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12/15/2013

Disaster-proof
your business
for SMEs, Startups & Freelancers
Speaker

Jeremy Jay V. Lim
CSSBB, PMP, BPM, IATA

Objectives of the Keynote Talk

 Discuss what disaster-proofing is about
 Illustrate disaster-proofing for your business with
simple easy steps using project management basics
 Share tips and best practices of disaster-proofing

2

1
12/15/2013

Why does it matter?

“Natural Disasters are becoming the New Norm!”
–Anonymous
3

Business Loss due to Disaster

www.philstar.com, 2013

Business Owner defending
his store from looters
www.philstar.com, 2013

4

2
12/15/2013

Natural Disasters in the Philippines
2000-2012

Source: Emergency Events Database (EM-DAT) of US Foreign Disaster Assistance and CRED International Disaster Database

5

What is Disaster-Proofing?

Disaster-proofing is about anticipating harmful,
calamitous events which may likely happen.

A disaster that may happen is called a
"Disaster Risk"

6

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12/15/2013

What intensifies a Disaster Risk?
CONTROLLABLE
Lack of Planning

Lack of preparedness

CONTROLLABLE
"Building Resilience - Integrating Climate & Disaster Risk into Development", World Bank Group, 2013

7

Some Terminologies
Vulnerability Ability to recover from a disaster
• Disaster-proofing lessens vulnerability
• Ex. Disaster Risk Reduction planning and Business Recovery
planning

Exposure

Chance of being affected by a disaster
• Preparedness lessens exposure
• Ex. Weather monitoring

8

4
12/15/2013

How do you

Disaster-proof
your Business?

9

Manage disaster risk according to stages

PRE

DURING

Goal
Goal
PREPAREDNESS RISK REDUCTION

POST
Goal
RECOVERY

Success Criteria

Success Criteria

Success Criteria

100% Ready to Respond
Drills conducted
Evacuation Plan in place
Worst Case Scenario plan

Minimize Impact
Minimize Damage
All Plans executed

Full Recovery to Normal
Recovery Time achieved
Business Continuity

Disaster-proofing is proactive
10

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12/15/2013

Use Project Management Process

INITATING

PLANNING

EXECUTION

CONTROLLING

CLOSING

11

Project Management Process
(for Small Businesses)
Initiating

• Should I do it or not?
• What can I get out of it?

Planning

• What needs to be done?

Execution

• Have I done everything needed?

Controlling

• Is everything according to my plan?

Closing

• Have I met my objectives?
• Did I get what I want?

12
12

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12/15/2013

Disaster-Proofing Process
for your Business

PRE
INITIATING

DURING
PLANNING

EXECUTING
RISK
REDUCTION

POST
EXECUTING
RECOVERY

CLOSING

CONTROLLING

Where the goal is to be able to run your
business continuously immediately after a
disaster with minimal loss or damage
13

Disaster-proofing Process
(for your Business)
Initiating

• Should I do disaster-proofing for my business?

Planning

• What needs to be done to be disaster-proof?

Execution

• Have I done everything that was planned?

Controlling

• Did everything go according to plan?

Closing

• Have I fully recovered from the disaster?

14
14

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12/15/2013

Initiating Disaster-Proofing

Initiating

• Should I do disaster-proofing for my business?

General Steps
 Think of a Compelling Reason (Business Case) for DisasterProofing your Business
 Jot down your initial thoughts (charter) for Disaster Proofing

15

Charter
What is at risk?
Who and What will be affected?

How much will it cost me not to do Disaster-proofing?
Who can I ask for help in Disaster-proofing my
business? Who should I involve?
When should I have everything ready to be Disasterproof?
16

8
12/15/2013

Template for Initiating Disaster-Proofing
Checklist

Your thoughts

What is at risk?
Who and What will be affected?

My business data, my employees,
machinery, computer hardware

How much will it cost me not to do I could lose the whole business worth
Disaster-proofing?
Php300k

Who can I ask for help in
Disaster-proofing my business?

Barangay officials, insurance provider, data
cloud service provider, data recovery expert

Who should I involve?

