The term “business continuity plan” (BCP) refers to a comprehensive strategy developed by an organisation to ensure that it can continue its operations and provide essential services or goods in the event of an unforeseen catastrophe.
This strategy outlines the procedures and regulations that will be implemented during various emergencies, including, but not limited to, natural disasters, cyber attacks, and unexpected market changes.
It involves tactics for maintaining communication with customers and shareholders, as well as safeguards for employees, information, infrastructure, and other critical resources.
The primary objective of BCP, is to mitigate the detrimental effects of disruptions and enable an organisation to resume normal operations as swiftly as is practically possible.
In the Pan-African entrepreneurial context, this has largely remained a neglected area and is elusive. We tend to focus on the pressures of the present, which undermines long-term planning processes.
This is why most businesses tend to live short lives and, at times, die with the owner’s demise.
Rating and categorising critical business operations is an essential component of the effective functioning of a BCP.
By identifying and focusing on the most important tasks, organisations can ensure that their operations continue smoothly and allocate resources more effectively.
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Clear communication channels are absolutely necessary when dealing with emergencies or crises.
A robust BCP will include communication methods to engage with employees, stakeholders, providers, and customers, facilitating the sharing of timely information, advice, and support.
The African crop of entrepreneurs should aim to intentionally develop a competitive BCP, considering its significant benefits that are existential in nature.
We explore these benefits in this week’s edition of the entrepreneurial conversations as noted below:
Protecting reputation: One way an organisation can protect its reputation is to use business continuity plans to respond to emergencies promptly and efficiently.
Stakeholders, partners, and customers are more likely to trust businesses that demonstrate resilience and preparation in challenging circumstances.
Business continuity strategies are responsible for maintaining operations. They ensure that essential operations can continue even in the face of disruptions caused by pandemics, cyberattacks, or natural catastrophes.
The ongoing efforts to improve customer happiness, protect income, and cut downtime are all contributing factors.
Work-related disruptions have the potential to result in significant financial losses, which can impede financial stability.
Businesses can protect their bottom line by implementing business continuity plans, which enable them to recover from disruptions more quickly and effectively, reducing the expenses associated with them.
Identifying potential threats and vulnerabilities that could disrupt day-to-day operations is one risk that can be mitigated through the implementation of business continuity strategies.
By reducing these risks and identifying them in advance, organisations can lessen the likelihood of disruptions occurring, as well as minimising their impact when they do happen.
Compliance with legal and regulatory requirements: In various industries, business continuity plans must be designed and implemented to comply with legal and regulatory requirements.
By adhering to these principles, organisations can avoid legal issues and the risk of incurring penalties.
Employee safety and well-being: Continuity plans guarantee that representatives are safe and comfortable in the event of an emergency.
Organisations that demonstrate concern for their employees’ well-being and provide clear direction on what actions to take in the event of a crisis have the potential to boost morale and build resilience among their workforce.
Continuity plans typically incorporate systems for detecting interruptions within the inventory network to ensure effective supply chain management.
Associations can mitigate the effects of interruptions to their inventory networks on their assignments by identifying alternative providers, developing crisis plans, and establishing communication channels.
Organisational resilience and adaptability: BCPs foster organisational resilience and adaptation.
By constantly analysing and amending their plans in response to changing risks and situations, organisations can improve their ability to anticipate and solve future challenges, thereby ensuring their continued existence and success over the long term.
It is, however, essential for the column to guide our pan-African entrepreneurs through the strategic steps necessary to develop business continuity plans aimed at future-proofing their enterprises against unforeseen developments by following these six steps highlighted below:
Risk assessment: Identify potential dangers and hazards to your company’s operations. Unexpected events such as natural catastrophes, cyberattacks, supply chain disruptions, or public health emergencies may be among them. Examine each risk’s likelihood and potential impact on your firm.
Business impact analysis (BIA): Evaluate your company’s core roles and procedures to determine their importance to business operations and the potential repercussions of any disruptions. This study simplifies the process of prioritising recovery activities and allocating resources.
Developing strategies and solutions: Based on the risk assessment and BIS findings, create strategies and solutions to manage risks and ensure the viability of critical business activities. These could include redundancy measures, backup plans, alternate work schedules, or supply chain diversification.
Plan development: Develop a thorough BCP plan, including the actions, procedures, and responsibilities to manage various changes or emergencies.
Contact information for essential workers, disaster response teams, vendors, and third parties should be provided. Ensure the plan is clear, succinct, and understandable to those it touches.
Testing and training: Regular BCP tests and training are critical for ensuring its effectiveness and identifying any weak points or areas for improvement.
Tabletop drills, imitation sessions, and practice runs can help simulate different crisis scenarios and assess the organisation’s ability to handle them. It is critical to provide educational and familiarisation programs so that all employees are aware of their obligations in the event of an unforeseen occurrence.
Maintenance and review: Keep your BCP under continual review and update it to reflect changes in the industry, organisational structure, technological developments, or legislative requirements.
Regularly review the business impact analysis (BIA) and risk analysis to identify new threats and adapt the plan accordingly. Ensure that anyone who may be affected by changes to the BCP is kept informed.
Until then, think, eat, sleep, and dream about branding!
- Dr Farai Chigora is a businessman and academic. He is a Senior Lecturer at the Africa University’s College of Management and Business Sciences. Also a global business modelling practitioner. His doctoral research focused on Business Administration (Destination Marketing and Branding Major, Ukzn, SA). He is into agribusiness and consults for many companies in Zimbabwe and Africa. He writes in his personal capacity and can be contacted for feedback and business at fariechigora@gmail.com, www.fachip.co.zw, WhatsApp mobile: +263772886871.
- Dr Tabani Moyo is an extra-ordinary researcher with the University of North West, South Africa’s Social Transformation School. He holds a Doctorate in Business Administration (Research focus on new media and corporate reputation management, UKZN), chartered marketer, fellow CIM, communications and reputation management expert based in Harare. He can be contacted at moyojz@gmail.com @TabaniMoyo (X)
