Business continuity lessons from last season’s hurricanes

Hurricane season is here, and it is time to evaluate the lessons learned from last year’s hurricanes. It is vital to note that the degree of impact, from a corporate perspective, could have been mitigated with planning and preparation.

Preparation is critical for small- and mid-sized organizations, which account for 50 percent of all private sector workers. Most smaller organizations understand the importance of being prepared but are discouraged by perceived obstacles such as high cost and substantial time commitment.

For small businesses, employees are the most important asset. However, people-planning often lags behind the data and information technology recovery plan. Most organizations do not have a “call list,” nor do they plan the logistics of getting employees back to work. In a disaster, planned logistics are the key to remaining in business, retaining consistency and fulfilling promises to customers.

Small- and mid-sized businesses that survived the 2005 hurricane season outlined three areas of importance when restoring their business: maintaining an information technology plan, a business continuity plan and a crisis management plan.

IT plans

IT plans vary based on the size and scope of an organization and its technology infrastructure. Plans may include backing up data via an offsite storage vendor; maintaining redundant servers in multiple locations; maintaining duplicate operations capabilities from a web-based scenario; and having steps to restore critical technology infrastructure. While critical, an IT plan is only a small piece of the puzzle.

Business continuity

A business continuity plan offers an additional level of preparedness. It addresses the organizational structure, processes and people. It emphasizes logistics, employee information, call lists, operational rules and procedures, and plans for redirecting vendor deliveries. A business continuity plan is key to maintaining an efficient and operational organization during a disaster.

Crisis management

All organizations should create and maintain a crisis management plan that includes employee files, emergency operational procedures and policies, and emergency logistics plans. A crisis management plan facilitates a smooth transition between normal business operations and catastrophe response. When used in tandem with the IT plan and the business continuity plan, the crisis management plan enables an organization to resume operations in a shorter period, while managing employees, assets, customers and vendors, and increasing the chances of long-term business success.

Every organization faces small but significant disasters daily, such as fires, power outages or computer viruses, that rarely make headlines but can impact a business. In those instances, planning still is the key to remaining in business.

First, it is imperative to consider the business’ key assets. Prioritize the most critical assets, usually the staff. Then, determine how to manage those assets. The risk to all assets — people, products or technologies — must be assessed from an internal and an external perspective.

How do those assets impact everyday operations? In case of an emergency, how will you locate, support, relocate and/or access those assets?

Then, assess critical business operations/ functions. What are they, and how do they rate on a scale of importance? How will the company handle having them impeded for a period of time? What are the supply chain preparedness plans? Have remote locations been arranged for suppliers, and is there a means to contact them to stop supply flow for a pre-determined amount of time? How can the supply chain be contacted in each vendor location? Who will assume the responsibility in a disaster? Finally, what is the definition of a disaster?

Managing all of the details and challenges of facing a disaster requires a crisis manager and an emergency management plan. For each business, the plan will differ. Although with proper implementation, the results will be the same — the company will remain in business.

Emergency preparedness kit

The crisis manager should have an emergency preparedness kit that includes: insurance plans and access; plans for alternate locations; logistics information; database and backup IT access; organizational emergency numbers and contact information for vendors and employees; health insurance contact information; etc. Most important, the planning process should include a debrief — because an untested plan is as good as no plan at all.

Bob Boyd is president /CEO of Agility Recovery Solutions.

Topics Catastrophe Natural Disasters Hurricane