Shaping Your Continuity and Contingency Plan

The realities of business today are complex and constantly shifting. Organisations are facing multi-dimensional, business-level challenges.

Continuity and contingency planning is about being prepared for all types of disruptions, e.g. pandemic, earthquake, broken equipment or losing a supplier and quickly getting back on your feet.

A well thought out plan is vital to your business’s survival.

A business continuity plan will pinpoint the most important parts and critical pieces of your business, to identify potential risks and prepare you to recover as quickly and seamlessly as possible. A subset of continuity planning is, contingency planning, meaning you have a backup if your original plan fails. It’s your plan B.

Your continuity plan shouldn’t be limited to what to do after a disaster, it should cover any and all risks or threats that could disrupt your day to day business activities.

Planning greatly improves the likelihood that your business will survive and assist you to get the core parts of your business up and running again.

Advantages of good planning:

• A plus for potential buyers and investors — it shows you’ve thought about other scenarios than simply business-as-usual. It gives your staff confidence, especially if you get them involved in planning.
• It helps you spot good opportunities for your business now, e.g. Pivot fast.
• It could help you reduce your operating expenses, drastically.

Steps and questions to get you thinking about how to protect the most important aspects of your business;

Step 1. Identify your company’s key products or services

• What are your biggest risks? How can you reduce these risks? 
• What is essential to continue getting these services or products to market i.e. Supply chain, Distribution etc.
• Can you get by without your full suite of products or services? 
• What is your least profitable activity that you can push the pause or stop button on?

Step 2. Identify key company people

It may be employees, business partners (investors)

• Are you able to run on a lean staff count?
• Are employees able to multitask on various roles?
• Do you maintain a good relationship with temp employment agencies?
• How long can you support employees and their families if they are affected?

Step 3. Identify key networks

I.e. suppliers, service providers, clients or loyal customers.

• How strong is your supply chain?
• With external suppliers, do you have a backup if they too should falter?
• Do you have good relationships with your bank, landlord or advisors?
• Do you have constant access to your IT systems? Whether on premise or in the cloud.

Step 4. Identify necessary equipment and supplies

• If you rely on your own equipment to make products, could you borrow or rent alternative equipment or premises if yours are out of action?
• Are employees able to work remotely if business computers are unavailable?

Step 5. Consider relocation options

• If you need to vacate your usual premises unexpectedly, are you able to keep your business running?
• If you need to move, how can you best inform your suppliers and customers of your new location?

Step 6. Consider insurance options

• Are you covered for the worst case scenario? Hope for the best, plan for the worst.
• Explore all and any options which covers against losses after an emergency or disaster, whether natural or man-made.

Step 7. Have a 2IC to run the business in your absence

• Who can you trust and rely on to operate the business in your absence?
• So that the business does not miss a step, ensure each employee knows their role after a disaster.

Step 8. Who to contact in an emergency

• In case of an emergency, do you maintain the contact details for key employees, emergency services, clients, suppliers, security and neighbouring businesses?
• Are the contact details regularly reviewed and updated?

Step 9. Back up important business data

• Is all critical data to your business backed up from the main servers, periodically? 
• If not using a main computer server, what sensitive data do I need to keep safe? 
• If you don’t already backup, it’s time to start.

Step 10. Put your plan into practice

• A business continuity plan needs to have a run-through in your business at least once a year and doesn’t need to be expensive or time-consuming.
• Employees need to know what to do even if you’re not available.
• Make sure your plan is easily accessible.
• Your plan will change as your business evolves, so make sure you debrief after each test and update the plan if necessary.

No two crises are the same, so focus on how to manage the consequences.