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All content (except for those slides with the Strohl Systems™ logo) is the intellectual property of The Ohio State University. David Lindstedt PhD, PMP,

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Presentation on theme: "All content (except for those slides with the Strohl Systems™ logo) is the intellectual property of The Ohio State University. David Lindstedt PhD, PMP,"— Presentation transcript:

1 All content (except for those slides with the Strohl Systems™ logo) is the intellectual property of The Ohio State University. David Lindstedt PhD, PMP, CBCP The Ohio State University BCP 101

2 The Ohio State University 60,347 Students 29,019.5 FTEs (39,120 headcount) 927 Buildings (5 campuses) 15,893 Acres SunGard’s LDRPS (hosted)  Shared by 10 Ohio universities  Administered by OSU  465 OSU plans, 995 total plans  501 OSU users, 880 total users

3 (Ohio) BCP Federation

4 Agenda: Continuity Planning Overview OSU Program Methodology Quick Topics:  Pandemic Flu Planning  Ready-at-Home  Current BCP Research

5 Continuity Planning Overview

6 What is Business Continuity Planning? The ability to maintain operations and services in the face of a disruptive event

7 What Is at Risk? Branding / reputation Confidence (parents, Board, etc.) Course offerings Donations / development Funding / grants / revenue Infrastructure Intellectual capital Jobs / positions Lines of business Patient care Research (existing and future) Service offerings (Basically, whatever you do…)

8 Continuity Planning Objective DANGER ZONE Lose Research Lose Reputation Lose Revenues Somewhere in Time…. … a Disaster Lurks ! Plan & Prepare Respond & Recover Quickly It’s A Race Against Time… RTO

9 Primary Objectives Protect resources, revenue, reputation, research, etc. Control chaos and improve reactions Improve self-sufficiency Reduce recovery time / costs Bottom line: Keep the University operational Aero Med helicopter crashed into the roof of Spectrum Health (Grand Rapids)

10 Potential Secondary Benefits* Closer alignment with business goals Increased credibility Improved customer service / loyalty Quality improvements Expense reduction Transparency of costs and benefits [Team building] [Eliminated / mitigated risks] [Improved budget planning / justification] *Source: Continuity Insights and HP’s Executive Business Continuity Study (2005)

11 Current Industry Drivers Federal Legislation  Public Law  Sarbanes-Oxley  USA Patriot Act  HIPAA  (Higher Education Opportunity Act of Public Law )  (Federal Grant / Endowment Regulations) Attacks / Natural Disasters  Virginia Tech, DSU, NIU  Northeastern seaboard power outage  West coast forest fires  Hurricanes  9/11 Business Strategy Secondary Benefits

12 OSU Program Methodology Putnam County: 2007 OSU Extension Office Flood

13 Brief ECM Program History External auditors: OSU must undertake enterprise continuity planning 2004: Pilot groups started 2005: Key operational units started 2006: Pandemic flu planning initiated 2007: President’s Cabinet made recommendation Current governance:  BCP Advisory Board: 70 cross-university members  BCP Steering Committee: 15 major area coordinators

14 Phase One Focus: Response Initial response for your unit  Concentrates on the first 4 hours (approximately) following an incident  Localized (not regional) incident Core components:  Evacuation and Shelter-in-Place procedures (BEAP)  Site Event Management (SEM) Plan “Rolodex” of contact information Teams and tasks to effectively manage the situation Alternate locations

15 Phase Two Focus: Recovery Recovery of critical processes What processes / functions will you continue?  Identify, score, and prioritize processes  (Business Impact Analysis) How will you continue?  Loss of staff  Loss of applications / equipment  Loss of building

16 Phase Three Focus: Resumption Resumption of operations  Asset requirements  Information technology requirements  Information security  Restoration approach Exercise preparation 2008 Windstorm

17 PANDEMIC FLU PLANNING Quick Topic #1

18 Core Components BCP Plans Hygiene Sanitation Work-at-Home Capabilities Ready-at- Home Planning Graphic: 2009: ems-solutionsinc.com

19 Helpful Categorizations Graphic: 2009: ems-solutionsinc.com

20 READY-AT-HOME Quick Topic #2

21 Make a commitment to prepare It is essential that you commit to taking steps to prepare your family and home now Take small steps or large steps, but START! 21

22 Core Components Talk to your family, friends, neighbors, coworkers, etc. Download a family preparedness plan template, and fill it out Stock Up at Home Prepare “Go” bag  Critical supplies  Finances and records* Available at

