Changing Corporate Culture to Support Business Continuity

Dr. Ed Goldberg, PE, CBCP

What does culture have to do with business continuity?

Culture determines– Resistance to change– Degree of accountability and ownership of

processes– Organizational strategy (and BC strategy)– The organization’s tolerance of risk– How “things get done”

In the end, we want to make the organization conscious of BC – part of the culture

*Zawada and Lambert, Continuity Insights, 2005, had a decent discussion of continuity and culture

Coming down from the academic ivory tower: Are org. culture experts really different from us?

The ideas aren’t that profound – with a little facilitation, we could have formed these ideasExperts….– Did research and formed the ideas first– They organized the ideas into a useful form– They articulated the ideas well enough to share them,

publish them, etc.– They supported their work with existing knowledge to

get their work accepted– They followed up to see how the ideas fared when

applied, continued learning and tweaking

BC Planning: Why culture?

Is the organization pragmatic? Does it view people w.r.t. BCP as it does facilities, systems? Or does it value people above the interests of the business?What’s the mission? Does it need to continue after a disaster? Do stakeholders think the core work is important? Do the executives view BCP along a continuum as, unnecessary or as insurance or as a vital part of its operating processes? How do things get done?

Is the organization pragmatic?

Do people tend to be rational? (No laughing) Do disaster scenarios push people off center such that it’s hard to have rational discussions and decisions?

What’s the mission?

Is our work important to others? Impact analysis – BIA – what if we go out of business for a while or permanently?– Interesting dialogue, but can people think this

way?

Is the org. risk-averse

What risk do we already take?– Consciously and subconsciously

Cost vs. impact: the pragmatic approachAre we allowed to take risk? Rewarded?At what level of the org. is risk-cost tradeoff made? Is it appropriate?When we do our BIA’s, is there common understanding via the culture on how to evaluate processes

How is BCP viewed by execs?

It’s insurance – no more or lessIt’s required – regulatory, directive, prudencyIt provides competitive advantageIt aligns with our culture – serving stakeholders, reducing risk, increasing reliability, etc.

How can we apply theory to our own organizations?

Successful BC planning can’t be an academic exercise.Take the 3 step change approach to the most fundamental level of planning –– Describe what’s inadequate about current state– Vividly describe what the future state will look like– Create a safe means for people to change

What’s disaster? What’s a BC event?

People did not understand the difference between storm restoration and BC activities.

What did we learn at NU when we began the BCP process?

People believed that NU already had effective BC plans in placeBC activities, including and perhaps especially restoration work, were thought to be routine and NU was proficient at them.Some people did not see a need for BC planning given our effective and frequent reliance on heroes after natural disasters

Describe what’s inadequate now

Educate the organization from the top down– When is a BC plan not a BC plan?

Emergency plans, restoration plans, evacuation plans, response plans….but no real BC plan; what we called BC plans weren’t!

– NU didn’t have BC plans – we had to postulate pointed scenarios to demonstrate this, make it real

– The organization needed a jolt. Was it 9/11, or the Northeast blackout of August 14, 2003?

Both and neither – 9/11 was, in some ways, too big to deal with for many peopleThe blackout was too much like other work NU does routinely

For every organization, there are scenarios that best demonstrate vulnerability and inadequacy – find them!

Vividly describe the future state

What will the plans look like?– Imaging and affirmation of a different culture may be unimaginable

at the time for most, but it is the picture of the future that begins the change process (Schein, 1992; Tice, 1998)

What processes will support the plans?How will people behave differently?

– Executive sponsorship begets ownership– Plan ownership begets accountability– Accountability instantiates a process into our consciousness– Consciousness creates routine everyday behavior– Routine everyday behaviors reflect the culture– Culture is sustainable, albeit fragile

BC needs to be a conscious part of an organization’s everyday behavior – part of the culture

Create a safe means for people to change

People fear the unknown – make the future state less and less unknown through educationSimplify processes to gain acceptance – Promise them it won’t hurt, and make sure it doesn’t!

Engage the workforce and the entire management team in designing processes that meet THEIR needs– Push from the top, pull from the bottom– Make plan ownership real – empower the owners,

provide tools and support

Lessons from the Safety Conscious Work Environment

What is a Safety-Conscious Work Environment (SCWE)?– Employees encouraged to raise concerns– Concerns promptly reviewed– Concerns assigned proper priority based on their potential safety

significance– Concerns appropriately resolved with timely feedback to

employees. Where does the term and concept come from?

– NRC (1998)We’ll see how it is applicable to other organizations, and how it’s not just about safety!

What does a SCWE look like?(Callan, 1998)

Management attitude that promotes employee involvement & confidence in raising, resolving concerns.Clearly communicated management policy that safety has the utmost priority, overriding, if necessary, the demands of production and project schedules.A strong, independent QA organization and program.A training program that encourages a positive attitude toward safety.A safety ethic at all levels characterized by questioning attitude, attention to detail, prevention of complacency, commitment to excellence, & personal accountability.

Here’s the same list with our BC spin – What will a culture supportive of BC look like?

Management attitude that promotes employee involvement & confidence in raising, resolving concerns – plans are never perfect, but iterative improvement relies on input from allClearly communicated management policy of BC planning’s priority, overriding, if necessary, the demands of production and project schedules.A strong, independent QA organization and program – BC plans and programs should be auditedA training program that encourages a positive attitude toward business continuity – this is our education componentA commitment to the organization’s continuity at all levels characterized by questioning attitude, attention to detail, prevention of complacency, commitment to excellence, & personal accountability.

What’s the bottom line?

Engage the workforce in owning, developing, maintaining BC plansCommunicate pervasivelyFacilitate by simplifying processes, being flexible, providing tools and knowledgeTrust begets trust – have confidence that people want viable BC plans– But verify and validate and audit and provide

feedback….all iteratively. It’s an ongoing process.

