A lesson from Uxbridge: Preparedness is key

On July 21, 65 businesses suffered from a disastrous fire at the Bernat Mills, in Uxbridge, Mass. They employed more than 300 people, and they were “severely impacted” by the fire, the Emergency Management Agency said. One business owner declared that all her vital records were destroyed, and that she had lost everything.
It is very difficult to recover from a disaster this severe if business data, customer records, and other vital records have not been prepared for rapid recovery, no matter how much post-disaster assistance is provided. No money in the world can replicate critical data and vital records. It must be done in normal business times, with a disaster plan that addresses planned backup and redundant capabilities.
Did you know that there are at least 35 different types of major disruptions your company has to protect itself against every year? Seventeen are categorized as natural disasters, while the rest are manmade.
The World Data Report states that there are approximately 136,000 deaths each year from disasters, and 71,000 injuries. The annual costs associated with disasters exceed $136 billion.
The Disaster Recovery Journal says 50 percent of businesses that sustain interruptions of a week or more due to severe problems at the primary site rarely recover. The remaining 30 percent close their doors within two years. Why? Poor preparedness and planning.
Mitigation and preparedness can be effective in saving lives and preventing injuries and keeping critical and operational information safe. Businesses with established and practiced disaster plans have a significant advantage over businesses with no preparations.
When creating a plan, a business must take in consideration many issues. Information and data are critical to a business and must be protected and easily recoverable. But there is also the human factor to consider. You must be able to “protect and connect” to the people whose work is what actually generates business profits. Failure to effectively plan for management of your human capital can be expensive. Consider that you may have your data centers and core technology infrastructure up and running, but your work force may be unable to communicate or connect. Issues then arise, such as:
• Absenteeism or the inability to reach the office, causing lost worker productivity.
• Critical decision-making hierarchies disconnect, causing breaks in continuity that prevent a rapid, flexible response to the changing nature of the event.
• Key employees who may be out of touch can jeopardize a critical supply chain and/or customer relationships.
This would be particularly true if the pandemic influenza were to hit our continent. Many business people believe that this will never happen. But let’s face it, many business people are entrepreneurs or risk-takers – so they naturally see this as a risk they’re willing to take.
The mindset is that it won’t happen. But are they in the business to fail? No! Pandemic can take the human factor, those critical employees, right out of the operations. So at the very least, think about creating a backup or cross-training policy for those critical people and functions and create a human resources management policies or a plan.
Finally, testing the effectiveness of your plan is essential. It is suggested that business publicize their plans to employees and other stakeholders. Why should this happen? The business then becomes more valuable to those who rely on you and your product or service. The business becomes more competitive and moves up on the food chain. Once again, profits may improve.
Maintain and update plans regularly, and evolve communications that protect people and assets. Keep the affected constituents closely informed of these changes. Plans should be tested on an annual basis. This will uncover problems and failures, maintain accuracy and show employees that they work for a proactive and safety-first company.
Business continuity can be a daunting task. Today, it’s the last thing that executives and business owners want to undertake due to the sheer amount of work required to complete a plan. But one thing we know is that it can mean staying in business or closing down if hit with a disaster, and businesses that plan for disasters are more profitable in the long run.
Also, times are changing, so don’t be surprised if your banker, insurance company, major vendor or supplier, or the board of directors, asks to see a disaster or business continuity plan. Be ready to deliver the most essential document for your business: an effective plan that helps you to “expect the unexpected.”
Lori Adamo is president of Code Red Business Continuity Services, in Cranston, which helps businesses understand their risks and develop and test business continuity plans. For more information, visit www.coderedbcs.com.