When considering how frequently to address the maintenance issues in your Disaster Recovery Plan and Business Continuity Plan, these items may trigger plan changes:
• Personnel changes
• Employee address or telephone changes
• Equipment changes or upgrades
• Software changes or upgrades
• Changes in vendors
• Changes in alternate processing arrangements
• Changes in Recovery Command Center arrangements
• Changes in Critical documents or other forms and supplies
• Changes in employee job skills
• Changes in items stored off-site or change in the locations
• Departmental changes that will result in modification to departmental recovery procedures
• Modifications to the annual testing procedures
CUSTOMER SERVICE
It seems to me that, in most companies, customer service is merely a phrase, not a commitment. Statements like "Your call is important to us", "We are experiencing heavier than normal call volumes", "Please stay on the line to maintain your position in sequence" seem to be lies to most of us. Only a few companies actually are committed to providing proper service.
In many cases, you cannot find a telephone number to make a complaint to a company or even to ask for service. They hide behind their version of customer service and then they understaff this 'service'. If ever you do get to a human, they often do not have the authority to deal with your problem.
Some companies (good examples are American Express and Hertz) understand that service is an important part of the next sale and they realize that providing poor service not only drives this customer away but also every one that this customer talks to.
Why are some companies so challenged by the concept of helping a current customer. With people expecting instant response to so many things in life and buying online to get better response, why are companies so reluctant to work to develop the relationship? There are so many choices for many items in the marketplace, customer loyalty is very fickle. If you can't provide for the needs of the prospective customer, before and after the sale, then they will go to a competitor for this sale and the next one. And tell all their friends about your poor service and the great service that they got from the supplier from whom they did buy.
A prospect who has a bad experience with your customer service could eventually cost you twenty-five times the value of this sale.
So, pay attention to the entire purchase process. Before, during and after the sale.
In many cases, you cannot find a telephone number to make a complaint to a company or even to ask for service. They hide behind their version of customer service and then they understaff this 'service'. If ever you do get to a human, they often do not have the authority to deal with your problem.
Some companies (good examples are American Express and Hertz) understand that service is an important part of the next sale and they realize that providing poor service not only drives this customer away but also every one that this customer talks to.
Why are some companies so challenged by the concept of helping a current customer. With people expecting instant response to so many things in life and buying online to get better response, why are companies so reluctant to work to develop the relationship? There are so many choices for many items in the marketplace, customer loyalty is very fickle. If you can't provide for the needs of the prospective customer, before and after the sale, then they will go to a competitor for this sale and the next one. And tell all their friends about your poor service and the great service that they got from the supplier from whom they did buy.
A prospect who has a bad experience with your customer service could eventually cost you twenty-five times the value of this sale.
So, pay attention to the entire purchase process. Before, during and after the sale.
To prepare or to wing it? That is the question…
While this is an updated version of the classic saying, it still rings true today. Every winter the weather turns cold and the north gets winter. While living in the south, temperatures below 25F might seem like a disaster (Texas was closed for 3 days with similar temperatures this winter), when you are prepared for it (furnace fuel, wood stoves, winter tires, etc…) it doesn’t seem all that bad and the change is kind of nice. But, when you are not prepared for something, even something predicted, the results can be fatal to everything you hold dear (pay check, family, job, etc).
You might be wondering how this impacts you and your business, but the cause and effect is the same. If your business is prepared (backups, evacuation procedures, BC/DR Plan) and a disruption occurs, you most likely will see a spike in productivity. People respond to change and the change of working from an alternate site, home or hot site can inject some enthusiasm into their daily activities!
On the other hand, if your plan is to ‘wing it’, believing that ‘we have a good team and they can get us through anything’ expect that your business will not survive a disruption. That statistics against survival in the long run is staggering and it simply isn’t worth risking your business/livelihood/personal fortune against these odds!
Look at using your BC/DR Plan as preparing for winter, you know it is going to come, you just aren’t sure when… But, it sure would be nice to throw another log on the fire when your email server fails in the last week of the quarter and you are on the brink of a very cold winter.
Make sure you are taking some steps to ensure you have your core systems functioning no matter what the disruption!
