Let me take you back in time to the United Kingdom in the 1970s. Punk music was gaining popularity, and the Sex Pistols entered the punk rock scene with the force of a shooting star, capturing fans’ attention.
But as quickly as they arrived, they quickly left the scene. When they broke up in 1978 after a period of internal conflicts, legal troubles, and their frontman’s imprisonment, fans were left both shocked and surprised.
Just like the Sex Pistols, plenty of companies experience rapid growth and success, only to face unexpected challenges and internal conflicts that result in their downfall.
In this article, we’ll draw inspiration from the Sex Pistols’ turbulent journey to explore the concept of business continuity planning (BCP). We’ll look at what a BCP is, why you need one and delve into the strategies and contingency measures that can help you maintain your rhythm and continuity, even when faced with the inevitable storms that can disrupt your operations.
A business continuity plan describes how you’ll continue your business when disaster hits. It is a structured strategy outlining how your organization will maintain essential functions when disaster strikes, to ensure minimal downtime and guarantee that operations continue.
The BCP is crucial and revolves around ensuring your resilience and ability to continue operating in the face of unexpected disruptions, such as natural disasters, cyberattacks, or other emergencies.
Let’s look at it a bit closer, and understand some of the key reasons to have a BCP better:
A BCP helps you minimize downtime. It does this by providing a structured approach to quickly recover and resume your critical business functions.
Example: You’re a retail company with an extensive online presence. If your website experiences a cyberattack that takes it offline, a well-prepared BCP outlines the steps to take to mitigate the attack, get your website back up in no time, and allow you to continue serving your customers.
No one likes disruptions as they result in revenue loss and can damage your reputation. A BCP helps you protect against financial losses and keep customer trust.
Example: You’re the owner of a restaurant chain with multiple locations and one of your branches has a food safety crisis. A BCP can guide you in managing the crisis, ensuring food safety compliance, and communicating effectively with customers to maintain trust in the brand and other locations.
Some industries, like the financial, and pharma industries, have regulatory requirements that mandate businesses to have BCPs in place. Failure to do so has legal and financial consequences.
Example: You’re the owner of a FinTech company. You are required by regulators to have robust BCPs to ensure customer data security and financial system stability.
When a crisis hits you need the right resources to get you back up and running. A BCP helps allocate resources effectively during a crisis, ensuring that personnel, equipment, and materials are used efficiently to address the most critical needs.
Example: You’re a manufacturing company hit by a sudden supply chain disruption because the Suez Canal is blocked again. You use your BCP to allocate available resources to meet customer demands and minimize production delays.
When all hell breaks loose you want to make sure customer experience takes a minimum blow. A BCP outlines measures to maintain customer service and communication, so customers receive timely updates and support.
Example: You run an airline and there is a labor strike. Your BCP tells you how to manage customer inquiries, rebook affected passengers, and maintain a level of service.
Let’s not forget about the well-being of your employees. During a crisis, this is a top priority. A BCP includes procedures for evacuations, remote work arrangements, and employee support.
Example: There is a fire at your workplace. The BCP outlines evacuation routes, assembly points, and contact information for employees to report their safety status.
That’s a lot of reasons, right? Now that we addressed the necessity and urgency of having BCP, let’s look at 5 steps to creating a successful one:
In this phase you conduct an analysis to identify critical activities, determine which activities must continue, which can be temporarily paused, and which can operate at a reduced capacity.
You then assess the financial impact of disruptions. This involves asking yourself the question, “How long can I operate without generating revenue and incurring recovery costs?”
As this step covers your whole company, it’s important to get key stakeholders involved from the beginning.
Now you have a good overview of your critical processes and the impact of disruption. At this point, pivot your attention to the risks they face, how well you can handle when things don’t work as usual, and how long you can manage if things go wrong.
The goal here is to understand what could go wrong and find ways to avoid, reduce, or transfer them. This assessment will help you strengthen your preparedness and resilience.
Think about risks specific to your industry and location
It’s important to consider both internal (e.g. an IT system failure or employee shortage) and external threats (e.g. a natural disaster or supply chain disruption) to your critical business activities.
Once you analyze and assess, you need to create procedures.
Develop detailed, step-by-step procedures to minimize risks to your organization’s people, operations, and assets. This can include changes to your operating model, such as using alternative suppliers or implementing remote work options.
A plan is just a plan and no one will know how to act if you don’t communicate.
This step is all about communication. Integrate the BCP into your operations, policies, and company culture, and train, test, and communicate with your employees.
And don’t forget that communication is not limited to your company only. Communicate with external stakeholders, customers, suppliers, and so forth.
Before implementing your BCP ensure its effectiveness.
Don’t worry there are plenty more options to test your BCP. Consider involving external stakeholders or vendors as it makes exercises more realistic. Frequently train those who are accountable for executing the BCP.
After experiencing a real incident or conducting a training exercise, update your plan to improve its ability to protect your business. Keep in mind that both your organization’s development and the circumstances you operate in change, so a regular review isn’t a luxury but a necessity.
Now you have a high-level understanding, let’s look at how to structure your business continuity plan.
You can find a copy of the template I use here.
Make sure to include the following sections in your BCP:
This section shows the revision history. It includes the version numbers of the changes made, by whom, when, and who approved the changes. The revision history allows anyone reading the BCP to understand how it has evolved over time.
The executive summary provides a brief summary of the key objectives, goals, scope, and applicability of the BCP.
This chapter outlines the critical functions and processes in scope of continuation in case of a disastrous event.
This section refers to the risk and business impact assessment outcome. Its aim is to set out what triggers the activation of the plan.
Governance and responsibilities talks about who has to act when the BCP is activated. It includes the members, a description of their responsibilities, contact details of the BCP team, and the chain of command during a crisis.
This section builds upon the business continuity strategies, specifically the one chosen when a disaster occurs. It describes the detailed recovery plans for each critical function, the procedures for restarting operations, resource allocation, and recovery time objectives (RTOs).
Here you cover the internal and external communication strategies. You also address employee awareness and training activities.
Now there is a good chance the disaster will require your crucial activities to temporarily continue at a different location. This section covers all details about the location and what needs to be available at the location.
The BCP is to be tested to reduce the risk of missing things or even worse failing. Here jot down the testing procedures and document results and lessons learned.
This section includes all appendices. Think about the following
Earlier this year, the Koninklijke Nederlands Voetbal Bond (KNVB), which is the Royal Dutch Football Association, was hit by ransomware. The cyberattackers threatened to share personally identifiable information captured and the KNVB paid over one million euros to avoid this from happening.
The Risk of the attack to succeed could have been mitigated with:
In response to the ransomware incident, and to allow for continued business as usual as soon as possible, steps could include:
A business continuity plan (BCP) is like a safety net for your business when things go haywire. It helps you keep going, avoiding downtime, revenue loss, and reputation hits. On top of that, it’s a legal must in certain industries.
To make a solid BCP, just follow five steps: figure out what’s crucial for your business, spot the risks, plan how to bounce back, make sure everyone knows the plan, and keep fine-tuning it.
Structurally, your BCP should have sections like history, a quick guide, what’s most important, when to activate it, who’s in charge, the nitty-gritty recovery plans, how communication is done, where to go in a crisis, how to test the BCP works, and some extra info.
Featured image source: IconScout
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