GUIDE TO BUSINESS CONTINUATION - cpareport.com · The BOOMeR AdvAnTAge guide TO BuSineSS...

GUIDE TOBUSINESS

CONTINUATION

The BOOMeR AdvAnTAge guide TO BuSineSS COnTinuATiOn

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Contents

2 Contents3 Executive Summary4 Getting Started6 Key Elements of a Business Continuity Program8 Developing a Business Continuity Program14 Additional Considerations16 Other Planning Topics17 Taking Business Continuity to Your Clients19 One Page Plan20 About the Author21 About Agility Recovery Solutions


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CPAs are among the most trusted and relied-upon advisors in business today. Individuals, organizations and communities put their futures in your hands on a daily

basis. It’s vital to have an actionable business continuity program to address what would happen if any or all of your critical business functions were compromised due to a natural or man-made disaster.

Business continuity programs have always carried negative connotations in reference to time and cost. By focusing on key issues related to business continuity planning, your firm can put together an initial program efficiently and at minimal cost.

Like most projects, your business continuity program needs an internal “champion” to manage the process and see it through to completion. In this Boomer Advantage Guide™, your “champion” will learn to focus planning on four key continuity elements: power, technology, space and connectivity. Once these four critical aspects are addressed, the business continuity planning team can begin fleshing out other issues in an effort to have a robust and actionable business continuity program.

You’ll see us refer to the process as building a business continuity program, instead of a plan. A plan is a one-time process of developing a strategy, while program refers to an ongoing and evolving process. You’ll consistently need to update and refine your program as your business evolves.

Just the Beginning

Developing a business continuity program is only a start for your firm. Once you experience the process, you’ll be able to work with clients on their program development, a great revenue opportunity.

Business continuity is vital in today’s business world. Creating an effective business continuity program will not only prepare your business for the future, it may identify processes that can be redefined or eliminated to improve efficiency.

Executive Summary

“In preparing for battle I have always found that plans are useless,

but planning is indispensable.”

-Dwight D. Eisenhower


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Business interruptions can take many forms and seldom give us warning. And, what might constitute a nuisance to a large firm could be a “disaster” to a smaller one.

Each firm is different and must consider the specific challenges that confront it. Taken into account must be size, location, priorities and a multitude of other variables that can only be defined by the firm preparing the program.

In many respects, a firm able to recover quickly and serve its clientele while operating in a crisis will earn high marks from employees, clients and partners alike.

Forming a Business Continuity Team

The size of the planning team will depend on the firm’s operations, requirements and resources. Group involvement:

Encourages participation and gets more people involved in the process.• Increases the amount of time and energy participants are able to give.• Enhances the visibility and stature of the planning process.• Provides a broad perspective on the issue.•

Depending on the size of your firm, employees from each of your departments or business functions should comprise your business continuity team. Having cross-function participation also means your team members will be the ideal medium for disseminating information about the program to employees.

Management’s commitment to providing an atmosphere of cooperation by “empowering” the planning team is essential in promoting the steps necessary to develop a program. A senior level manager/principal should lead the team and allow for the free flow of ideas.

Getting Started


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Issue a Mission Statement

Have the team champion issue a mission statement that demonstrates the firm’s commitment to business continuity. The statement should:

Define the purpose of the program and emphasize the entire firm’s involvement.• Define the authority and structure of the planning team.•

Once complete, this mission statement should be communicated to employees, clients and prospects. Obviously, good preparation displays a strong degree of professionalism. Leading by example is an aspect of all good advisors. It imparts a sense of trust and should make every client feel more secure that their CPA firm is worthy of their business. Thus a mission statement is a critical step in establishing a business continuity program.

Setting Goals and Objectives

When your business continuity team convenes for the first time, the leader should express the importance of a business continuity program and why your firm is putting forth the effort to develop one.

The leader should ask rhetorical questions to get each team member on the same page for where your program is heading. Here are some sample questions to ask and get team members thinking:

How does our company operate, both internally and externally?• What staff, materials, procedures and equipment are absolutely necessary to keep the • business operating? What suppliers, shippers, resources and other businesses do we interact with on a • regular basis?What will we do if our building/office is not accessible? •

Although rhetorical, the questions above may spark discussion of both high level practices and specific incidents. Such conversation is OK, but should be limited in order to focus on the development of the program.


