The document discusses business continuity and resilience in the face of potential disruptions. It distinguishes between backup, continuity, and resilience, with the goal of resilience being for a business to survive any circumstance as if nothing happened. It emphasizes having a written resilience plan that covers vulnerabilities, risks, communications, IT, customer care, and recovery strategies before, during, and after a disruption. Regular training and practice are important to prepare effectively.

1. 1
BUSINESS CONTINUITY:BUSINESS CONTINUITY:
How to Keep the Grinch from Stealing YourHow to Keep the Grinch from Stealing Your
BusinessBusiness
Jack HippleJack Hipple
Elliot ConsultingElliot Consulting
Predictive Failure Analysis ConsultantPredictive Failure Analysis Consultant
www.elliot-consulting.comwww.elliot-consulting.com

2. 2
WHAT DID THE GRINCHWHAT DID THE GRINCH
DO?DO?

3. 3
STOLE CHRISTMAS WHEN WESTOLE CHRISTMAS WHEN WE
WERE NOT LOOKINGWERE NOT LOOKING
(UNPREPARED?)(UNPREPARED?)

4. 4
HOW CAN WE AVOID THISHOW CAN WE AVOID THIS
FROM A QUALITYFROM A QUALITY
STANDPOINT?STANDPOINT?
HOW CAN WE BE BETTERHOW CAN WE BE BETTER
PREPARED?PREPARED?

5. 5
WHAT’S OUR NORMAL VIEW OFWHAT’S OUR NORMAL VIEW OF
QUALITY?QUALITY?

6. 6
WHAT’S OUR NORMAL VIEW OFWHAT’S OUR NORMAL VIEW OF
QUALITY?QUALITY?
 Knowledge of what the customerKnowledge of what the customer
wants/needs, how to delightwants/needs, how to delight
 Knowledge of how to fulfill those needsKnowledge of how to fulfill those needs
and unspoken desires with productsand unspoken desires with products
and/or servicesand/or services
 Supply that service and/or product reliablySupply that service and/or product reliably
and consistently in a value added, win/winand consistently in a value added, win/win
environmentenvironment
 Awareness of changes in needsAwareness of changes in needs
 Recycle and repeatRecycle and repeat

7. 7
IS THAT ENOUGH?IS THAT ENOUGH?
 You are Home Depot or LowesYou are Home Depot or Lowes
 You have done all these things for all yourYou have done all these things for all your
contractor customerscontractor customers
 There is a serious outbreak of Asian bird fluThere is a serious outbreak of Asian bird flu
 Some of your contractor customers close downSome of your contractor customers close down
 ½ of your employees cannot report to work½ of your employees cannot report to work
 Your invoicing, accounting, and shipping/receivingYour invoicing, accounting, and shipping/receiving
departments are decimated by illness and vacancydepartments are decimated by illness and vacancy
 Combine this with a major hurricane in the TampaCombine this with a major hurricane in the Tampa
area at the same timearea at the same time

8. 8
WHAT AREWHAT ARE ALLALL THE THINGSTHE THINGS
INVOLVED?INVOLVED?
 ManufacturingManufacturing
 SalesSales
 ITIT
 Human ResourcesHuman Resources
 Environmental, Health and SafetyEnvironmental, Health and Safety
 Shipping and ReceivingShipping and Receiving

9. 9
HYPOTHESIS:HYPOTHESIS:
QUALITY IS ALSO THEQUALITY IS ALSO THE
ABILITY TOABILITY TO
CONTINUOUSLYCONTINUOUSLY SUPPLYSUPPLY
YOUR CUSTOMERS’ NEEDSYOUR CUSTOMERS’ NEEDS
NO MATTER WHAT!!NO MATTER WHAT!!

10. 10
NO MATTER WHAT….NO MATTER WHAT….
 Remember 2004? 4 Hurricanes in 6Remember 2004? 4 Hurricanes in 6
weeks!weeks!

11. 11
BUSINESSBUSINESS RESILIENCYRESILIENCY
What comes to mind?What comes to mind?
Physical Analogies?Physical Analogies?

