As every Boy or Girl Scout knows, the key to survival is to
be prepared! When it comes to disaster planning for a business, there are many
items to consider. What does your company need to remain operational during a
disaster? Should your insurance cover lost wages, and should it cover lost
business revenue? How will you protect software and hardware? Is your business
located in hurricane country or an area that may experience another kind of
natural disaster? Disaster planning not only should be specific to your region,
but also should consider man-made disasters, including fire, flood or, in these
technological times, electronic terrorism.
When you look at disaster planning, you may feel like David
approaching Goliath. The key is to take it step-by-step, and to do something rather than nothing. In the
wake of September 11, many companies now feel more vulnerable than ever. Still,
no matter where you are located, natural disasters and other devastation can
strike anytime.
Thankfully, you have the luxury of time to make preparations
… and time is what disaster planning is all about. It takes time to think
through the scenarios and to focus on an actual, viable plan rather than
something that just looks good in the company disaster manual. If you think
developing this plan sounds hard, it isn’t nearly as hard as developing one
during a crisis!
Here are some areas to consider
as you develop your contingency or disaster plan:
What is your escape route? Just like you did in elementary school,
hold regular fire or evacuation drills and inform all employees of the
company’s escape route(s). It’s a good idea to have more than one route. Plan
who will be the last one(s) out, along with alternates. If you have lease
space, you may be able to ask the property management company to hold regular
drills for your company. If this option isn’t available, do it yourself by
holding impromptu drills. In addition, make plans for situations where
employees may be trapped within your company building.
IT and phone back-up plans. Ever think about how you would conduct
business without phones, computers or the Internet? In a disaster, these
commonplace work tools may be out of reach. Not only do you want to make
provisions for the information technology required to keep your business up and
running, you’ll want to ensure your key suppliers also have back-up plans if any
suppliers directly impact a portion of your business. Redundancy seems to be
the name of the game for phones and IT. Secure two phone carriers rather than
one, since cell phones can get bogged down during more widespread disasters. If
you have a high-speed Internet connection, consider having a direct-dial back
up. Finally, put a plan to paper that will enable you to access outside
equipment, whether it is the company’s property or the property of company
employees (you will want to check with your insurance carrier to assess the
risks involved with this type of arrangement).
Secure valuable data. We know of many well-intentioned business
owners who diligently make backups each night, label and file these valuable
disks, and promptly store them in a place that does not protect the data from
fire or floods. Today, we have many solutions available. You can choose to
purchase a more secure data container, such as a fire-proof safe. Or, you may
want to store the data offsite. Perhaps the easiest way to protect data offsite
is to upload it to the Web to a secure server. Of course, you’ll need to ask
the company you choose what contingency plans it has in place to access your
data, should that company experience a disaster. Ensure your rights are
protected through Service Level Agreements.
Where do you go from here? What happens when there’s no “business”
to return to? Finding a temporary location ahead of time can keep you out of a
disaster bind. If you lease your office space, some property management
companies can offer offsite locations for use, so ask about putting a disaster
provision in your lease. If your business permits, you may want to look at
developing a plan that enables employees to work from home, if at all possible.
If your business relies heavily on equipment or a special facility, investigate
business interruption insurance options that pay you and your employees in the
event something happens. If you have highly skilled employees that may seek
employment elsewhere, opting for a higher premium to cover lost wages may be a
good choice.
Disaster Resources
Federal Emergency Management
Agency. Visit http://www.fema.gov/library/bizindst.pdf to view
FEMA’s Emergency Management Guide for
Business & Industry. The agency offers quite a bit of information about
disaster preparedness.
American Red Cross. Stop by http://www.redcross.org
to find many supply checklists for common disasters and crisis situations,
including rolling black outs. This also is a good source of information for
your personal and family disaster planning.
As your business performance advisor, we are here to help you make the
most of every area of your business. We can help you develop your company’s
disaster plan and answer questions as you go through this process. Give us a
call to start building your contingency plan today.