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We will continue by identifying and discussing four critical elements of your business’s operation: power, technology, space and connectiv-

ity. Use these as a basis for your discussion and development of a business continuity program.

Power – Which of your business functions rely on electricity? Obviously, computers, servers, fax machines and photocopiers couldn’t operate without power. But also think about HVAC, security systems and, of course, lights.

Each year, most companies experience temporary power outages lasting between seconds and minutes. This type of outage may be tolerable in your business. But what if the local power utility predicts an outage to last days? What would be your strategy for maintaining continuity in your operations?

Technology – Many small to mid-sized firms outsource their IT function to third-party providers. Some see the value of having an IT resource in house. Regardless of the technology talent you have available, a core piece of your technological infrastructure is bound to fail at some point. What sorts of redundancy can you implement that can ease the pain of a technology failure?

Space – Perhaps your biggest discussion will focus on space-planning needs in case of an interruption that has short- or long-term effects on your office space. Whether your firm resides in a high-rise, single-story or something in between, plan for an interim solution in case your office space is unavailable.

Connectivity – Internet and phone outages are events we seem to deal with on a regular basis, both at home and work. Momentary outages are common and tolerable. But long-term outages can paralyze a business. How would your clients contact you without office phones or e-mail connectivity? How would your people interact and share data?

Key Elements of a Business Continuity Program


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Other Key Considerations

The four key points previously highlighted (and expanded upon later) are the focus of a business continuity program. Additionaly, think about how they go hand-in-hand with the following:

Loss of information – Data loss can occur due to technical or human error. Are you • capable of recovering your data? Loss of access – What resources and information are kept in your office? Can you • function on a day-by-day basis without them? Loss of knowledge – Many firms have critical employees with banks of knowledge. • What would happen if one of these assets left the firm or was unable to produce vital information?

Did You Know?


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As previously stated, the four key elements of a business continuity program are power, technology, space and connectivity. The following is a detailed description of

each. Feel free to add in your own topics as you see fit.

Statistics show that 70 percent of businesses will lose pow-er within the next year. Sure, many of these outages will be for seconds or minutes and will only require a few simple tasks once electricity is restored. But, what if an “event” causes electricity to be out for days or weeks? How will your firm react?

When we think of power outages, we list weather disasters as the top causes. Thunderstorms, tornados, hurricanes and the like are all causes of power outages. But smaller isolated events such as blown transformers, improper construction digging and even automobile accidents are known to cause unlikely interruptions.

To prepare your firm for a potential outage, start small. Make sure key technical components like servers and phone systems have emergency battery backups. An uninterruptible power supply (UPS) allows companies experiencing outages to safely use technology, like servers, for a short period of time during an interruption. If experiencing a lengthy outage, a UPS provides a means for you to safely and correctly power down equipment.

Generators

Now think about longer outages and your firm’s reaction. You may need to secure a generator to keep critical functions operating. Even though hundreds of thousands of power generators sit unused throughout the country, regional outages make the resources scarce in a matter of minutes. Entering into agreements with generator or disaster recovery providers ahead of time will give you priority access at time of interruption.

Once you’ve secured a generator, you need to route power to your office space. Two options exist: transfer switches and spider boxes.

Transfer switches are installed on the exterior of your building by an electrician. A generator safely attaches to the switch to allow power to your space.

Developing a Business Continuity Program


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Spider boxes are, more or less, elaborate extension cords that run directly from the generator to your office space. This option is best for powering a few critical devices like servers and phone systems.

Depending on your office type and location, neither or both options may work. Regardless, you must have a plan in place in case they don’t work or if your interruption is more severe than just a brief power outage.

In addition, you’ll need to contract with a fuel vendor to re-fuel the diesel for the generator. Having an agreement in place ahead of time will ensure your priority status, especially during a wide-spread event.


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Businesses in the 21st century rely on technology more than ever. You probably turn on your computer each morning and check e-mail. You may save digital client files on a server. The list goes on and on.

