Managing To Measure

& Measuring To

Manage

Christopher Green FBCI

Today’s Session

- Why Measure?

What to measure? BIA Plan Development Testing BC Program

Why Measure?

Why Measure?

Why Measure?

Why Measure?

Future Events?

What to Measure?

•Plans ?•BIA ?•Callout ?•Exercises?•Crisis Capability ?

•Whole Program ?

•Reputation ?

BCM Lifecycle

1

2

34

5

6

7

8

10

9

PROBABILITY

SEVERITY

Risk Heatmap

Day 1 Day 3 Week 1 0

50

100

150

200

250

300

Loss of Income

Extra Expenses

Opportunity Costs

The Financial Cost

The Operational Cost

Critical Operations?

LEVEL OF HARM

A B C D E

NATURE OF HARM RELEVANTMEASURE

Extremely serious harm

Very serious harm

Serious harm Minor harm

No significant

harm

Financial Loss(loss of sales,

unforeseen costs, legal liabilities, fraud)

Total financial impact: Over £10m £1m to

£9.9m£100k to

£1m£10k to

£99k Under £10k

Degraded performance

(failure to achieve targets, loss of productivity)

Key targets under-

achieved by:Over 10% 6% to 10% 1% to 5% Less than

1% No Impact

Number of staff hours

wastedOver 10,000 Staff hours.

1001 to 10,000 Staff

hours501 to 1000 Staff hours

100 to 500 staff hours

0 to 100 staff hours

What’s The HARM – 1?

LEVEL OF HARM

A B C D E

NATURE OF HARM RELEVANTMEASURE

Extremely serious harm

Very serious harm

Serious harm Minor harm

No significant

harm

Performance Loss(Customers)

Customers not Served:

More than 20% 12-20% 10-12% 5-10% <5%

Reputation Loss

Bad Publicity in:

National and international

media

National media,

inside pages

Local media, front

Local media,

restricted

No coverage

What’s The HARM – 2?

What’s The HARM – 3?

  LEVEL OF HARM

LOCATION Total HARM

A(*20)

B(*5)

C(*3)

D(*2)

E(*1)

Location 5 113 4 4 2 2 3

Location 7 100 5 0 0 0 0

Location 1 100 3 5 4 0 3Location 3 94 3 5 2 0 3Location 6 85 1 4 9 5 8

Measuring Plan Development

We can count… Number of Plans ? Number of Changes ? Regular Sign-off ? Content of Plan ?

Measuring Plan Development

But it’s easy to count the wrong data….

Plan Health Check

Measuring Exercises

2005

2006

2007

2008

2009

2010

2011

2012

05

1015202530

35404550

Power

Hardware

Terrorism

Communications

Flooding

Data Corruption

What to Test?

Orientation Briefing

Event

Offsite - Multiple BU

Full Simulation

Desktop - Timed / IT Technical Test

Plan Audit / Discussion

Offsite Exercise - Single BU

Desktop / Walkthrough / IT Technical Test

Measuring Exercises

System/Service RAGAdvantage Elite GREEN

ALEAXIS GREENAssistance GREEN

Auda Enterprise Archive Server REDAudatex (Home) GREENAudatex (Motor) GREEN

Bentley Motor Claims AMBERBIS Printing AMBER

Blue Bay AMBERBody Management System AMBER

Business Intelligence AMBERCEDAR-O GREEN

Cedar Financials (Rupert) REDChordiant (Host) GREENChordiant (Off Host) GREEN

Cicsfax GREENCOGNOS Powerplay RED

Complaints MI GREENDelphi RED

Direct Connect MIS REDDirect Connect Voice Recording GREEN

Direct Marketing Information System (Closed) REDDirect Connect – SAP-RG GREEN

DVLA GREENE Commerce Daily MI GREEN

E Financials (Closed) GREENeCRM GREEN

eCRM Payment Gateway GREENEquifax GREEN

Fax_web/Connect (Access to IS2000) GREENFIDOSCAN RED

Finsure GREENGentran GREEN

Goldmine GREENHibernate REDHALCO (Barrell) GREENHALCO (Guize) GREEN

IS2000 GREENITP Rating and Pricing RED

Landscape GREENLotus Notes GREEN

System/Service RAGMAM REDMicrostrategy GREEN

National Hunter Claims GREENNetConnect GREENNetConnect SAS GREENNET_Database REDNUCLEAR MEDICINE RED

Oracle Financials GREENOracle FM GREENPersonnel Lines GREEN

Probe REDPSF GREENPULSE GREEN

RAS (Closed) GREENRAS BASE STRATA REDRedman Reporter REDRedman Scheduler GREENRobotic manuals GREENSAS BAA-G GREENSAS MIA-L GREENSAS MIA-M GREENSolcase (Barrell) REDSolcase (Guize) RED

Special Risks Application REDStolen Vehicle Recovery System (TRACKER) GREEN

Teamsite AMBERToucan Lite GREENTARDIS (Tracker) AMBERUIS (Clement) AMBERUIS (Devolved) AMBERUK MI Data Warehouse GREENUK MI Seahorse GREENUK Overseas Data Feeds GREEN

ULTRA GREENVectus GREEN

Vehicle Asset Management (TRACKER) GREENVoice Recording (Family) GREEN

Web Channels (Household) GREENWeb Channels (Life) GREENWeb Channels (Motor) GREEN

Web Channels (UK Special Partnerships) GREEN

IT DR Status

For Every Recovery Test Every Business Every Year

.......... We measured up to 13 components

Could also apply it to crisis exercises, callout tests etc.

