There are many lessons the private sector can learn from Navy SEALs and contingency planning is near the top of the list.

The following is a list of the benefits and processes used to plan for contingencies (alternative scenarios coupled with a decision matrix):

Producing best practices (while one is still practicing/training and seeking out the best solutions)

It is true that contingency planning is used to assess and plan for a variety of scenarios (favorable and not favorable) to determine the “what” will be done, “who” will do it and the impact of possible scenarios. During this process, the entire team contributes in the discussion, where every voice is heard and respected (no one person can see or predict the possible outcomes without the help of the entire team).

This step in the process will also produce best practices as original ideas/solutions are tested (before going live with the implementation or execution). This is important in eliminating or reducing the chance of implementing a flawed plan, which could result in operational, credibility and financial losses!

Cross training and collaboration within the team

When all team members are involved in the process, they can clearly see all the different areas of accountability and how each areas action’s impact other areas. This is an important residual benefit of contingency planning, as it naturally drives cross training and sharing of information (which only makes the team stronger and greatly increases the chances for success).

An example would be the impact of a cyber attack that shuts down an organizations internet, email and back office systems. If the manufacturing operation can still produce and ship products, it would be necessary to devise a manual system (in the interim period) to handle such critical tasks as order taking, distribution and customer invoicing. On the surface this may not seem critical, but it maybe critical if the automated systems are down long enough to impact customers, vendors, cash flow, inventory planning, etc.

This may require individuals and departments to learn and understand these steps and processes as they maybe called into to help during this short but critical time period. This will require individuals and department teams to develop written processes and procedures, which are critical under a chaotic or stressful situation (one that many may never deal with OR deal with one time their entire work careers).

The need to develop written policies, procedures, checklists and decision matrix

This is a step that is commonly not in place and or kept current in many, many private sector organizations. A written format is critical, especially under chaotic, unexpected or stressful situations. It reduces the chance of critical steps/processes getting missed or overlooked, at a time when time is of the essence and margin for error must be zero.

There are different methods or school of thought on the frequency or reasons to review/update these written documents, below are some suggested approaches:

1)     When there is turnover at a Manager or higher level

This allows for a new person/fresh eyes to look at processes/procedures to ensure they are current they are best practices and they are clearly communicated.

2)     After any significant issues/errors/challenges arise and are not handled as well as they need to be

In the private sector, it is common to be reactive and not take time to review the “cause and effect” behind any issues/errors/mistakes/challenges that take place in the organization. While it is fresh, there should be policies that call for a formal review of such matters, using the ASSESS-SOLVE-EXECUTE approach (see www.victory-strategies.com for more information on this methodology). The only way to prevent history from repeating itself is to learn and study history, in this case, learn and study the “root cause” versus “the symptoms”.

Forces the need to asses the “Risk” part of the equation

It is one step to identify the different possible scenarios, but the most critical step (from my personal experience), is to review and map out in great details the “Risk” impacts and how to mitigate or eliminate any potential significant risk.

I am located in Florida, where the weather can and does cause significant/real challenges, so below are some examples of the need to incorporate risk planning into your contingency planning:

1)     Insurance – in the event of a major catastrophic event (tornado, hurricane, floor or fire), are you insured, do you understand your coverage, how long it might take to get through a claims process, the process to report a claim, etc.?

2)     Business relocation – if your business suffers significant structural/fire/flooding damage, do you have a plan in place to keep your business running (i.e. a temporary location, equipment needs, IT needs, distribution needs, etc.)?

3)     IT/Technology – your organizations data/systems/telecom/internet, etc. are critical to your business. Is this area reviewed to ensure you have backup plans/data in place and know it has been tested and will work (i.e. I see many companies claim to say they have a backup process, but no internal reviews or checks are done to ensure the data is there and it is being done).

It is encouraged to have outside advisors come in and perform no less than bi-annual risk/contingency planning reviews/internal audits to ensure you are actually prepared (because these are instances where you will not get a 2nd chance to do it over!).

Victory Strategies provides these independent/unbiased solutions for your organizations to ensure you have a contingency plan, it has been reviewed, tested and allows you to sleep well knowing it is in place and taken care of!

SO, you can either take care of your contingency/risk planning OR it will take care of itself (and the consequences could result in your organization facing insolvency due to a lack of planning and foresight).

Authored By: David Phillips, President of Victory Strategies

Click Here to View Dave’s Bio

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