BCI Summit Sydney 2010

About me • Independent Management Consultant • 20 years in/around BCM related field – Originally in Mainframe IT & DR –I t International BCM client base ti l li t b – Consulted to PwC and ANAO on BCM • To learn more – http://www blog vrg net au http://www.blog.vrg.net.au – http://Linkedin.com/in/kendsimpson Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

The meaning of resilience is ... • Vague and unclear • Too many (conflicting) meanings e g meanings, e.g. – Resilient Orgs (NZ) – ASIS Resilience St d d R ili Standard – Computer companies • Becoming (and remaining) resilient is potentially a ‘wicked’ problem wicked Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

My meaning of resilience is ... • Becoming resistant to impacts and also being able to recover operational state g p after impact • A function of – Robustness – Redundancy – Agility – Adaptability Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

The opposite of resilience is … • NOT uncertainty – Resilience can cope with uncertainty – Adaptability does not require certainty i t i t • Vulnerability – Break at low levels of impact – Single points of failure – Rigid hierarchy, silos and processes Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

Uncertainty is … • The reason we are all here! • No uncertainty, no need for BCM – www.seek.com.au • A fact of life you life, cannot eliminate it – N t eliminated b Not li i t d by “epistemic arrogance” Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

Risk is ... • “th effect of uncertainty on objectives” “the ff t f t i t bj ti ” • “Uncertainty is the state, even partial, of y , p , deficiency of information related to, understanding or knowledge of an eventevent, its consequences, or likelihood” • “ explicitly takes account of uncertainty, “... li i l k f i the nature of uncertainty and how it can be y addressed” » ISO31000 Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

Uncertainty is increased by by… • extended international supply chains pp y – Small fire in New Mexico – Bad weather + Salt shortage in UK/Europe • growing organisational i i ti l interdependence Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

High Uncertainty situations • All risks are not created equal ... – Non-Routine risks – High Impact, Low Probability • O t id the common experience of Outside th i f Management – Limitations of Science and Management to respond p • Virtual Risk and Wicked Problems Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

Wicked Problems • Rittel & Webber – Keith Grint • T Tame Problem P bl – Maybe complicated – Limited degree of uncertainty – Know how to fix it – Can apply a known process • Wicked Problem – Complex, not just complicated – Don’t know how to fix (or when is fixed) – Fixing it might break something else Solutions for the real world

‘Heritage’ BC and resilience Heritage • Relevance of the program to – Executive Management g – Operations • “Pl “Plans are nothing, planning i everything” thi l i is thi ” • Deja vu or vu j j jade?? • Something you are, not something you do –N taf Not framework or a lifecycle k lif l Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

Convergence • Not about where BCM should sit in the organisation – Requires collaboration of a range q g of disciplines across silos • BAU practices and culture will limit your scope for; – Agility – Adaptability • Field Test on EM/BCM links Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

Capability not just compliance • C Compliance as evidence of control li id f t l – Control perceived to reduce uncertainty – To achieve performance people take short cuts – Report good news, which is not questioned • Capability as evidence of outcomes and ability to execute – Demonstrated by exercise and drill – Integrated with day-to-day processes Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

Elegant or Clumsy Solutions • A l th appropriate f Apply the i t framing t i to the problem – Building Robustness or Redundancy may be Tame – Conflict between Redundancy and ‘Lean’ approaches may require re- framing • Requires different models of leadership or management • Developing Adaptive responses is probably Wicked Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved

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BCI Summit Sydney 2010

by Ken Simpson

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