When piecing together the technology portion of your business continuity program, consider:

Which technologies are critical for • our daily operation? Do we back up our server regularly? • Is the backup stored offsite? Have we tested our backups? If employees use laptops, do they take them home each night? Should all employees • have a laptop? Do we have the original software license disks and codes in case we need any • programs on new computers? How long can we be without a critical server or other piece of equipment? What’s • our plan for rapid replacement?

Data A current trend in data protection is managed and co-managed hosting. This entails a si-multaneous back up of server files between your office and the managed hosting facility. Some firms choose to eliminate in-house servers altogether in favor of managed hosting.

Computers and Servers

Consider what your firm will do if its entire technological infrastructure is compromised. A “big box” retailer should not be the only option, as demand may outpace supply during a regional event. Consider contracting with a technology or disaster recovery provider ahead of time to ensure timely replacement of critical equipment.

Agility Recovery Solutions’ Distribution Center in Atlanta, Ga.


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Simply put, what would you do if your office space was inaccessible for days or weeks? Your firm may be able to get by the first couple of days by working from home. But if the office is inaccessible, there’s a chance that e-mail servers and complementary technology may be out of commission, too, which will hinder regu-lar operations.

Plans for alternative office space should be established ahead of time. Some organizations may choose one of the following:

Utilize a secondary firm location.• Lease temporary office space.• Secure access to a mobile office unit.•

These three common options may seem overwhelming to plan for and implement. But doing so in advance will make the recovery process smoother than if plans hadn’t been made at all.

Secondary Location

Your firm may be large enough to enjoy the benefits of having a secondary location that employees can relocate to during an interruption. But, before deciding on this option, take into account the space and technology available at the secondary location and it’s proximity for employees. How far from home are you employees willing to travel? Is there enough space to house displaced employees? Is temporary housing available and at what cost? Also consider if the office has enough computers, printers, network connections and even parking spaces to handle the temporary increase in demand.

Interior of a 48-seat mobile office space.


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If you do choose to relocate to a secondary site as part of your business continuity program, you may want to take steps to ensure the secondary location has access to the data you utilize in the primary location. This will ensure continuity of operations.

Temporary Office Space

Another option would be to enter into an agreement for vacant office space. This less popular option often requires businesses to invest in new technology and furniture, both high-ticket expenses. In addition, it may take time for the lease to be approved, certificate of insurance to be issued, etc.

Mobile Office Space

A final choice would be to have mobile office space set up in a parking lot or nearby location. Although it sounds complex, with proper planning, mobile office units may be the most logical recovery solution, as it allows you to recover virtually anywhere.

In most cases, recovering “close to home” may be in the best interest of your company. Asking employees to travel long distances during a recovery may hinder productivity and morale.

Mobile office space is available from mobile office or disaster recovery providers. Going through a disaster recovery provider may give you the most robust option because they often provide the furniture, technology and generators needed to make the temporary office space immediately operational.


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The final major aspect of restoring opera-tions is that of connectivity, which means access to phone and Internet connections. As stated before, we take connectivity for granted in our everyday lives.

You’ll address the need for connectivity when:

A long-term outage affects phone and • Internet use in your office. You need additional bandwidth or • lines when recovering in a secondary office space. You choose to recover in a mobile office unit that cannot be connected to land-based • resources.

Regardless of the situation, you should plan to enter into an agreement with a satellite or disaster recovery provider that can provide you with phone and Internet access in your recovery timeframe via a secure satellite connection.

In addition, you should have a plan in place to reroute your existing phone number(s) to a voice mailbox or cell phone, if service is available.

Satellites provide phone and Internet access for recoveries.


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The four key elements of a business continuity program are just the beginning. The second part of planning should consider the people aspect of your firm.

Planning for the Loss of an Employee

No one likes to think about the possibility of losing an employee, especially a key employee. We fully expect to run a highly successful accounting firm with reliable employees who never get sick, have spouses that get transferred, receive better employment opportunities or suffer a tragic disability or death. Unfortunately, denying the possibility until such an incident occurs can put major strains on any firm, especially if they have not planned for the possibility of such an occurrence. Many firms could find themselves in jeopardy if there is no plan in place when a principal or a key employee is lost.

There are several critical items that need to be considered when putting together your continuity program.