For more information on Binomial’s approach to planning for winter, check out our services at Binomial.com
You might be wondering how this impacts you and your business, but the cause and effect is the same. If your business is prepared (backups, evacuation procedures, BC/DR Plan) and a disruption occurs, you most likely will see a spike in productivity. People respond to change and the change of working from an alternate site, home or hot site can inject some enthusiasm into their daily activities!
On the other hand, if your plan is to ‘wing it’, believing that ‘we have a good team and they can get us through anything’ expect that your business will not survive a disruption. That statistics against survival in the long run is staggering and it simply isn’t worth risking your business/livelihood/personal fortune against these odds!
Look at using your BC/DR Plan as preparing for winter, you know it is going to come, you just aren’t sure when… But, it sure would be nice to throw another log on the fire when your email server fails in the last week of the quarter and you are on the brink of a very cold winter.
Make sure you are taking some steps to ensure you have your core systems functioning no matter what the disruption!
For more information on Binomial’s approach to planning for winter, check out our services at Binomial.com
Sign up for your Free Disaster Recovery Directory!
The Early Bird date has passed for Binomial’s “Outrageously Easy BCP” class, but there are still a few seats available. We are expecting an excellent turn out due to the location (Marriott Downtown Toronto), Association with WCDM and the need for recovery planning in light on the latest world events.
Attend the class and receive a copy of this years Disaster Recovery Directory.
In the two days of classroom teaching you will learn how to:
Start your plan:
Senior management support
Triage your business
Threat Risk that your business faces
Business Impact Analysis
Develop your plan:
Determine your teams
Plan your Tasks
Select your team members
Create a recovery
Maintain your plan:
Educate your teams
Update your plan
Test your plan
For more information on these seminars, please visit our web site or contact us with specific questions.
Every class attendee will receive a Small Business Edition of our BCP/DRP recovery software! Phoenix has been building plans for over 20 years!!
We look forward to seeing you at the longest running BCP/DRP class in the field.
Binomial Sales
888-Binomial (246-6642)
Attend the class and receive a copy of this years Disaster Recovery Directory.
In the two days of classroom teaching you will learn how to:
Start your plan:
Senior management support
Triage your business
Threat Risk that your business faces
Business Impact Analysis
Develop your plan:
Determine your teams
Plan your Tasks
Select your team members
Create a recovery
Maintain your plan:
Educate your teams
Update your plan
Test your plan
For more information on these seminars, please visit our web site or contact us with specific questions.
Every class attendee will receive a Small Business Edition of our BCP/DRP recovery software! Phoenix has been building plans for over 20 years!!
We look forward to seeing you at the longest running BCP/DRP class in the field.
Binomial Sales
888-Binomial (246-6642)
Welcome to Hurricane Season 2006!
(CNN) -- The 2006 Atlantic hurricane season is expected to be an active one, with up to 10 of the big storms, the National Hurricane Center announced Monday.
The National Oceanic and Atmospheric Administration predicted that four to six of those hurricanes could reach Category 3 strength or higher -- with maximum sustained winds topping 111 mph.
NOAA predicts 13 to 16 named storms this season, which runs from June 1 to November 30. Eight to 10 of those storms are expected to reach hurricane strength.
A storm gets a name when it reaches tropical storm strength, with maximum sustained winds of 39 mph. It becomes a hurricane when its winds reach 74 mph.
NOAA administrator, retired Vice Adm. Conrad C. Lautenbacher, said that warmer sea surface temperatures, low wind shear and other wind conditions are favorable to hurricane development.
Wind shear, which is a change in air movement at different heights, can block the formation of hurricanes or make them weaker.
Lautenbacher said that it was too early to predict how many storms would make landfall, but said that "it is statistically within reason to assume that two to four hurricanes could affect the United States."
The Atlantic Basin has been in an active hurricane cycle that began in 1995, and nine of the 11 hurricane seasons since then have been above normal, according to NOAA.
There were so many storms in 2005 that the National Weather Service had to use Greek letters when it used up its list of 21 names.
This season is not expected to be as busy as last year, the busiest and deadliest on record with 28 named storms, including 15 hurricanes. But forecasters and emergency officials urged people to make preparations now.
"It's not all about the numbers, it just takes one hurricane over your house to make for a bad year," said Max Mayfield, director of the National Hurricane Center.
Four Category 3 storms -- Dennis, Katrina, Rita and Wilma -- hit the U.S. in 2005.
