Business Continuity Planning with Effective Leadership Communication

Business continuity is advanced crisis planning that anticipates critical operational interruptions to ensure the organization can continue to function and return to a normal state as quickly as possible. If any period could be described as turbulent and causing critical operational interruptions, it's now. It's been one business crisis after another for the last 18 months, straining the abilities of organizational leaders to keep their businesses on track.  

 The COVID-19 pandemic tops the list of turbulent events because it was like a tsunami rolling across the business environment. It forced people to suddenly work remotely and disrupted supply chains. It also prompted worker protests over health and safety issues; and highlighted systemic organizational racism, ethnicism, and genderism in various ways. At the same time, unions stepped up their activities because a pro-union administration was elected; natural disasters struck, and cyberattacks disrupted the operations of critical businesses like hospitals and food processing plants. It was not one crisis but multiple crises. 

What is Business Continuity? 

The first thing to understand when asking, "What is business continuity?" is that it is proactive crisis response planning. It is intended to prevent the disruption of critical business functions or minimize the disruption's impact and recover as quickly as possible should a disruption occur despite all planning. Without a business continuity plan, all your leaders can do is wait for the crisis and react as best they can. Proactive crisis planning is a critical process in the proactive era

A reactive approach would very likely prolong the disruption of business functions. This became apparent when almost overnight, businesses were told to close due to COVID-19. Those with a plan for business continuity were able to continue serving customers within days. Those without a plan had to close and regroup - many frantically trying to find new suppliers, get websites up and running, and/or safely deliver products and services. 

A business crisis occurs when the stability of the company is put at risk. If not appropriately addressed, the situation could escalate to a point where the business could fail. It could be a natural disaster, financial crisis, technology crisis, management unethical or illegal misconduct, or even a public crisis, like a product boycott. Even a union strike is a crisis because it seriously disrupts operations.  

Some events are difficult to pigeonhole under a particular type of disaster – like COVID-19. The classification may seem unimportant on the surface, but the classification impacts the business continuity plan and organizational response. Think of it like this: Would your organization respond differently to a natural disaster versus a technology crisis? When answering the question, "What is business continuity?" there is the general organizational continuation, but what that takes to achieve depends on the type of crisis and the appropriate response.

Any crisis has three characteristics that lead to organizational stress.

business continuity planning

Ingredients of the Business Continuity Plan

The business continuity plan addresses processes, procedures, decision-making, employee communication, and activities that will enable your business to continue functioning through disruption and return to regular business. Successful implementation relies heavily on regular communication between leaders and between leaders and employees.  

The first step is identifying the essential or core functions that must be impacted as little as possible or (hopefully) not at all to continue operating. The business continuity plan could be called a business resiliency plan because it sets out alternative ways to manage critical processes during unplanned events.   

The plans vary from organization to organization, but the essential plan ingredients are as follows.

Successful implementation of a #businesscontinuity plan relies heavily on regular #communication amongst leaders, and between leaders and employees. #continuity

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1. Risk Assessment

First, identify the essential business functions for continued business operation. The first essential or critical business functions specified are those that have little or no flexibility and must operate in order for the business to continue. Some of the operations or functions not considered critical could become critical should the crisis last longer than expected. Each business function's department managers should have input into the business continuity plan because the department heads and frontline supervisors are the people who know what critical duties and responsibilities are within their departments.

Then determine the type of crisis events that can negatively affect your company. The crises identified are those common wherever the business operates. Each crisis and its impacts are unique to the organization. For example, one business may consider a loss of services for five days a crisis, while a small business considers two days a major crisis.

2. Business Impact Analysis

Each event is scoped out as the extent of the damage the event can cause, the controls needed to minimize losses, and the planned recovery time. What are the impacts the particular type of disruption will have on essential business functions? How will the loss of the essential business function impact other functions?