Developing Job Descriptions and a Firm Workflow System

The only way to plan for the loss of an employee is to make certain that all aspects of an employee’s job responsibilities are documented. One of the first steps in this process is to develop a written job description for each employee. These job descriptions should also include all tasks for which the employee has secondary responsibility. This information can then be used in an emergency for reassignment, hiring and assessment of loss.

All job descriptions in a firm should follow the same format to prevent any misinformation and avoid omission.

It is helpful to have all job descriptions together in a binder to allow for quick reference and use. All of these descriptions should be reviewed at least once a year for modifications and corrections. Job descriptions are necessary for the survival of your firm; therefore, there should be more than one copy with at least one stored offsite.

Additional Considerations


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Documentation of the firm’s workflow must include a detailed organizational chart. The job descriptions and workflow system will need to be reviewed and refined until they accurately portray your firm. Once completed, an annual review of these documents should be done to make sure staffing modifications or changes to the office or business environment have not rendered any aspect of the workflow documentation obsolete or inadequate.

Once these first two tasks are accomplished, the firm will need to review all positions to make certain there is at least one other individual in the organization who can step forward at a given time and perform any and all necessary responsibilities until the employee returns, or a permanent replacement or solution can be found. This alternate person should receive all necessary training to ascertain they are ready for the responsibilities. If either the primary individual or the alternate feels uncomfortable with the alternate’s ability, additional training should be done or a different alternate person should be appointed and trained.

If there is any person who cannot be adequately backed up by an existing staff member or partner, including and especially the managing partner, a solution outside the office should be found. Consultants or other accountants may be found to be the best solution to insure that the firm will survive any adverse situation until a permanent solution can be implemented. Again, preparations with these outside professionals should be negotiated prior to an issue occurring. The firm’s negotiating position is more powerful when a potential interruption has not occurred and any entailed transition will be much smoother when all contributors (firm employees and outside professionals) have a complete understanding and appreciation for their position in any personnel interruption.


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Employee Assistance Program

Consider enrolling in an employee assistance program that allows employees a place to anonymously call 24/7 for stress or grief counseling. During a wide-spread event, you must be sensitive to employees’ personal needs and losses.

Emergency Time Off

Revise your human resources documentation to offer employees paid emergency time off for those who lose possessions, or worse, family members, as a result of a disaster.

Emergency Funds

Work with your payroll department or processor to assure payroll continuity. Employees will not be very accommodating while not receiving a paycheck. In addition, make sure plenty of cash is on hand immediately after an interruption, as some businesses affected by a widespread event may not accept checks or credit cards initially.

Communication

Make employees aware of a meeting spot, either a physical and/or virtual location, where they can access information about the firm and its recovery plan of attack.

Also, develop an employee contact list of personal e-mail addresses and phone numbers of family or friends where they would potentially evacuate to, if required.

Fixed-Asset Inventory

Be sure to document critical firm assets like computers, servers, buildings and the like in a fixed-asset inventory. Include receipts, photos and other vital information about assets with help from your insurance agency to expedite your insurance claims.

Other Planning Topics


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Your firm should be proud of the commitment made to business continuity. Through your program development, you can ensure your clients 100 percent accessibility, no

matter what. Let them know of the steps that you have taken and encourage them to do the same. Especially those clients that your firm could not stand to lose.

Offer your clients assistance with the development of their business continuity program. The additional billable hours will be welcome in typical downtimes, and the service will help solidify your client relationship and elevate your “trusted advisor” status.

Also, don’t forget to tell your prospective clients about your commitment to and expertise in business continuity program planning. Offer to assist them with their planning once they sign on as a client.

Initiating the Conversation

Business continuity offers your firm a perfect talking point to stay in touch with your clients throughout the year. Initially, you can share how your firm recently went through the program planning process and how much the company learned, not just about business continuity, but about your daily operations.

Taking Business Continuity to Your Clients

Did You Know?


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Throughout the year, you can continue to inform your clients about the importance of a business continuity program including the need to be in business, no matter what. Share continuity planning tips with clients through newsletters, website, and/or e-mail signature lines. Your commitment to a program will set the bar to what is required and expected of your clients. It will also establish your firm as a knowledgeable business continuity resource.

Coaching the Client

Once your client has agreed to the importance of a business continuity program, your firm can begin to offer assistance in their program development. Make yourself available to introduce business continuity to your client’s employees and spearhead the program development process.