12. 12
LET’S DISTINGUISHLET’S DISTINGUISH
BETWEEN---BETWEEN---
BACKUPBACKUP
CONTINUITYCONTINUITY
RESILIENCYRESILIENCY

13. 13
LET’S DISTINGUISHLET’S DISTINGUISH
BETWEEN---BETWEEN---
BACKUPBACKUP
Retrieve informationRetrieve information
Supply alternativeSupply alternative
CONTINUITYCONTINUITY
The “whatever” is thereThe “whatever” is there
for some time framefor some time frame
to keep things goingto keep things going
RESILIENCYRESILIENCY
Business survives as if nothingBusiness survives as if nothing
happened under any circumstancehappened under any circumstance

14. 14
Business
Resiliency
Befor
e
After
Asset
s
Financ
e Vulnerability
and Risk
Communication
s
IT
Customer
Care

15. 15
VULERABILITY ANDVULERABILITY AND
RISKRISK
 What is your business and the quality ofWhat is your business and the quality of
its products vulnerable to? Have youits products vulnerable to? Have you
thought about all the possibilities?thought about all the possibilities?
 WeatherWeather
 Terrorism (physical, biological, chemical)Terrorism (physical, biological, chemical)
 PandemicsPandemics
 Supplier default due to the same thingsSupplier default due to the same things
 Customer default to the same thingsCustomer default to the same things
 What is the economic impact?What is the economic impact?
 Hours, days, weeks, months, years?Hours, days, weeks, months, years?

16. 16
WHAT IS YOUR BUSINESSWHAT IS YOUR BUSINESS
TOLERANCE?TOLERANCE?

17. 17
WHAT’S THE RISK?WHAT’S THE RISK?
 Get real, but not doomsday (80/20)Get real, but not doomsday (80/20)
 Longer than you thinkLonger than you think
 Short term vs. long termShort term vs. long term
 Can you be replaced?Can you be replaced?
 By whom?By whom?
 Are the affected at the same time or not?Are the affected at the same time or not?
 Physical, financial, structuralPhysical, financial, structural
 What affects the most customers and theWhat affects the most customers and the
future of the businessfuture of the business
 Reliability of resources planned uponReliability of resources planned upon

18. 18
COMMUNICATIONS ANDCOMMUNICATIONS AND
DATA STRATEGIESDATA STRATEGIES
 EmployeesEmployees
 SuppliersSuppliers
 CustomersCustomers
 Internet and communication systemsInternet and communication systems
 Verizon storyVerizon story
 Data backupData backup
 Not a different floor in the same hurricane proneNot a different floor in the same hurricane prone
building!building!
 Cell phones OK until the power is off for severalCell phones OK until the power is off for several
days—then what?days—then what?

19. 19
CRISIS MANAGEMENTCRISIS MANAGEMENT
 Dependent upon the type ofDependent upon the type of
businessbusiness
 Chemical manufacturingChemical manufacturing
 Knitting goods supplierKnitting goods supplier
 Newspapers, TV, radioNewspapers, TV, radio
 Who needs to know what, how,Who needs to know what, how,
when, and how soonwhen, and how soon

20. 20
INCIDENT COMMANDINCIDENT COMMAND
SYSTEMSYSTEM
 Originated with CA wildfire systemsOriginated with CA wildfire systems
 Restore facilitiesRestore facilities
 Assess, control, and minimize assetAssess, control, and minimize asset
damagedamage
 Control the conditionsControl the conditions
 Focal point for communication andFocal point for communication and
reportingreporting
 Business reportBusiness report

21. 21
BUSINESS RECOVERYBUSINESS RECOVERY
 Grab and Go BoxGrab and Go Box
 Immediate needs, contacts, and informationImmediate needs, contacts, and information
 Where to meet, assembleWhere to meet, assemble
 Who?Who?
 What type of emergency?What type of emergency?
 Duration of EmergencyDuration of Emergency
 What if it’s months, not days?What if it’s months, not days?
 Communication system and protocol forCommunication system and protocol for
employeesemployees
 Pay and benefits?Pay and benefits?

22. 22
IT RESTORATIONIT RESTORATION
 Backup what?Backup what?
 How?How?
 Redundancy?Redundancy?
 Where?Where?
 To what level?To what level?
 How often checked?How often checked?
 WeatherWeather
 Rain, wind, temperatures, salt waterRain, wind, temperatures, salt water

23. 23
RESILIENCY:RESILIENCY:
Before and After, Not Just DuringBefore and After, Not Just During

24. 24
ITIT
BEFORE DURING AFTERBEFORE DURING AFTER
Survivability Backup RecoverySurvivability Backup Recovery
What areWhat are allall the factors that mightthe factors that might
affect?affect?
Which are most important?Which are most important?
Is the plan tested?Is the plan tested?