Family, employees, barangay officials

When should I be ready?

Before rainy season starts, XX 2014

Try it!
17

Planning Step
Planning

• What needs to be done to be disaster-proof?

 Create plans for scope (coverage), budget,
resources, communication, and purchases
 Create action plans for disaster risk reduction and
business recovery
 Rehearse and test the effectiveness of your plans

18

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12/15/2013

Planning Disaster-Proofing
If a disaster occurs, what are the things I need to do to reduce damage
to my business, livelihood and family?
After the disaster, what should I do to get everything back to normal?
What are the things I need to be prepared for a disaster – for my
business, livelihood and family?
What do I need to keep my business running immediately after the
disaster and to protect my business during the disaster?
How much do I need to set aside as budget for disaster-proofing?
How do I get in touch with others so they know if we’re ok and when
we are back to normal?
19

Disaster Risk
Reduction Techniques
to reduce disaster impact
Avoid, Mitigate
Transfer, Accept

20

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12/15/2013

Disaster Risk Reduction Techniques

“Head first PMP”, Jennifer Greene PMP and Andrew Stellman PMP, O’Reilly Media, 2007

21

Disaster Risk Reduction Techniques

“Head first PMP”, Jennifer Greene PMP and Andrew Stellman PMP, O’Reilly Media, 2007

22

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12/15/2013

Examples of Risk Reduction
TECHNIQUE

EXAMPLE

AVOID

Moving to another location to avoid the effects of incoming disaster
Backing up data in the cloud
Taking the removable hard disk drive with you during evacuation

MITIGATE

Moving skeletal force to evacuation site during disaster
Flood control in the gate
Switching to backup system during disaster

TRANSFER

Availing insurance for Acts of God
Using a program to automatically backup and restore your data

ACCEPT

Do nothing, perhaps just save one’s self and start all over again

Any additional ideas?
23

Business Recovery
Techniques
to get back to normal ASAP
Skeletal force
Mirror, Backup system
Call tree
Contingency fund

24

12
12/15/2013

Executing Disaster-Proofing

Execution

• Have I done everything that was planned?

Do the action plans as according to the Disaster
Timeline (phases)
Ensure that the action plans are done on time based
on some situation signals

Disaster risk reduction requires timely action.
Business recovery requires actions to be on time.
25

Controlling Step

Controlling

• Did everything go according to plan?

Use checklist to review if the planned action steps
were done effectively.

26

13
12/15/2013

Closing Step

Closing

• Have I fully recovered from the disaster?

What went wrong and what went right?

Assess the success of disaster-proofing.
Look at the success of disaster-proofing ingredients:
preparedness, risk reduction, business recovery

Have I achieved my goals of minimal damage and
quick business recovery or business continuity?
27

Disaster-proofing Process
(for your Business)
Initiating

• Should I do disaster-proofing for my business?

Planning

• What needs to be done to be disaster-proof?

Execution

• Have I done everything that was planned?

Controlling

• Did everything go according to plan?

Closing

• Have I fully recovered from the disaster?

Wrap up

28
28

14
12/15/2013

Common Mistakes
Assuming it will never happen or affect you
Acts of God can never be predicted and managed

Assume Customers will understand anyway
No need to document anything

29

Summary

“Disaster-proofing is about risk management.”
“Project Management shows the disasterproofing steps from beginning to end.”
“Disaster-proofing starts with the mindset.”

30

15
12/15/2013

Don’t be a helpless victim of a disaster.
Start by disaster-proofing your business
and your livelihood
NOW!

