Recently, at 6:30am in the middle of a workweek, our beloved dog was sprayed by a skunk in our backyard. From there, a series of mistakes ensued, including my wife immediately picking up the dog and bringing him inside our home and looking for assistance to address this incident. With this being our first skunk-spraying incident, we realized that we were not very well prepared to handle this odorous disaster. A tomato juice bath was our initial reaction but that idea was quickly shot down by a friend who is also a veterinarian. Luckily, we had some of the common household items available for initial treatment, but our house and our clothes continue to be filled with the pungent scent.
We all know that incidents happen, and how we respond to them is critical to reduce the lingering effects on you and your family or business.
In business, moderate to severe incidents and losses may occur in the form of a fire or flood. When the correct solution is not readily available, the initial steps to recovery can be overwhelming and may affect all aspects of the business.
A business management team with business continuity planning resources and training will have the necessary thought-out management approach to factor in customers, media, and all business departments/partners in a solution that minimizes damage to property and loss of income.
Moreover, a management team can be proactive with expedited equipment/machinery replacement, and/or repairs with a list of emergency vendors or partners that can be part of your solution.
Step 1: Developing A Plan
When it comes to developing a Business Continuity Plan (BCP), the first step is ensuring the company has something in place to tackle everything from the worst-case scenario to minor incidents that could affect your day-to-day business. This will require taking an initial step back to review the flow of your business, as it relates to suppliers, production equipment, facilities, employees, logistics, technology, public relations, and ultimately, customer satisfaction.
The initial analysis of your BCP should identify the biggest threat to the company, as well as create multiple scenarios to determine where efficiencies can be gained to ensure a successful recovery.
Step 2: Assessing Potential Issues
Can raw materials be sourced through multiple distributors in the event our main supplier sustains a plant fire/closure? How about suppliers of parts/components for production machinery, or the replacement of a critical piece of machinery itself? If imported from overseas, there could be a prolonged delay for replacement, as well as augmented shipping charges due to the increasing cost of fuel.
Should a fire occur to your building, how difficult would it be to relocate to a temporary facility, and how sustainable would this solution be for your business? Real estate in your desired location may not be readily available which could hinder relationships with key customers, suppliers, subcontractors, etc. If moving to a new municipality is required, how would this affect your staff? Employee retention should not be overlooked following a business interruption.
Step 3: Planning a Response
Other key aspects of your operations may also be reviewed in the analysis of your BCP. The next step should include the involvement of employees and their role(s) following an incident identified in the plan. Employees should have established roles in the BCP, which may include the role in their departments such as warehousing, logistics, production, quality control, administrative, etc.
Does the company have a spokesperson for responding to the media? The way a company reacts to a situation in this digital age can significantly impact its reputation, which can lead to instantaneous results—both good and bad. Having emergency responses that display the company’s dedication to safety protocols and assist in resolution of the situation could help prevent a public relations nightmare. Employees should also be made aware of this protocol, including how to respond to questions from the media.
As the BCP is developed and documented, aspects of the plan should be tested periodically—and reviewed by legal—in order to identify any deficiencies prior to a loss. A copy of the BCP should be backed up and stored off-premises, including all computer files that can support the BCP.
Once completed, your BCP should be considered a “living” document that could continue to be altered at any point in time, as different challenges arise. It is recommended that your BCP be reviewed at least annually, and/or with the introduction of new processes/equipment that could make the existing BCP redundant.
Don’t wait until Fido gets sprayed by a skunk to determine the first steps in your plan—it’s hard to Google solutions with one hand plugging your nose. Making a BCP is the proactive way to avoid stinking up your business.
