The coronavirus of 2020, the H1N1 (bird flu) of 2009, the Zika virus of 2016, seasonal flu, and other inevitable illness threats, have something in common: They are reminders to businesses of the importance of an epidemic/pandemic business continuity plan.
Regardless of how serious, or benign, coronavirus might be for the population as a whole, the fact is that it’s infecting and affecting the business supply chain and everything connected to it. Whether or not disease fears are justified, they’re real when they affect your business.
It’s better to have an emergency plan and not need it than to need an emergency plan and not have it. Assign a senior executive or team, or engage a consultant, to compile your business’s strengths and weaknesses, assess the threats and positives, and prepare a plan to respond to disease-related conditions. Planning and risk management should start early and contain the following four elements:
As your organization’s work force is your most valuable asset, their individual health and safety are of paramount importance to you. One needlessly sick employee has the potential to affect an entire office. In this regard:
During an epidemic/pandemic, telecommuting can be a very effective way to enhance workforce health and safety while maintain critical services to your customers. Among the considerations:
Navigation through an outbreak will most certainly require a coordinated response between your organization, its work force, suppliers and customers. An effective communication plan is essential during such an event. Communications should be:
Financial planning must also be a part of the plan. Bills won’t stop arriving. Employees will expect, or hope, to be paid. Do you have sufficient cash reserves or lines of credit to weather the storm?
Are your business and personal health insurance coverages sufficient to protect your business operations and provide sufficient aid to your work force?
Customers will be under similar pressures. Should you revisit your credit policies and terms with certain or all of your customers? Will there be a temporary decrease in the need for your products or services? How can you creatively continue to serve your customers if certain resources become limited?
Vendors will be under similar pressures. Do you have a supply chain management risk? The coronavirus is forcing governments and businesses to recognize the problems inherent in relying on a single dominant source of manufacturing or supply. There are vendors on which a business relies so that the business itself can function.
This is an opportunity for businesses to go to school on such supply chain situations, and to have in place an expanded vendor inventory that either diversifies their existing vendors or puts in place alternative sources if the need arises.
Depending on various scenarios, what are the financial benchmarks that exist within each, and what actions must occur, in order, depending on the severity of the epidemic/pandemic’s impact, to ensure business survival?
When a plan is readied, test it. Ensure the remote equipment works. Practice contact with health authorities. To the extent possible, work with alternate vendors. Measure compliance with internal anti-infection measures and employee training. Re-work financials to cover that essential base.
Developing a plan isn’t simple of quick process, but if you have a crisis plan in place for natural disasters or other emergencies, you’ll probably learn that much of it dovetails with a plan for disease response.
Putting a person or group in charge of preparing your business’s emergency plan is a crucial act, but it doesn’t relieve the business CEO or owner of ultimate responsibility for the life of the business. Planning doesn’t assure success; planning gives you a leg up on maintaining your operations – or avoiding your business being hit with a fatal illness.
This article first appeared in KnoxNews.