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Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
About meAbout me
• Independent Management Consultant• 20 years in/around BCM related field20 years in/around BCM related field
– Originally in Mainframe IT & DRI t ti l BCM li t b– International BCM client base
– Consulted to PwC and ANAO on BCM• To learn more
http://www blog vrg net au– http://www.blog.vrg.net.au– http://Linkedin.com/in/kendsimpson
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
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The meaning of resilience isThe meaning of resilience is ...
• Vague and unclear• Too many (conflicting) meanings e gToo many (conflicting) meanings, e.g.
– Resilient Orgs (NZ)ASIS R ili St d d– ASIS Resilience Standard
– Computer companies• Becoming (and remaining) resilient is
potentially a ‘wicked’ problempotentially a wicked problem
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
My meaning of resilience isMy meaning of resilience is ...
• Becoming resistant to impacts and also being able to recover operational state g pafter impact
• A function of• A function of– Robustness– Redundancy– AgilityAgility– Adaptability
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
The opposite of resilience isThe opposite of resilience is …
• NOT uncertainty– Resilience can cope with
uncertainty– Adaptability does not
i t i trequire certainty• Vulnerability
– Break at low levels of impact
– Single points of failure– Rigid hierarchy, silos and
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
processes
Uncertainty isUncertainty is …
• The reason we are all here!
• No uncertainty, no need for BCM– www.seek.com.au
• A fact of life youA fact of life, you cannot eliminate it
N t li i t d b– Not eliminated by “epistemic arrogance”
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
Risk isRisk is ...“th ff t f t i t bj ti ”• “the effect of uncertainty on objectives”
• “Uncertainty is the state, even partial, of y , p ,deficiency of information related to, understanding or knowledge of an eventunderstanding or knowledge of an event, its consequences, or likelihood”“ li i l k f i• “... explicitly takes account of uncertainty, the nature of uncertainty and how it can be yaddressed”
» ISO31000
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Uncertainty is increased byUncertainty is increased by…
• extended international supply chainspp y– Small fire in New Mexico
Bad weather + Salt– Bad weather + Salt shortage in UK/Europe
i i ti l• growing organisational interdependence
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
High Uncertainty situationsHigh Uncertainty situations
• All risks are not created equal ...– Non-Routine risks– High Impact, Low Probability
O t id th i f• Outside the common experience of Management– Limitations of Science and Management to
respondp• Virtual Risk and Wicked Problems
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
Wicked ProblemsWicked Problems• Rittel & Webber
– Keith Grint
T P bl• Tame Problem– Maybe complicated– Limited degree of uncertainty– Limited degree of uncertainty– Know how to fix it– Can apply a known process
• Wicked Problem– Complex, not just complicated– Don’t know how to fix (or when is fixed)– Fixing it might break something else
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‘Heritage’ BC and resilienceHeritage BC and resilience
• Relevance of the program to – Executive Managementg– Operations
“Pl thi l i i thi ”• “Plans are nothing, planning is everything”• Deja vu or vu jade??j j• Something you are, not something you do
N t f k lif l– Not a framework or a lifecycle
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
ConvergenceConvergenceNot about where BCM should• Not about where BCM should sit in the organisation– Requires collaboration of a range q g
of disciplines across silos• BAU practices and culture will
limit your scope for;limit your scope for;– Agility– Adaptability
• Field Test on EM/BCM links
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
Capability not just complianceCapability not just compliance
C li id f t l• Compliance as evidence of control– Control perceived to reduce uncertainty– To achieve performance people take short
cuts– Report good news, which is not questioned
• Capability as evidence of outcomes andCapability as evidence of outcomes and ability to execute– Demonstrated by exercise and drill– Demonstrated by exercise and drill– Integrated with day-to-day processes
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
Elegant or Clumsy SolutionsElegant or Clumsy SolutionsA l th i t f i t• Apply the appropriate framing to the problem
Building Robustness or– Building Robustness or Redundancy may be Tame
– Conflict between Redundancy andConflict between Redundancy and ‘Lean’ approaches may require re-framing
• Requires different models of leadership or management
• Developing Adaptive responses is probably Wicked
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
Art and ScienceArt and Science
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved
Questions?Questions?
• Couple of starters …– Is resilience a journey
or a destination?– Do you want/plan to
th ?go there?
Solutions for the real world © 2010, The VR Group Pty LtdAll Rights reserved