Managing a business can be challenging and
exciting especially in Africa. Everyday comes different bringing in challenges
from customers, the government, competition and the environment. Knowing this,
there are some events you cannot plan for, or can you?
As businesses are now even more reliant on
information technology, specialist plants and suppliers which, when they fail,
cause disruption to the business. Even if not destroyed access to the business
may be restricted by gas leak preventing normal business operations.
Some questions to ask your organization
are:
·
What would we do if you lost
access to your primary premises, plant and machinery through flood or fire?
·
How would we cope if your IT or
telecommunication systems fail?
·
Where would we get alternative
supplies if your key supplier closed up shop?
·
How would we cope with loss of
key staff and high levels of absenteeism?
Disruption can happen anytime, how well you
deal with the effects to your business may determine your future.
The introduction of Business Continuity
Management (BCM) to your organization will help you prepare and mitigate against
major disruptions your organization may face. BCM has been employed by large
businesses around the world to enable them cope with major disruptions. The
techniques employed can be scaled to any size business in any sector.
There are five steps to an effective BCM
process:
Stage
1 – Understanding your Business
The first stage is to understand how and
what you need to make your business work and who has an interest in how well
you perform.
·
Do you know who your
stakeholders are- these are those who have interest in the business?
o
These will include your
customers, employees, sub contractors, suppliers, banks, investors, insurers
and auditors
·
Why do you need to identify
them?
o
At the time of a major
disruption these stakeholders will want to know how soon you will be back in
business and what the effect of your disruption will be on their operations and
investments.
·
Do you know which of your
activities are most critical and if you could not continue them for any reason
what would have the greatest impact on your business?
o
The impact may not initially be
financial; it may be your reputation that is damaged, which in turn could cause
new business to be reduced.
·
Consider how soon the
disruption will impact your business; some activities can have immediate
effect. Knowing this will help you prioritize activities that need to be
restored
·
Do you know what you need to
undertake these activities?
o
Identify the people and skills
involved, what computer, software and data you require
o
Are there key drawings and
specification that you need access to?
o
What communication do you need,
both fixed and mobile
·
Who are your key suppliers
o
A failure by supplier may have
serious consequences for you, preventing you delivering to your customers. The
customers will hold you responsible, not your supplier.
Stage
2 – Business Continuity Management strategies
The next stage is to determine how you will
restore the critical activities. In the initial stage you will have identified
what you need to get up running first and what resources you need. There are
several choices that you can make at this point.
The activity may be seen as so
important that you may decide to provide a duplicate to avoid the failure
occurring, eg find a second supplier for that critical product; back-up
critical data off site. Alternatively you may decide that you will provide a
partial level of service, perhaps to your most important customers, within a
specified timescale, restoring full service as and when you are able.
Finally you may decide to do nothing
in the short term, waiting until full business recovery has been completed.
Any strategy must recognise the internal
and external dependencies of the organisation and must have general acceptance
by management functions involved.
Stage 3 - Developing and implementing a business continuity
management response
Having decided what it is you need
to restore and how soon you will do this, create the business continuity plans
that will enable you to quickly recover what is critical to your business.
The business continuity plan is at
the heart of the business continuity management process and sets out what is to
be done, who will do it and how to contact them in an emergency, where you will
work from if the normal business location is unavailable, key suppliers for the
essential services you need and where the critical data is stored. The plan
will also detail who should be informed about the disruption.
The structure, content and detail of
the plan will depend on the nature of the organisation and the risk and
environment in which it operates. In particularly large or complex
organisations, it may be necessary to have departmental plans, of which you may
integrate into one high-level plan.
Stage
4 - Building and embedding a business continuity management culture
Documenting the business continuity
plan is one element of developing a business continuity management strategy.
Its success, however, depends upon implementation of the recommendations made
across the entire organisation; a programme of training for those directly
involved in the execution of the plan; and an education and awareness programme
to ensure understanding and adoption of the plan in relevant parts of the
organisation - this applies to both staff and suppliers.
All stakeholders should be informed
that you have introduced business continuity management and what to expect if
your business suffers a disruption, as this may give you a competitive
advantage over others and customers will have more confidence in your
reliability. It may even pre-empt their own demands for you to install business
continuity management as part of future contracts.
Stage
5 - Maintaining and auditing business continuity management
Business continuity management does
not end when the plans are written. They must be tested to see if they will
work when you really need them. It is too late to find out the errors and
omissions when you have to use the plan in earnest. Plans must be kept up to
date as the business structure, suppliers and customers may change, as may
contact details for key employees.
Be prepared to deal with any
disruption, whether large or small, public or private, that would prevent you
from satisfying your customers needs. Considering a BCM plan? Talk to Artco solutions
on enquiry@artcosolutions.com
or visit us on www.artcosolution.com
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