Q&A / Business Continuity Planning—Critical Steps for You and Your Customers

Project Leadership Associates (PLA) is a leading provider of business and information technology consulting services to midsized corporations. Headquartered in Chicago–with offices in Boston, Dallas, Houston and San Antonio–PLA specializes in network integration, management consulting, business strategy execution, business intelligence, software development and small-business services. Much Shelist spoke with Pam Hill, Solution Group Leader for Business Continuity, about the importance of business continuity planning to a company and its customers.

Much Shelist: After the lessons of 9/11 and Hurricane Katrina, aren't most companies engaging in some sort of business continuity planning?

Pam Hill: Ask any executive about the need to plan for potential disasters and business continuity, and you'll get almost universal agreement. However, it's a bit like your physician urging you to lose weight: even though most of us know it's something we should do, many of us don't. Others are motivated and want to do the right thing, but aren't sure how to go about losing weight or, for that matter, protecting their companies effectively.

Although 9/11 and Hurricane Katrina have focused attention on the effects of large-scale devastation, these types of scenarios represent less than 1% of the "disasters" that actually strike businesses. Most catastrophic events are much more pedestrian in nature. For example, a power outage, a warehouse fire or a supplier recall may have limited reach–but for those affected by the problem, the consequences can be huge.

MS: Are there other common misconceptions about business continuity programs?

PH: "Misconception" may be too strong of a word. Generally, what we see is an overemphasis on certain areas–including information technology and telecommunications issues–at the expense of others such as inventory, distribution, manufacturing and executive decision-making processes.

One way companies can overcome this bias toward pure technology solutions is to think of a disaster from the perspective of the customer experience. What do you provide your customers (a product? a service?) and what will it take for you to continue providing those things without interruption?

By looking at the effects of a potential disaster through the eyes of the customer, business leaders can more readily identify those areas that are of top priority, and those that may be important but require fewer resources and attention.

To use a very broad example, state and federal governments are creating plans to handle various types of pandemics. One area of concern is the effect of a pandemic on food production and distribution. The need is quite basic: getting food into the hands of consumers. Technology may help in this process, but it is not necessarily the most important tool or function. Keeping agricultural workers and factory employees healthy may be a much higher priority.

Of course, certain businesses–such as banks and financial services companies–are legally obligated to maintain certain types of customer data. Such requirements must also be taken into consideration when creating an overall business continuity plan.

MS: What is the typical process for business continuity planning?

PH: First, it's important to note that most recovery occurs "between the ears." Recovery is based on solid decision making and nimble thinking. Executive leadership is critical both in the planning phase and in the event of an actual disaster. Good business continuity consultants help a company's leadership learn how to identify when a disaster has occurred, how to determine when to pull the trigger and set the business continuity process in motion, and how to communicate with employees, vendors, suppliers, customers and the media. The ability to manage through a crisis is key to effecting a smooth return to business as usual.

Once business executives understand their role in handling a disaster, the rest is fairly straightforward. Typical steps include identifying the company's key output and customers; documenting the core business processes; reviewing the supply chain or task flows to identify any areas in which breakdowns may occur; and working with technology professionals and other key staff to identify solutions.

Common areas of concern include people (where they will work), communications (between employees and with customers), information (most businesses aren't as "paperless" as they think) and physical resources (such as inventory and manufacturing capabilities).

MS: This all sounds very logical. When it comes to business leaders, are there any typical points of resistance?

PH: As I explained previously, once the costs and benefits of business continuity planning are laid out, most executives recognize the value of planning for potential disasters, whether they are smaller events limited by time and geography or major catastrophes such as hurricanes and earthquakes. If anything, the biggest–and perhaps most dangerous–concern is when business leaders think they're further along than they actually are.

For more information on business continuity planning and the services offered by Project Leadership Associates, contact Pam Hill at phill@projectleadership.net or visit www.projectleadership.net.