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BUSINESS CONTINUITY: BUSINESS CONTINUITY: How to Keep the Grinch from Stealing Your How to Keep the Grinch from Stealing Your

BusinessBusiness

Jack HippleJack HippleElliot ConsultingElliot Consulting

Predictive Failure Analysis ConsultantPredictive Failure Analysis Consultantwww.elliot-consulting.comwww.elliot-consulting.com

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WHAT DID THE GRINCH WHAT DID THE GRINCH DO?DO?

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STOLE CHRISTMAS WHEN WE STOLE CHRISTMAS WHEN WE WERE NOT LOOKINGWERE NOT LOOKING

(UNPREPARED?)(UNPREPARED?)

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HOW CAN WE AVOID THIS HOW CAN WE AVOID THIS FROM A QUALITY FROM A QUALITY

STANDPOINT?STANDPOINT?

HOW CAN WE BE BETTER HOW CAN WE BE BETTER PREPARED?PREPARED?

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WHAT’S OUR NORMAL VIEW OF WHAT’S OUR NORMAL VIEW OF QUALITY?QUALITY?

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WHAT’S OUR NORMAL VIEW OF WHAT’S OUR NORMAL VIEW OF QUALITY?QUALITY?

Knowledge of what the customer Knowledge of what the customer wants/needs, how to delightwants/needs, how to delight

Knowledge of how to fulfill those needs Knowledge of how to fulfill those needs and unspoken desires with products and unspoken desires with products and/or servicesand/or services

Supply that service and/or product reliably Supply that service and/or product reliably and consistently in a value added, win/win and consistently in a value added, win/win environmentenvironment

Awareness of changes in needsAwareness of changes in needs Recycle and repeatRecycle and repeat

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IS THAT ENOUGH?IS THAT ENOUGH?

You are Home Depot or LowesYou are Home Depot or Lowes You have done all these things for all your You have done all these things for all your

contractor customerscontractor customers There is a serious outbreak of Asian bird fluThere is a serious outbreak of Asian bird flu

Some of your contractor customers close downSome of your contractor customers close down ½ of your employees cannot report to work½ of your employees cannot report to work Your invoicing, accounting, and shipping/receiving Your invoicing, accounting, and shipping/receiving

departments are decimated by illness and vacancydepartments are decimated by illness and vacancy Combine this with a major hurricane in the Tampa Combine this with a major hurricane in the Tampa

area at the same timearea at the same time

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WHAT ARE WHAT ARE ALLALL THE THINGS THE THINGS INVOLVED?INVOLVED?

ManufacturingManufacturing SalesSales ITIT Human ResourcesHuman Resources Environmental, Health and SafetyEnvironmental, Health and Safety Shipping and ReceivingShipping and Receiving

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HYPOTHESIS:HYPOTHESIS:QUALITY IS ALSO THE QUALITY IS ALSO THE

ABILITY TO ABILITY TO CONTINUOUSLYCONTINUOUSLY SUPPLY SUPPLY YOUR CUSTOMERS’ NEEDSYOUR CUSTOMERS’ NEEDS

NO MATTER WHAT!!NO MATTER WHAT!!

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NO MATTER WHAT….NO MATTER WHAT….

Remember 2004? 4 Hurricanes in 6 Remember 2004? 4 Hurricanes in 6 weeks!weeks!

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BUSINESS BUSINESS RESILIENCYRESILIENCY

What comes to mind? What comes to mind? Physical Analogies?Physical Analogies?

