Business Contingency Planning


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How do you ensure business continuity when disaster strikes?

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Business Contingency Planning

  1. 1. Shared Services & Outsourcing Week Asia 2011Marina Bay Sands Hotel, Singapore5-8 September 2011Business Contingency Planning:How do you ensure business continuity whendisaster strikes?Kristina Beckendorf, Maersk Global Service Centres
  2. 2. Who are we…• The A.P. Moller - Maersk Group is a diversified conglomerate, founded in 1904 by Mr Arnold Peter Møller• 108,000 employees, 130 countries and revenue USD 48.5 billion• Largest company on the Danish stock exchange & part of Fortune 500Slide no. 2
  3. 3. Maersk Global Service Centres (GSC) • Started in in 1999 • Multi-functional services • Customer Service • Finance & Accounting • Liner Operations • Sales Support • Network and Products • Logistics • IT Process & Service Desk • Business Support Services • Business Analytics • Group Procurement • 9,000+ employees • Six centresSlide no. 3
  4. 4. The Maersk GSC organisation is a captive shared services setup and has grown to a size of more than 9,000 FTEs Year End number of FTEs 9,936 9,026 5,881 5,525 5,890 5,413 3,039 2005 2006 2007 2008 2009 2010 2011ESlide no. 4
  5. 5. We have well established processes spread across our sitesSlide no. 5
  6. 6. Business continuity is crucial - we need effective Business Contingency Plans (BCP) Business contingency plans ensure that the critical business processes can continue despite a contingency scenario in a GSC site, at an acceptable level from a business perspective.Slide no. 6
  7. 7. Global Contingency Plan Scenario: Staff in ”Down GSC” CGSC is not available (fex floods) DGSC CGSC Critical activities are handed over to other GSCs (CGSCs) CGSCSlide no. 7
  8. 8. Risk of Contingency Scenarios • Natural disasters which could happen in our GSC locations: • Typhoon (including flooding) in China and the Philippines • Monsoon India • Potentially earthquake in the Philippines • Other contingency scenarios which could happen: • Local outages of IT servers or communication lines (e.g. IT virus in 2010) • Network – undersea cable cut has happened twice over the past 10 years (backup lines were working well and business was not affected) • Workers’ strikes impacting the public transportation system • Power black-outs lasting more than 24 hours (with impact on back-up generators) • According to our experience, we can recover from such contingency scenarios within 1-2 days Conclusion: Likelihood of a GSC to be down for more than 72 hours is low!Slide no. 8
  9. 9. Our “72 hours” Concept All critical activities are covered for 72 hours – agreed with the global process owners and documented in the SLA’s • What is then a Critical Activity? • Major business impact if not performed within 72 hours • Activity concerns many customers, suppliers or users • Why 72 hours? • Low likelihood of a GSC to be down for more than 72 hours • What happens after 72 hours? • BCP is still in effect – GSC can however no longer guarantee the agreed service levels • Depending on the type of “disaster”, actions will be taken to lessen impact on business, for instance: • Increase coverage for home access via laptops • Transport “Down GSC” staff to “Contingency GSC” • Hire & train temporary staffSlide no. 9
  10. 10. Daily risk monitoring by our Contingency OfficersSlide no. 10
  11. 11. BCP Framework The contingency plans are documented in a structure following the process flow. The The contingency plans are documented in a structure following the process flow. The framework serves as a “handbook”, describing the process flows and RACI’s for each framework serves as a “handbook”, describing the process flows and RACI’s for each step and providing links to useful materials e.g. communication templates. step and providing links to useful materials e.g. communication templates. Phase 1 Phase 2 Phase 3 Phase 4 Phase 5Slide no. 11
  12. 12. Regular Contingency Tests Testing is crucial to the success of the contingency plans! Purpose: • Ensure that the business contingency plans are working and up-to-date • Familiarise all parties with a role in the contingency plans with the actual process – like a fire drill • Practice improves performance: Contingency officers need to coordinate a lot of detail across processes and sites • Added benefit: Knowledge sharing and further process standardisation across GSC sites Test Process: • Global test schedule is maintained by the Global PCO in coordination with the Site PCO’s • All test plans and post mortem documentation are published centrally • Based on post mortem findings, updates to BCP framework and changes to processes are made, applying PDSA (continuous improvement cycle)Slide no. 12
  13. 13. Ongoing reviews and tests at a local level to ensure risk mitigation and preparedness1. Preventive maintenance driven by IT 3. Initiatives driven by the Contingency2. Initiatives driven the Admin team Team* • Earthquake drill • Shuttle vans/text brigade site • Call Tree testing • Fire drills c/o building administrator • Emergency wallet card • Flashlight-whistle units • BCP Online Quiz tool • Personal development – training & teambuilding for PCO’s/BC T* Contingency Team consists of the Process Contingency Officers (PCOs) and is headed up by the Site Business Contingency Officer (BCO)Slide no. 13
  14. 14. Any Questions?Slide no. 14
  15. 15. Kristina Beckendorf Maersk GSC (Phils) Ltd, Manila Global Delivery Lead Liner Operations & Head of BRM Phone: +63 2 689 8686 Managing Director Maersk GSC (Philippines) E-mail: Thank you!Slide no. 15