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Solutions for the real world   © 2010, The VR Group Pty Ltd
                                    All Rights reserved
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
Solutions for the real world   © 2004, 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
Art and Science




Solutions for the real world    © 2010, The VR Group Pty Ltd
                                     All Rights reserved
Questions?
• Couple of starters …
    – Is resilience a journey
      or a destination?
    – Do you want/plan to
      go th ?
          there?




Solutions for the real world       © 2010, The VR Group Pty Ltd
                                        All Rights reserved

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BCI Summit Sydney 2010

  • 1. Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved
  • 2. 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
  • 3. Solutions for the real world © 2004, The VR Group Pty Ltd All Rights reserved
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. ‘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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. Art and Science Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved
  • 17. Questions? • Couple of starters … – Is resilience a journey or a destination? – Do you want/plan to go th ? there? Solutions for the real world © 2010, The VR Group Pty Ltd All Rights reserved