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LET’S DISTINGUISH LET’S DISTINGUISH BETWEEN---BETWEEN---

BACKUP BACKUPCONTINUITYCONTINUITYRESILIENCYRESILIENCY

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LET’S DISTINGUISH LET’S DISTINGUISH BETWEEN---BETWEEN---

BACKUPBACKUPRetrieve informationRetrieve informationSupply alternativeSupply alternative

CONTINUITYCONTINUITYThe “whatever” is thereThe “whatever” is there

for some time framefor some time frameto keep things goingto keep things going

RESILIENCYRESILIENCYBusiness survives as if nothing Business survives as if nothing

happened under any circumstancehappened under any circumstance

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Business

Resil iencyBefore

After

Assets

Finance Vulnerabil i ty

and Risk

Communications

ITCustomer

Care

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VULERABILITY AND VULERABILITY AND RISKRISK

What is your business and the quality of What is your business and the quality of its products vulnerable to? Have you its products vulnerable to? Have you thought about all the possibilities?thought about all the possibilities? Weather Weather Terrorism (physical, biological, chemical)Terrorism (physical, biological, chemical) PandemicsPandemics Supplier default due to the same thingsSupplier default due to the same things Customer default to the same thingsCustomer default to the same things

What is the economic impact?What is the economic impact? Hours, days, weeks, months, years?Hours, days, weeks, months, years?

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WHAT IS YOUR BUSINESS WHAT IS YOUR BUSINESS TOLERANCE?TOLERANCE?

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WHAT’S THE RISK?WHAT’S THE RISK?

Get real, but not doomsday (80/20)Get real, but not doomsday (80/20) Longer than you thinkLonger than you think Short term vs. long termShort term vs. long term

Can you be replaced? Can you be replaced? By whom?By whom? Are the affected at the same time or not?Are the affected at the same time or not?

Physical, financial, structuralPhysical, financial, structural What affects the most customers and the What affects the most customers and the

future of the businessfuture of the business Reliability of resources planned uponReliability of resources planned upon

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COMMUNICATIONS AND COMMUNICATIONS AND DATA STRATEGIESDATA STRATEGIES

EmployeesEmployees SuppliersSuppliers CustomersCustomers Internet and communication systemsInternet and communication systems

Verizon storyVerizon story Data backupData backup

Not a different floor in the same hurricane prone Not a different floor in the same hurricane prone building!building!

Cell phones OK until the power is off for several Cell phones OK until the power is off for several days—then what?days—then what?

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CRISIS MANAGEMENTCRISIS MANAGEMENT

Dependent upon the type of Dependent upon the type of businessbusiness Chemical manufacturingChemical manufacturing Knitting goods supplierKnitting goods supplier Newspapers, TV, radioNewspapers, TV, radio

Who needs to know what, how, Who needs to know what, how, when, and how soonwhen, and how soon

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INCIDENT COMMAND INCIDENT COMMAND SYSTEMSYSTEM

Originated with CA wildfire systemsOriginated with CA wildfire systems Restore facilitiesRestore facilities Assess, control, and minimize asset Assess, control, and minimize asset

damagedamage Control the conditionsControl the conditions Focal point for communication and Focal point for communication and

reportingreporting Business reportBusiness report

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BUSINESS RECOVERYBUSINESS RECOVERY

Grab and Go BoxGrab and Go Box Immediate needs, contacts, and informationImmediate needs, contacts, and information Where to meet, assembleWhere to meet, assemble

Who?Who? What type of emergency?What type of emergency?

Duration of EmergencyDuration of Emergency What if it’s months, not days?What if it’s months, not days?

Communication system and protocol for Communication system and protocol for employeesemployees

Pay and benefits?Pay and benefits?

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IT RESTORATIONIT RESTORATION

Backup what?Backup what? How?How? Redundancy?Redundancy?

Where?Where? To what level?To what level? How often checked?How often checked?

WeatherWeather Rain, wind, temperatures, salt waterRain, wind, temperatures, salt water

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RESILIENCY:RESILIENCY:Before and After, Not Just DuringBefore and After, Not Just During

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ITITBEFORE DURING AFTERBEFORE DURING AFTER

Survivability Backup RecoverySurvivability Backup Recovery

What are What are allal l the factors that might the factors that might affect?affect?

Which are most important?Which are most important?Is the plan tested?Is the plan tested?

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ASSETSASSETSBEFORE DURING AFTERBEFORE DURING AFTER

Survivability Protection DamageSurvivability Protection Damage

Analysis; Assets AssessmentAnalysis; Assets Assessment Prioritization Prioritization Contacts ClaimsContacts Claims

Are these up to date? Competition for Are these up to date? Competition for protection?protection?