Hurricane Katrina's strong winds and heavy waves devastated the Gulf Coast in late August.
The storm and resulting flooding caused more than 1,300 deaths and an estimated $100 billion in damage, making it the most expensive natural disaster in U.S. history, according to the National Climatic Data Center.
The World Meteorological Organization retired five storm names from the 2005 season: Dennis, Katrina, Rita, Stan and Wilma.
Stan dumped torrential rains on Central America and Mexico's Yucatan Peninsula, killing as many as 2,000 people.
Names are retired out of sensitivity to the victims, and for historical, scientific and legal purposes.
The National Oceanic and Atmospheric Administration predicted that four to six of those hurricanes could reach Category 3 strength or higher -- with maximum sustained winds topping 111 mph.
NOAA predicts 13 to 16 named storms this season, which runs from June 1 to November 30. Eight to 10 of those storms are expected to reach hurricane strength.
A storm gets a name when it reaches tropical storm strength, with maximum sustained winds of 39 mph. It becomes a hurricane when its winds reach 74 mph.
NOAA administrator, retired Vice Adm. Conrad C. Lautenbacher, said that warmer sea surface temperatures, low wind shear and other wind conditions are favorable to hurricane development.
Wind shear, which is a change in air movement at different heights, can block the formation of hurricanes or make them weaker.
Lautenbacher said that it was too early to predict how many storms would make landfall, but said that "it is statistically within reason to assume that two to four hurricanes could affect the United States."
The Atlantic Basin has been in an active hurricane cycle that began in 1995, and nine of the 11 hurricane seasons since then have been above normal, according to NOAA.
There were so many storms in 2005 that the National Weather Service had to use Greek letters when it used up its list of 21 names.
This season is not expected to be as busy as last year, the busiest and deadliest on record with 28 named storms, including 15 hurricanes. But forecasters and emergency officials urged people to make preparations now.
"It's not all about the numbers, it just takes one hurricane over your house to make for a bad year," said Max Mayfield, director of the National Hurricane Center.
Four Category 3 storms -- Dennis, Katrina, Rita and Wilma -- hit the U.S. in 2005.
Hurricane Katrina's strong winds and heavy waves devastated the Gulf Coast in late August.
The storm and resulting flooding caused more than 1,300 deaths and an estimated $100 billion in damage, making it the most expensive natural disaster in U.S. history, according to the National Climatic Data Center.
The World Meteorological Organization retired five storm names from the 2005 season: Dennis, Katrina, Rita, Stan and Wilma.
Stan dumped torrential rains on Central America and Mexico's Yucatan Peninsula, killing as many as 2,000 people.
Names are retired out of sensitivity to the victims, and for historical, scientific and legal purposes.
Binomial at WCDM
Only 6 days to the end of the early bird discount for Toronto (June 22nd, 23rd)!
As the summer storms, heat waves, severe rain and other disasters arrive with our change of seasons, it is a great time to think about your recovery plan.
Binomial has been giving BCP/DRP seminars for over ten years and they are only getting better!
In the two days of classroom teaching you will learn how to:
Start your plan:
Senior management support
Triage your business
Threat Risk that your business faces
Business Impact Analysis
Develop your plan:
Determine your teams
Plan your Tasks
Select your team members
Create a recovery
Maintain your plan:
Educate your teams
Update your plan
Test your plan
For more information on these seminars, please visit our web site or contact us with specific questions.
The early bird discount saves you over $300!
Every class attendee will receive a Small Business Edition of our BCP/DRP recovery software! Phoenix has been building plans for over 20 years!!
Here are some reviews from previous classes:
"The seminar was great. I went in understanding what turned out to be only a subset of what I came out with: a more complete understanding of the full disaster recovery process. The simulations and exercises rounded out the whole experience and instilled in me the importance of disaster recovery."
Russ Gunther, Cannondale Corporation
"Comprehensive, concise, fast moving presentation lays the groundwork for developing a cost effective Disaster Program in any business setting."
Dale Price, Sandisk Corporation
Don’t delay, come out and see what you are missing!! Even if you have taken our class (or other classes) this is a great refresher!!
We are planning to run this class is conjunction with the WCDM (World Conference on Disaster Management) in Toronto. This is an excellent opportunity for you to see a lot of the top BCP/DRP providers in the world, in addition to attending the longest continually running DRP/BCP class in the field.
