Late in 1985, there were two minor and unconnected incidents that
changed my life. Without both of them happening I doubt if I would
be Chairman of the BCI today, or even in the industry at all.
Firstly, I was contacted by a gentleman called Ron Ginn who I knew
only slightly and (like me) was an Englishman living in The
Netherlands. He had an idea for a new company doing something called
‘Continuity Planning’ and asked if I would be interested in becoming
involved. I liked his ideas but doubted their viability or my
suitability to help launch a new company with a brand new concept in
a foreign country.
At that time I was European Business Systems
Manager for a US multinational based in Amsterdam. On one of my
visits to the States about a month after the call from Ron, I
was giving a routine presentation to my US colleagues. The only
issue I was grilled on was Disaster Recovery - what were we
doing about it and did we not realise how important it was? By
the end of that trip I had visited a commercial hot-site, been
half a mile underground to see off-site storage and spoken with
several Disaster Recovery consultants.
When I got back to Holland, I was ready to
talk to Ron Ginn again. If the subject was becoming a hot issue
in the US, why not in Europe? My new life as a missionary,
prophet of doom, and minor entrepreneur had begun.
I make no apologises for starting this article
with my personal initiation into the business because my story
mirrors the industry itself and gives me a solid base from which
to speculate on its future. What I did not realise in 1985 was
that there were two fundamentally different industries laying
claim to Business Continuity. Firstly there were the product
providers such as DR Backup Sites, mobile recovery, data
vaulting and salvage.
Secondly there were the professional service
companies (consultancies and auditors) who were primarily
concerned about their client's inability to continue fundamental
business processes - not the technical means by which they did
so. This difference has largely been ignored because it was in
everyone's interest for the idea of DR/BCM to become more widely
known to a general business audience.
To understand why this happened it is useful to
reflect upon how it all started. Until the early 1970's most
companies had no serious form of contingency planning (as it was
then called). Major disasters were rare and companies relied on
insurance to protect them against asset loss and loss of
profits. Business complacency was shattered, however, by the
OPEC oil embargo, which showed US corporations that they were
vulnerable to external events beyond their control. Dealing with
the rest of the world suddenly became riskier with the emergence
of terrorism and global cultural conflict. At the same time and
closer to home, the US financial sector realised that they were
becoming more and more dependent upon new computer technology
and the catastrophic impact that non-availability might have on
a financial institution's ability to function.
Not surprisingly, this problem (as challenges
were then called) soon generated saleable solutions. The
computer industry (which was totally IBM dominated at that time)
saw this as an opportunity to sell more equipment. If loss of
your Data Centre would put survival of your business at risk
then surely it would be a good idea to duplicate it in a
location that could not be affected by the same disaster. IBM
were mainly interested in selling hardware, leaving the leasing
business to 3rd parties like Comdisco, so they judged that the
market for selling totally duplicated systems as a standby was
limited. Major banks and airlines were the only feasible
candidates for this strategy. However, leasing companies often
had large stocks of equipment and a less than ideal cashflow
position. They invested heavily up front on equipment that they
leased out very profitably. However, they were very susceptible
to any business downturn and also to IBM changing their business
and/or technical strategies. For them, Disaster Recovery became
an ideal complementary business and it gave their clients who
could not afford duplicate sites the opportunity to participate
in a shared service with minimal risk.
At the same time another 'solution' emerged -
and it became known as the Disaster Recovery Plan, provided by
small specialist consultancies. Arguably the first of these was
Devlin Associates, founded by Ed Devlin in 1973. This company
and a number of similar ones that started up over that decade in
the US created the basic methodologies and terminology still
largely used in the BCI and DRII standards to this day. Until
the early 1980's there was effectively no Disaster Recovery
industry of any significance outside of the States although the
ideas had started to take root in Australia, South Africa, the
UK and The Netherlands. Commercial hot-sites similar to those
offered by the US market leaders Comdisco and SunGard had been
opened in some of those territories and limited technical DR
consultancies followed.
