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What is Business Continuity?

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Presentation on theme: "What is Business Continuity?"— Presentation transcript:

1 What is Business Continuity?
A Collection of Plans, Policies and Procedures in place to enable an organisation to respond swiftly to manage the impact of a disaster affecting operations.

2 London Supply Chain Resilience Group
Pan-London, Chief Executive supported group. Aim - To develop and enhance resilience in the supply chain of London Local Authorities by implementing a systemic and consistent approach to audits of critical supplier/contractor Business Continuity Arrangements. More complex than initially realised, now working to come to a standardised approach to procurement and embedding “good practice” examples from LA procurement into the wider london picture

3 The Business Case Increase in government policy to promote private organisations and charities to deliver traditional public sector services “big society” Increased reliance on the same providers of services 12 boroughs use the same meals on wheels provider with a combined value of £14 million. Policy shift to simplify procurement for suppliers (OGC/Cabinet Office Procurement Efficiency Programme) Commercial drivers of BCM remain prominent with demands from existing customers (31 per cent) and potential customers (21 per cent) acting as drivers. Central government (21 per cent) is another key driver and there continues to be evidence that business continuity planning is being driven through the supply chain through public sector procurement contracts (16 per cent)

4 The Business Case Only 49% of organisations have a business continuity plan This differs significantly between different sized organisations

5 Survey Results Survey of London local authorities carried out to establish a base-line picture of procurement and resilience 82% of respondents include business continuity arrangements as part of the specifications for a contactor or supplier. 68% include the need to have business continuity arrangements as part of the Pre Qualification Questionnaire (PQQ). 59% of responders indicate that they ask the supplier to provide a copy of their business continuity plan at the PQQ stage 22% provide any guidance on what the business continuity plan should contain. Only 32% of respondents have a set format to assess the adequacy of the business continuity plans provided by suppliers. only 45% have a standard BC clause to be used in all contracts within the council. anecdotal evidence suggests that in some cases, within authorities the standard clauses produced by the business continuity professionals in conjunction with legal teams are not being inserted into all contracts due to the different approaches taken.

6 How Procurement Fits In
Before agreeing a standard approach to supplier audits, necessary to achieve the following: The production of a set of standard resilience clauses to be included in all local authority contracts. To establish consistency across London in local procurement regulations, guidelines and templates, in order to reflect the need to incorporate business continuity into all new contracts To investigate best practice in introducing business continuity clauses into existing long term contracts, via a variation to the contract, where the risk is deemed sufficient to outweigh the financial cost of doing so To create a standard approach to commissioners training on BC awareness, including the methodology of evaluating responses to standard questions within procurement templates.

7 Proposal To adopt the approach pioneered by LB Greenwich.
The business continuity management clause should be included as a special provision in tenders and contracts where the nature of the service or goods supplied is important to the delivery of Council services, and would result in serious service disruption for the Council should the supplier suffer a breakdown, major failure or local crisis. These may be defined as activities that are for or support critical tasks (as identified as “must do” activities in the council’s BCM plans) or which exceed a contract value of £100,000. Examples would be ICT systems, services for vulnerable children, etc. Training package to be produced for procurement specialists/commissioners to understand what a good Plan should contain, and undertake an initial assessment of the plans. Any specific queries can then be raised with the authority Business Continuity Manager

8 PQQ Question Do you have a business continuity plan? (Yes/No)
If Yes, please provide supporting evidence e.g. Business Continuity Policy, Plan, Business Impact Analysis If No, please visit the local authority website for further information on business continuity, the expectations of the authority and template plans and guidance.

