The Good, the bad and the ugly: Some business continuity and resilience case studies

The Good, the Bad & the Ugly Some lessons learnt in

crisis, business continuity & resilience

Helping build business resilience 0416 113 250 [email protected]

Chris Miller B4Crisis, Consultant Business Continuity Manager

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Liverpool (NSW) Council case study presentation withdrawn

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Helping build business resilience

Arson aftermath, 16 August 2010 $20M insurance claim

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Alternative lessons learnt case studies in crisis, BC & resilience

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Bankstown (NSW) City Council fire 1 July 1997 $30M+ loss DR via France

Claremont (WA) Council Chambers & Library fire 18 Nov 2010 $7.5M+ loss Vital records; alternate sites

A non-routine business disruption, INCIDENT or CRISIS occurs or is detected

SAVE the people

SAVE the building

SAVE the business

0 +3 hours +< 6 hours +2-3 days < 7 days 7+ days 30+ days MUST SHOULD COULD DO DO DO


Hurricane Katrina 29 August 2005

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When your community depends on your business continuity

Mississippi Power damage report • 2/3s of transmission & distribution systems destroyed or

damaged. • 1,000 miles of distribution line replaced. • 281 feeder lines (100 percent) replaced. • 9,000 distribution poles replaced. • 2,300 overhead transformers replaced. • 92 percent of the transmission system out of service. • 1,920 miles of transmission lines out of service. • 300 transmission towers replaced. • 12 substations flooded. • 1/3 of generating capacity disabled. • Plant Watson flooded (18 million gallons of brackish water) & offline for 1 year along with Crisis Centre & Corporate HQ (120,000+ sq feet of office space). • Of their 1253 employees, 196 employees’ homes were flooded, of which 441 were severely damaged - leaving 86 employees homeless. • All 195,000 customers out of electric service.

Mississippi Power, a Southern Company SHOW VIDEO – 5 years after Katrina

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Helping your community & your business

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Business closures included 6 Supercentres; 2 Stores & 1 Sam’s Club

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Dispatched 2450 truck loads including 100 truck loads of donated merchandise

$17M cash donations – Walmart Corporate + collected $7M+ in donations from its customers + $9.2M in assistance donated to affected staff

In kind donations - 70 pallet loads of clothing & 150+ internet ready computers delivered to shelters

Mt Pinatubo, Philippines

Albuquerque, New Mexico, 17 March 2000 small clean room fire

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cmi industrial shutdown ‘Cascade’ throughout Australian car assembly plants

1,800 workers shutdown

Unsound BAU or exercising can generate a crisis Sinking ‘Kursk’


Lessons in crisis leadership Kursk aftermath


Lt Dmitry Kolesnikov Kursk survivor leader

Admiral Popov, Exercise Commander


Wrecking Costa Concordia

Lessons in crisis leadership Captain

Francesco Schettino


Aftermath Costa Concordia wreck

Captains Francesco Schettino & Gregorio de Falco

Lessons in crisis leadership

Deputy Mayor Mario Pellegrino

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Crisis communications

Keeping internal & external stakeholders informed

Varanus Island, WA

3 June 2008

3 of 6 pipelines ruptured; 1/3 WA gas supply disrupted

Varanus Island, WA

Managing traditional & social media


SHOW VIDEO

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Varanus Island, WA

Reputation & Litigation

Summary • Leadership – crisis v BAU • People – build confidence in

planning & exercising • Media management

– traditional & social • Know your supply

chain/dependencies • Know what to save, who & how?

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Effective BAU, business as usual Ability to change & adapt Shape environment

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Source: Cth AGD Research Paper 1 CEO Perspectives on Organisational Resilience http://www.tisn.gov.au/ then Publications & Resilience

http://www.tisn.gov.au/�

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A final tip for crisis & business continuity management & resilience enhancement

Culture change & scenarios

Documents

The Good, the bad and the ugly: Some business continuity and resilience case studies