KEY MYTHES OF BUSINESS CONTINUITY PLANNING

1. KEY MYTHES OF BUSINESS CONTINUITY PLANNING Presented By John M. Stagl, CBCP BELFOR USA

2. MYTH An unfounded or false notion A person or thing having only an imaginary or unverifiable existence A fiction or half-truth, especially one that forms part of an ideology

3. MYTHS The great enemy of the truth is very often not the lie -- deliberate, contrived and dishonest, but the myth, persistent, persuasive, and unrealistic. John F. Kennedy (1917 – 1963)

4. Why Are Myths So Dangerous? They Can Lead To False Sense Of Security They Can Result In Unnecessary Work May Result In Limited or No Credibility With Upper Management

5. HOW MANY OF YOU HAVE A BUSINESS CONTINUITY PLAN?

6. BEST PRACTICES FOR PLANNING How Many Of You Used Best Practices To Develop Your Plan? Why? Are There Really Best Practices For Planning?

7. BEST PRACTICES Where did Best Practices come from? Frederic Taylor – Father of Scientific Mgmt 1918 What was the business environment? Changing from Agricultural to Industrial Owners were looking for ways to make consistent profits in manufacturing Repetitive procedures were the answer

8. BEST PRACTICES Late 1800’s Work Sun Up to Sun Down 1882 10 Hours/Day – 6 Days/Week WWI 48 Hour/Weeks – 8 Hours/Day – 6 Days/Week 1938 – 44 Hour/Week 1939 – 42 Hour/Week 1940 – 40 Hour/Week

9. Today’s Business Environment The economy is based on services not manufacturing Customer defines service needs not the provider Repetitive service are no longer the key to success or profitability

10. 21st Century Key Issues Business Environment – Very Dynamic Business Competition International New Businesses Start Everyday Existing Businesses Fail Everyday

11. BEST PRACTICES? When No 2 Companies Have Same Customers Investors Staffing & Organization Financing Management Philosophies Systems Operating Culture ETC.

12. HOW MANY OF YOU HAVE A BUSINESS CONTINUITY PLAN?

13. HOW MANY OF YOU TEST YOUR BUSINESS CONTINUITY PLAN ONCE A YEAR?

14. HOW MANY OF YOU TEST YOUR BUSINESS CONTINUITY PLAN ONCE A YEAR?HOW MANY OF YOU HAVE DOCUMENTED “TRIGGER” FACTORS TO TURN ON YOUR BUSINESS CONTINUITY PLAN?

15. WHAT IS THE DIFFERENCE BETWEEN DISASTER RECOVERY & BUSINESS CONTINUITY?

16. Disaster Recovery Planning Reactionary Planning Like Judo Something Must Go Wrong To Activate Plan Primarily Internally Oriented Mission Critical Operations

17. Business Continuity Planning More Important In 21st Century More Aggressive Planning Pro-Active Issues Reactive Issues Affected By Internal Capabilities External Changes Competition Market Share Economic Changes

18. Traditional Education Best Practices Business Impact Analysis Identify Mission Critical Systems Develop Disaster Recovery Plan Solicit Senior Management Support

19. Traditional Education Working In The 21st Century Targeted To The Process Not Targeted To Business Preserving Process Will Not Save Business Achieving Goals Will Save Image and Business

20. Traditional DR or BCP This Level of Planning Is Oriented To Middle Management It Is Process Oriented

21. Business Continuity vs. Disaster Recovery Disaster Recovery Process Oriented Triggered By Some Level of Disaster

22. Business Continuity vs. Disaster Recovery Business Continuity Continuation of Business Not Triggered – It is Continuous Identifies, Monitors & Responds To: Social Economic Disaster Value Changes

23. Business Continuity Plans Must Have a Monitoring Component Continuity Plans Are Not Prepared and Set Aside Until They Are Needed After a Disaster They Must Be Monitored Regularly And Adjusted As Needed

24. Opportunities Plans Must Be Able To Identify Opportunities Lost Opportunities Cost A Company As Much As Any Disaster If You Do Not Take Advantage of an Opportunity Your Competition Will and That Is a Double Loss

25. 21st Century Business Continuity Must Start With Senior Management Needs What Are The Company Objectives What Daily Outside Forces Are Impacting Those Objectives Monitor and Report on Those Forces And Their Impact How Can They Be Supported In A Disaster Environment

26. Continuity = Continuation of Operation Not Just In Case Of: Fires Floods Terrorist Attacks Competition Market & Consumption Changes

27. Continuity = Continuation of Operation Opportunities & Problems Recognize Them Monitor Them React and Capitalize on The Opportunities Mitigate Impact or Remove Problems

28. Planning Myths Sr. Mgmt Support of Business Continuity Planning Is Difficult Most Organizations Get Senior Management Acceptance

29. Senior Management Responsibilities “My responsibility is not to run the company, I have department managers to do that; it is to make sure the company will be here five years from now to support our clients.” Medical Industry CEO

30. The Business Market Senior Management Faces “I was Chairman for two days. I had airplanes with my engines, hit a buildings I insured, was covered by a network I owned, and I still have to increase earnings by 11%.” Jeffery Immelf, CEO General Electric

31. Senior Management Challenges Competitive Forces Investor Values Customer Values Regulations

32. Senior Management Support How To Get It Give Them A Tool That Helps Them Now!!! They Need Tools That Help Them Today, Not If We Have a Fire or Tornado.

33. New Business Continuity Supports Senior Management Does Not Look For Senior Management Support Is Objective Driven (Goal Driven) Identify outside factors that impact company goals Helps Senior Management identify issues (good & bad) and react effectively

34. Different Objectives Means Different Sources of Information Business Plan & Company Objectives Senior Leaders’ Key Objectives Customer Opportunities Identification Capitalization

35. Adversary Impact More Companies Fail Every Year Because of…? COMPETITION Senior Leaders Know This And Deal With It Daily Does Your Plan Have A Competitive Section? Are You Tracking Competitive Performance?

37. Senior Management Support Once Senior Management Sees Value (their definition of value) They Will Seek Your Assistance and Input First Support Senior Management

38. BUSINESS CONTINUITY PLANNING IS A  THINKING SPORT

39. Current Impact Factors

40. From This To 100 MPG

41. The 100 MPG Solution TODAY 12,000 miles/year 22 miles/gal 545 gals/year

42. The 100 MPG Solution TODAY 12,000 miles/year 22 miles/gal 545 gals/year & $0.17/gal tax for roads $92.65/year in taxes

43. The 100 MPG Solution TOMORROW 12,000 Miles/year 100 miles/gal 120 gals/year & $0.17/gal tax for roads $20.40/year in taxes Proximately 22% of Prior Tax for roads

44. BUSINESS CONTINUITY PLANNING IS A THINKING SPORT

49. THINKING SPORT

50. BUSINESS CONTINUITY PLANNING IS A THINKING SPORT

51. BEST PRACTICES There Are No Best Practices For Business Continuity There Are Too Many Variables From Company to Company One Size Does Not Fit All

52. BUSINESS CONTINUITY vs. DISASTER RECOVERY There Is A Difference Both Are Valuable Disaster Recovery Is Middle Management Oriented Business Continuity Is Senior Management Oriented BC Is Continues DR is Triggered

53. SENIOR MANAGEMENT SUPPORT Senior Management Support vs. Senior Management Acceptance

54. SENIOR MANAGEMENT SUPPORTS THOSE EFFORTS THAT SUPPORT THEM!!!

55. KEY MYTHES OF BUSINESS CONTINUITY PLANNING Presented By John M. Stagl, CBCP BELFOR USA