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Customer CareCustomer CareBEFORE DURING AFTERBEFORE DURING AFTER

Who? When? Defined ContactWho? When? Defined ContactHow? Re-contactHow? Re-contact

Alternative Contact AssessAlternative Contact AssessSupplier Plan Partner PlanSupplier Plan Partner PlanQuality Impact? Check! ParticipateQuality Impact? Check! Participate

27© 2006 Elliot Consulting Services. All Rights Reserved.

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AWARENESSAWARENESS

It It ISIS possible! possible! ImpactImpact

Short term, long termShort term, long term Equipment, suppliers, supplies, Equipment, suppliers, supplies,

information, customers, people, cashinformation, customers, people, cash Before, during, afterBefore, during, after

How long after?How long after?

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BUSINESS IMPACT BUSINESS IMPACT ANALYSISANALYSIS

Translation of the risk into bottom line Translation of the risk into bottom line calculationscalculations

How much protection vs. costHow much protection vs. cost A trade-off, but easy to err on the side A trade-off, but easy to err on the side

of optimismof optimism

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A WRITTEN BUSINESS A WRITTEN BUSINESS RESILIENCY PLANRESILIENCY PLAN

Write it down!Write it down! Review it!Review it! Memorize the key points of it—you may Memorize the key points of it—you may

not have much timenot have much time Terrorism evacuation notice for TampaTerrorism evacuation notice for Tampa Second most dangerous port in the countrySecond most dangerous port in the country

(Anhydrous ammonia for fertilizer (Anhydrous ammonia for fertilizer manufacturing in central Florida)manufacturing in central Florida)

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TRAIN, PRACTICE, AND TRAIN, PRACTICE, AND REVIEWREVIEW

Practice, practice, practice!Practice, practice, practice! A fire is the wrong time to do a fire A fire is the wrong time to do a fire

drilldrill Simulate different conditionsSimulate different conditions Changes in political, health, and Changes in political, health, and

terrorist threatsterrorist threats Type, degreeType, degree

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A SUPPORTING TOOL: A SUPPORTING TOOL: PREDICTIVE FAILURE PREDICTIVE FAILURE

ANALYSISANALYSIS™™Note: Brief mention of this in 9/05 Note: Brief mention of this in 9/05

presentation made to sectionpresentation made to section

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HOW DO WE NORMALLY TRY TO THINK OF HOW DO WE NORMALLY TRY TO THINK OF ALL THE THINGS THAT MIGHT GO WRONG?ALL THE THINGS THAT MIGHT GO WRONG?

ImagineImagine ChecklistsChecklists

Our ownOur own IndustryIndustry Technical or business societyTechnical or business society

Do these work adequately?Do these work adequately? Chemical plant releases, defective products, Chemical plant releases, defective products,

unforeseen consequencesunforeseen consequences Recycle and learn over timeRecycle and learn over time

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AN ALGORITHM TO AN ALGORITHM TO ASSISTASSIST

State the problem of concernState the problem of concern My business backup plan worksMy business backup plan works

Invert the problemInvert the problem I don’t want my backup plan to workI don’t want my backup plan to work

Exaggerate the inverted problemExaggerate the inverted problem I I NEVERNEVER want my backup plan to work want my backup plan to work

How would I make that happen?How would I make that happen? What has to happen? What resources do I need?What has to happen? What resources do I need?

The list will always be longer than our fist listThe list will always be longer than our fist list Prioritize, plan, actPrioritize, plan, act

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EXAMPLESEXAMPLES

CommunicationCommunication Backup supplyBackup supply

Verizon Internet ExampleVerizon Internet Example PersonnelPersonnel Customer serviceCustomer service Billing and invoicingBilling and invoicing

36© 2006 Elliot Consulting Services. All Rights Reserved.

Elliot Consulting ServicesBusiness Survival Solutions

• Business Continuity and Disaster Preparedness

• Strategic Business Development, Sales, and Marketing

• Communications and Technology solutions

• Business Process Outsourcing