31

References:
Emergency Events Database (EM-DAT) of US Foreign Disaster Assistance and CRED International Disaster Database

"Annual Disaster Statistical Review - 2012" by Sapir, Hoyois and Below, CRED

"Natural Disasters At a Glance-2013", (Philippine Senate Economic Planning Office (SEPO)

"Building Resilience - Integrating Climate & Disaster Risk into Development", World Bank Group, 2013

"Project Management Book of Knowledge (PMBOK) 5th Ed." , Project Management Institute, 2013

"Project Management for Disaster Recovery ”, Project Management Institute, 2005
“Head first PMP”, Jennifer Greene PMP and Andrew Stellman PMP, O’Reilly Media, 2007

32

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Disaster-proof your SME with PM basics

  • 1. 12/15/2013 Disaster-proof your business for SMEs, Startups & Freelancers Speaker Jeremy Jay V. Lim CSSBB, PMP, BPM, IATA Objectives of the Keynote Talk  Discuss what disaster-proofing is about  Illustrate disaster-proofing for your business with simple easy steps using project management basics  Share tips and best practices of disaster-proofing 2 1
  • 2. 12/15/2013 Why does it matter? “Natural Disasters are becoming the New Norm!” –Anonymous 3 Business Loss due to Disaster www.philstar.com, 2013 Business Owner defending his store from looters www.philstar.com, 2013 4 2
  • 3. 12/15/2013 Natural Disasters in the Philippines 2000-2012 Source: Emergency Events Database (EM-DAT) of US Foreign Disaster Assistance and CRED International Disaster Database 5 What is Disaster-Proofing? Disaster-proofing is about anticipating harmful, calamitous events which may likely happen. A disaster that may happen is called a "Disaster Risk" 6 3
  • 4. 12/15/2013 What intensifies a Disaster Risk? CONTROLLABLE Lack of Planning Lack of preparedness CONTROLLABLE "Building Resilience - Integrating Climate & Disaster Risk into Development", World Bank Group, 2013 7 Some Terminologies Vulnerability Ability to recover from a disaster • Disaster-proofing lessens vulnerability • Ex. Disaster Risk Reduction planning and Business Recovery planning Exposure Chance of being affected by a disaster • Preparedness lessens exposure • Ex. Weather monitoring 8 4
  • 5. 12/15/2013 How do you Disaster-proof your Business? 9 Manage disaster risk according to stages PRE DURING Goal Goal PREPAREDNESS RISK REDUCTION POST Goal RECOVERY Success Criteria Success Criteria Success Criteria 100% Ready to Respond Drills conducted Evacuation Plan in place Worst Case Scenario plan Minimize Impact Minimize Damage All Plans executed Full Recovery to Normal Recovery Time achieved Business Continuity Disaster-proofing is proactive 10 5
  • 6. 12/15/2013 Use Project Management Process INITATING PLANNING EXECUTION CONTROLLING CLOSING 11 Project Management Process (for Small Businesses) Initiating • Should I do it or not? • What can I get out of it? Planning • What needs to be done? Execution • Have I done everything needed? Controlling • Is everything according to my plan? Closing • Have I met my objectives? • Did I get what I want? 12 12 6
  • 7. 12/15/2013 Disaster-Proofing Process for your Business PRE INITIATING DURING PLANNING EXECUTING RISK REDUCTION POST EXECUTING RECOVERY CLOSING CONTROLLING Where the goal is to be able to run your business continuously immediately after a disaster with minimal loss or damage 13 Disaster-proofing Process (for your Business) Initiating • Should I do disaster-proofing for my business? Planning • What needs to be done to be disaster-proof? Execution • Have I done everything that was planned? Controlling • Did everything go according to plan? Closing • Have I fully recovered from the disaster? 14 14 7
  • 8. 12/15/2013 Initiating Disaster-Proofing Initiating • Should I do disaster-proofing for my business? General Steps  Think of a Compelling Reason (Business Case) for DisasterProofing your Business  Jot down your initial thoughts (charter) for Disaster Proofing 15 Charter What is at risk? Who and What will be affected? How much will it cost me not to do Disaster-proofing? Who can I ask for help in Disaster-proofing my business? Who should I involve? When should I have everything ready to be Disasterproof? 16 8