Meet with your client’s management team to explain the process and ensure they are dedicated to completing the task at hand. Outline the program development process and realistic requirements for completion, including hours and budget. Encourage the management team to appoint a business continuity taskforce and name an internal “champion” who will bear full responsibility for program development and, if necessary, execution.

Become an Invaluable Resource

After your client identifies an internal “champion,” be that person’s mentor through the process. For example, your firm could easily:

Assist with the identification of critical operations. • Explain the four key elements of recovery (power, technology, space and • connectivity) and why these factors are vital to continuing operations. Establish a program that allows for recovery of all four elements during an • interruption.Develop a data back-up plan or test any existing procedures.• Create a crisis management plan that includes both internal and external audiences. • Establish a fixed-asset inventory to assist with recovery efforts and insurance claims.• Perform an annual or semi-annual review of the client’s program to identify gaps or • parts of the program that require updating.

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STRATEGIC OBJECTIVE

MEASUREMENT STRATEGY/INITIATIVE DUE DATE ASSIGNED TO

1. Complete a business continuity assessment program

Process • improvement areas identified Requirements • document developed

develop a cross-functional business continuity task force• Analyze current business continuity & disaster recovery processes to identify process improvement • opportunitiesPerform a gap analysis of current & desired processes• develop process flows based on process analysis and desired improvements• develop a requirements document based on gap analysis and new process flows.•

April 1April 15

April 15May 1May 1

CiOTask Force

Task Force Task ForceTask Force

2. develop a business continuity program

Business continuity • program has been implemented Mission statement • has been communicated and sufficient support exists in the firm

develop a business continuity program mission statement• Research best practices and available tools and develop a “short list”• develop & distribute a RFP based on requirements document and conduct vendor presentations• Select vendor(s) and negotiate price• hire a third-party expert to help guide the implementation• develop an implementation plan and execute•

June 1June 15July 1July 15July 20August 1

Task ForceTask ForceTask ForceTask ForceTask ForceFirm

3. Communicate the business continuity program details to employees and train them on how it affects their roles in the firm

increased • understanding of processes, tools & roles increased • confidence in business continuity program

identify champion(s) to recruit supporters and train end-users on the business continuity program• develop written documentation, FAQs and training guides • Solicit feedback and suggestions for communication & training improvements• Conduct practice simulations to test understanding of business continuity program• Monitor communication & training plan and adapt if necessary•

June 15August 1August 15September 1September 1

Task Force/CiOTask ForceTask ForceTask ForceTask Force/CiO

4. Monitor business continuity program and make continuous improvements

% of firm adhering • to new program decrease in time • to return to a productive state

develop standards/measures for user adoption and commitment to new business continuity program• Build standards/measures into the performance review process• Continually solicit feedback and suggestions for process improvement• Capture, prioritize and assign due dates to suggested improvements• implement process improvements•

August 1August 1September 1September 1September 15

Task ForceCiOTask ForceCiOTask Force

One Page Plan


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Tom Meckley is the director of Agility Recovery Solutions’ CPA division. Meckley joined Agility

in 2005 after a successful career with Ernst & Young, LLP, where he served as Managing Partner of both the Allentown, Pa., and Charlotte, N.C., offices.

Meckley earned a bachelor’s degree in accounting from Elizabethtown (Pa.) College and is a graduate of the Executive Program at the University of North Carolina – Chapel Hill.

About the Author


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Agility Recovery Solutions is the leading provider of business continuity solutions for small and medium-sized businesses across North America. At time of business

interruption, Agility provides its members with the space, power, connectivity and technology needed to resume business as usual.

A former division of GE with nearly 20 years of industry experience, Agility maintains $35 million of equipment and has direct access to millions of dollars of additional equipment. Agility also holds priority relationships with 256 partners, including FedEx, General Electric, IBM and HP.

Our Vision

We believe that every business should have access to business continuity services that are simple, affordable and easy to use.

Visit AgilityRecovery.com for more information.

About Agility Recovery Solutions

© 2008 Boomer Consulting, Inc. All Rights Reserved. No part of this publication may be reproduced in any form, or by any means whatsoever, without the written permission from the publisher; except in the case of brief quotations embodied in

critical articles and reviews.

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