WHAT’S OUR NORMAL VIEW OF
Knowledge of what the customer
wants/needs, how to delight
Knowledge of how to fulfill those needs
and unspoken desires with products
Supply that service and/or product reliably
and consistently in a value added, win/win
Awareness of changes in needs
Recycle and repeat
IS THAT ENOUGH?
You are Home Depot or Lowes
You have done all these things for all your
There is a serious outbreak of Asian bird flu
Some of your contractor customers close down
½ of your employees cannot report to work
Your invoicing, accounting, and shipping/receiving
departments are decimated by illness and vacancy
Combine this with a major hurricane in the Tampa
area at the same time
WHAT ARE ALL THE THINGS
Environmental, Health and Safety
Shipping and Receiving
QUALITY IS ALSO THE ABILITY
TO CONTINUOUSLY SUPPLY
YOUR CUSTOMERS’ NEEDS
NO MATTER WHAT!!
NO MATTER WHAT….
Remember 2004? 4 Hurricanes in 6
What comes to mind?
The “whatever” is there
for some time frame
to keep things going
Business survives as if nothing
happened under any circumstance
Assets and Risk
VULERABILITY AND RISK
What is your business and the quality of
its products vulnerable to? Have you
thought about all the possibilities?
Terrorism (physical, biological, chemical)
Supplier default due to the same things
Customer default to the same things
What is the economic impact?
Hours, days, weeks, months, years?
WHAT’S THE RISK?
Get real, but not doomsday (80/20)
Longer than you think
Short term vs. long term
Can you be replaced?
Are the affected at the same time or not?
Physical, financial, structural
What affects the most customers and the
future of the business
Reliability of resources planned upon
COMMUNICATIONS AND DATA
Internet and communication systems
Not a different floor in the same hurricane prone
Cell phones OK until the power is off for several
Dependent upon the type of
Knitting goods supplier
Newspapers, TV, radio
Who needs to know what, how,
when, and how soon
INCIDENT COMMAND SYSTEM
Originated with CA wildfire systems
Assess, control, and minimize asset
Control the conditions
Focal point for communication and
Grab and Go Box
Immediate needs, contacts, and information
Where to meet, assemble
What type of emergency?
Duration of Emergency
What if it’s months, not days?
Communication system and protocol for
Pay and benefits?
To what level?
How often checked?
Rain, wind, temperatures, salt water
Before and After, Not Just During
BEFORE DURING AFTER
Survivability Backup Recovery
What are all the factors that might
Which are most important?
Is the plan tested?
BEFORE DURING AFTER
Survivability Protection Damage
Analysis; Assets Assessment
Prioritization Contacts Claims
Are these up to date? Competition for
BEFORE DURING AFTER
Who? When? Defined Contact
Alternative Contact Assess
Supplier Plan Partner Plan
Quality Impact? Check! Participate
It IS possible!
Short term, long term
Equipment, suppliers, supplies,
information, customers, people, cash
Before, during, after
How long after?
BUSINESS IMPACT ANALYSIS
Translation of the risk into bottom line
How much protection vs. cost
A trade-off, but easy to err on the side
A WRITTEN BUSINESS RESILIENCY
Write it down!
Memorize the key points of it—you may
not have much time
Terrorism evacuation notice for Tampa
Second most dangerous port in the country
(Anhydrous ammonia for fertilizer
manufacturing in central Florida)
TRAIN, PRACTICE, AND
Practice, practice, practice!
A fire is the wrong time to do a fire
Simulate different conditions
Changes in political, health, and
A SUPPORTING TOOL:
Note: Brief mention of this in 9/05
presentation made to section
HOW DO WE NORMALLY TRY TO THINK OF ALL
THE THINGS THAT MIGHT GO WRONG?
Technical or business society
Do these work adequately?
Chemical plant releases, defective products,
Recycle and learn over time
AN ALGORITHM TO ASSIST
State the problem of concern
My business backup plan works
Invert the problem
I don’t want my backup plan to work
Exaggerate the inverted problem
I NEVER want my backup plan to work
How would I make that happen?
What has to happen? What resources do I need?
The list will always be longer than our fist list
Prioritize, plan, act
Verizon Internet Example
Billing and invoicing