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P&G BCP Process

P&G BCP Process. SCRLC February 2007 Meeting. Craig Babcock, Procter & Gamble Business Continuity Planning Center Of Expertise. Agenda. Introduction P&G Background BCP Background P&G BCP Process Questions / Comments. Introduction. Craig Babcock

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P&G BCP Process

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  1. P&G BCP Process SCRLC February 2007 Meeting • Craig Babcock, Procter & Gamble • Business Continuity Planning • Center Of Expertise

  2. Agenda • Introduction • P&G Background • BCP Background • P&G BCP Process • Questions / Comments

  3. Introduction Craig Babcock • Business Continuity Planning Manager - Manufacturing, Purchasing, Contract Manufacturing, Distribution • Global Fire Protection Manager • 27 Years At P&G • Management Positions In Manufacturing, Warehousing, Technical Engineering, Safety, Fire Protection • Led P&G Industrial Hygiene & Safety Technical Network • Current Member of the Health Safety & Environment Leadership Team for P&G

  4. P&G Background • The Largest Household & Personal Care Products Company In The World • #24 On The Fortune 500 List • 70+ Billion Dollars In Sales • 22 Billion Dollar Brands • 3 Billion Times A Day Someone Uses A P&G Product • 180 Brands; 22 Product Categories • 140,000 Employees; 80 Countries

  5. P&G Background

  6. P&G Product SupplyBackground

  7. P&G Product SupplyBackground • Organized By Business Unit • Includes Manufacturing, Engineering, & Purchasing • Horizontal Processes In Place To Leverage Size And Best Practices • P&G Makes Most Of It’s Products • More Contract Manufacturing Is Occurring

  8. BCP Background • Started July 2000 By The Board Of Directors • Protect NOS, globalization, consolidation • Audit Committee tracking BCP (2001 – present) • Global Internal Audit audits BCP as part of General Controls • CIO Is The Corporate Owner • Vice Chair provides executive sponsorship • VP’s & GM’s on Leadership Council • BCP Well Established Throughout P&G • Gillette / Braun / Duracell has strong program • Wella acquisition is getting on board

  9. BCP OrganizationBCP Company Structure BCP Leadership Council Direction, Priority Setting Issue Resolution, Measurement Link to GLC BCP Center Of Expertise Methodology, Standards, tools, training, counseling, calibration Global Process Owners Develop & deploy business unit CBAs (e.g., global EAPs), standards & tools Business Units Execution of BCP process, Plan ownership, testing, maintenance

  10. BCP OrganizationBCP COE • BCP COE (2.25 FTE) • IT Disaster Recovery (0.5 FTE) • Fire Protection (2 FTE) • Workplace Services (0.25 FTE) • Internal Controls Consultant (0.10 FTE) • Discussion: How Many FTE’s Do You Have?

  11. BCP ImplementationPhase One – 2002 / 2003 • Developed BCP Methodology (CBA’s, tools, etc.) • Deployed to 87 Plants (sites, suppliers, etc.) • Deployed to Global Purchasing • Deployed to GBS Service Centers • Deployed to Total Order Management Processes • Deployed to CS/L Physical Distribution Center sites • Deployed to eBusiness

  12. BCP ImplementationPhase Two 2003 / 2004 • Deployed to 36 GO Sites • Deployed to 23 R&D Sites • Deployed to 23 PS Sites • Prototyped with Contract Manufacturing • White Strips, Actonel • Many more sites have implemented since

  13. BCP TrackingBCP Scorecard • BCP COE tracks overall progress and status • Plans maintained and up to date • Tested once/year • GIA CSA’s completed as scheduled • Key Supplier BCP Plans reviewed (i.e. HP, IBM) • Next scheduled test • Leadership review • Updated 4 times/year

  14. Recent Crisis Events • Earthquakes – Kobe, Turkey, Pakistan • Hurricane / Tsunami – New Orleans, Asia • NA Tornadoes – Jackson, Lima • North East US Power Outage • Data Center Outages, IT Virus and Worms • Civil Unrest / War – Caracas, Manila, Middle East • Loss of Key Suppliers • Fires and Floods • SARS

  15. BCP ProcessOverview • Identify Business Interruption Limit • Risk Analysis and Critical Program Review • IT Disaster Recovery Review • Loss of IT, Site, People Contingency Plans • Crisis Management Plan • Document and Approve BCP Plan • Test / Exercise BCP • Maintenance

  16. BCP ProcessStep 1 - BIL • Determine the Business Interruption Limit (BIL) for each work process • Manufacturing • Offices • Determine the Recovery Priority for each work processes • High, medium, low • Strategy for initial recovery • Discussion: Does Anyone Use A Similar Step In Your Process?

