Failing to plan is planning to failAlan Lakein
Planning > Why don’t businesses have Business Continuity Plans?
Why don’t businesses have Business Continuity Plans?
Recent surveys show that fewer than 40% of smaller businesses have a Business Continuity Plan. Many are over confident in their ability to survive an incident either because they under estimate the impact of the event or because they believe they have the time and the management capability to deal with the event as it happens.
Why, and what are the consequences? Here’s a few of the main reasons:
Too busy
The business can’t afford the management time to run the businesses and develop a Business Continuity Plan. So, does the business have the management time to run the business and deal with a crisis at the same time?
“We had been aware of the merits of a Business Continuity Plan and had for some time considered implementing one, but were always far too busy running the business. Paul came recommended to us and his initial assessment was just the push we needed” N Poyner, MD, WMTR LtdToo expensive
It’s yet another cost the business can’t afford. The investment in developing Business Continuity Plans is mostly a one-off cost and can result in an ongoing reduction in insurance premiums. Can you place a cost on your reputation? Being unable to supply your customers, pay your bills or your staff, even for a short time will cause your business damage which will take a long time to repair – if at all.
We can survive
There is an assumption that the business will be able to survive a period of interruption financially and that customers will be tolerant and supportive. Put yourself in the customer’s shoes – how long would you support a business that was unable to supply you? Customers move quickly, this will hit the business financially very quickly. Lost customers take longer to pay, stock turn is reduced, your staff are less effective and therefore cost more per order etc. Remember 80% of businesses that suffer a disaster go out of business within 18 months (Source: AXA).
We back up our data, therefore we have a plan
Many business owners believe that their IT is the most important element, and because of this believe their business is protected. Your data is important, but not more so than the premises you work from, the equipment you use, the people you employ. Have you tested that you can fully recover all your IT (not just your data)? Many companies have failed to do so. Remember 90% of businesses that lose data from a disaster are forced to shut within 2 years.
