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By Dora Riano Price
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
Dora Riano Price has been in the business continuity
industry with Strohl Systems since 1989, providing solutions to global
clients in the United States, Canada and Europe. In 2003, she founded
Strohl Systems Iberoamerica, LLC to provide a complete range of services
and automated solutions to the Spanish speaking markets of Latin America,
the Caribbean and Spain. Dora travels extensively conducting executive
presentations "en Español" in conferences, seminars and to regulatory
and government agencies and cross-industry mid to top level management.
Strohl Systems Iberoamérica's core business is focused on becoming their
customers' "Partner of Excellence" for all related business continuity
management matters.
For a free consultation on methodically
identifying and bridging the gap between an organization's current state
of preparedness and the business continuity management maturity level
desired, please send an email to info@strohliberoamerica.com.
Dora can be reached at dora.price@strohliberoamerica.com
and 1-484-716-3030.
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