By ERIC PITCHER
Often corporate business continuity plans are taken for granted, and their mandated annual maintenance is not considered critical or profitable. Developing and maintaining these plans is seen as another low priority
action item on an already too big to-do pile. In fact, given tough
economic times, even the jobs of the people who are responsible
for these tasks are at risk as companies look to trim costs through
the reduction of the non-revenue generating positions. This perspective greatly underplays the value that a valid and tested business continuity plan, and just as importantly, the person who
owns it, can bring to the company.
Make no mistake, a solid business continuity plan and the
guidance of its owner can prevent crippling financial losses and
greatly support cost reduction initiatives and profitability.
Here are some of the ways the business continuity plan, and
owner, can move from being a cost center to a cost reducer and
even revenue generator during non-crisis times.
Win new business by using the business continuity
plan as a sales differentiator
Companies are slowing down their spending and are reviewing every buying decision with greater scrutiny. The competition
for these few available dollars is intensifying as every company is
looking at the value each of their suppliers are bringing to them.
Leveraging the business continuity plan as a differentiator can
help your company stand out as a leading and trusted supplier.
Having a valid and tested business continuity plan demonstrates
to potential customers that your company is prepared to meet
the agreed upon obligations on time, no matter what unexpected
events may happen. Simply put, it emphasizes that doing business with your company is more likely to keep their business
Sales is always looking for a reason to get in front of their cur-
rent and potential customers in order to build closer relationships
to gain their trust. We all know that offering a quality product at
a fair price gets sales in the customers’ door; it’s gaining their
trust that closes the deal. How can a business continuity plan help
build that trusted relationship with the customer?
u Have the business continuity owner meet with the key sales people and
managers and explain this strategy to help them in this endeavor.
u;Once invited to the sales meeting, open the discussion with the customer
by asking if they require their vendors to have a tested business continuity
plan and why it is important?
u Show your company’s plan along with the last test with all of the good and
not-so-good results. It lends credibility.
Save costs through insurance reduction
Corporate insurance is expensive and getting more so every
year. Leveraging the business continuity plan, as well as its
owner’s knowledge of the environmental and business related
risks, can help the company reduce the cost of insurance,
directly enhancing the company’s bottom line. How do you get
u Talk to the corporate treasury department and have them present a
sanitized version of your business continuity plan to the insurance
u Give special attention to the frequency of tests and the results, as well as
any research that was produced regarding the likelihood of each risk.
u Simply having an up-to-date business continuity plan may qualify the
company for discounts and can be used in cost negotiations.
Reduce corporate risk through verifying that suppliers
have a valid and tested business continuity plan
Just as you positioned the value of your company’s business continuity plan to gain new customers, you can leverage
the company’s business continuity owner to evaluate their preparedness to meet contractual obligations and find the best suppliers. His or her knowledge and experience also can be critical
in maintaining your own company’s normal business operations. This can be as simple as asking the business continuity
owner to work closely with the purchasing department to verify
that each of your core suppliers has a valid and tested business
Minimize the corporate impact of a reduction in force by
using business continuity owner’s knowledge of where
to cut costs with the least impact on the business
While any company layoff is never a good thing, undertaking
it blindly makes matters worse. Often corporate mandates across-
the-board cuts such as “reduce headcount by 10 percent in all
departments.” What looks good on a spreadsheet is often not the
best thing to do from a business perspective. The business con-
tinuity owner has an opportunity to help executive management
focus the needed reductions by using his/her in-depth knowledge
about all of the business’s critical processes and people. How can
this expertise be leveraged?
u Utilize the business continuity plan as a map of the business. With this
map, you can help the company avoid deep cuts in the critical business
processes and people and look to other, not so critical areas to make up
the balance of required reduction.
designed before any reduction in force was considered, the core business
keep most of the company politics to a minimum as you look for the other
areas to make the reductions during this stressful process.
As demonstrated above, valuable knowledge and resources
within a company are often overlooked and/or underutilized.
Don’t let that happen to your business. These suggested strategies can greatly help a company to successfully navigate through
this tough economic time.
Eric Pitcher is vice president of technology strategy at CA, responsible for
setting and communicating CA’s recovery management plans across the
business unit, throughout CA and to partners and customers.