Managing key-person risk

 All organisations, big and small, are built on their staff.  But for many reasons staff might not be available, either for a few days or weeks, or permanently.  They might win lotto; they (or their family) might get unwell or suffer an accident; they might get a better offer; or they might just want a change.  Whatever the reason, resilient organisations accept this as a continuity risk and plan for it.

 At Tigertail like many businesses we are experiencing rapid growth and change and have given this particular risk a bit of thought.  We manage key-person risk by taking a number of steps that we recommend all businesses consider:

  1. Document your policies, procedures, approaches and methods to allow others to quickly come up to speed

  2. Document project plans and workplans

  3. Provide regular progress reports

  4. Store project information, including background documents, research or consultation reports or data and draft deliverables where they can be easily found and shared

  5. Implement a robust peer-review process for proposals and deliverables

  6. Work in small teams and share the work wherever practicable

  7. Multi-skill staff wherever possible

 Managing the risk of staff dis-continuity makes good business sense.  Not only does it mitigate an obvious risk, it builds a collegiate environment and culture where staff support each other, ask for help when they need it, and take shared ownership of business productivity.

 

Creeping crises–does resilience fit?

BCAW2019 - Investing in Resilience - by Rick Stone

I was flying over Warragamba Dam a few weeks ago and was struck by just how low 55% capacity really is.  Sydney Water says that levels across 11 dams in Greater Sydney are dropping faster than they have in decades.  Every week the city is using 0.4% of the storage (11 billion litres or enough to fill 4,400 Olympic pools).  The desalination plant has been turned on to supplement the city’s supply.  Rain over the Sydney basin in March means the city is green; but the catchment largely missed out.  So Sydney, along with most of the rest of the state, is suffering one of nature’s most insidious creeping crises—drought.

How is the concept of resilience relevant to a slow-burn or chronic hazard, like drought?  Organisations like to talk about being resilient, but what does this really mean?  Many businesses think a resilient organisation is one that successfully navigates disruption or chaos.  The focus is usually on acute impacts, such as flood, fire, fraud or flu.  Organisations attempt to prevent the problem, cope with it if it occurs, and adapt to a new normal (if they survive).  But it’s hard to measure the success of these programs: did the organisation survive because it had really good preventative strategies, or were they just quick on their feet with a response, or have just been lucky?

Another concept of resilience is “adaptability”.  Resilient organisations can be adaptable to shocks – the traditional acute impact; and they can also be adaptable to slower, less obvious stresses.  Farming is a good example—a resilient farmer needs to be able to adapt to the impact of a bushfire (acute) and a drought (chronic).  The challenge is to recognise the slowly evolving stress and respond early enough to minimise its impact.  These are difficult decisions—does the community invest in building an expensive water pipeline when “it might rain tomorrow”?  The Resilient Cities initiative, pioneered by the Rockerfeller Foundation, recognises the importance of adapting to both stresses and shocks.  Cities including Sydney and Melbourne have adopted resilience strategies that embrace this concept.  Businesses and other organisations can benefit from a similar approach.

Our communities, and the natural and economic environments on which they depend, face significant stresses.  As resilience practitioners, we need to ask ourselves; are we paying attention to the slowly evolving risks and politically complex challenges, such as climate change?  Or are we staying in the comfort zone of planning and practising for acute impacts?

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The computer's driving my car!

BCAW 2019 - Investing in Resilience. By Samantha Ford

Recently I attended the Disruptors Theatre during the Australian Healthcare Week Expo and sat in on a Case Study: Self-Driving Cars 101 – Health Haven or Death Dealer? presented by Prof. Michael Milford, Chief Investigator, Australian Centre for Robotic Vision at QUT.  The case study provided fascinating insight into self-drive technology that is emerging or already available in the marketplace.

Prof Milford described autonomous vehicles (AV) as having the potential to be one of the most disruptive technologies especially in the areas of public health.  His presentation explored the benefits, such as drastically reduced road death tolls, and potential negative effects such as increasing heart disease, impacts on business for insurance, liability, operability and the workforce.  One thing is certain; this technology will disrupt transport as much as the invention of the internal combustion engine.

Current standards and practice promote a risk-based approach to continuity planning by considering risks that have been identified for the business.  These business risks often include emerging technologies or other activities that provide an opportunity and a threat to the business.   