Measuring Exercise Components

Measuring an Exercise - 1

Q1: How many STAFF will take part in the exercise compared with full recovery requirements?

10 9 8 7 6 5 4 3 2 1 Criticality(1 to 10)

Q2: How much HARDWARE is in scope compared with full recovery requirements?

10 9 8 7 6 5 4 3 2 1 Not part of plan

Criticality(1 to 10)

Measuring an Exercise - 2

Q3: How many APPLICATIONS are being tested compared with full recovery requirements?

10 9 8 7 6 5 4 3 2 1 Not part of plan

Criticality(1 to 10)

Measuring an Exercise - 3

Scale and Score

Division Target Actual KRI RAG

Div A 68 76.58 58 Green

Div B 68 74.45 58 Green

Div C 68 78.91 58 Green

Div D 68 69.26 58 Green

Div E 68 50.71 58 Red

Div F 68 56.18 58 Red

Div G 68 63.43 58 Amber

Div H 68 61.30 58 Amber

Div J 68 76.99 58 Green

Div K 68 50.41 58 Red

Average 68 67.88 58 Amber

Key Risk Indicators – 1

Div A Div B Div C Div D Div E Div F Div G Div H Div J Div K20

30

40

50

60

70

80

BCM Testing KRI - Score

Target

Actual

KRI

Division

Sco

re

Key Risk Indicators – 2

Division Target Actual KRI RAG

Div A 68.0 69.21 58 Green

Div B 72.2 74.45 64 Green

Div C 72.2 78.91 64 Green

Div D 75.8 77.26 66 Green

Div E 56.5 42.12 50 Red

Div F 56.0 48.20 50 Red

Div G 56.0 53.56 50 Amber

Div H 80.0 75.60 72 Amber

Div J 85.5 85.88 75 Green

Div K 85.5 74.33 75 Red

Average 73.0 72.41 62.4 Amber

Key Risk Indicators – 3

Key Risk Indicators – 4

Div A Div B Div C Div D Div E Div F Div G Div H Div J Div K20

30

40

50

60

70

80

90

100

BCM Testing KRI - Score

Target

Actual

KRI

Division

Sco

re

Programme Measurement

Programme Measurement

Variable Targets

Detailed Statements

Mains

Generator

UPS CommsUPS Desk

Run Time

Cooling

Water Mains

Generator

UPS CommsUPS Desk

Run Time

Cooling Water

Mains

Generator

UPS CommsUPS Desk

Run Time

Cooling Water

Mains

Generator

UPS CommsUPS Desk

Run Time

Cooling WaterMains

Generator

UPS CommsUPS Desk

Run Time

Cooling WaterMains

Generator

UPS CommsUPS Desk

Run Time

Cooling Water

Location Risk Wheels

1. Quality Scores Below are the agreed quality scores for the contract which reflect the level of compliance with Policy and the overall effectiveness of the controls in place.

QUALITY SCORE FOR EACH REVIEW SECTION

Total Quality Rating

Supplier Performance Relationship Management BCM

Performance

Financial Review

Value Improvement

Contract Management

Change Management

Risk Management

Exit Arrangements

Business Continuity Mgt.

2012 Review Score 2 3 2 3 3 3 2 3 21 Green

2011 Review Score 2 3 0 0 2 2 0 2 11 Red

Supplier Reviews

Supplier Reviews

8 10 12 14 16 18 20 22 24 260

10

20

30

40

50

60

70

80

90

100

Contract Value vs Review Score

Contract Value (£m)

Review Score

Co

ntr

act

Val

ue

In the main, higher value contracts have a better score = better managed.

However, some large value contracts have poor scores

Supplier Reviews

Trend Analysis

Div A Div B Div C Div D Div E Div F0

10

20

30

40

50

60

70

80

90

100

2009201020112012

Summary

Why Measure? What to Measure? BIA Testing BC Programme

Is BCM an Expense......?

Common views by senior management?

“BC costs us money”

“It’s a necessary evil”

“It doesn’t increase the bottom line”

.....or an Investment?

Benefits Easier bid / tender

qualification Differentiates our

proposition – offers quality and reliable service

Reduces risk in supply or value chain network

ISO 22301?

Measurement Adds Value

Measurement provides level playing field

Applicable to public, private and voluntary sectors: size doesn’t matter

Measurement provides roadmap

Can be used to enhance current BCM

Incentive for senior management to take it more seriously

Helps target investment

Thanks