3. Response Strategies

Each event needs a planned response that will recognize the unique characteristics of the event. The strategies will focus on maintaining the essential business functions and minimizing the possible impacts. Strategies will address:  

  • Communication channels 
  • Resources needed, i.e., alternative suppliers, increase in remote workers, alternate work schedules, utilization of business partners, alternative IT operations, alternative warehousing facilities, etc. 
  • Access to the equipment needed at alternative sites 
  • Teams that will become active during and after a crisis and team member employee training on specific responsibilities, i.e., who will notify employees of a crisis? 
  • Key decision-makers as issues arise 

4. Crisis Communication Process

What is business continuity without effective employee communication? The answer is there might not be continuity if your leaders aren't communicating transparently and regularly with employees. Communication during a crisis is critical to keeping the workforce engaged and minimizing the fear and uncertainty that will naturally occur. The quality and effectiveness of leadership communication is a crucial determinant of whether the business will continue functioning and successfully emerge from the crisis. 

  • How will the emergency or crisis be communicated to the appropriate people?  
  • What if telephones, mobile phones, and/or the internet are down? How will employees be contacted? 
  • Do your employees know what is expected of them?  
  • What will be communicated initially and then during the crisis? 

5. Documentation of the Plan

Senior management should always approve a documented plan. It's good to have the plan in writing and stored as a digital document. It is also recommended that crisis team members have a copy of the business continuity plan at their desks and home. 

effective leadership communication

6. Testing of the Plan

Test the procedures based on developed criteria to evaluate the efficacy of the business contingency plan. Test the plan at least once each year or whenever the plan is amended for changed conditions.

Business Continuity Management 

Any business plan should be a "living document," meaning it is regularly revisited for review and amended to accommodate business and other changes and new information and knowledge. This applies to the business continuity plan, meaning it is an element of business continuity management. 

For example, you develop a continuity plan while transforming your communication system to a digital communication system. The original plan needs amending to include digital communication. Perhaps you are expanding operations and adding additional sites. Your business likely upgrades technology regularly. These changes to your business need folding into the continuity plan. 

Any business #continuity plan should be a "living document,"  -- regularly revisited for review, and amended to accommodate business and new information and knowledge. #businesscontinuity #crisiscommunication

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Effective organizations begin business continuity management before a crisis hits. Leaders lay a strong foundation that serves the business and its employees well when business is disrupted. Following are three significant aspects of business continuity management.

1. Senior management builds resilience through culture and communication

The first is senior-level communication. Top management is ultimately responsible for business continuity management, approving the plan, and reviewing it periodically. Yvette Mucharraz y Cano studied an event that occurred in Mexico City on September 19, 2017, in which an earthquake struck Mexico City, destroying businesses and killing and injuring thousands. She saw some businesses return to work quickly while others were unable to recover or failed.  

The difference between the businesses was the survivors had business resilience. The top leaders recognized the potential risks and had put in place the necessary business continuity plans, human resources, technology, and other resources that enabled an effective response. Employees and clients knew in advance the crisis processes and protocols. The business leaders took several steps prior to the disaster that led to business survival. 

  • Built a solid organizational culture – Organizational culture provided the mechanism for preparedness for different environmental events. Employees trusted their leaders, and the leaders lived corporate values of empowerment, teamwork, inclusion, and integrity. During recovery, the leaders relied on and trusted team members to make good decisions and create solutions because they were informed and trained.   
  • Invested in secure and safe workspaces – The loss of space (building or work area) impacts employees profoundly. "Leadership through space" was practiced in which the organizational leaders redefined the organization's identity to foster new normalcy in a new space. Leaders identified alternate worksites and simulated communication flow when there is communication interruption to normal communication channels. They ensured critical items like the location of company servers and asset security. 
  • Used information and technology – Technology is regularly used to backup organizational data, and plans for connectivity are in place to preserve information. 
  • Developed resilience for before, during, and after the event – Leaders created critical partnerships with agencies and organizations that could provide relief during the crisis.  
  • Addressed the grief that flows from a crisis – Leaders must acknowledge what employees feel during and after a crisis, like stress, trauma, and grief. Every crisis leads to losses of some kind, i.e., jobs, physical space, sense of security, uncertainty about the future, etc. 

