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The Good, the Bad & the Ugly
Some lessons learnt in
 crisis, business continuity &
 resilience
 Chris Miller
 B4Crisis, Consultant
 Business Continuity Manager
  Helping build business resilience   0416 113 250
                                      b4crisis@grapevine.net.au
Liverpool (NSW) Council
case study presentation
withdrawn




  Helping build business resilience
                                      2
Arson aftermath,
16 August 2010
$20M insurance claim




  Helping build
  business resilience
                        3
Alternative lessons learnt
case studies in crisis, BC &
resilience     Claremont (WA) Council
                                         Chambers & Library fire
 Bankstown                               18 Nov 2010 $7.5M+ loss
 (NSW) City                              Vital records; alternate sites
 Council fire
 1 July 1997
 $30M+ loss
 DR via France


     Helping build business resilience
                                                                     4
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
Helping build         Hurricane Katrina 29 August 2005
business resilience
When your community depends
on your business continuity
   Helping build business resilience

                                       7
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
Helping your community &
your business
Helping build business resilience

                                    10
Business closures
included 6 Supercentres;
2 Stores & 1 Sam’s Club



Helping build business resilience

                                    11
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          12
Mt Pinatubo, Philippines
Albuquerque, New Mexico,
17 March 2000
small clean room fire
1,800 workers shutdown


cmi industrial shutdown
            ‘Cascade’
             throughout
             Australian car
             assembly plants
Helping build business resilience

                                          17
Unsound BAU
or exercising can
generate a crisis
Sinking ‘Kursk’
   Helping build business resilience
Lt Dmitry
       Kolesnikov
       Kursk
       survivor
       leader
                                    Admiral
   Lessons in                       Popov,
                                    Exercise
crisis leadership                   Commander
Kursk
 aftermath
Helping build business resilience
Lessons
                   in
                   crisis
Captain
Francesco          leadership
Schettino

     Wrecking
      Costa
      Concordia
      Helping build business resilience
                                          20
Lessons
                          in
Captains Francesco
Schettino &
Gregorio de Falco
                          crisis
                          leadership
  Aftermath                               Deputy Mayor
                                          Mario Pellegrino
   Costa
   Concordia
   wreck
      Helping build business resilience
                                                             21
Crisis
     communications
Keeping internal &
 external stakeholders
 informed

  Helping build business resilience

                                      22
3 June
           2008

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




    Varanus Island, WA
Varanus Island, WA
       Managing
        traditional
        & social media
                  SHOW
Helping build business resilience
                    VIDEO
Varanus Island, WA

     Reputation &
      Litigation

Helping build business resilience

                                    25
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?
Effective BAU, business as usual
Ability to change & adapt
Shape environment

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

    Helping build business resilience

                                                        27
A final tip for crisis & business
continuity management &
resilience enhancement

 Culture change & scenarios

   Helping build business resilience

                                       28

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

  • 1. The Good, the Bad & the Ugly Some lessons learnt in crisis, business continuity & resilience Chris Miller B4Crisis, Consultant Business Continuity Manager Helping build business resilience 0416 113 250 b4crisis@grapevine.net.au
  • 2. Liverpool (NSW) Council case study presentation withdrawn Helping build business resilience 2
  • 3. Arson aftermath, 16 August 2010 $20M insurance claim Helping build business resilience 3
  • 4. Alternative lessons learnt case studies in crisis, BC & resilience Claremont (WA) Council Chambers & Library fire Bankstown 18 Nov 2010 $7.5M+ loss (NSW) City Vital records; alternate sites Council fire 1 July 1997 $30M+ loss DR via France Helping build business resilience 4
  • 5. 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
  • 6. Helping build Hurricane Katrina 29 August 2005 business resilience
  • 7. When your community depends on your business continuity Helping build business resilience 7
  • 8. 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.
  • 9. Mississippi Power, a Southern Company SHOW VIDEO – 5 years after Katrina
  • 10. Helping your community & your business Helping build business resilience 10
  • 11. Business closures included 6 Supercentres; 2 Stores & 1 Sam’s Club Helping build business resilience 11
  • 12. 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 12
  • 13.
  • 14.
  • 16. Albuquerque, New Mexico, 17 March 2000 small clean room fire
  • 17. 1,800 workers shutdown cmi industrial shutdown ‘Cascade’ throughout Australian car assembly plants Helping build business resilience 17
  • 18. Unsound BAU or exercising can generate a crisis Sinking ‘Kursk’ Helping build business resilience
  • 19. Lt Dmitry Kolesnikov Kursk survivor leader Admiral Lessons in Popov, Exercise crisis leadership Commander Kursk aftermath Helping build business resilience
  • 20. Lessons in crisis Captain Francesco leadership Schettino Wrecking Costa Concordia Helping build business resilience 20
  • 21. Lessons in Captains Francesco Schettino & Gregorio de Falco crisis leadership Aftermath Deputy Mayor Mario Pellegrino Costa Concordia wreck Helping build business resilience 21
  • 22. Crisis communications Keeping internal & external stakeholders informed Helping build business resilience 22
  • 23. 3 June 2008 3 of 6 pipelines ruptured; 1/3 WA gas supply disrupted Varanus Island, WA
  • 24. Varanus Island, WA Managing traditional & social media SHOW Helping build business resilience VIDEO
  • 25. Varanus Island, WA Reputation & Litigation Helping build business resilience 25
  • 26. 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?
  • 27. Effective BAU, business as usual Ability to change & adapt Shape environment Source: Cth AGD Research Paper 1 CEO Perspectives on Organisational Resilience http://www.tisn.gov.au/ then Publications & Resilience Helping build business resilience 27
  • 28. A final tip for crisis & business continuity management & resilience enhancement Culture change & scenarios Helping build business resilience 28