Enterprise resilience:What does BS65000 mean for you?
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Transcript of Enterprise resilience:What does BS65000 mean for you?
Enterprise Resilience:What does BS65000 mean for you?
www.pwc.co.uk
Charley Newnham
BCI Forum, June 2015
PwC
For your consideration
• What is organisational resilience?
• The bluffer’s guide to BS65000
• Practical resilience models you can use in your workplace
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June 2015
PwC
Challenge #1
• Jot down 3 companies that have failed in recent years
• Jot down 3 companies that seem to be thriving right now
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June 2015
Questions
• Are the companies on the second list more resilient than those on the first?
• Is it likely that any of the 3 failed companies didn’t have BCM, Risk Management or Crisis Management protocols?
• What are the key differences between the organisations in the first and second lists?
PwC
What is organisational resilience?
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June 2015
What’s your definition?
“The ability of an organisation to provide and maintain an acceptable level of service in the face of faults and challenges to normal operation by preventing, avoiding and
resisting damage and recovering quickly.”BCI Conference Speaker 2013 (paper from 2011)
“The capacity of an organisation to plan for and adapt to change or disruption, through anticipation, protection, responsive capacity and recoverability”.
BCI Working Group Paper, 2012
“The capability of an organisation to anticipate, and respond and adapt to, incremental change and sudden disruptions in order to survive and prosper.”
BS65000
“The capacity of an organisation to react to change to survive and evolve.” PwC
PwC
Why BCM isn’t resilienceThe Crisis Continuum mapped to Business Continuity Management
5(Newnham, 2012, after Burnett, 1998)
Business Continuity Management
effort to the ‘left of bang’
Time
To manage /respond during and
to the right of bang
Requirement to
RespondOpportunity to build resilience
Sense check
How many of your “3 failed” organisations disappeared because of a single event?
PwC
Three key points
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An organisation’s resilience is its capacity for sustaining survival and success
Resilience is generated and diminished by ‘who’ you are, ‘what’ you do and ‘how’ you
do it as an organisation.
Resilience that is understood can be altered, manipulated and leveraged to
enable sustained existence and success.
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June 2015
PwC
Perception of increasing
industry/sector failures
Stakeholders expect more
from us
Increased regulatory pressure
Increased resilience guidance
What’s driving the conversation?
• “RBS apologises for Cyber Monday technology breakdown” (FT);
• “1200 dead and no one to blame” (The Sun on Mid Staffs NHS Trust);
• “News of the World closes down” (FT);
• “FCA stands by decision to sanction Paul Flowers as Co-op Bank chairman” (FT);
• “Council fined over loss of 78 unencrypted laptops” (Daily Mail);
• “Whitbread promises supply chain crackdown amid horse meat scandal (The Telegraph);
• “Blackberry outrage hits RIM on iPhone5 day” (CNN Money);
• Closures of established firms: Woolworths, Barings Bank, Lehman Brothers, Sea France, ITV Digital...
• BS65000 – Organisational Resilience Guidance Standard (2015);
• Roads to Resilience (Airmic, 2014)
• ISO 22316 Organisational Resilience (expected 2017);
• Australian government Organisational Resilience website
• ICSA guidance
• Bank of England: Resilience Benchmarking
• OfWat: Resilience Outcome Focussed Regulation;
• OfGen: Lords investigating regulator role in resilience;
• ORR: Demand Network Rail consider resilience • Staff
• Customers
• Shareholders
• Regulator(s)
• Government(s)
• Public perception
• Company lifespans are getting shorter
• Change feels deeper and/or more rapid
PwC
The bluffers guide to BS65000What it says
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June 2015
Benefits
• Sustained viability
• Competitive advantage
• Coherence
• Efficiency & effectiveness
• Reputation
• Societal resilience
Operational aspects include
• Risk management
• Health & safety
• Business continuity
• Environmental management
• Facilities management
• Security
• Supply chain
• [It’s a long non-exhaustive list!]
Enabling survive and thrive:
• Be informed: what’s coming?
• Set direction: stress test strategies and change course when needed
• Be coherence
• Develop adaptive capacity
• Strengthen the organisation through it’s culture, approaches, innovation and actions
Challenges
• Redundancy costs money
• Just in time v just in case
• Reliability v innovation
• Stated values v behaviours
• Legal and regulatory obligations
PwC
Enterprise ResiliencePwC periodic table of key resilience indicators
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June2015
IdentityIncludes: values, behaviour, social capital
Context and environmentIncludes: situational awareness, networks and dependencies
LeadershipIncludes: governance, stress-tested strategies, disciplined innovation
Value protectionIncludes: risk management, BCM, security, crisis management
Capability and capacityIncludes: people, supply chain, finance
Who We
Are
PwC
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PwC Enterprise Resilience Framework
PwC periodic table of resilience indicators and PwC Resilience outcomes
PwC
Other models for Organisational Resilience
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June 2015
Source: ResOrgs c 2012Source: International Consortium for Organisational
Resilience (ICOR – community focussed)
PwC
How resilient is your organisation?What shape is your resilience?
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PwC
Why is your organisational resilience that shape?
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PwC
Jim Collins’ Five Stages of DeclineOne theory worth bearing in mind…
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June 2015
Organisations can live on past success for quite a long time
In reality, the profits (represented by this line) can be going up while the organisation is dying
A company can survive up to Stage 4; return from Stage 5 is almost impossible
PwC
Let’s talk about elephant in the roomIs enterprise resilience on the board’s agenda?
Repeated failures
Reduction in sales
Decreasing operating profit
Greater competitor activity
Increasing regulatory pressures
Living on past success Planning for acquisitions
Exciting change
Planning for growth
Entering new markets
Emerging opportunity
When was the last time “organisational resilience”
was on the Board’s agenda? Building on success
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June 2015
Thoughts, questions, questions for each other?
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the
information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the
accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members,
employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act,
in reliance on the information contained in this publication or for any decision based on it.
© 2015 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwC network.
Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
Charley Newnham
M: +44 (0) 7930 402575E: [email protected]