9 Contract Clause The contractor must have a business continuity management plan that has been agreed with the Authority within six months of the award of the contract. As a minimum, the business continuity management plan must contain provision for resilience covering the following elements: Command and control Identification of critical and key activities including prioritisation Staff shortage (including pandemic planning) Premises denial or damage ICT – including data, systems, applications and communications Suppliers and clients The parties shall comply with the provisions of their Business Continuity Management Plan and the Contractor shall ensure that it is able to implement their Business Continuity Management Plan at any time in accordance with its terms. Business Continuity Management plans should cover the activities undertaken directly for or on behalf of the Council, and those that indirectly impact on the delivery of those services or activities (e.g. Head Office data management, transport issues, etc). The Contractor shall exercise their Business Continuity Plan on a regular basis (and in any event not less than once in every 12 month period). The Authority may require the Contractor to conduct additional tests of the Business Continuity Management Plan where the Authority considers it necessary, including where there has been any change to the Services or any underlying business processes, or on the occurrence of any event which may increase the likelihood of the need to implement the Business Continuity Management Plan. The Authority reserves the right to attend any Business Continuity Management Plan test or exercise undertaken by the Contractor, which should inform the Authority of when such tests or exercises are scheduled (providing at least one months notice).

10 Contract Clause If the Authority requires an additional test of the Business Continuity Management Plan it shall give the Contractor written notice and the Contractor shall conduct the test in accordance with the Authority’s requirements and the relevant provisions of the Business Continuity Management Plan. Following each test, the Contractor shall send to the Authority a written report summarising the contents, participants and results of the test and shall promptly (within three months of the exercise) implement any actions or remedial measures which the exercise has identified as required or that the Authority considers to be necessary as a result of those tests. An updated version of the business continuity management plan should be forwarded to the Authority within three months of completion of any exercise. This will constitute part of the annual review of the business continuity management plan. Other elements of the annual review must include checking contact details and other partner organisations’ business continuity management arrangements (e.g. their own suppliers). The Contractor shall undertake regular risk assessments and/or business impact analysis in relation to the provision of the Services not less than once every six months and shall provide the results of, and any recommendations in relation to those risk assessments or business impact analysis to the Authority promptly in writing following each review.

11 020 8583 5019
Any Questions?

12 Modernising Local Authority Procurement UPDATE – UPDATE – UPDATE
Capital Ambition Modernising Local Authority Procurement UPDATE – UPDATE – UPDATE Ken Cole Commercial and Procurement Advisor 14th February 2011 12

13 Story So Far Mapping Exercise on current expenditure
Smarter engagement / leveraging London Encouragement of sub-regional / cluster groupings Shared category teams – regional / sub-regional / between authorities Looking to take 15% out against current spend levels Engaged with elected Leaders – report signed off 14th December 2010

14 Mapping Exercise £7.8B or 94% of total spend has been mapped against ProClass version 10.2 Some categories could be split over more than one level Some categories could move up and down as circumstances change Some categories are borderline – can be done at more than one level Factors included risk, commonality / availability of suppliers, value, nature of market etc

15 Optimum engagement levels
Total Spend Number of Inv Lines National £0.5B 1% 278K 7% Regional £0.9B 11% 895K 23% Sub Regional £2.2B 28% 1,188K 31% Local £4.7B 60% 1,478K 39%

16 Recommendations to Leaders
Endorse the analysis set out in this report about the scope for cashable savings through greater collaborative procurement including shared contracting. Agree that groups of boroughs should now come together to collaborate to take advantage of these opportunities following the principles set out in paragraph 2.3 of this report in order to maximise savings and avoid duplication of effort. Encourage and facilitate the involvement of their boroughs in these arrangements.

17 Agreed Actions Publish a more detailed prospectus setting out the major opportunities including areas for seeking cashable gains and the likely return on investment Provide any interested clusters with detailed analytical reports on relevant categories of goods and services Encourage proposals from groups of authorities wishing to take a shared approach to a given category. Particular encouragement will be given to moving forward on shifting other categories from local to more collaborative procurement arrangements Agree with Chief Executives the proposition of each of them assuming ownership of the commercial relationship for at least three of London’s top suppliers.

18 Prospectus Categories
Temporary and Agency Staff Facilities Management (including security, advertising, CCTV, lift maintenance, reprographics) Building and Construction Materials Energy ICT Legal These represents about £1.6B of expenditure or around 18% of London’s total

19 Questions?????? Ken Cole 07721 556537

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