25. 25
ASSETSASSETS
BEFORE DURING AFTERBEFORE DURING AFTER
Survivability Protection DamageSurvivability Protection Damage
Analysis; Assets AssessmentAnalysis; Assets Assessment
PrioritizationPrioritization Contacts ClaimsContacts Claims
Are these up to date? Competition forAre these up to date? Competition for
protection?protection?

26. 26
Customer CareCustomer Care
BEFORE DURING AFTERBEFORE DURING AFTER
Who? When? Defined ContactWho? When? Defined Contact
How? Re-contactHow? Re-contact
Alternative Contact AssessAlternative Contact Assess
Supplier Plan Partner PlanSupplier Plan Partner Plan
Quality Impact? Check! ParticipateQuality Impact? Check! Participate

27. 27© 2006 Elliot Consulting Services. All Rights Reserved.

28. 28
AWARENESSAWARENESS
 ItIt ISIS possible!possible!
 ImpactImpact
 Short term, long termShort term, long term
 Equipment, suppliers, supplies,Equipment, suppliers, supplies,
information, customers, people, cashinformation, customers, people, cash
 Before, during, afterBefore, during, after
 How long after?How long after?

29. 29
BUSINESS IMPACTBUSINESS IMPACT
ANALYSISANALYSIS
 Translation of the risk into bottom lineTranslation of the risk into bottom line
calculationscalculations
 How much protection vs. costHow much protection vs. cost
 A trade-off, but easy to err on the sideA trade-off, but easy to err on the side
of optimismof optimism

30. 30
A WRITTEN BUSINESSA WRITTEN BUSINESS
RESILIENCY PLANRESILIENCY PLAN
 Write it down!Write it down!
 Review it!Review it!
 Memorize the key points of it—you mayMemorize the key points of it—you may
not have much timenot have much time
 Terrorism evacuation notice for TampaTerrorism evacuation notice for Tampa
 Second most dangerous port in the countrySecond most dangerous port in the country
(Anhydrous ammonia for fertilizer(Anhydrous ammonia for fertilizer
manufacturing in central Florida)manufacturing in central Florida)

31. 31
TRAIN, PRACTICE, ANDTRAIN, PRACTICE, AND
REVIEWREVIEW
 Practice, practice, practice!Practice, practice, practice!
 A fire is the wrong time to do a fireA fire is the wrong time to do a fire
drilldrill
 Simulate different conditionsSimulate different conditions
 Changes in political, health, andChanges in political, health, and
terrorist threatsterrorist threats
 Type, degreeType, degree

32. 32
A SUPPORTING TOOL:A SUPPORTING TOOL:
PREDICTIVE FAILUREPREDICTIVE FAILURE
ANALYSISANALYSIS™™
Note: Brief mention of this in 9/05Note: Brief mention of this in 9/05
presentation made to sectionpresentation made to section

33. 33
HOW DO WE NORMALLY TRY TO THINK OFHOW DO WE NORMALLY TRY TO THINK OF
ALL THE THINGS THAT MIGHT GO WRONG?ALL THE THINGS THAT MIGHT GO WRONG?
 ImagineImagine
 ChecklistsChecklists
 Our ownOur own
 IndustryIndustry
 Technical or business societyTechnical or business society
 Do these work adequately?Do these work adequately?
 Chemical plant releases, defective products,Chemical plant releases, defective products,
unforeseen consequencesunforeseen consequences
 Recycle and learn over timeRecycle and learn over time

34. 34
AN ALGORITHM TOAN ALGORITHM TO
ASSISTASSIST
 State the problem of concernState the problem of concern
 My business backup plan worksMy business backup plan works
 Invert the problemInvert the problem
 I don’t want my backup plan to workI don’t want my backup plan to work
 Exaggerate the inverted problemExaggerate the inverted problem
 II NEVERNEVER want my backup plan to workwant my backup plan to work
 How would I make that happen?How would I make that happen?
 What has to happen? What resources do I need?What has to happen? What resources do I need?
 The list will always be longer than our fist listThe list will always be longer than our fist list
 Prioritize, plan, actPrioritize, plan, act

35. 35
EXAMPLESEXAMPLES
 CommunicationCommunication
 Backup supplyBackup supply
 Verizon Internet ExampleVerizon Internet Example
 PersonnelPersonnel
 Customer serviceCustomer service
 Billing and invoicingBilling and invoicing

36. 36© 2006 Elliot Consulting Services. All Rights Reserved.
Elliot Consulting Services
Business Survival Solutions
• Business Continuity and Disaster
Preparedness
• Strategic Business Development,
Sales, and Marketing
• Communications and
Technology solutions
• Business Process Outsourcing