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Business continuity considerations missing from major change programmes

A new international survey of over 600 organizations by the Business Continuity Institute reveals that the vast majority of companies are failing to include business continuity considerations when making major strategic decisions.

The study, ‘Engaging & Sustaining the Interest of the Board’, which was sponsored by Deloitte, found that 75 percent of organizations surveyed had taken one or more of the following major strategic decisions, yet fewer than 16 percent applied business continuity management as an integral part of the decision making process, and in these cases, the original decisions were modified and/or new strategies explored as a result. The strategic decisions and the percentage of respondents who had done this were:

47 percent: in-sourced or outsourced a key business process
41 percent: Merged, acquired or divested part of its business
54 percent: Introduced a new product or service
62 percent: Carried out a significant re-organization
40 percent: Changed a key activity or key business process
50 percent: Reduced costs through downsizing (e.g. people or facilities).

Lyndon Bird, Technical Director at the BCI, commented: “What we can determine from the study is that business continuity management is an essential part of protecting reputation and value in a crisis. What is missing, however, is the ex ante link into corporate decision making. Business continuity management provides a robust foundation to enable a business to adapt to change, and pursue new opportunities with the assurance that potential unintended consequences have been duly considered.”

Rick Cudworth, Partner and Head of Resilience at Deloitte, commented: “The survey has provided strongly correlated evidence to suggest that where Boards are engaged, the breadth and value of business continuity to the organisation is far greater. It also indicates that failure to include business continuity as an integral part of decision making means many businesses are missing the opportunity to improve their resilience; worse, many decisions may actually reduce resilience and they then have to deal with the consequences later.”

A copy of the study report can be obtained from here after registration.

•Date: 2nd March 2011 • Region: World •Type: Article •Topic: BC statistics

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