Business continuity planning: the ultimate business and reputational insurance policy

The recent and extensive business interruptions caused by Hurricane Irene up and down the US East Coast, and the upcoming anniversary of the tragic attacks on New York’s Twin Towers should be all the reminder anyone requires that every business needs some form of business continuity and disaster recovery planning.

While not every business has the same level of exposure or the same risks to its operations or profitability, every business owner owes it to him / herself and their employees, investors, bankers, customers and vendors to conduct a comprehensive analysis of those risks and to plan accordingly for the unexpected.

That’s where a credible, culturally adapted business continuity plan comes in, coupled with a disaster recovery plan for putting the pieces back together after the storm has passed.

To be sure, a business continuity plan (BCP) isn’t the same thing as a crisis communications plan, although communicating during and after a crisis is a central element of a good BCP. A good BCP is comprised of several other key elements including:

- A candid assessment of operations, health, safety and financial risks
- A review of your organization’s communications culture, structure and capabilities
- A prioritization of who is most important to engage and mobilize first, both inside and outside your company (employees, vendors, bankers, investors, suppliers, etc)
- A complete and up-to-date inventory of your workforce including after-hours contact information, home addresses and home and cellular telephone numbers, personal email addresses, family contact information, etc)
- An up-to-date listing of employee evacuation locations to and how they could be reached in the event of an emergency which forced them from home quickly
- A pre-established communications portal such as a “dark” website or toll free telephone line staffed 24-hours a day after activation which can be used by employees to report through and to get important messages from the company
- Off-site servers and data storage capabilities
- Multiple pre-established out-of-town sites (with very specific detail) where key company personal can muster and meet to evaluate risk, damage and loss and communicate quickly and seamlessly with their key internal and external stakeholders
- Laminated wallet sized cards containing this key information to be kept by each employee in their cars and homes should they have to quickly seek refuge elsewhere
- Up-to-date 24-hour contact information for key suppliers, brokers, customers, legal counsel, insurers, bankers, and vendors (most third-parties such as these will be well pleased and surprised that your company is giving this kind of attention and detail to business continuity planning. You may especially earn points with your insurer and bankers)
- Pre-approved written messages for communicating with your key stakeholders as a crisis or forced evacuation is approaching or throughout and after the crisis passes
- A “coming home” or “cascade” protocol that mobilizes key personnel first after the incident or business interruption has passed in order to evaluate damage and chart a realistic course of action for the company
- A pre-determination (to be conducted with your labor lawyers and benefits advisors) of what you’ll be able / willing to offer your displaced employees under a variety of crisis circumstances. (Employers in crisis often find that uncertainty regarding payroll and benefits issues are the single most vexing and problematic issues and sources of discontent for their employees and can lead to lingering employee morale, legal and retention challenges)
- Options for reducing overhead should the crisis or business interruption linger longer than expected

Clearly, these aren’t things you can scribble on the back of a napkin as the storm clouds are rolling in.

Developing a functional, reality-based BCP can best be done through a cooperative effort of key internal personnel and an outside consultant who can look at your organization, your operations, risks and corporate culture with a clear, objective eye. Between the insider’s view and the more objective and experienced outside perspective business owners are far more likely to get a workable plan than taking just one course of action or another.

Over and above giving you as a business owner or manager the peace of mind you need to face any business interruption with the least amount of stress and economic risk, developing a business continuity plan gives your employees and other key stakeholders the signal that you’re looking out for their best interests as well. That fact alone sets you apart from other prospective employers or competitors who may seek to take advantage of your bad fortune.