  • 9. 12/15/2013 Template for Initiating Disaster-Proofing Checklist Your thoughts What is at risk? Who and What will be affected? My business data, my employees, machinery, computer hardware How much will it cost me not to do I could lose the whole business worth Disaster-proofing? Php300k Who can I ask for help in Disaster-proofing my business? Barangay officials, insurance provider, data cloud service provider, data recovery expert Who should I involve? Family, employees, barangay officials When should I be ready? Before rainy season starts, XX 2014 Try it! 17 Planning Step Planning • What needs to be done to be disaster-proof?  Create plans for scope (coverage), budget, resources, communication, and purchases  Create action plans for disaster risk reduction and business recovery  Rehearse and test the effectiveness of your plans 18 9
  • 10. 12/15/2013 Planning Disaster-Proofing If a disaster occurs, what are the things I need to do to reduce damage to my business, livelihood and family? After the disaster, what should I do to get everything back to normal? What are the things I need to be prepared for a disaster – for my business, livelihood and family? What do I need to keep my business running immediately after the disaster and to protect my business during the disaster? How much do I need to set aside as budget for disaster-proofing? How do I get in touch with others so they know if we’re ok and when we are back to normal? 19 Disaster Risk Reduction Techniques to reduce disaster impact Avoid, Mitigate Transfer, Accept 20 10
  • 11. 12/15/2013 Disaster Risk Reduction Techniques “Head first PMP”, Jennifer Greene PMP and Andrew Stellman PMP, O’Reilly Media, 2007 21 Disaster Risk Reduction Techniques “Head first PMP”, Jennifer Greene PMP and Andrew Stellman PMP, O’Reilly Media, 2007 22 11
  • 12. 12/15/2013 Examples of Risk Reduction TECHNIQUE EXAMPLE AVOID Moving to another location to avoid the effects of incoming disaster Backing up data in the cloud Taking the removable hard disk drive with you during evacuation MITIGATE Moving skeletal force to evacuation site during disaster Flood control in the gate Switching to backup system during disaster TRANSFER Availing insurance for Acts of God Using a program to automatically backup and restore your data ACCEPT Do nothing, perhaps just save one’s self and start all over again Any additional ideas? 23 Business Recovery Techniques to get back to normal ASAP Skeletal force Mirror, Backup system Call tree Contingency fund 24 12
  • 13. 12/15/2013 Executing Disaster-Proofing Execution • Have I done everything that was planned? Do the action plans as according to the Disaster Timeline (phases) Ensure that the action plans are done on time based on some situation signals Disaster risk reduction requires timely action. Business recovery requires actions to be on time. 25 Controlling Step Controlling • Did everything go according to plan? Use checklist to review if the planned action steps were done effectively. 26 13
  • 14. 12/15/2013 Closing Step Closing • Have I fully recovered from the disaster? What went wrong and what went right? Assess the success of disaster-proofing. Look at the success of disaster-proofing ingredients: preparedness, risk reduction, business recovery Have I achieved my goals of minimal damage and quick business recovery or business continuity? 27 Disaster-proofing Process (for your Business) Initiating • Should I do disaster-proofing for my business? Planning • What needs to be done to be disaster-proof? Execution • Have I done everything that was planned? Controlling • Did everything go according to plan? Closing • Have I fully recovered from the disaster? Wrap up 28 28 14
  • 15. 12/15/2013 Common Mistakes Assuming it will never happen or affect you Acts of God can never be predicted and managed Assume Customers will understand anyway No need to document anything 29 Summary “Disaster-proofing is about risk management.” “Project Management shows the disasterproofing steps from beginning to end.” “Disaster-proofing starts with the mindset.” 30 15
  • 16. 12/15/2013 Don’t be a helpless victim of a disaster. Start by disaster-proofing your business and your livelihood NOW! 31 References: Emergency Events Database (EM-DAT) of US Foreign Disaster Assistance and CRED International Disaster Database "Annual Disaster Statistical Review - 2012" by Sapir, Hoyois and Below, CRED "Natural Disasters At a Glance-2013", (Philippine Senate Economic Planning Office (SEPO) "Building Resilience - Integrating Climate & Disaster Risk into Development", World Bank Group, 2013 "Project Management Book of Knowledge (PMBOK) 5th Ed." , Project Management Institute, 2013 "Project Management for Disaster Recovery ”, Project Management Institute, 2005 “Head first PMP”, Jennifer Greene PMP and Andrew Stellman PMP, O’Reilly Media, 2007 32 16