Five Disciplines of Organizational Resilience

Sponsored By

Alert Notification and Incident Management

Presenter:

Michael Lazcano, MBA, MSBC

Director, Corporate Business Continuity, Gap Inc.

Host: Wayne Blankenbeckler, MissionMode

© Copyright 2011, MissionMode Solutions and Michael Lazcano


Event Sponsored By

Emergency Notification and Incident Management

[email protected]

www.missionmode.com


Presenter:

Michael Lazcano Director, Corporate Business Continuity Gap Inc.

Michael manages all aspects of Gap Inc.’s global Business Continuity Program, including education and awareness, emergency response, crisis management and business continuity. His responsibilities comprise every aspect of the company, including its supply chain, global store network, headquarters locations, and 154,000 employees around the world. Michael’s long association with business continuity spans over 25 years with companies such as IBM and Charles Schwab.


1. Effective Leadership

2. Supply Chains and Critical Vendors

3. Managing Issues

4. Workforce

5. Your Community

Organizational Resiliency


The Next Step

Disaster Recovery

Business Resumption

Business Continuity

Organizational Culture

Organizational Resiliency

1. Crisis leadership and effective communications

2. Critical supply chains and critical vendors

3. Business continuity management and the ability to manage issues

4. The resilient workforce

5. The larger community


The Global Resiliency Network: “…the capacity of individuals, organizations and nations to survive and thrive amidst ongoing change, disruption and adversity.”

Development Dimensions International: “…the ability to bounce back from adversity, sometimes even stronger than before, and keep on going.”

What is Organizational Resilience?


A move to embrace the larger picture,

beyond plans, that extends to employees,

stakeholders and the larger community

An enhanced organizational culture of

resiliency that cuts across all levels within

the organization

Resilient Organizations – A Transformational Change


The Gartner Group Suggests:

• Leadership

• Culture

• Systems

• People

• The Workplace

Key Requirements for Organizational Resilience


Leadership Not all good leaders are good crisis leaders


Know where you’re going

Know who you’re taking

Know who you’re leading

Know the road

Share the accomplishment

Leading Through Crisis


Leadership vs. Crisis Leadership

Effective Crisis Leadership:

You will hear words such as:

Remains calm, courageous and positive throughout the crisis

Reinforces and praises the team

Has a profound sense for the welfare of those being served

Remains resilient even under difficult conditions

Understands the need to be “in service” for others

You will know a crisis leader when you experience one

Effective Leadership:

You will hear words such as:

Personal integrity

Persistence

Charisma

Intelligence

One might say they are critical thinkers

You will know a leader when you experience one


The Transformative Process

Pre-crisis

The Ability to Be Real

Personal Attributes and Values

The Ability to Influence

The Ability to Communicate

Personal Integrity Persistence Charisma

Intelligence Critical Thinker

Persistence

Good Crisis Leaders

Access to Information

Access External Points of

Views

Preparation Experience

Transformational Experiences

Use of Personal Power Referent Expertise Coercive Reward

Trust

Adaptive Emotive

Sympathetic Empathetic


Resiliency within the supply chain and critical vendors is achieved when responsibility is assigned to the stakeholder

Resilient Supply Chains


New chains, old chains

New risks, old risks

• Security issues

• Geo-political instability

• Un-anticipated global demands

• Single sources of failures

• Loss of institutional knowledge

• Technology breakdown

• Acts of nature

Supply Chains: Increasingly at Risk


Identify the country of origin for critical products and services

Identify single points of failure in service/supply chain

Identify where single and sole-source suppliers are located

Determine how critical products are sourced and shipped from overseas locations

Determine if contingency plans cover disruption in the service and supply chain

Considerations for Evaluating Supply Chain Risks


Use an Enterprise Risk Management Process as a way to leverage information from various sources in anticipation of crisis

Address the risk by considering mainstay strategies:

• Avoid known “hot spots”

• De-couple from a single source

• Diversify sources

• Install enhanced controls and security

• Enhance security protocols

• Consider insurance options

Considerations for Evaluating Supply Chain Risks


The process of identifying issues before they become problems

Managing Issues


This requires management consider:

Adopting the discipline of anticipating problems while they are only issues

Managing Issues Before They Become Problems


Understand the issues, communicate the solutions, enhance resiliency

Communicate the solutions before they result in problems

Ultimately, managing issues promotes competence required of resiliency

Managing Issues Supports Resiliency


Your workforce is the foundation of your organization’s ability to remain resilient

The Resilient Workforce

“Stress makes you stupid…”

