Presentation on theme: "1 LA42: Resilience vs. Recovery What Does Resilience Mean for Business Continuity? Kathleen A. Lucey Tel: 516-676-9234."— Presentation transcript:
1 LA42: Resilience vs. Recovery What Does Resilience Mean for Business Continuity? Kathleen A. Lucey K.Lucey@montaguetm.com www.montaguetm.com Tel: 516-676-9234
2 A few definitions... From 1913 Webster’s Dictionary, resilience is: “The act of springing back, rebounding, or resiling, as the resilience of a ball or of sound.”
3 More definitions... “The power or inherent property of returning to the form from which it is bent, stretched, compressed, or twisted.” – of objects or substances “The power or ability to recover quickly from a setback, depression, illness, overwork, or other adversity.” – of people “The ability of a system to keep working with one or more of its components malfunctioning. Also called Fault Tolerance.” - of systems
4 Use by Business Continuity Interagency White Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System, (draft: Sept 2002, Final: April 2003) Designed to address the “systemic risk” to the U.S. Financial System in an event such as 9/11.
5 Use by Business Continuity Interagency White Paper Objectives: Rapid recovery and timely resumption of critical operations following a widespread disruption Rapid recovery and timely resumption of critical operations following the loss or inaccessibility of staff in at least one major operating location. A high level of confidence, through ongoing use or robust testing, that critical internal and external continuity arrangements are effective and compatible. Resilience = confidence in the rapid recovery and timely resumption of critical operations.
6 From the Social Sciences Community (1) Report: Crisis, recovery, innovation: responsive organization after September 11, John Kelly, David Stark. Based on analysis of responses from participants in 9/11 recoveries.
7 From the Social Sciences Community (2) Success factors: 1.Social networks: strong personal ties. 2.Sociotechnological networks. Communications interface between people and technology. 3.Preparedness and redundancy: generative vs. replicative 4.Heterarchy and interdependences: functional empowerment Resilience may dictate many of the same organizational characteristics as are used to foster innovation and prosper through uncertainty.
8 From the Social Sciences Community (3) The organization of responsiveness: innovation and recovery in the trading rooms of Lower Manhattan. Daniel Beunza, David Stark. Also based on analysis of responses from participants in 9/11 recoveries.
9 From the Social Sciences Community (4) Success factors: 1.Responsiveness to a crisis is a combination of anticipation and improvisation. 2.Responsiveness is grounded in “resourceful recognition.” 3.Social relationships are a key feature of organizational response. 4.Lateral extended social ties to external partners are particularly important 5.Both generative and replicative redundancy are necessary. 6.Geographical dispersion is a necessity. Generative preparedness may also contribute to organizational efficiency.
10 From the Social Sciences Community (5) 5 Habits of Highly Reliable Organizations, Keith H. Hammonds. References the work of Professor Karl E. Weick of University of Michigan at Ann Arbor.
11 From the Social Sciences Community (6) Characteristics of HROs: 1.Obsess over failures and mistakes, not successes. 2.Listen to the front line. 3.Find the solution in the unexpected or crisis circumstances. 4.Embrace complexity. 5.Create resilience: actively anticipate how to avoid mistakes + see, understand, and adapt to unforeseen reality If this seems a lot like the two 9/11 response analyses, you are on the right track!
12 What does this mean for Business Continuity? Resilience characteristics: Inherent to the organization. Related to innovation Related to heterarchy: personal and organizational Measuring preparedness is difficult, but success may depend as much on generative, as replicative redundancy. The most effective management style for a crisis is probably NOT the military model of a rigid hierarchy.
13 We Need to Change! BC needs to be placed at the Board level: Organizational Resilience will NOT happen from inside of IT. BC needs to manage heterarchically across the entire organization. If resilient behavior emerges by responding, much more ambitious ongoing test programs are necessary: with suppliers, distributors, customers. But most of all, we need to learn ourselves to help our organizations learn.
14 We Need to GROW! Accept that we are not the “Masters of the Universe.” Study new developments; stay open to new ideas. Connect to related disciplines: emergency management, information security, facilities, infrastructure and physical security...and organizational theory!. Learn about reliability. THE GOOD NEWS: Resilience is becoming more and more important to a firm’s success!
15 References (1) Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System, Board of Governors of the Federal Reserve System; Office of the Comptroller of the Currency; and Securities and Exchange Commission. Draft (Sep 2002): http://www.sec.gov/rules/concept/34-46432.htm Final (Apr 2003): http://www.sec.gov/news/studies/34-47638.htm Report: Crisis, recovery, innovation: responsive organization after September 11, John Kelly, David Stark. Center on Organizational Innovation, Columbia University. New York, NY June 2002. http://www.coi.columbia.edu/pdf/kelly_stark_cri.pdf The organization of responsiveness: innovation and recovery in the trading rooms of Lower Manhattan, Daniel Beunza, David Stark. Socio-Economic Review (2003) 1, 135-164. http://www.coi.columbia.edu/pdf/buenza_stark_or.pdf
16 References (2) *The organization of responsiveness: innovation and recovery in the trading rooms of Lower Manhattan, Daniel Beunza, David Stark. Socio-Economic Review (2003) 1, 135-164. http://www.coi.columbia.edu/pdf/buenza_stark_or.pdf 5 Habits of Highly Reliable Organizations, Keith H. Hammonds, “Fast Company Magazine, Issue 58, May 2002, Page 124. http://www.fastcompany.com/magazine/58/chalktalk.html tp//// *Note extensive bibliography.
17 Q&A?? A copy of each of the reference documents is available for your review after the session. Thanks for learning!