1 BUSINESS CONTINUITY: BUSINESS CONTINUITY: How to Keep the Grinch from How to Keep the Grinch from Stealing Your Business Stealing Your Business Jack Hipple Jack Hipple Elliot Consulting Elliot Consulting Predictive Failure Analysis Predictive Failure Analysis Consultant Consultant www.elliot-consulting.com www.elliot-consulting.com
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BUSINESS CONTINUITY: BUSINESS CONTINUITY: How to Keep the Grinch from Stealing How to Keep the Grinch from Stealing
Your BusinessYour Business
Jack HippleJack HippleElliot ConsultingElliot Consulting
STOLE CHRISTMAS WHEN WE STOLE CHRISTMAS WHEN WE WERE NOT LOOKINGWERE NOT LOOKING
(UNPREPARED?)(UNPREPARED?)
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HOW CAN WE AVOID THIS HOW CAN WE AVOID THIS FROM A QUALITY FROM A QUALITY
STANDPOINT?STANDPOINT?
HOW CAN WE BE BETTER HOW CAN WE BE BETTER PREPARED?PREPARED?
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WHAT’S OUR NORMAL VIEW WHAT’S OUR NORMAL VIEW OF QUALITY?OF QUALITY?
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WHAT’S OUR NORMAL VIEW WHAT’S OUR NORMAL VIEW OF QUALITY?OF QUALITY?
Knowledge of what the customer Knowledge of what the customer wants/needs, how to delightwants/needs, how to delight
Knowledge of how to fulfill those Knowledge of how to fulfill those needs and unspoken desires with needs and unspoken desires with products and/or servicesproducts and/or services
Supply that service and/or product Supply that service and/or product reliably and consistently in a value reliably and consistently in a value added, win/win environmentadded, win/win environment
Awareness of changes in needsAwareness of changes in needs Recycle and repeatRecycle and repeat
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IS THAT ENOUGH?IS THAT ENOUGH?
You are Home Depot or LowesYou are Home Depot or Lowes You have done all these things for all your You have done all these things for all your
contractor customerscontractor customers There is a serious outbreak of Asian bird fluThere is a serious outbreak of Asian bird flu
Some of your contractor customers close downSome of your contractor customers close down ½ of your employees cannot report to work½ of your employees cannot report to work Your invoicing, accounting, and Your invoicing, accounting, and
shipping/receiving departments are decimated by shipping/receiving departments are decimated by illness and vacancyillness and vacancy
Combine this with a major hurricane in the Combine this with a major hurricane in the Tampa area at the same timeTampa area at the same time
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WHAT ARE WHAT ARE ALLALL THE THINGS THE THINGS INVOLVED?INVOLVED?
ManufacturingManufacturing SalesSales ITIT Human ResourcesHuman Resources Environmental, Health and SafetyEnvironmental, Health and Safety Shipping and ReceivingShipping and Receiving
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HYPOTHESIS:HYPOTHESIS:QUALITY IS ALSO THE QUALITY IS ALSO THE
ABILITY TO ABILITY TO CONTINUOUSLYCONTINUOUSLY SUPPLY SUPPLY YOUR CUSTOMERS’ NEEDSYOUR CUSTOMERS’ NEEDS
BACKUPBACKUPRetrieve informationRetrieve informationSupply alternativeSupply alternative
CONTINUITYCONTINUITYThe “whatever” is thereThe “whatever” is there
for some time framefor some time frameto keep things goingto keep things going
RESILIENCYRESILIENCYBusiness survives as if nothing Business survives as if nothing
happened under any happened under any circumstancecircumstance
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Business
ResiliencyBefore
After
Assets
Finance Vulnerabilit
y and Risk
Communications
IT
CustomerCare
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VULERABILITY AND VULERABILITY AND RISKRISK
What is your business and the quality What is your business and the quality of its products vulnerable to? Have of its products vulnerable to? Have you thought about all the possibilities?you thought about all the possibilities? Weather Weather Terrorism (physical, biological, chemical)Terrorism (physical, biological, chemical) PandemicsPandemics Supplier default due to the same thingsSupplier default due to the same things Customer default to the same thingsCustomer default to the same things
What is the economic impact?What is the economic impact? Hours, days, weeks, months, years?Hours, days, weeks, months, years?
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WHAT IS YOUR BUSINESS WHAT IS YOUR BUSINESS TOLERANCE?TOLERANCE?
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WHAT’S THE RISK?WHAT’S THE RISK?
Get real, but not doomsday (80/20)Get real, but not doomsday (80/20) Longer than you thinkLonger than you think Short term vs. long termShort term vs. long term
Can you be replaced? Can you be replaced? By whom?By whom? Are the affected at the same time or Are the affected at the same time or
What affects the most customers and What affects the most customers and the future of the businessthe future of the business
Reliability of resources planned uponReliability of resources planned upon
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COMMUNICATIONS AND COMMUNICATIONS AND DATA STRATEGIESDATA STRATEGIES
EmployeesEmployees SuppliersSuppliers CustomersCustomers Internet and communication systemsInternet and communication systems
Verizon storyVerizon story Data backupData backup
Not a different floor in the same hurricane Not a different floor in the same hurricane prone building!prone building!
Cell phones OK until the power is off for Cell phones OK until the power is off for several days—then what?several days—then what?
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CRISIS MANAGEMENTCRISIS MANAGEMENT
Dependent upon the type of Dependent upon the type of businessbusiness Chemical manufacturingChemical manufacturing Knitting goods supplierKnitting goods supplier Newspapers, TV, radioNewspapers, TV, radio
Who needs to know what, how, Who needs to know what, how, when, and how soonwhen, and how soon
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INCIDENT COMMAND INCIDENT COMMAND SYSTEMSYSTEM
Originated with CA wildfire systemsOriginated with CA wildfire systems Restore facilitiesRestore facilities Assess, control, and minimize asset Assess, control, and minimize asset
damagedamage Control the conditionsControl the conditions Focal point for communication and Focal point for communication and
reportingreporting Business reportBusiness report
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BUSINESS RECOVERYBUSINESS RECOVERY
Grab and Go BoxGrab and Go Box Immediate needs, contacts, and Immediate needs, contacts, and
informationinformation Where to meet, assembleWhere to meet, assemble
Who?Who? What type of emergency?What type of emergency?
Duration of EmergencyDuration of Emergency What if it’s months, not days?What if it’s months, not days?
Communication system and protocol Communication system and protocol for employeesfor employees
Translation of the risk into bottom Translation of the risk into bottom line calculationsline calculations
How much protection vs. costHow much protection vs. cost A trade-off, but easy to err on the A trade-off, but easy to err on the
side of optimismside of optimism
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A WRITTEN BUSINESS A WRITTEN BUSINESS RESILIENCY PLANRESILIENCY PLAN
Write it down!Write it down! Review it!Review it! Memorize the key points of it—you Memorize the key points of it—you
may not have much timemay not have much time Terrorism evacuation notice for TampaTerrorism evacuation notice for Tampa Second most dangerous port in the Second most dangerous port in the
countrycountry (Anhydrous ammonia for (Anhydrous ammonia for fertilizer manufacturing in central fertilizer manufacturing in central Florida)Florida)
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TRAIN, PRACTICE, AND TRAIN, PRACTICE, AND REVIEWREVIEW
Practice, practice, practice!Practice, practice, practice! A fire is the wrong time to do a A fire is the wrong time to do a
fire drillfire drill Simulate different conditionsSimulate different conditions Changes in political, health, and Changes in political, health, and