23 CURRENT BCP RESEARCH Quick Topic #3

24 What We Have Case Studies Anecdotes: ◦ “…following a well-defined process when disaster strikes is required to ensure business operations recovery” (p.3)* ◦ “BCM can be used to redesign business and IT processes to maintain and enhance profitability and competitive advantage… BCM’s impact extends well beyond the ‘dollar value’ of recovery from a business disruption” (p. 3)** Best practices (based on?!?) ◦ GPG07 (BCI) ◦ Professional Practices for Business Continuity Professionals (DRII) ◦ Note: “Frameworks are available, but none are widely perceived as a complete set of industry-neutral best practices” (p. 1)** Standards *Witty, Roberta (2008) “Business Continuity Management Defined, 2008”, Gartner Research Article, No G **Witty, Roberta (2008) “Top-Five Issues and Research Agenda, 2008: The Business Continuity Manager”, Gartner Research Article, No G

25 The Sum Total of BCP Research U.S. Bureau of Labor and Statistics: ◦ 43% of businesses experiencing a major disruption never resume ◦ 51% shut down within 2 years ? Neal Rawls, 2002 ? ◦ “…it has been estimated that 90% of companies unable to resume business operations within five days of a disaster are out of business within one year”* Knight and Pretty, 1998** ◦ Shareholder value increases for companies that effectively survive crises londonprepared.gov.uk ◦ “Around half of all businesses experiencing a disaster with no effective plans for recovery fail within the following 12 months” *Neal Rawls, Continuity Central Security Columnist & Author, writing about "Avoiding Disaster," by John Laye, Quoted from: **Knight, Rory and Deborah J. Pretty (1998), Value at Risk: The Effects of Catastrophes on Share Price, Risk Management, 45(5), 3, 94 1

26 Conclusions from Mel Gosling and Andrew Hiles “7. Statistics differ in specifying whether or not companies that failed had a DRP/BCP and those that specified companies without a BCP/DRP do not identify how many companies who had one, failed”* “8. Is the 80% Myth busted? I’m less confident than I was, but still not sure. Even secondary evidence has some value. Certainly a new, objective and disciplined survey would help.” (Italics mine)* “Without …an associated analysis of whether or not the businesses that failed did so because of a disaster, and whether or not they had an up to date BCP, it is impossible to come up with estimates of the percentage of businesses that failed as a result of not having introduced BCM.”** *Gosling, Mel and Hiles Andrew, “Business continuity statistics: where myth meets fact,” Continuity Central, 24th April 2009, **Gosling, Mel and Hiles Andrew, “SMEs – Stop the Preaching,” Continuity Magazine, Jan/Feb 2009

27 A Watershed Moment in the Industry? Not enough executive support Not enough budget No seat in the Board Room No agreed-upon standard No established Return on Investment (ROI)

28 THANK YOU!!! Questions? Comments?

29 Appendix A: Higher Education Major Disasters, : Residence Hall Fire Seton Hall University 3 deaths and 54 injuries 2001: Tropical Storm Allison The University of Texas School of Medicine Loss of medical research and disruption of future research efforts $205 million 2002: Laboratory Fire The University of California Santa Cruz Loss of irreplaceable Human Genome Project research $4-5million 2008: TornadoKansa State University Building damage$6-7 million 2008: FloodingIndiana University Damage to football field and several buildings; major roadways closed 2008: FloodingUniversity of Iowa Extensive flood damage to the campus Exceeding $700 million 2008: Hurricane IkeUniversity of Texas Medical Branch at Galveston Extensive flood damage to the campus $710 million And significant staffing cuts

30 Appendix B: Katrina’s Effect on Universities* *Source: “Recovering by Degrees” by Kathy Gray, Columbus Dispatch, 6/18/06 **Source: “Adding up the Damage”, Inside Higher Ed, 11/14/05 InstitutionDamage in $ Student Housing / ClassesClass Resumption Date Dillard$400 million700 students living & classes in Hilton Hotel January ’06 (50% enrollment) Southern[$350 million] 45 modular trailers; 400-unit trailer park for housing ’06 = trailers ’07 = main campus (66% enrollment) Tulane$150 million150 students housed in cruise ship January ’06 (88% enrollment) UNO[$104 million] December ’05 (66% enrollment) **Higher Education Totals: $1.2 billion in estimated physical damage to the campuses Potential losses of $230 million in tuition Hundreds of millions more in salaries and benefits paid to faculty and staff not working

31 Appendix C: Additional Statistics Around half of all businesses experiencing a disaster with no effective plans for recovery fail within the following 12 months* Banks, investors, insurers, customers and suppliers will take a company that has a business continuity plan much more seriously** 93% of companies that suffer a significant data loss are out of business within five (5) years*** In the decade after Columbine, the U.S. saw 80 more school shootings**** The U.S. Bureau of Labor and Statistics reports:  43% of businesses experiencing a major disruption never resume  51% shut down within 2 years***** *http://www.londonprepared.gov.uk/businesscontinuity/essentialdocs/ **http://www.londonprepared.gov.uk/businesscontinuity/faqs/#4 – 2009 ***US Bureau of Labor **** James, Susan Donaldson, “Surviving Columbine: What We Got Wrong,” abcnews.go.com/Health/MindMoodNews/story?id= &page= ***** U.S. Bureau of Labor and Statistics


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