Business Continuity for the Hospitality Industry A presentation delivered by Linda Martin Programmes Director for the HCIMA A roadmap for Contingency Planning and Reputation Assurance and the role of Training in maintaining Business Integrity

The current environment In recent years the global tourism industry has had to maintain business activities in the environment of epidemics, changing climatic conditions and terrorism The unusual has been the usual and customer markets and requirements have shifted

What is Business Continuity Business Continuity Disaster & Emergency Action Planning Risk Assessment Reputation Management

The price of inertia Companies who fail to make contingency plans will find it difficult to sustain their business Companies who fail to make contingency plans will find it difficult to sustain their business Association of British Insurers note that SMEs are less likely to survive a catastrophe Association of British Insurers note that SMEs are less likely to survive a catastrophe The 1996 Manchester Bombing affected over 600 businesses with estimated costs of £600m. The 1996 Manchester Bombing affected over 600 businesses with estimated costs of £600m. Within 6 months 250 businesses had gone out of business Within 6 months 250 businesses had gone out of business

Surviving the storm Anticipate Anticipate Assess and Adapt Assess and Adapt Prepare Prepare Review Review Seek advice Seek advice Constantly communicate Constantly communicate

Training and Business Continuity Discuss with key people within the business and the wider community, potential risks and minimisation strategies Discuss with key people within the business and the wider community, potential risks and minimisation strategies Review internal operations to ensure poor or malpractice is identified and staff are equipped to carry out functions in a safe manner Review internal operations to ensure poor or malpractice is identified and staff are equipped to carry out functions in a safe manner Identify roles and responsibilities Identify roles and responsibilities Review ability to cover roles Review ability to cover roles Maintain knowledge re external trends Maintain knowledge re external trends Communicate relevant policies and procedures Communicate relevant policies and procedures Have emergency numbers, and up-to-date staff contact details in place Have emergency numbers, and up-to-date staff contact details in place Ensure customer data is current and secure and data is backed up Ensure customer data is current and secure and data is backed up Agree in a crises who would communicate with media and who should inform agencies Agree in a crises who would communicate with media and who should inform agencies Work out responses for a range of potential crises Work out responses for a range of potential crises Service recovery training Service recovery training

The Litmus test The handling of a crises provides a strong and public litmus test of management competence and honesty.

Reputation, the Cinderella asset Reputation is one of the intangible assets that over the past 15 years has soared in value Reputation is one of the intangible assets that over the past 15 years has soared in value Reputation is bigger than anything to do with Brands or Research and Development, it impinges on the customers and employees you attract Reputation is bigger than anything to do with Brands or Research and Development, it impinges on the customers and employees you attract Reputation capital has to be earnt over the long-term, but can be lost in the matter of minutes Reputation capital has to be earnt over the long-term, but can be lost in the matter of minutes Reputation is about the value your business adds to the local and wider communities Reputation is about the value your business adds to the local and wider communities Consumer survey undertaken by the Sunday Independent noted 79% of respondents said reputation was important in guiding purchasing decisions Consumer survey undertaken by the Sunday Independent noted 79% of respondents said reputation was important in guiding purchasing decisions

What do organisations who have an enviable reputation do? Listen to all stakeholders Listen to all stakeholders Put employees at the heart of reputation management Put employees at the heart of reputation management Recognise front-line staff have the capacity to act as Saviours or Saboteurs Recognise front-line staff have the capacity to act as Saviours or Saboteurs Avoid assumptions and second guessing customer reactions Avoid assumptions and second guessing customer reactions Understand their customers through regular communication Understand their customers through regular communication Rely on robust self-assessment of operations as opposed to just complying with legal requirements Rely on robust self-assessment of operations as opposed to just complying with legal requirements Monitor, measure and manage all aspects of their business Monitor, measure and manage all aspects of their business

Reputation losses stay in the mind Brent-Spar Brent-Spar QE2 refit QE2 refit Perrier Perrier Ratner Ratner

Effective Reputation Management What do we look to portray: What do we look to portray: Creditability Creditability Reliability Reliability Trustworthiness Trustworthiness Responsibility Responsibility Who are trying to make a favourable impression on: Who are trying to make a favourable impression on: Business Partners Business Partners Communities Communities Customers Customers Employees Employees Government/Agencies Government/Agencies Media Media Providers of Finance Providers of Finance

How should we serve those audiences Reputation Assured Community And Responsibility Reliability And Customer Credibility And Investors Trustworthiness And Employees

Setting the promise and the need for Balance External Marketing (Setting the customers Promise) Interactive Marketing (Delivering the Promise) Internal Marketing (Establishing the Promise) Employees Customers Stakeholders