2. Business Contingency Planning
Gordon Cresswell
Vice Chair NAIP

3. Business Continuance Planning (BCP) and Disaster Recovery (DR)
What’s the problem?
Business Continuance Planning (BCP)
and
Disaster Recovery (DR)
Are they the same?
Imagine you arrive at your place of work as normal and find the police have cordoned off the area because of a suspected bomb.
Or worse, the bomb has exploded and the premises are ruined.
Something similar happened a few years ago in reality to one of the UK’s largest payroll outsourcing companies and because they had a comprehensive, up to date and well communicated DR programme, they missed only one small payroll.
For our purposes today they are one and the same.

4. What’s a disaster? Anything that interrupts work output or quality
It could be an inability to gain access to the premises to a temporary failure of the electricity supply
Anything that jeopardises your work!
You need to plan for any number of ‘what if?’ scenarios
So what is a disaster?
It’s also likely to be disaster to your career with the company unless you have planned for such an eventuality. 4

5. The probability of disaster for payroll
Because payroll is so time critical you are more likely to have to invoke all or part of your emergency plan than for most business functions
Consequently it is important that the payroll and HR parts of Business Continuance Plan are up to date and tested regularly.
There are few professions as tie constrained as payroll – surgery is one and journalism is another – the paper has to printed on time to get it delivered on time.
If you are in charge of Payroll or HR I suggest you ensure your part of the business continuance plan is viable and can be put into action no matter what else is going on elsewhere in the company.
I must say that having worked in payroll for many years and having produced a number of plans I can assure you there is nothing complicated about a plan but rather tenacity and endurance are required to collate the components. It takes time. 5

6. What should plans include?
COMMUNICATION – the first requirements - document contact details including mobile phones and personal addresses and mark those key to the success of your plan
- Where they will go
- How will they continue to do their jobs
Keep this list where you can access it easily
Identify who can work from home.
Make arrangements for temporary accommodation
Document external contacts – especially suppliers and contractors with a description of why they are critical to your company.
Include utility companies and police, fire, water and municipal authorities
Temporary accommodation – estate agents, empty properties.

7. Document critical equipment
Laptops often contain critical information – make sure you have back-ups
Some businesses can’t function for a few hours without or faxes – what is it you rely heavily on – source a quick supplier
Don’t forget software
Identify critical documentation – includes all you payroll procedure, rates of pay etc.
Identify a contingency location
Write a ‘How to’ document – what should be done, by whom and when
Laptops – get credit agreements with suppliers
Speak to your software suppliers to see what contingencies they can offer.

8. The Plan - continued
Put the information together – it’s no use scattered about
Communicate – ensure everyone in the company, and especially in your payroll and HR department – knows about the plan and its content
Test the plan!
Plan to change the plan – it’s unlikely to be right first time
Review and revise the plan – every time something changes update all copies of the plan. Never let it get out of date. 8

9. Hints for success
All critical personnel should keep a copy – it’s a good idea to keep a copy in your car
Prepaid mobiles are an inexpensive option
The binder you use for your BCP should be distinctive- a bright neon orange is a good colour
Keep the BCP binder out so people see it frequently- it keeps it in people’s minds
Have a weather plan for your employees with a number to call to get an update on conditions 9

10. Warnings
Don’t rely on a fireproof safe to store computer media – CDs and DVDs will melt
Don’t make pirated copies of important software – it might not work! Ask your software suppliers for options
Don’t distribute your plan to people who don’t need it – your plan may contain sensitive and secure information 10

11. Specifically for Payroll
Consider your specific payroll obligations:
You need to pay on time - you could consider paying out your last payroll again and sorting the ‘errors’ out later
Consider hosting your payroll virtually – there would be no loss of data or processing capability
Arrange emergency money disbursements with your accountancy colleagues
Ask your audit colleagues of they are happy with your emergency plan 11

12. Specifically for Payroll continued
Consider your specific payroll obligations:
Make sure you are able to contact the people you pay out to – for voluntary and statutory deductions
List the on-site management people you need to keep appraised of progress
Consider what are the most likely events to cause you an emergency:
Holidays and illness combining to make staff shortages
Heavy staff turnover
Loss of data
Industrial disputes
Syndicate lottery wins especially if you aren’t in the syndicate!! 12

13. Just imagine the thanks and kudos you will receive for saving the company!!

14. Thank you for listening.