Binomial Sales
888-Binomial (246-6642)
As the summer storms, heat waves, severe rain and other disasters arrive with our change of seasons, it is a great time to think about your recovery plan.
Binomial has been giving BCP/DRP seminars for over ten years and they are only getting better!
In the two days of classroom teaching you will learn how to:
Start your plan:
Senior management support
Triage your business
Threat Risk that your business faces
Business Impact Analysis
Develop your plan:
Determine your teams
Plan your Tasks
Select your team members
Create a recovery
Maintain your plan:
Educate your teams
Update your plan
Test your plan
For more information on these seminars, please visit our web site or contact us with specific questions.
The early bird discount saves you over $300!
Every class attendee will receive a Small Business Edition of our BCP/DRP recovery software! Phoenix has been building plans for over 20 years!!
Here are some reviews from previous classes:
"The seminar was great. I went in understanding what turned out to be only a subset of what I came out with: a more complete understanding of the full disaster recovery process. The simulations and exercises rounded out the whole experience and instilled in me the importance of disaster recovery."
Russ Gunther, Cannondale Corporation
"Comprehensive, concise, fast moving presentation lays the groundwork for developing a cost effective Disaster Program in any business setting."
Dale Price, Sandisk Corporation
Don’t delay, come out and see what you are missing!! Even if you have taken our class (or other classes) this is a great refresher!!
We are planning to run this class is conjunction with the WCDM (World Conference on Disaster Management) in Toronto. This is an excellent opportunity for you to see a lot of the top BCP/DRP providers in the world, in addition to attending the longest continually running DRP/BCP class in the field.
Binomial Sales
888-Binomial (246-6642)
Chicago 2006
Well, we just completed a series of seminars in Chicago and, as always, we learned things about how people perceive this topic. All of the participants were very impressed at how much work can be saved, in developing a plan, by using a cleverly-designed software package. Even though we think the target person in a company should be the CFO, most people that work with us and attend our seminars are IT people. We do get the occasional Bank VP, but for the most part, it’s the IT folks who are still driving this topic.
At the same time as teaching the topic and distributing our software so that the attendees can get the full benefits of our time together, we get a chance to discuss some of our new ideas on future requirements in this field. We’ll talk about some of these in a future podcast.
We have done many seminars over the past decade. We sometimes combine them with a major conference so that people are already there. We sometimes hold our seminars in destination locations such as Disneyland, Breckenridge in Colorado and Whistler in British Columbia during ski season and San Diego.
We have investigated the idea of holding seminars on cruise ships and here’s an off-the-cuff idea. Supposed we could hold seminars on long flights so that people could actually accomplish something during this wasted time.
Some future directions:
I have been thinking for some time about developing a self-correcting business continuity plan. By that, I mean a plan that is self-healing. When things happen in the company, people get hired or fired (sorry, I mean ‘organized out’), promoted or demoted, changes in responsibilities, new systems added, and so on, we need to update the BCP to reflect those changes. Suppose the plan could update itself automatically.
We could do it be brute-force techniques. By that, I mean linking the plan to other systems throughout the company and reflect the changes in those systems in the BCP. But that isn’t a very elegant solution to this problem and it has problems of it’s own.
Now, if I could just figure out how to add the elegance. Hmmm, . . . .
Some more future directions:
In the near future, we will be releasing a product which will allow our clients to get collective input from their senior managers on the ranking of threats and vulnerabilities that they face. With this input, together with fuzzy input overtones, and Delphi circuitous mechanisms, the company will know what to prepare for.
Now combine that with the selection of teams that the company knows that they need.
We know from our extensive databases of industry experience what teams to activate for which disasters. And, we know the level of activation of each of these team-disaster tuples. So now, we can produce a response matrix, fairly automatically, from the input given above. This matrix will be a good first estimate for the company and they can fine-tune as they wish.
Now, that will be neat
At the same time as teaching the topic and distributing our software so that the attendees can get the full benefits of our time together, we get a chance to discuss some of our new ideas on future requirements in this field. We’ll talk about some of these in a future podcast.
We have done many seminars over the past decade. We sometimes combine them with a major conference so that people are already there. We sometimes hold our seminars in destination locations such as Disneyland, Breckenridge in Colorado and Whistler in British Columbia during ski season and San Diego.
