gain executive support in measuring the effectiveness of your bcm program
DESCRIPTION
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? - PowerPoint PPT PresentationTRANSCRIPT
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
