Business Continuity Now
February 4, 2009
A Case for Business Continuity Response to Economic Chaos
By John G. Stockman
It is easy for all of us to give in to despair given the circumstances we face. As the economy here and around the world continues to decline, the tension and fear is evident in everyone I talk to these days. I’ll admit that I too am finding each day a challenge.
Even in the relatively robust Northern Virginia/DC Metro area, business is slow and people are tightening their belts. Every time I scan a website, open a magazine or read a blog entry, the negativity and virtual despair sucks you in and threatens to drag you down.
So what do we do now? How do we move forward when each day becomes a struggle to just meet our basic business goals? Both personally and professionally, it’s time to step back and take stock. Just a few months ago, I wrote articles on business survivability (Strategy in a Slow Economy – September 17, 2008). It was a four part series on how to position yourself to endure the downturn and be ready for the recovery. At the time I wrote those pieces, I had no idea how bad things could or would get over the coming months. Suffice to say, we know things are much worse now and any recovery looks to be far off.
As a business leader and consultant, the key to success is always being ready to adjust and survive. The ability to recognize trends and respond appropriately is crucial.
So, here are some of my recommendations to my clients now in light of where the economy stands:
- Assume This Is A Long-Term Economic Struggle – Despite the efforts of government to halt the slide, conventional wisdom and quite a bit of data indicate things will get worse. How much worse is largely a matter of speculation at this point. However, as a leader and business person, you must assume that credit will remain extremely tight, business demand will be low and work will be hard to come by at least for the rest of this year.
- Stay Current And Connected - I am currently devouring all the data I can get about pending legislation, national, state and local economic reports and business data. Try to stay on top of things and you will be surprised at your ability to anticipate trends and emerging opportunities to improve your situation. Double down on your contact with customers and your personal and professional network.
- Eliminate Unnecessary Expenditures and Conserve Capital - If you have any fat in your budget, get rid of it if possible. Get rid of unnecessary items like additional cell phone lines and subscriptions you never read. If you own multiple web domain names, take off the auto-renew function unless it is your primary way of doing business. Make a list of the minimum things you can do business on.
- Update/Dust Of Your Business Continuity Plans - I’ll bet “economic calamity” is not a scenario in your Business Continuity plan, even if you have one. As a Certified Business Continuity Planner, I have developed and/or reviewed dozens of plans from clients. I don’t recall any of the analysis or response models including a provision for the potential of economic chaos. Now would be a good time to go through that exercise. In my next piece, I will detail how that analysis should be performed and what it should do for your organization.
Like many people, I come from a very poor background. My parents were Depression-era children and clearly are seeing the similarities between their youth and today. Coupled with the onslaught of bad data and continuing downward trend on almost every indicator, the likelihood of some sort of upheaval is now far greater than before.
But, we know this cycle will end. Historically, the deeper the recessionary cycle is, the bigger the rebound. Some of the greatest economic expansions have come after severe turbulence. From the Great Depression through World Wars and uncounted crisis, we have demonstrated our ability to respond and recover. I believe this cycle, as well, will result in a far better future and way of life for us all.
Next week, I will get specific on the analysis and approach for people that have a Business Continuity Plan as well as people that do not.
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