So
bird flu hits Europe with the news that we have at least
2 dead and 11 infected in Turkey. We seem to get this story in waves of media interest. Around October last year we had story after story as bird migration started and experts were warning of a pandemic by Christmas and
Tamiflu became an
eBay staple.
Well we are still here (but even I probably wouldn't visit Eastern Turkey at the moment) but the experts are still saying it's "when not if" for 2006. Even though Bird Flu has been a bit lower of late in the media's radar, it seems that one profession outside Government agencies and the
WHO has been beavering away on this...
Business Continuity Planners.
HSBC today reported that up to 50% of it's staff could be effected by a Bird Flu pandemic, this number is significantly higher than the UK Governments figure of 8% and WHO 25%.
Now I am pleased that our global institutions make such contingency plans, this is right and proper. I am also delighted that HSBC and others have the resources to put people on this matter full-time. Also, being a large global concern means that you will be used to such strategies to meet such threats as terrorism and unstable governments, etc.
What about UK based SME's? What about small business? Do we not have a right/need/obligation to have a contingency plan? (Delete where applicable and your viewpoint dictates).
"In the immediate aftermath of any form of incident, continuity planning becomes
something of a buzz word but it is increasingly clear that many firms still don't have the necessary plans in place."
The CBI's Digby Jones believes that not enough UK business is suitably prepared for such events such as bird flu or the Buncefield oil fire late last year.
Now lets see, I remember filling out a business continuity form for a large Utility we supply. A bit about what happens if and a statement that we will continue to trade no matter what...what? The document pulled all the good practice things we did; IT system back ups, alternative suppliers...you know, the sort of thing we all do because it's good management and practice. But
a bit useless if we get hit with a Stephen King style flu pandemic.
So can SME's have a contingency plan for this size of business threat; or at least one that is meaningful rather than one that just ticks a Board Agenda item off? I think the answer is yes, even if all it does is say 'put your head between your knees and breath slowly'. It is the duty of a Board to assess and plan for business risk, the same way we would be negligent if we did not plan for other more normal business environment risks. We have a duty to the Company and the shareholders at a minimum.
SME's must carry out, at the minumum, a risk impact analysis on the business, even if all it does is tell you 'sorry your out of business'. There will always be tasks to be undertaken in such an event and it will not be a good time for Directors to be thinking on their feet.
Some planning at any level may be the difference to surviving as a going concern or not:
- 80% of businesses affected by a major incident close within 18 months.
- 90% of businesses that lose data from a disaster are forced to shut within 2 years.
- 58% of UK organisations were disrupted by September 11th. One in eight was seriously affected.
I believe the process of developing a contingency plan or strategy will not answer all our worries and will probably leave some uncomfortable questions un-answered, but it will increase the probability of continuity and is within reach of any SME. There are enough resources out there to aid any small or medium size company:
London Prepared
Department of Health Flu Pandemic Guide (pdf)
Expecting the Unexpected (pdf)
Other Links
Scotlands Bird Flu Contingency Plan
