Wednesday, May 25, 2016

What is Your Backup Plan?

Recently there was an unusually lengthy power outage in the central business district at Alice Springs (Central Australia). Many businesses, including Australia’s two major super markets had to close their doors. Dozens of businesses later complained that the outage had cost them thousands in lost sales, refrigerated foods wastage and so on.

Lengthy power outages are exceptionally rare at Alice Springs compared with a place I visited in Lagi, Vietnam, where more affluent business owners have installed backup power generation systems to handle the frequent outages.

There is admittedly, a cost-benefit issue that a firm has to consider before spending large amounts on a backup power generation system. However, electricity isn’t the only part of a business that can fail.

The question I ask you today is, what is your backup plan for systems, equipment and procedures within your organisation?

What needs to be done is a risk analysis; identify aspects of your organisation or busines that can fail and what the consequences will be. Then plan to avoid those consequences by developing a contingency plan.

This should be something every business does. Does yours?


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