Module 6: CRITICAL SITUATION IN BPO ENGAGEMENTS
process affected, prioritize by business impact
Ice breaker (what will happen next?)
LEARNING OBJECTIVES
1. Define continuity management.
2. Enumerate and discuss the seven steps of
continuity management.
3. Explain what an interruption event is.
4. Enumerate and discuss the “tell tale” sides of
critical situation.
5. Describe the critical situation management.
6. Enumerate the eight (8) disciplines of the 8D
Approach.
6.1 Business Continuity Management
Steps of Business Continuity Management – Critical
Situations
What is continuity management?
advanced planning and preparation of an
organization to maintaining business functions or
quickly resuming after a disaster has occurred.
The challenge to business continuity management is to
plan for seemingly “uncontrollable” circumstances so as
to provide for consistent excellent service
Continuity Management aim to the following:
• Uninterrupted availability – continued
business operations
• Key business resources – ensuring critical
business capability
• Essential business activities – key business
goals
Business Continuity Management Steps
1. Identify key business processes
From supplier to manufacturer to seller to
consumer
• Assessment of business impact in event of
interruption (predicting what will happen to the
key business process)
• Documentation of maximum allowable time for
interruptions (long term or short term)
2. Identify risks and business process impact
• Identification of risks, link with key business
(knowing the risk then connect it to the business
process impact)
• Periodic certification that the list is updated
(making sure that your assumption can still
occur)
• Constant monitoring to assess the
likelihood(probability) of occurrence of risk
(checking if still a risk for a business)
3. Identify key business processes
• Documentation of maximum allowable time for
interruptions (checking again the length of
interruprions)
4. Reduce probability of occurrence
• Formulate measures to reduce the probability
that controllable risks will occur (creating a plan
of actions)
• Effective primarily on internal risks (Human-
factor Risk- A company may need to hire or
replace personnel key to the company's success.
Strikes can force a business to close for the
short-term, leading to a loss in sales and
revenue.) (Technological Risk - outdated
operating systems that decrease production
ability or disruptions in supplies or inventory.)
• Improve policies, process changes, people
measure (creating new a rules and regulation)
(changing the business process in a safe way for
lower the probability of risk)(people measure
giving value to stakeholders)
• Revise guidelines, provide greater supervision
(innovate the current policies and company
guidlines)(providing what your employee needs
a leader of a business)
5. Mitigate impact (inevitable things)
• Formulate measures to mitigate adverse effect,
shorten interruption, if risk occurs (if that
happen then it is happen so we need to shorten
the interruption)
• Planning for redundant resources, alternative
process (be flexible)
6. Develop clear disaster recovery plan
 • Response. Responsible personnel, decision
structure, facilities (react to the disaster happen
what are your plan)
• Interim(a time intervening) process. Alternate
processing resources (the rapid provision to
manage change or transition)
• Restoration/Resumption. Transition from
alternate process / work-around and resources
to normal mode after interruption is resolved
(from normal to problem occur to alternate to
normal again)
• Also called a “business continuity plan”
7. Mitigate impact
• Periodically test recovery plan to
o Validate the effectiveness of plan
actions (response, interim process,
resumption)
o Ensure availability of required
equipment, and
o Develop people skills
 Perform success/failure assessment to improve
plan (Documenting knowledge, skills, attitudes
and beliefs, usually in measurable terms.)
 Perform root-cause analysis to improve risk
prevention measures(this is simply knowing the
cause, prevention is better than cure)
Business Continuity Management Triggering Event
1. Extraordinary event - Beyond normal downtimes of
equipment or input process errors
2. High impact - Resulting in risk of significant loss
ANAO uses the term “outage” - In this course, we use
Risk and Risk Event interchangeably with “business
interruption event”
Business Continuity Management Reduce Probability of
Occurrence
• Develop measures to prevent risk from
occurring
- If within the control of the organization
(trying a less risky option,organizing)
• If cost effective
- Shifting of factory to an underground
bunker to protect from tornado damage may
be cost prohibitive (initially used as a bomb-
proof storage and personnel bunker, but was
later equipped as a 1,000-bed hospital.)
• Reduce likelihood of the risk if prevention is
impossible or not cost effective
- Extensive smoke alarms to catch possible
fire starts
- Good quality circuit breakers, periodic
inspection and replacement, use of standard
wires/tapes reduce risk of electrical fire
- Multiple generator sets reduce risk of
interruption from power failure
The 8D Approach
8D Approach Problem Solving / Issue Resolution
Definition:
• The Eight Disciplines or 8Ds is a Ford Motor
Company method to resolve a problem when the
cause of the problem is unknown
The 8D Approach:
Discipline 0 – Become aware of the problem
Discipline 1 – Use Team Approach
Discipline 2 – Describe the Problem
Discipline 3 – Implement and Verify an Interim
Containment Action
6.3 Managing Issues and Changes
Managing Issues & Changes: Communication and
Tracking
Executive Committee - the one who handles
escalated issues and strategic directions.
Account/Relationship Managers - resolve issues that
span multiple processes.
Operational Manager Escalation - can handle
escalated issues.
 Facilitated communication and tracking
o Communication issues can be done
verbally or through email.
o Proper documentation is the key to
issue management system for
recurrence prevention.
o Clear documentation of issues is key to
effective escalation.
 Root cause analysis Clear documentation
o clear statement of the following: root
cause, proposed solution.
 Escalation
Analysis of trends across multiple issues
can highlight areas for progress changes that
will prevent future issues and negative
occurance.
 Process Improvement
o Can identify changes in people
skill/training.