  17. BCP ProcessStep 2 – Risk Analysis • Complete Risk Analysis • Identify threats to the Site / Work Processes • Determine an overall Risk Rating for each identified threat • BIL’s help frame the Risk Analysis • Short BIL’s create more concerns • Longer BIL’s create less concerns

  18. BCP ProcessStep 2 - Critical Programs • Critical Programs help manage, control and reduce risks to the site • Ensure the programs are current and maintained • Review follow-up action steps to see where BCP exposure exists • Use Business Interruption risk filter • Examples • No sprinklers in part of facility • Lack of critical spares • Local IT operations (LIM) • Discussion: Do You Have Separate Risk Mitigation Programs?

  19. BCP ProcessStep 3 - IT Disaster Recovery • Review Regional Data Center applications • Critical applications only (see BIL’s) • Participate in an IT DR Regional Exercise • Review Local IT DR • Infrastructure – WAN, LAN, PBX, etc. • Critical applications on local servers • Confirm site readiness

  20. BCP ProcessStep 4 – Contingency Plans • A Contingency Plan is a set of procedures used to restore the business operation • Loss of Site • Loss of IT • Loss of People • Any high or medium risk from the Risk Analysis

  21. BCP ProcessStep 5 – Crisis Management Plan • The set of procedures used if the Site Leader declares a Crisis • Site/Crisis Team Leader, Team Members, Back-ups • Command center location and backup • Assessing Crisis and Business Recovery Priorities • Invoking contingency plans • Linking with Category, Country, Regional Crisis Teams

  22. BCP ProcessStep 6 – BCP Distribution • Crisis Team Leaders - keep a copy at work, home, and in car (trunk, boot, etc.) • BCP Functional Leaders - keep your specific plans (Loss of IT, Site, People) in a similar manner • Many sites now distributing CD’s and USB memory sticks • Still need paper copies though • Use document revision controls

  23. BCP ProcessStep 6 - Management Approval • Typically review with the Site Leader, the Category Director, and the Manufacturing Director / VP • Review and approval required every year • Leadership may ask to see your BCP at any point in time, particularly if prompted by world events • The BCP COE should review for content, feasibility, and standardization • Discussion: What Level Of Management Approval Is Required?

  24. BCP ProcessStep 7 - Plan Testing • The Site Leader and the Site BCP Owner will determine the complexity and timing of tests • The BCP COE can also serve as a resource for determining scope of testing required • All sites must test at minimum once every year • Choose either Loss of IT, Site, or People • Rotate scenarios • Test Local IT DR annually • Update/Test call trees every qtr. • Discussion: How Often Do You Test?

  25. BCP ProcessStep 8 - BCP Maintenance • Ways to maintain • Incorporate BCP into change control processes • Post BCP Action Plan, Test Results, etc on Activity Boards / Sharepoint • Make BCP part of scorecards and Mgmt. reviews • Site BCP Leader forwards qtr. status to COE • Site BCP Leader conducts BCP CSA

  26. BCP ProgramLearnings • This is a big effort across the Company but only 1 to 2 effort weeks per site leader • Well structured CBA disarms ‘too much work’ emotion & provides roadmap to follow • The BCP Process reveals unknown risks within the plant and to suppliers • Role of leadership key, role model behavior and organization will engage • Keeping the BCP updated will require leadership attention or it will fade away • Purchasing was and continues to be a big chunk of the work in PS

  27. BCP ProgramLearnings • Sites are much more dependent on IT than they were 6-7 years ago. • Finding that some IT applications do not have sufficient contingency plans was an eye opener • Organizations will try to reinvent the wheel - a standard process is key to robust BCP • Auditing for compliance is essential • Some plants are using BCP material for on boarding new managers because of detail about site captured • Examples of plans are helpful • Tests are used to improve the plans

  28. BCP ProgramLearnings From Disasters • Katrina • Expect Rapid Competitive Response • Lead, Do Not Manage • Need Exceptional HR Resources • Jackson • Blue Ash Data Center • Widespread IT Outages Are Very Impactful • Our Back-Up Plans Were Not Robust Enough

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