In our work with clients, we regularly see a narrow focus on traditional sources of disruption (e.g. utilities failure, flooding, loss of people, technology failure, etc).  To ensure our clients are prepared we advise them to consider identified risks and sources of vulnerability that are both generic to all industry and those that may be unique to their business. 

So, ask yourself the following during BCAW 2019:

·        What are the disruptive technologies or events that your industry is facing? 

·        Do you have a plan to manage it?

·        Is it documented?

·        Have you tested your assumptions and your plan?

If you need help answering these questions, contact the team at Tigertail for some assistance.

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Welcome to Business Continuity Awareness Week 2019 – Investing in Resilience

By Matthew Harper

As a proud corporate partner of the Business Continuity Institute (BCI), Tigertail Australia is really excited that this year’s theme for Business Continuity Awareness Week is “Investing in Resilience”.

 We see resilience as the ability to bounce-back from disruption and to thrive in an uncertain world.  A resilient organisation is aware of the world around it, scans for threats and opportunities, and responds quickly when things change.  The fundamental building-block of resilience is people – people who are properly prepared and willing to do their bit.  Investing in resilience is investing in people; investing in policies, plans and procedures that help them do their job; and investing in practise to ensure they are match-fit and prepared for when things go wrong.

 One of the great things about our work is seeing organisations invest in resilience everyday; whether it’s a review, an exercise, a training program, or developing an emergency or business continuity plan.  To mark Business Continuity Awareness Week, we will look at different aspects of investing in resilience, starting with a glimpse at an innovative approach to exercising business continuity plans.

 Advances in technology are making computer-based simulations more accessible and cost-effective.  Today, you can use software to explore how your organisation might respond to a disruption.  You can build a model of your organisation’s people, assets and equipment, geo-located on a map, and test what happens if, for example, you lose access to a key supply route or location.  You can even test classical continuity strategies, such as establishing an alternate site, and confirm how long it might take to move staff and equipment.

 We recently used a computer-based simulation for a BC exercise in the ACT to model the “spare spaces” available to the business continuity team across Canberra.  We included all the important items, like computers and phones, then we identified the time and space constraints for moving people across the city.  This allowed the organisation to look at BC from the micro level (who sits at what desk) through to the strategic (what service objectives and capabilities could be met at what times).  The simulation allowed the continuity team to explore options and workshop alternative approaches in real time.  It identified resource choke-points and gaps.  And it helped the team build confidence in responding to disruption.

 How is computer-based simulation an investment in resilience?  It’s a cost-effective way to build an exercise where:

·        an entire continuity team can practise responding;

·        teams can model alternative approaches;

·        time, space and resource constraints are real; and

·        reviews are supported by objective data

Please contact us if you want to learn more about using computer-based simulation to build resilience.

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Donuts + Exercises + Virtual Reality = Resilience

Matthew Harper doubts that he will win the Nobel Prize for mathematics for that discovery but for the 2019 Business Continuity Awareness Week, I am sure we have a winning formula for our BCI ACT forum meeting this week.

 This year's theme is "Investing in Resilience" so we have looked at three very different ways and different speakers to talk about their investment.

  1. Angela Friend of the ACT Chief Ministers Directorate will talk about their ambitious two year, eighteen exercise program and the recent evacuation/continuity functional exercise

  2. Our special guest will be Danijela Vrkic of Krofne Donuts.  Krofne is a social enterprise that provides meaningful employment for young adults in Canberra in the production, sales and distribution of what are possibly the best donuts on earth.

  3. We will also have the Canberra launch of the FLAIM Systems extinguisher (www.flaimsystems.com), a revolutionary new way to train anyone to use a fire extinguisher in complete safety and with real scenarios.

 Between Yellow Edge and Tigertail Australia we will provide a magnificent afternoon tea, featuring the great Krofne Donuts.

 Attendance is free to all following registration.  See you there! 

https://www.eventbrite.co.uk/e/bci-act-forum-bcaw-2019-event-3-ways-to-invest-in-resilience-tickets-61492329212?utm-medium=discovery&utm-campaign=social&utm-content=attendeeshare&aff=esli&utm-source=li&utm-term=listing