a prepared, organized and well rehearsed manner. Those are the kind of CEOs we need in every one of our organizations. Regardless what else Mr. Guiliani has done before or since that incites our approval or disapproval - his legacy will be his extraordinary role on 9/11. My question to each CEO across the Americas, across the world, is this: What will your legacy be during a crisis within your own organization? It will depend on your preparedness, on your involvement, and on your commitment to your most crucial resources and most valuable assets - your people. Once your people are taken care of, once they are safe, they will respond accordingly. They will recover, they will restore, they will serve your clients and they will ensure that your company - their company - stays in business and survives any calamity. There are so many CEOs that have allowed themselves to be misguided and misinformed. I have met with technology managers that are afraid to inform their superiors, who in turn are afraid to inform the board of directors, that their existing recovery plans are barely adequate. They fear that they will be asked to do the impossible without any additional budget or resources, so instead they remain quiet, nodding at their boss that they're on target for their next 'hot site' test, giving the perception that they will be prepared for any disaster come what may. There are so many variables, so many facets, so many scenarios and strategies to consider while beginning and instituting an integral business continuity management program. It can seem overwhelming, but there is assistance. There are sites all over the internet. There are associations specifically dedicated to this specialized industry. For example, did you know of the upcoming Awareness Week beginning September 18th? Organizations of all types and sizes, state, local and federal government entities are encouraged during that week to take an honest look inside their institutions. Make an effort to promote preparedness within your staff, take a look at your specialized vendors or just-in-time suppliers, review Service Level Agreements, and take a second read at the company's Mission Statement and ask themselves how prepared and well-positioned they are to fulfilling that Mission Statement during a contingency. And, most importantly, keep in mind that a Continuity of Operations Plan or a Business Continuity Plan is not the goal. The Plan is not what breed success…planning, exercising and testing, high-level management involvement, effective crisis communication, reviewing initially-identified business impact and risk assessments on a regular basis, a designated area under the responsibility of an EVP, reporting directly to the Board, specifically dedicated to creating and constantly promoting a corporate culture of preparedness, safety, response and continuity. The person in charge should be someone with excellent leadership, communication and marketing skills that understands and is involved with the organization's strategic direction, because the preparedness planning process, protection of your human resources and the continuity of your business is a business survival issue, not a technological issue. Begin with the end in mind - begin by imagining a crisis in your midst, a worse case scenario. How are you being portrayed? Who is responding to the media? What are they responding from - previously-authorized and approved-by-the-Board scripts? Who is making decisions and from where? Do you have a communication mechanism that can bridge executive management within minutes regardless of where they are in the world so decisions can be made immediately? Do you have mechanisms in place where your employees can call to notify you of there whereabouts and of their safety and their availability to report to work? Do you have a backup for your computer center as well as alternate sites to house critical employees? Do your plans consider your employees' families and their well-being? If critical employees have to travel to another city to restore the business, has their family needs been included in your plans? Have rehearsals been made? Do you know how to contact your critical clients and vendors? Do you include the local emergency authorities in your plans or rehearsals? Does everyone know their role and participation because you've spent the time, budget and resources in ensuring they do? Bottom line, are you and your people prepared? Begin with the end in mind; envision how you would like to be perceived, and then work backwards until you reach that vision. Board of Directors, CEO and Executive Management - on your next meeting, consider and speculate on whether preparedness efforts, allocation of resources and budget percentage is truly representative of the legacy you want to have surrounding your names when a disaster strikes. Remember that your investment to gain market share, to increase shareholder value, to become the leading multi-national empire can all disappear before your very eyes if your strategy excludes how to Plan, Practice and Prevail. For a listing of websites regarding Business Continuity Awareness, please write to info@strohliberoamerica.com. About the Author
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