We have investigated the idea of holding seminars on cruise ships and here’s an off-the-cuff idea. Supposed we could hold seminars on long flights so that people could actually accomplish something during this wasted time.
Some future directions:
I have been thinking for some time about developing a self-correcting business continuity plan. By that, I mean a plan that is self-healing. When things happen in the company, people get hired or fired (sorry, I mean ‘organized out’), promoted or demoted, changes in responsibilities, new systems added, and so on, we need to update the BCP to reflect those changes. Suppose the plan could update itself automatically.
We could do it be brute-force techniques. By that, I mean linking the plan to other systems throughout the company and reflect the changes in those systems in the BCP. But that isn’t a very elegant solution to this problem and it has problems of it’s own.
Now, if I could just figure out how to add the elegance. Hmmm, . . . .
Some more future directions:
In the near future, we will be releasing a product which will allow our clients to get collective input from their senior managers on the ranking of threats and vulnerabilities that they face. With this input, together with fuzzy input overtones, and Delphi circuitous mechanisms, the company will know what to prepare for.
Now combine that with the selection of teams that the company knows that they need.
We know from our extensive databases of industry experience what teams to activate for which disasters. And, we know the level of activation of each of these team-disaster tuples. So now, we can produce a response matrix, fairly automatically, from the input given above. This matrix will be a good first estimate for the company and they can fine-tune as they wish.
Now, that will be neat
We’re not in Kansas anymore Toto!!
Well, it has been an interesting week in the Midwest... Hot weather has caused some severe weather and tornadoes to touch down around Bloomington IL. Binomial is completing a Fast Track project and is experiencing some of the local hospitality and weather in the mean time! While watching the lightning and thunder pass Bloomington IL (more than 5 miles away) the other night, a clap of thunder and lightning was so close there was no time to count the distance between the two! I think it was the closest I have been the lightning in my life! Luckily nothing happened to our client’s site. It made me realize the force of severe weather in the Midwest and how it can come quickly and out of now where.
Storms devastate South East
A line of severe thunderstorms and multiple tornadoes swept parts of four states on Friday, killing at least 11 people in Tennessee, authorities said.
More severe storms are expected in the region through Friday night.
Eight of the deaths were in Sumner County, north of Nashville, said Tennessee Emergency Management Agency spokesman Randy Harris, and three others in Warren County southeast of Nashville. No further details were immediately available.
To learn how you can prepare for your disaster, visit us at www.Binomial.com
More severe storms are expected in the region through Friday night.
Eight of the deaths were in Sumner County, north of Nashville, said Tennessee Emergency Management Agency spokesman Randy Harris, and three others in Warren County southeast of Nashville. No further details were immediately available.
To learn how you can prepare for your disaster, visit us at www.Binomial.com
Hurricane Season Update
While sitting in the hotel room in Orlando (here for the DRJ SpringWorld), Fox news showed a quick story about Accuweather’s forecast of the upcoming hurricane season. With the Atlantic Ocean’s season running from June 1st to November 30th, it is supposed to be a higher than average season for named storms.
Make sure your plan is ready to protect (or rebuild) your company in the event that your commute to work becomes flooded like the picture above.
For more information on the Accuweather’s article, click here.
To learn how you can reduce your exposure, visit us at www.Binomial.com
Make sure your plan is ready to protect (or rebuild) your company in the event that your commute to work becomes flooded like the picture above.
For more information on the Accuweather’s article, click here.
To learn how you can reduce your exposure, visit us at www.Binomial.com
SpringWorld 2006
With the cold weather behind us, Binomial travelled to Disney’s Coronado Springs for the Disaster Recovery Journal’s SpringWorld in Orlando. This is the first year Binomial offers both pre-conference and post conference seminars!
You can see from the picture above that there is good class participation in our TIM (Totally Integrated Maintenance) class. Attendees will learn how to maintain, update and exercise their plans. In the picture above you can see the class is working through a scenario of evacuating a building in the event of a fire at the front door.
As this is our first time giving the TIM class, we were happy with the attendance and the participation in the class. For a complete listing of our classes click here. Check back for some pictures from the conference and our booth.
You can see from the picture above that there is good class participation in our TIM (Totally Integrated Maintenance) class. Attendees will learn how to maintain, update and exercise their plans. In the picture above you can see the class is working through a scenario of evacuating a building in the event of a fire at the front door.
