April 2010 National Newsletter   Human Resources: 20 contributions to effective business continuity management capability   Written by   Mark Jaski - Director, BLUESPINE

Meet Mark Jaski

 

The structure, scope and even the name of Human Resources varies across organisations, but the basic premise that they are the “People People” does not. People are a critical resource for any organisation and particularly for professional services where revenue and reputation ride on the quality of the workforce. Yet, the value of people and the role of HR is often understated by firms when considering their Business Continuity Management (BCM) capability.

Given the critical reliance on people by law firms, HR have a multi faceted role in ensuring that the firm has the right people (search, recruitment, skills management), that they are appropriately managed and maintained (policy, performance management, remuneration, benefits, training) and that people risks are identified and appropriately mitigated.

From a BCM perspective we also recognise people as being a critical dependency for the normal operations of the firm and the achievement of strategic imperatives. Hence, given the competitiveness of the legal profession and the pressure on firms to deliver high quality services in an efficient manner, the importance of the role of HR in BCM has never been more important.

Remember that BCM is not just about writing a Business Continuity Plan and making sure that electronic data is backed up. Today BCM is a holistic management discipline that includes risk management, resilience, controls, planning, testing and governance. To understand how this translates to HR functions specifically we must consider three contexts: Normal Operations, Continuity Planning and Abnormal Operations.

Normal Operations

Otherwise referred to as “Business As Usual”, normal operations simply means the day to day operation of the firm where everything runs as it is supposed to: staff are present, systems are up, the office is open, full steam ahead! It is during this time that the focus should be on resilience, risks, controls and planning (continuity planning is discussed separately below).

 

1. HR policy – an important regulator of the people elements for any firm. Policy can impact culture, operations and how the firm deals with change and disruption.
2. Central resource management – the coordination of resources is vitally important to ensure appropriate staff are available to respond to client needs and back fill when large engagements, tenders and other initiatives arise. This flexibility is important to ensure stable operations and that resource deficiencies don’t adversely impact service delivery. By coordinating centrally means a firm wide approach can be taken. Established procedures and controls are required to ensure it operates effectively, particularly during a business disruption.
3. People risk – the firm must have a realistic view of people risks and develop appropriate strategies to mitigate them. Unmitigated people risks have the potential to disrupt firm operations, upset the firm culture and damage reputation.
4. Succession planning – there is often a disproportionate reliance on some staff to provide knowledge and expertise which, when these staff are unavailable, can result in some form of business disruption. The issue of succession planning usually comes up in BCM capability reviews because it is generally not well managed by firms, but it is important to longer term operational stability and reputation.
5. Culture – plays an important role in the overall stability and resilience of the firm, hence positive cultural changes will improve a firms ability to cope with business disruption and minimise the impacts.

Continuity Planning

Preferably business continuity planning is undertaken during normal operations. HR has a role in developing their own functional BCP in line with the firm policy and framework, but also in providing input to other functional and firm wide plans.

 

 

6. Business Impact Analysis (BIA) – HR and the rest of the firm must understand the impact of not being able to perform their functions. Appropriate prioritisation of activities and dependencies will lead to more effective planning across the firm and appropriate investment in resilience measures particularly in relation to dependent HR systems.
7. Business Continuity Plan (BCP) – As a business function HR must have strategies in place to continue the provision of critical HR services during a business disruption. HR may also be a key enabler of other continuity strategies particularly if centralised resource management is in place.
8. Critical staff – The non-availability of critical staff is a major people risk. Hence the identification of truly critical staff and the development of risk mitigation strategies across the firm is important.
9. Contact details – The centralised management of staff contact details is a must for effective BCM capability. HR systems, maintenance processes and data integrity controls are key enablers. Incomplete contact details will have an adverse effect on communications and management processes during a business disruption particular if a major physical event has occurred.
10. HR systems – Often HR systems contain comprehensive and critical staff information. The information must be assessed and classified in terms of its value to the firm and the impact of it not being available. This should drive appropriate investment in system performance, structure and resilience.
11. Awareness – All staff should be aware of the BCM provisions in place and must understand what they need to do when a business disruption occurs. Induction processes and general awareness programs are important for all staff. In addition, some staff will need additional training to discharge their specific BCM responsibilities so training needs analysis and effective technical training programs are important aspects.
12. Performance management – embedding and managing BCM responsibilities is critical to the ongoing maintenance of BCM capability. Formalisation of BCM responsibilities into job descriptions and performance management systems is an important enabler for the sustaining of BCM capability.
13. Pandemic planning – deals with a people focused disaster scenario hence HR involvement is critical in determining effective polices and strategies for managing pandemics.
14. Testing – HR must test their own controls and continuity strategies and potentially should be involved in other types of testing particularly where people aspects are integral to the process.

Abnormal Operations

 

When a business disruption occurs the ensuing state is referred to as Abnormal Operations which means the firm is operating using continuity strategies such as workarounds, manual processes, alternative site, temporary staff and so on. There are different stages to a business disruption and HR has a role to play in all of them.

 

15. The People Channel – during a disruption and especially during a major physical event HR will be the “go to” group for advice and action in relation to people issues. HR will need to be able to continue the activities necessary to discharge this responsibility effectively.
16. Staff welfare – while business continuity teams will generally bear this responsibility, during a major event HR will invariably be asked to lead the charge. HR BCPs and strategies should contemplate this eventuality and specifically articulate the expected responses and management processes.
17. Policy advice – during business disruption and especially during physical events and crisis HR will be expected to provide policy advice and determine the firm’s position in relation to a myriad of people issues.
18. Response team – during a major event HR will be stretched through being represented in response teams and continuing their own operations. Their BCPs and strategies must recognise the potential gaps and plan accordingly.
19. Payroll – always comes up as a topic when considering the impacts of business disruption: “what if we cant pay our staff?” The reality is that a lot can be done to prepare for such an eventuality. The keys are to ensure a robust systems environment (payroll, time recording and other related systems) where linkages are clearly defined and managed, controls are in place and continuity strategies are well documented.
20. Post event – there should always be a post event review. HR will consider the event in terms of their own activities and in terms of their role in the whole of firm response. This is often a driver of change in controls and policy and continuity strategies

In the future the pressure on firms to perform will continue to increase. BCM not only provides an opportunity for managing the risk of disruption, it is also a platform for business performance improvement and change. Indeed many engagements we run for clients have this dual purpose and result in a range of initiatives designed to develop BCM capability and deliver bottom line improvement. Regardless of how it is tackled, the role and value of HR participation should not be understated.