Zona Walton [ADP - Global Business Resiliency] and I spoke at a private conference last month. The title of our session was The Future of Resiliency. We explored the idea that the future of resiliency isn’t resiliency; that is, it will be something else.
During the past 10 years Lootok has been in business, we’ve stayed vendor agnostic while implementing many different crisis management and business continuity tools for clients. Humbled by our own trials and tribulations with software, we had yet to meet a vendor we felt excited about.
That changed last fall when we decided to partner with Clearview, our technological counterpart we’ve come to know and trust. We’re proud to say we believe ClearView to be the best software solution in the market. Read why.
Lootok is Clearview’s Americas service provider.
Email us at email@example.com or ring us at +1.646.961.3684 to get your demo.
In our session, we covered the critical aspects of rolling out and maintaining a global supply chain operational risk – business continuity program. Supply chain leaders are naturally gifted at managing risk, as it is part of their daily lives. But, supply chains are naturally dynamic (i.e., disruptive), which makes many of our traditional operational risk – business continuity techniques ineffective. Supply chain leaders need risk management techniques and tools to help them make decisions, solve problems, and communicate in complex environments.
Learning objectives covered:
Common pitfalls (i.e. too fast, too big) of risk and resiliency supply chain rollouts.
The necessary methodologies, tools, and roadmaps to be successful in today’s complex, nonlinear, supply-chain environments.
When working with the masses [end-users; not experts in risk management, business continuity, crisis management], I find it beneficial to present clear, concise, and concrete packaged solutions. People need guidance and structure to help them think through problems and build effective plans. This is one of the reasons Lootok created the 8Rs™ of Resiliency. The goal the 8Rs is to reduce uncertainty, simplify complexity, structure thinking and dialogue, build common ground, and establish preparatory activities. The 8Rs facilitates planning with a plan as the end deliverable (i.e., plans are the byproduct of planning). The 8Rs are designed to provide people with a set of options they can employ to continue operations under various threats and timelines. The 8Rs™ of Resiliency comprises of the following:
Relocate - physical moving assets (e.g., people, technology, equipment) to another location
Reassign – transferring processes (i.e., work) to another location
Repair / Replace – capabilities in place to fix the problem at time of event
Reinforce – fortify, strengthen, assets to tolerate greater impacts and occurrences
Replicate – simultaneous production (i.e., processes, technology, work) at two locations [duplication]; active-active
Redundancy - extra capacity and inventory
Risk Transfer – shift risk to other entities through insurance, contracts, and risk pooling
Relinquish – do nothing [e.g., too cost prohibitive]; risk acceptance strategy
Since starting Lootok, once a year I go to Rochester, Minnesota, my home State, to take my annual executive physical at the Mayo Clinic. It gives me a good reason to get back to Minnesota to visit family and friends, while maximizing my medical checkups. In just two days, more than fifteen doctors evaluate me. Risk management shares many similarities with the medical field, and it’s where you find the best analogies and metaphors. I wanted to share few of the insights I have gleaned over my time at Mayo.
Risk management is analogous to the immune system. It is not a thing or part. It is a system that co-exists within other systems that must properly function with a larger system called the organization | organism. You cannot just fix the immune system, buy it, or expect miraculous resiliency overnight. The immune system must be earned, strengthened and maintained every day. You need healthy habits, positive attitude and healthy living and work environments, proper planning and long-term vision and dedication, so forth. Risk management works the same way. Risk management also has the same challenges as our immune system: we don’t think much about it until something goes wrong.
I was working with an executive team on a crisis scenario, when one of the leaders asked a question on crisis communication. He asked, “How soon do we need to communicate? 5 minutes, 10 minutes, 1 hour, 1 day, …?” He was looking for a precise number to evaluate a few past incidents that were on top of mind for everyone in the room. I gave the common answer, but right answer, of “it depends”. He gave a look of dissatisfaction and made a discrediting posture. I went on to share a few basic statistics from Daniel Diermier’s research (author of Reputation Rules) such as “online news stories suggest that the typical window is only eight hours; 20% of all news stories on a given issue are published within an eight-hour period; so forth.” Some time has passed since the exercise. After some thought, I want to provide executives with six (6) crisis characteristics to consider when determining when and how to communicate.