2. Crisis management team knows its responsibilities and how to act 

The second management aspect is communication with the crisis management team members. They need a common mindset and extensive employee training on the continuity plan. The team members need to know: 

  • Who each member reports to 
  • Specific responsibilities  
  • Basic procedures 
  • Business goals from the crisis response perspective 
  • Process for communicating with the team lead and members 

As mentioned, the workforce will be in distress when a crisis develops. Senior leaders, middle managers, and supervisors need to recognize that business disruption is an emotional and physical issue. People are scared during a crisis, and that fear will endure during the recovery stage and beyond. It is an employee mental health issue. Leaders who build resilient organizations demonstrate responsibility for employees before a crisis develops. Employee engagement and a positive culture are two of the most important features of a resilient organization.

3. Employees are kept informed 

That leads to the third level of communication, which is with employees or the general workforce. Employees not only need to feel confident in the ability of organizational leaders to manage the crisis, but they also need regular communication. Ineffective communication can escalate the crisis. The leadership communication includes: 

  • Training employees on organizational goals so they are aligned with your business strategies.
  • Providing information about helpful government and community resources.
  • Keeping employees informed of the rapid deployment of the recovery plan. 
  • Keeping employees informed of the progress made towards a return to normalcy.
  • Ensuring all employees are included in the communication process – in-facility, remote workers, field workers, and deskless workers, and new employees. 
  • Reassuring employees with motivational and informational messaging.
communication in a crisis

Examples of Effective Business Continuity Plans

The International Labour Organization identified the 4 Ps to consider for the business continuity plan. They are: 

  • People – employees and their family members 
  • Processes – enterprise operations 
  • Profits – revenue generation 
  • Partnerships – creating an enabling environment to support continued business organizations 

 The ILO provides a good example of effective business continuity plans for SMEs dealing with COVID-19 impacts in April 2020. 

1. Complete a risk/vulnerability matrix for each of the 4 Ps to identify areas of weakness, i.e., difficulty obtaining supplies, amount of asset insurance, materials sources and delays in securing, market location (medium to high risk), public pressure, and publicity impacts working environment; etc.  

 2. Develop a total risk score that serves as a benchmark of vulnerability to a crisis. The score is based on how the number of yes/no answers to 60 items on the risk matrix. A score of 40-60 indicates high vulnerability; 20-40 indicates some vulnerability despite preparing for a crisis, and 0-20 points to a few areas needing attention.  

 3. Develop a business continuity plan that addresses vulnerable items in the matrix. If a plan already exists, strengthen the areas of weakness.

The probability, magnitude, warning, and duration of a potential hazard determine the risk priority. After the hazards are identified, a similar approach is presented. FEMA also offers a business continuity plan template for businesses that follows a similar path.  

  • Critical business functions are identified. 
  • Plan activation procedures are developed. 
  • Internal communication procedures are established. 
  • Alternate facilities are designated. 
  • Orders of the succession of senior leaders are prepared, along with delegations of authority. 
  • Plan for demobilizing the alternate facility and restoring critical business functions in the primary or new facility is made. 
  • Procedures for resumption of normal business operations are developed.

These are two examples of effective business continuity plans. There are many ways to approach plan development which is influenced by the type and size of the business. However, all business continuity plans address the areas discussed. 

The Total Organization

A business continuity plan considers the continuity of the whole business before, during, and after a business crisis. The strength of the communication process within the organization is the most crucial element that determines quick and efficient recovery. The positive employee relations you develop now will significantly influence whether your business can survive a crisis. Your employees must know what to do during a crisis and the consequences of the crisis on the business.

During the COVID-19 pandemic, some business leaders refused to keep employees informed about things like workplace safety, health protection measures, and access to PPE. The result was many employees called upon unions which added another layer of crisis to an already difficult situation. An April 2020 Gallup survey found only 52 percent of employees said their employer had communicated a clear plan of action in response to COVID-19.

No one wants a business interruption, but they are a fact of life. Business resilience depends on a carefully developed business continuity plan, excellent leadership communication skills, and an engaged workforce. 

About the Author Jennifer Orechwa

In over 25 years of helping companies connect with their employees, Jennifer has gained a unique perspective on what it takes to build a culture of engagement. By blending a deep understanding of labor and employee relations with powerful digital marketing knowledge, Jennifer has helped thousands of companies achieve behavioral change at a cultural level.

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