As this is our first time giving the TIM class, we were happy with the attendance and the participation in the class. For a complete listing of our classes click here. Check back for some pictures from the conference and our booth.
Can you afford a plan?
As this hurricane season has vividly illustrated, the business you have worked so hard to build can be wiped out almost instantly by a flood, fire or other disaster. If you do not have a recovery plan in place when disaster strikes, you probably will never recover.
Let’s look at the facts:
• 93% of companies that experience a disaster without a recovery plan close within 5 years. Why? Cash flow. Your insurance will keep you running (more like limping) through your business day, but once the money runs out you better know who your customers are going to be. Without a plan, you have lost your contact list, so you don’t know who owes you money, who is close to signing deals, and who you are targeting for future deals. In short, your cash flow has dried up and you have nowhere to turn!
• 50% of companies that lose their critical business systems for more than 10 days never recover. Why does this happen? Clients don’t have the brand loyalty that they had a generation ago. If you aren’t open for business, they will quickly find someone else. Let’s use a scenario... You’ve lost your toothbrush... When you go to the store, you find that there aren’t any more of “your brand”, when you ask what happened, the clerk tells you their shipment didn’t come in and won’t for several days. Are you going to wait for your toothbrush? Not likely, you are going to pick another one and maybe like it more. You have just changed brands and they have lost a customer. Are you willing to take that chance with your existing customers?
• Almost 60% of businesses of all sizes in this country consider customer services and competitive advantage to be the factors most critical to their company’s survival. With so much advertising and market saturation, it is very expensive to win a new customer to your solution; it is much cheaper to keep your existing customers happy. If you aren’t open for business, or have limited services with no warning, your customers are going to find another solution. We have become an “Instant Generation”; if you can’t supply a service or product instantly, we will find someone else who can.
• According to the FBI, for every eight hours of down time, you will lose one half of a percentage point of market share (0.5%), and it takes 3 years to win that market share back!
The goal of your business continuity efforts will be to minimize this downtime, limit your losses and prepare you (and your company) for continuing through this period of trouble. In determining if you can afford to start, complete or maintain your Business Continuity Plan, there are several keys factors that you have to determine.
First, what is your Recovery Time Objective (RTO)? By what time must you recover? Your RTO will determine how much time you have to get everything back up and running. This will help you determine the amount of resources you are going to need to allocate when planning your recovery budget. For many small businesses, it is very important to be the first back in business. This means that, when there is an area-wide disaster, such as a snow storm or flooding, they want a plan that will permit them to open for business as quickly as possible. Knowing if they are first open for business they are likely to win customers faster than they would have normally. They know that time is money !
Second, there is a feeling in Business Continuity Planning that “with enough money, you can recover anything”. Unfortunately, most of us don’t have that option, so you have to determine, for your company, which services are key to your success and how much will you lose (customers, prospects and money) if you don’t have those services available. The services that are crucial to your success have to be back in operation first, but be careful; sometimes the crucial operations aren’t the most obvious ones.
Finally, you have to be prepared to have people go home and wait by the phone. Although they are not generating revenue for you (or helping in the recovery) you know where they are, they are available when needed and they are not distracting your core recovery. While these three factors might seem obvious, you will likely be so swamped with decisions to make, you probably won’t be able to remember your home phone number in an emergency.
As an example of what can happen, we recently worked with a small development company that experiences frequent power outages. They do have backup batteries but no generator. Fifty people, most of their staff, cannot continue to work without power. We calculated how much direct salary money they were losing with the power outages. The total cost was $125,000 per year! And that didn’t even include employee benefits, lost sales or lost profits. They took corrective action so that they can continue to work and produce.
In many cases, you can develop plans that were cost-effective (the savings in insurance premiums often are enough to pay for the plan) and often these plans gave the client another marketing point to differentiate themselves from the competition. If you can guarantee to your customers that you will be open for business, regardless of the local situation, they are more likely to remain as your customers, more likely to tell others and it is most likely that you will pick up customers when others are facing a disruption of some sort.
The world is becoming a global economy and we are no longer competing only with our neighbors; we are now competing with the best services, products and best companies from around the world! Your customers aren’t going to wait for you to return to operations (while their deadlines expire); they are going to look for a solution that allows them to remain competitive and operating at full capacity. That is what you would expect from your suppliers, so why should your customers expect less?
