Why plan for a disaster that may never come?

Y2K proved to be a greater fizzer than fireworks on a wet New Year's Eve, and bird flu has flown from our screens. The war against terrorism has so improved our defence systems that the chance of a Twin Towers catastrophe is remote.

So why should we worry about planning for a disaster? Isn't the Government taking care of it?

Bird flu

If you take a look at the ProMed daily mail service you will see that the highly pathogenic H5N1 strain of bird flu is far from eliminated. More than 200 people have died from the disease since 2004 and the death rate for those who are exposed to bird flu is currently 60%.

Two hundred people doesn not sound a lot when you consider the world population, but behind the scenes millions of birds have been culled to keep the virus in check.

More than Bird Flu

According to the New Zealand Ministry of Health, 'An influenza pandemic occurs when a new strain of influenza virus emerges, spreading around the world and infecting many people at once.'

Bird flu is just one form of influenza. At any time a new strain could mutate and emerge, a strain for which the world health organisations do not have a cure or protection.

Baby boomers, who may remember classmates dying during the polio epidemic in New Zealand, have retired and moved into country and beach retreats. Younger business managers will not remember the closed schools and limited contact children were allowed before a protective inoculation was developed.

The consequences

The effects of a pandemic are not just limited to the need to take precautions so as to avoid the risk of infection. Businesses could be badly affected from:

• Staff off sick
• A sudden drop in customers
• A possibly permanent drop in income from a suddenly smaller market
• Key business knowledge being lost forever

Business example

Imagine you are in the market for incontinence products. A pandemic might:

• Suddenly and temporarily drive up demand for your products - could you meet demand?
• Leave you with little stock to cater for regular orders
• Kill off key staff with process, production and administration knowledge
• Tragically kill off up to 60% of your potential customers
• Lead to a much lower demand for your products for many years

Your family

How would you cater for your family's needs? Do you have adult children or grandchildren in other parts of the country or the globe? Do you have plans to protect them?

It really doesn't bear thinking about. And yet we should think about it!

Disaster Protection

Perhaps disaster protection sounds less sensational if you call it 'business continuity' as the Government has in its publication - Business Continuity Planning Guide. Designed for dealing with an influenza pandemic, much of the advice is also applicable for a major disaster of any kind.

It covers topics such as:

• Deciding whether a workplace should stay open or should close
• Your responsibilities under the Health and Safety in Employment Act 1992
• Preparing for the possibility of a workplace or business closing
• Deciding how essential business activities could be maintained
• Identifying core people and core skills
• Business planning for staff absences
• Knowledge management
• How shortages of supplies might affect business operations

Managing shortages

Shortages may occur because of:

• Disruptions in transportation systems
• Suppliers being unable to meet orders
• Absences of workers, affecting production
• Absences of drivers, affecting delivery of needed supplies
• Government or self-imposed travel restrictions
• Disruption to the flow of imported goods

Most of these shortages would also be triggered by a major natural disaster in New Zealand. Even though your business was not directly damaged, it could still suffer financial consequences from the event.

Planning time for planning

When you are immersed in business, finding time to plan for a disaster that you hope will never happen can seem a low priority. However, if a disaster does happen, it will be the businesses with the plan that will survive best.

If you think that you need to review your contingency plans, but would benefit from outside eyes - let Edutech KM staff help you put together a plan. You will already have all the knowledge, so all it requires is a clear understanding of how it will all fit together and who needs to know what.

Edutech KM Ltd

PO Box 25-241, Victoria Street, Christchurch;
phone: 64-3-337-0234
fax: 64-3-337-0235
info@edutechkm.com
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