Hurricanes Katrina and Rita highlighted the need for leaders to make contingency plans should unlikely but potentially negative events occur.
Exceptional Leaders know that bad things happen quickly while good things generally happen slowly. While no one can precisely predict the future, those who plan for the unexpected certainly fare better than those who don’t.
Having a plan gives comfort now. Having a plan means avoiding the panic caused by not being in control. Having a plan means recovering more quickly.
After being shut down when the World Trade Center was attacked, Merrill Lynch moved their operations to backup locations in New Jersey. Within five days their technology was up and running with employees at their desks. This required extraordinary prior planning.
- Have you thought through all the potential consequences of unexpected but potentially negative future events?
- Do you have plans in writing to account for those consequences?
- Do you have all the insurance that is prudent and that you can reasonably afford? What risks are not covered?
- Do you have primary and secondary backups for all your electronic information that is vital to the operations of your business?
- Do you have alternatives for quickly acquiring resources that are vital to the operations of your business? This could include suppliers as well as employees who are vital to your business.
Exceptional Leaders know how to measure and manage risk. This includes developing the needed contingency plans for dealing with improbable but potential external events. v
~ Copyright protected by author Bruce M. Anderson. Reprinted with permission. Thinking Partners Inc.