Business Contingency Planning.pptVIP

Business Contingency Planning Presentation By: Sheldon E. Spackman What Will Be Covered Business Contingency Planning a Definition How B.C.P. Can Be Applied Tools To Make It Work A Real World Example Sit Down and Try It Summary Readings List Business Contingency Planning A Definition A Proactive Executive Command Crisis Management Program, Driven By Business Requirements, To Control Any Significant Impact, Either Positive Or Negative, On An Organization. Contingency Planning Can Be Applied To: Disasters Competition Missed Forecasts Recovery Critical Vendors loss (Sole Sourcing) New Products A Critical Customer Loss Computer Failure/Data Loss Significant Events Applying Contingency Planning Leadership Preplan No Plan = Decision Flurry Can’t Plan For Everything What Events Should Contingency Planning Be Confined To? Events That: Cannot be foreseen Cannot be supported Are beyond reasonable control Exert a significant impact Are based on major assumptions that prove invalid Tools To Make It Work Fast Feedback Fast Response ZZB Principles Best, Worst, and Most Likely Cases Steps in Contingency Planning Where to Start Upper management commitment Company resources committed Communication Review Feedback Types Of Feedback Competitive Intelligence Customer Research External Environmental Scanning Monitoring Major Business Assumptions Financial Analysis Zero Based Budgeting and Planning Budget Planning 90%, 100%, 110% Reactions Pre-planned Best Worst Or Most Likely List and define all variables Best assumption Most likely assumption Least likely assumption Steps of Contingency Planning Identify Estimate Formulate Develop Plans Establish Feedback Mechanism Develop Schedule of Resources Pro-forma Financials Designate people Possible Internal Significant Events Replacing a Competitor Overly Optimistic Sales Forecast Sales of New Products Disasters Technological/Product Obsolescence Major Assumptions (In company plan) Contingency Reserves ($$$$$$$$$$) Ex