In the below video, Aaron Gracey of Squared Apples explains how the knowledge and experience gained through the creation and implementation of a Business Continuity Plan can result in “Resilience Benefit”.
Baseline Resilience Capability
- Based on the training of staff
- Embedded processes
- Historic knowledge
- Experience of prior events
Following an incident, the organization will perform at this baseline level until the implementation of Incident Response Procedures. Once the response is underway, the performance level will eventually start to approach Business as Usual levels.
Due to the knowledge and experience gained through the implementation of the Incident Response Procedures and Business Continuity Plan the Baseline Capability improves.
However, overall performance will remain below previous Business as Usual due to the impact caused to the markets, stakeholders, management, internal perceptions of staff and the organization’s image or reputation.
This is known as Lost Performance and the longer a disruptive event lasts the bigger the reputational and business impact.
A disruptive event takes a business from their Business as Usual performance, right down to its Baseline Capability. This drop in performance is known as the Resilience Gap.
As the Baseline Capability increases through experience and Organizational Learning, the Resilience Gap between the Baseline Capability and Business as Usual narrows.
Organizational Learning Approach
This kind of approach allows an organization to increase their Baseline Capability by taking into consideration:
- Lessons learned
- What risks were missed
- What issues happened because we didn’t track them properly
- How the market changed
- What training our staff did not have or should have
This increase in Baseline Capability by following an Organizational Learning Approach is known as the Resilience Improvement.
This is when an organization follows the above approach and ends up operating above their previous Business as Usual level because of:
- New ways of working
- Identified new levels of training required from staff
- Identified new stakeholders
This performance improvement can give organizations a unique opportunity to seize more of the market and outperform their competitors.
If you want to increase your Organizational Resilience, start with preparing a Business Continuity Plan and check out BCP Builder’s Business Continuity Planning Templates.