At this stage the business drivers for DR
service providers and DR consultancies were not incompatible. DR
consultancies wrote technical recovery plans to make the
invocation and activation of the recovery sites more effective
and secure. Without the sites, the consultancies had no plans to
write and without the consultants the DR sites risked having
unsuccessful invocations with the resulting adverse publicity.
Inevitably, the consultants became closely involved with the DR
companies and often got taken over by them. Devlin Associates,
for example, became part of SunGard.
The Ron Ginn message that so enthused me back
in 1985 was that Business Continuity was not about Computer
Disaster Recovery. It was about a new way of managing a
business, viewing the continuation of business functionality in
all circumstances as the key responsibility of The Board.
Recovery of computer systems was simply part of the technical
implementation of the overall business strategy.
From this perspective it is clear that the
role of the Business Continuity professional is not the same as
the original DRP consultant. Whereas a DRP Consultant is
primarily concerned about recovery of corporate resources that
are lost, a BCM professional is concerned about reducing the
likelihood of loss, mitigating the impact if it does occur and
possibly re-engineering the process so that it does not have to
be directly recovered to its former state. A BCM consultant may
even tell you that you don’t need a backup contact and suggest
ways of re-organising your working methods to reduce your
dependency on IT. The traditional DRP consultant is very
unlikely to do that.
As the industry progressed during the last 15
years thus dichotomy has become more marked. The DR specialists
have centred themselves around the service providers whereas the
true BC consultant has moved more towards the Risk Management
arena. In fact in some ways this has caused a ‘crisis of
confidence’ in the BCM profession. Should we remain with our
traditional cohorts (The Disaster Recovery companies) or move to
the higher ground perhaps only to find it already occupied by
Risk Management?
For BCI members this is the crucial question
and comparison with established professions helps clarify the
point. Are doctors in the same profession as engineers who
design CAT Scanners? Are accountants in the same profession as
programmers of accounting software? Are architects in the same
profession as builders? The answer in all cases is obviously no,
although in each example they interact within the same industry.
If we are to progress as a profession we must recognise that
being an excellent technician in DR, does not necessarily make
you a BCM professional.
So where is BCM today? Judging by my postbag
and Inbox the answer is ‘confused’. Some people tell me that DR
is dead as a management discipline, technical solutions rule,
you just need to understand their implications and be able to
afford them. This is probably true; the traditional services
have been widened to include dealing room, LAN, telecom and work
area recovery, web hosting and self-healing technologies. The DR
companies are viewed as part of the IT industry - their share
price fluctuations demonstrate this. Perhaps DR has returned to
its roots.
Even that holy grail of BCM, the Business
Impact Analysis, is under attack from a raft of general
management techniques, which owe nothing to Devlin, Ginn, Hiles
or any of our gurus. Risk Management has claimed the corporate
high ground already in North America and Turnbull has
revolutionised executive thinking about operational risk in the
UK.
All of this might be depressing at first
glance, but step back a little and ask why our subject exists at
all. It is to ensure that organisations can continue to meet
their business and service goals whatever may threaten them.
Turnbull has recognised that “for many companies, BCM will
address some of the key risks and help them achieve compliance”.
Business Continuity has come of age.
The boundaries of Business Continuity have to
change; we cannot continue to assume that our role is to recover
the corporate infrastructure and nothing else. We need to be
pro-active in challenging the status quo, asking the questions
which management prefer not to address. Our subject has too many
specialised islands of knowledge - Emergency Planning, Crisis
Communication, Health & Safety, Risk Management, and Information
Security. Our holistic philosophy needs to encompass all these
specialist skills, not compartmentalise them. Until BCM is an
essential part of the management of all businesses we have not
won the argument. We have to forget the tools, techniques and
gimmicks and simply concentrate on the big picture. There is
nothing more important in Business than Continuity.
Back in 1988 I concluded, in the first article
on the subject that I ever had published:
“Simplistic standard solutions such as those
proposed for a traditional data centre or single site operation
are irrelevant to the major global corporation. The next five
years should see Continuity Planning achieve what is necessary
and became a strategic corporate issue discussed at the highest
levels”.
Maybe my timing was out but I still believe
this can happen provided we focus on the business rationale and
not the technical solutions.
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