Leadership Communication Style

A 2003 study of nuclear workers showed that the SCWE culture is nurtured by leaders who communicate using….– Social composure– Social confirmation– Social experience– Appropriate self-disclosure– Articulation– Wit

SCWE Study Results

Leader communication style has a significant influence on safety-conscious work environments (and work culture in general)While cultures vary between organizations, the underlying SCWE issues – trust, leader communication styles, change management – are basically constant

Social Composure

Leaders who demonstrate social composure increase the likelihood that people will raise issues and concerns

The ability to change one’s social composure is discussed

Social Confirmation

Leaders who make people feel good, important, cared for (warmth), supported, and noticed increase the likelihood that those people will raise concerns/issues.

Studies regarding these traits found commonality with mentoring

Leaders who mentor can do so both one on one and for groups

Social Experience

Leaders at ease in meeting and getting along with new people, who show personal comfort when being active as a participant in various social groups, increase SCWE

The Introvert/Extrovert dimension of MBTI (Meyers & Meyers, 1995) is similarly described, since people have a preference which will affect their comfort level. The need to act out of the comfort zone would be key to changing this attribute of personal communication style

Personal disclosure has previously been shown to promote community, authenticity, and role modeling; this study has shown that it increases the likelihood that people will raise concerns/issues

Leaders who share their strengths and weaknesses create a strong sense of credibility because they demonstrate wisdom learned through successes and mistakes

Appropriate Disclosure

Personal disclosure

Articulation

Actual speech sounds that make up words as well as how the sounds are put together to make up syllables, words, and sentences

Means of changing one’s speech, grammar, etc., are discussed

Wit

Only 3 of the 5 questions regarding wit demonstrated preference. 2 of the 5 did not.

Dual meaning may account for indifference: wit includes both humor and intellect

The constraints on communication in the nuclear environment are discussed

The need to show “appropriate” humor, and the ability to incorporate that into one’s repertoire are discussed

What’s the take-away?

Managing an organization’s BC planning is an exercise in change managementChange management includes knowing the organization along with how to change itChanging BC planning from a project-oriented mentality to an integral part of the culture requires leadershipIt is possible to learn to lead more effectivelyThe chain of changes and actions needed to create a BC culture is complex, but….

– Life is open book – Change management is an iterative process, so you can change

your answers along the way as needed

☺

Safety: Tips on generator use

A generator can provide peace of mind during harsh winter weather, but if used improperly, it can be dangerous to both the operator(s) and utility workers. Follow these guidelines to prevent accidents:

· Don’t connect a generator directly to house wiring. Have a qualified electrician connect it with a transfer switch. Otherwise, a generator can feed power back into the distribution system.· Make sure it’s properly grounded. Consult your manufacturer’s manual for correct grounding procedures.· Use the proper power cords. Plug appliances into the generator using heavy-duty, outdoor-rated cords. Make sure cords aren’t tripping hazards, but don’t run them under rugs where heat can build up.· Never use a generator indoors. This includes garages, basements or crawl spaces. Opening doors and windows or using fans will not prevent carbon monoxide build-up.· Don’t overload a generator. Use a portable generator only for essential equipment. Overloading can damage appliances and electronics.· Read and follow all of the manufacturer’s instructions.· Keep children and pets away.· Turn off a generator before you go to sleep or go away.· Turn off all equipment plugged into a generator before shutting it down.

Miscellaneous Info….

By reporting power outages you help power company crews locate problems and restore power more quickly. To minimize the effects of momentary power outages, we recommendthe following: When buying electronic equipment, look for devices with a battery backup. Personal computer users should periodically save information to a disk to prevent loss of data. Invest in an Uninterruptible Power Supply (UPS). During a momentary power outage, the UPS will continue to provide power to your personal computer. (A UPS is not designed to operate a computer indefinitely, only long enough to allow users time to save their work and shut down properly.)

Effects of Electrical ShockCurrent (amperage) kills -An incredibly small amount of current can do catastrophic damage to the human body.

EFFECTS OF AC CURRENT ON AVERAGE HUMAN

1 milliamp (1/1000 amp) No pain - Threshold of perception

5 milliamps Sensation of shockAccepted as maximum harmless current

8-15 milliamps Painful Shock - Still have muscular control

15-20 milliamps Painful Shock - Loss of muscular control

50+ milliamps (<1/10 amp) Ventricular Fibrillation - Heart leaves its beating pattern and goes into a vibratingmode before shutting off

Low Voltage does not mean low hazard

More people lose their life from low voltage shocks (120/240 volts - household voltage) than any other source

The presence of moisture such as standing water,wet clothing, high humidity or perspiration increasesthe possibility of low voltage electrocution dramatically

Most low voltage electrocutions involve ventricularfibrillation. (Hand to hand or hand to foot contact)

NON QUALIFIED PERSONS

MINIMUM - 10’ FOOTCLEARANCE FROMANY OVERHEAD LINES,REQUIRED BY NU

Step Potentialis deadly

DANGERNU Rule

Stay at least 10’away from any

wire

Touch Potentialis deadly

Factors that determine thesize of the danger area:

Voltage of the downed wireConductivity of the earth (wet/dry)Duration the wire is contacting earth

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Helpful links from Northeast Utilities

http://www.nu.com/media/stormkit/outage.asp

http://www.cl-p.com/electricsafetyworld/emergency/outages.html

http://www.nu.com/media/stormkit/faqs.asp

http://www.cl-p.com/stormcenter/faqstorm.asp

http://www.wmeco.com/community/weather/warning.asp

FYI: Did you know you can get outage notification on/off serice ~ $5/month?