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Gain Executive Support in Measuring the Effectiveness of Your BCM Program

Gain Executive Support in Measuring the Effectiveness of Your BCM Program. Cheyene Haase BC Management, Inc. Topics of Presentation. Where is BCM as a Profession? How is Business Continuity Viewed? Cost of Doing Business Investment in Organization What about the Company Culture?

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Gain Executive Support in Measuring the Effectiveness of Your BCM Program

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  1. Gain Executive Support in Measuring the Effectiveness of Your BCM Program • Cheyene Haase • BC Management, Inc

  2. Topics of Presentation • Where is BCM as a Profession? • How is Business Continuity Viewed? • Cost of Doing Business • Investment in Organization • What about the Company Culture? • How do other Disciplines Measure Effectiveness? • Measuring the Effectiveness of Your BCM Program. • Review Data from BC Management’s 9th Annual BCM Study. • Be Strategic in Gaining Executive Support

  3. Past…. Present…. Future…. Learn from the Past Analyze the Present Plan for the Future

  4. What are the Challenges? • Why Plan? • How to get Executive Buy in? • What are the Accepted Definitions/Terms? • Who is Ultimately Responsible? • Where to Position within an Organization? • When will Business Continuity Finally get Recognized?

  5. How is BCM Viewed? Cost of Doing Business – Or – Investment in Organization

  6. Definitions Cost of Doing Business – Money expended or cost incurred in a firm’s efforts to generate revenue, representing cost of doing business. Investment in Organization – The purchase of an equipment, inventory, or service in the hope of improving future business. What’s the Difference????

  7. What About ROI? Return on Investment How much profit or cost saving is realized. An ROI calculation is sometimes used along with other approaches to develop a business case for a given proposal.

  8. What about Company Culture? Reactive – versus – Proactive Unstructured – versus – Structured Decentralized – versus – Centralized Executive Commitment?????

  9. Effectiveness of Other Disciplines? • Measuring Effectiveness? • Visible Direct Benefits? • Easier to Calculate the ROI? • What about the Executive Support?

  10. How to Measure Effectiveness? • Approach • What to Avoid!!!! • Hard Dollars • Soft Dollars • Things to Consider

  11. Hard Dollars • Existing Revenue • Future Revenue • Operational Costs • Fines and/or Penalties • Overtime • Equipment Replacement • Recovery & Resumption Costs • Data Reconciliation • Vendor Utilization • Insurance Premiums • Dedicated Personnel • Site Resilience • Site Infrastructure (Generators, etc) • Building Costs • Energy Costs • Data Communication Costs • Physical Security • Offsite Storage • Other

  12. Soft Dollars • Goodwill • Brand Impact • Market Share/Investor Relations • Credit Rating/Bond Rating • Reputation/Media Coverage • Employee Moral • Competitive Advantage • Data Loss • Increased Efficiency • Legal/Regulatory Issues • Other

  13. Review Data Findings • Measure BCM Program Effectiveness • How is the Program Viewed? • What Are the Methods being used to Justify? • What to Include in Measuring Effectiveness? • What is Calculated in the ROI by Importance? • Hard Dollar Items • Soft Dollar Items

  14. Program Maturity

  15. How is the Program Viewed? 52.7% Are committed to change in 2010. 51.4% Are committed to change in 2010.

  16. Management’s View of BCM Program

  17. BCM Program and Cost of Doing Business

  18. BCM Program and Value to Organization

  19. Methods to Justify the Value of the Program

  20. Importance of Assessing the Value of the Program

  21. Measuring the Program’s Effectiveness – What to Include?

  22. Calculating the Program’s Effectiveness – Hard Dollar Items

  23. Calculating the Program’s Effectiveness – Soft Dollar Items

  24. Review Data Findings • Estimate the Value of the Program • Financial Benefit of Program ($) • Financial Loss by Hour of Downtime ($) • Actual Loss by Events ($) • Success Factors Noted as a Result of Activating the Program

  25. Estimate the Financial Benefit of Program

  26. Estimated Financial Loss by Hour of Downtime

  27. Estimated Actual Loss by Event

  28. Success Factors Noted from Activating Program

  29. Review Data Findings – Soon to Come…. • Correlations to Executive Support • Program Maturity • Organizational Reporting Structure • Existence of Program • Why Plan? • Integration of Program

  30. Gaining Executive Support • Professions Evolve – Change is Needed • Think Outside the Box • Put Yourself in their Shoes • Be Strategic • Create an Awareness • Be Clear & Succinct • Focus on Planned Events, Efficiency & Competitive Advantage • Have the Data to Support Your Decisions

  31. Questions Cheyene Haase BC Management, Inc. +1 (714) 969-8006 chaase@bcmanagement.com

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