Ensure your market share remains (or grows), keep your customers happy, keep your investors happy and keep your doors open. You can’t afford not to.
Let’s look at the facts:
• 93% of companies that experience a disaster without a recovery plan close within 5 years. Why? Cash flow. Your insurance will keep you running (more like limping) through your business day, but once the money runs out you better know who your customers are going to be. Without a plan, you have lost your contact list, so you don’t know who owes you money, who is close to signing deals, and who you are targeting for future deals. In short, your cash flow has dried up and you have nowhere to turn!
• 50% of companies that lose their critical business systems for more than 10 days never recover. Why does this happen? Clients don’t have the brand loyalty that they had a generation ago. If you aren’t open for business, they will quickly find someone else. Let’s use a scenario... You’ve lost your toothbrush... When you go to the store, you find that there aren’t any more of “your brand”, when you ask what happened, the clerk tells you their shipment didn’t come in and won’t for several days. Are you going to wait for your toothbrush? Not likely, you are going to pick another one and maybe like it more. You have just changed brands and they have lost a customer. Are you willing to take that chance with your existing customers?
• Almost 60% of businesses of all sizes in this country consider customer services and competitive advantage to be the factors most critical to their company’s survival. With so much advertising and market saturation, it is very expensive to win a new customer to your solution; it is much cheaper to keep your existing customers happy. If you aren’t open for business, or have limited services with no warning, your customers are going to find another solution. We have become an “Instant Generation”; if you can’t supply a service or product instantly, we will find someone else who can.
• According to the FBI, for every eight hours of down time, you will lose one half of a percentage point of market share (0.5%), and it takes 3 years to win that market share back!
The goal of your business continuity efforts will be to minimize this downtime, limit your losses and prepare you (and your company) for continuing through this period of trouble. In determining if you can afford to start, complete or maintain your Business Continuity Plan, there are several keys factors that you have to determine.
First, what is your Recovery Time Objective (RTO)? By what time must you recover? Your RTO will determine how much time you have to get everything back up and running. This will help you determine the amount of resources you are going to need to allocate when planning your recovery budget. For many small businesses, it is very important to be the first back in business. This means that, when there is an area-wide disaster, such as a snow storm or flooding, they want a plan that will permit them to open for business as quickly as possible. Knowing if they are first open for business they are likely to win customers faster than they would have normally. They know that time is money !
Second, there is a feeling in Business Continuity Planning that “with enough money, you can recover anything”. Unfortunately, most of us don’t have that option, so you have to determine, for your company, which services are key to your success and how much will you lose (customers, prospects and money) if you don’t have those services available. The services that are crucial to your success have to be back in operation first, but be careful; sometimes the crucial operations aren’t the most obvious ones.
Finally, you have to be prepared to have people go home and wait by the phone. Although they are not generating revenue for you (or helping in the recovery) you know where they are, they are available when needed and they are not distracting your core recovery. While these three factors might seem obvious, you will likely be so swamped with decisions to make, you probably won’t be able to remember your home phone number in an emergency.
As an example of what can happen, we recently worked with a small development company that experiences frequent power outages. They do have backup batteries but no generator. Fifty people, most of their staff, cannot continue to work without power. We calculated how much direct salary money they were losing with the power outages. The total cost was $125,000 per year! And that didn’t even include employee benefits, lost sales or lost profits. They took corrective action so that they can continue to work and produce.
In many cases, you can develop plans that were cost-effective (the savings in insurance premiums often are enough to pay for the plan) and often these plans gave the client another marketing point to differentiate themselves from the competition. If you can guarantee to your customers that you will be open for business, regardless of the local situation, they are more likely to remain as your customers, more likely to tell others and it is most likely that you will pick up customers when others are facing a disruption of some sort.
The world is becoming a global economy and we are no longer competing only with our neighbors; we are now competing with the best services, products and best companies from around the world! Your customers aren’t going to wait for you to return to operations (while their deadlines expire); they are going to look for a solution that allows them to remain competitive and operating at full capacity. That is what you would expect from your suppliers, so why should your customers expect less?
Ensure your market share remains (or grows), keep your customers happy, keep your investors happy and keep your doors open. You can’t afford not to.
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