Eric Dezenhall, Damage Control


During a crisis, employees will be under tremendous stress, resulting in:

• A variety of anticipated behaviors that will lead to a compromised workforce and distractions that impede desired outcomes

Stressed out workers eventually succumb, resulting in visible impact to the organization such as:

• Increased turnover

• Absenteeism

• Health problems

During Disaster – Stress is the Villain


Identify what’s important to employees during crisis, and address potential stressors and issues

Optimize technology to support decentralized work options

Map out replacement staffing appropriate to your sense of the threat of disruption due to absence:

• Replacement strategies

• Succession strategies

Train, practice and walk the talk

Integrate empowerment into the organization’s culture—create mastery

Minimizing Stress During Crisis


A willingness to master their environment—to build value for others

The ability to integrate into the larger culture, to propagate shared values and to influence others in a positive way

Critical thinkers—they are able to think “outside the box” and question the status quo.

For these individuals, innovation is a persistent way of looking at the world

What might you look for in individuals that fit into a framework of workforce resiliency?

Was Maslow right?

The Resilient Workforce from the Ground Up


Everyone is connected to everything through the community they are a part of and serve

Shaping a Resilient Community


Organizations must work together in order to build resilient communities

Community resilience requires a collaborative effort with the many resources and organizations that shape crisis response:

• Federal level

• State level

• NGOs

• Community level

• A commitment to the community the organization serves

The Resilient Community


Community Involvement:

• Policy and Memorandums of Understanding

• Understanding legal and regulatory liabilities

• Corporate support for “Foundational” response

• Active participation within the community served

• The shape of a community involvement and resiliency is influenced by an organization’s involvement with the community

Local Risks:

• Hazards and risk data and analysis

• Assessment of vulnerability

Shaping the Resilient Community


Disaster preparedness:

• Emergency response capabilities and coordination

• Investments in Early Warning Systems

• Encouragement of employee participation and volunteerism

Knowledge and education:

• Personal preparedness at home

• Personal preparedness at work

• An emergency response plan for the family

• Practice

• Sendai, Joplin, Iceland, Geo-political unrest: do you know what to do?

• NOAA: “this year’s hurricane season is expected to be above normal”

Shaping the Resilient Community


Moving to Resiliency

Resiliency wraps itself around organizational culture


Now we know that:

• Corporate culture is important in affecting outcomes to crisis

• A BCP program is of limited use if it does not coincide with an the organization’s culture, values, attitudes, beliefs and cultural norms

• The key to a resilient organization is its culture

One of the greatest challenges for BCP professionals is creating a culture that supports organizational resiliency at all levels:

• Culture is the way we do things, it’s what defines us; change is difficult

• It’s difficult to adapt to change; it can be threatening

• To change the culture, you must first understand culture and introduce change in a way that slowly shifts existing paradigms

Resiliency Wraps Itself Around Organizational Culture


Influence the organization’s shape:

• Centralized organizations are more vulnerable, they contract when under attack

• Decentralized organizations are less vulnerable, they expand when under attack

• Hybrid organizations: retain centralized control, while empowering resiliency across the organization

Rod A. Beckstrom, “The Spider and the Starfish”

First Thing You Need to Consider in Becoming More Resilient


Tough questions:

• Do commitment, flexibility and trust exist across the entire workforce?

• Does your organization handle the truth or does it live in denial?

• Does your organization encourage employee innovation and experimentation by allowing decision-making on a small scale, or is it punitive?

• Does your organization allow employees to create personal value for others?

• Is your organization “people-centric?”

• Is your organization a part of a broader connection of networks within the community?

Second Thing You Need to Consider in Becoming More Resilient


Visionary leadership:

• Leadership must be fully invested in the transformational process

• Organizational culture must promote an adaptive environment

• The strength of the organization is not defined as a single entity, rather, by its attachment to the larger community

Third Thing You Need to Consider in Becoming More Resilient


Lack of visible and sustained commitment from leadership

A “silo” mentality within the organization

Myopic points of view

A resistance to validate the effectiveness of the business continuity program

Detachment from the larger community they serve

Beware of Roadblocks


Organizational Resiliency 1. Effective Leadership

2. Supply Chains and Critical Vendors

3. Managing Issues

4. Workforce

5. Your Community


This presentation is from a recorded webinar. To listen to the presenter, visit:

www.missionmode.com/webinars


Event Sponsored By

Emergency Notification and Incident Management

[email protected]

www.missionmode.com

Five Disciplines of Organizational Resilience

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