BCI Summit Sydney 2010

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


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


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


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


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”


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

Solutions for the real world

» ISO31000© 2010, The VR Group Pty Ltd

All Rights reserved

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


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


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

Solutions for the real world

‘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


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


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


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


Art and ScienceArt and Science


Questions?Questions?

• Couple of starters …– Is resilience a journey

or a destination?– Do you want/plan to

th ?go there?


BCI Summit Sydney 2010

Business

Transcript of BCI Summit Sydney 2010