gain executive support in measuring the effectiveness of your bcm program

Gain Executive Support in Measuring the

Effectiveness of Your BCM Program-Cheyene Haase

BC Management, Inc

Topics of Presentation

• Where is BCM as a Profession?• How is Business Continuity Viewed?• Cost of Doing Business• Investment in Organization

• What about the Company Culture?• How do other Disciplines Measure Effectiveness? • Measuring the Effectiveness of Your BCM Program.• Review Data from BC Management’s 9th Annual BCM Study.• Be Strategic in Gaining Executive Support

Past…. Present…. Future….

Learn from the Past

Analyze the Present

Plan for the Future

What are the Challenges?• Why Plan?• How to get Executive Buy in?• What are the Accepted

Definitions/Terms?• Who is Ultimately

Responsible?• Where to Position within an

Organization?• When will Business

Continuity Finally get Recognized?

How is BCM Viewed?

Cost of Doing Business

– Or –

Investment in Organization

Definitions

Cost of Doing Business – Money expended or cost incurred in a firm’s efforts to generate revenue, representing cost of doing business.

Investment in Organization – The purchase of an equipment, inventory, or service in the hope of improving future business.

What’s the Difference????

What About ROI?

Return on InvestmentHow much profit or costsaving is realized. AnROI calculation issometimes used alongwith other approachesto develop a businesscase for a givenproposal.

What about Company Culture?

Reactive – versus – Proactive

Unstructured – versus – Structured

Decentralized – versus – Centralized

Executive Commitment?????

Effectiveness of Other Disciplines?• Measuring Effectiveness?• Visible Direct Benefits?• Easier to Calculate the ROI?• What about the Executive Support?

How to Measure Effectiveness?• Approach• What to Avoid!!!!• Hard Dollars• Soft Dollars• Things to Consider

Hard Dollars

• Existing Revenue• Future Revenue• Operational Costs• Fines and/or Penalties• Overtime• Equipment Replacement• Recovery & Resumption Costs• Data Reconciliation• Vendor Utilization• Insurance Premiums

• Dedicated Personnel• Site Resilience• Site Infrastructure

(Generators, etc)• Building Costs• Energy Costs• Data Communication Costs• Physical Security• Offsite Storage• Other

Soft Dollars

• Goodwill• Brand Impact• Market Share/Investor

Relations• Credit Rating/Bond

Rating• Reputation/Media

Coverage

• Employee Moral• Competitive Advantage• Data Loss• Increased Efficiency• Legal/Regulatory Issues• Other

Review Data Findings

• Measure BCM Program Effectiveness– How is the Program Viewed?– What Are the Methods being used to Justify?– What to Include in Measuring Effectiveness?– What is Calculated in the ROI by Importance?• Hard Dollar Items• Soft Dollar Items

Program Maturity

How is the Program Viewed?

52.7% Are committed to change in 2010.

51.4% Are committed to change in 2010.

Management’s View of BCM Program

BCM Program and Cost of Doing Business

BCM Program and Value to Organization

Methods to Justify the Value of the Program

Importance of Assessing the Value of the Program

Measuring the Program’s Effectiveness – What to Include?

Calculating the Program’s Effectiveness – Hard Dollar Items

Calculating the Program’s Effectiveness – Soft Dollar Items

Review Data Findings

• Estimate the Value of the Program– Financial Benefit of Program ($)– Financial Loss by Hour of Downtime ($)– Actual Loss by Events ($)– Success Factors Noted as a Result of Activatingthe Program

Estimate the Financial Benefit of Program

Estimated Financial Loss by Hour of Downtime

Estimated Actual Loss by EventEstimated Financial Loss by Event Financial Loss in USD

Accident

Collision $22,531 Power Outage $1,197,759 Spillage/ leakage $303,259 Structural failure $8,345,833 Other $61,250

Human Disaster

Other $241,268 Civilian unrest/ Political instability $2,457,548 Class action lawsuit $27,550 Corporate fraud $588,972 Disgruntled employee $374,682 Shooting $18,000 Terrorist activities $1,054,250

Natural

Other $16,833 Earthquake $484,246 Fire $1,272,629 Flood $1,428,145 Hurricane $1,774,165 Ice storm/ Winter weather $980,550 Tornado $7,736,615 Typhoon $40,923

Technical

Other $312,714 Computer virus $861,882 Cyberspace attack $230,540 Hardware issues $1,604,422 Server issues $211,602 Software issues $409,337

Success Factors Noted from Activating Program

Review Data Findings – Soon to Come….

• Correlations to Executive Support– Program Maturity– Organizational Reporting Structure– Existence of Program– Why Plan?– Integration of Program

Gaining Executive Support• Professions Evolve – Change is Needed• Think Outside the Box• Put Yourself in their Shoes• Be Strategic• Create an Awareness• Be Clear & Succinct • Focus on Planned Events, Efficiency & Competitive

Advantage• Have the Data to Support Your Decisions

Questions

Cheyene HaaseBC Management, Inc.

+1 (714) 969-8006chaase@bcmanagement.com