Continuity 2 2 301 Ltd. Not everything in life is black or white. Managing Consultant David J. Window AMBCI/CIPS Continuity 2 2 301 Ltd Company Registered Number: 07714424 d firstname.lastname@example.org. Continuity of Supply.
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Not everything in life is black or white
Managing Consultant David J. Window AMBCI/CIPS
Continuity 22301 Ltd
Company Registered Number: 07714424
Just as Business Continuity is anchored to business objectives and goals so is outsourcing.
An outsourced service provider as a strategic partner should share the objectives and goals of the business
It follows therefore that if business continuity plans are developed to lessen the impact of disruptive events involving urgent activities then outsourced service providers must match their objectives and their own plans to that of the client
Their presence and performance is key to achieving your company business objectives
Usually therefore involve a long term relationship
Requires top management buy in and support between partner top management
Their investment plans, financial status, business continuity plans should align to yours
You need to be seen as core to their growth strategy
Decide who is best geared to fund the service you or the outsourced partner?
How technically diverse is the service?
Who has the competence?
Do you have the same values, objectives are they at odds contractually?
When you choose the outsource partner, investment is required in supplier relationship management, are resources and budget available?
If you are constantly in combat with your service provider stressing their business model will tear apart the relationship, think about the need for good contract management
Examine the strategic importance of the service to the business
Assess the market, can it provide the service you need
Assess the vendors is there a vendor that meets your strategic need
Analyse the risks, can you insert mitigation strategy now
Ensure business continuity plans exist and are appropriate for your business
Multiple vendors/multiple chains
On shore/off shore or both?
Manufacture or outsource?
Just in case or just in time?
You should not be in a tug of war with the outsourced supplier
They are a strategic partner and procurements role starts with helping the executive make the decision to outsource
They may undertake a pilot scheme and report on the outcome
They will derive the contract terms and conditions and SLA’s
They should provide post award contract management
Call Centre Management
Information Technology and Communications
Supply chain services
Contract Concept Time Contract Determination
When you outsource you do not remove the risk you transfer it
Running your business “lean” will increase the risk
Consider single sourcing Vs. multiple vendors
Outsourcing and “lean” operations may give rise to greater savings
Some outsourcing and “lean” strategies will increase your risk
Pre contract award analyse risk and mitigation strategies
Understand if outsourcing or running “lean” adds to your risk profile
Post award manage your supply chains
Undertake supplier relationship management
Carry out surveillance audits with your suppliers regularly
Service level agreements can put unnecessary stress on the outsourced supplier even in normal day to day operations
During an incident these service levels need to be met
The outsourced supplier may be providing a service specific to your recovery
42” Water main burst, Huyton, Liverpool-19th July 2011
Resolving this event is in the hands of two outsourced suppliers
Involve your outsourced supplier in the writing of your business continuity plans
Similarly involve yourself in the creation of theirs
Understand the contract scope and terms and conditions
Are they explicit regarding business continuity events?
Rehearse your joint actions together
Post exercise actions may lead to contract amendments
Contract amendments can lead to a variation of costs
Adding value with resilience
Risk, Continuity and Supply Chain
Business Continuity Management
Business Continuity BS25999 Audits
Business Continuity Coaching and Training
Not everything in life is black or white