Horizon Point Consulting

Author: Lorrie Coffey

  • The Misconceptions of Business Continuity Planning

    The Misconceptions of Business Continuity Planning

    Last week I had the privilege of leading a workshop in partnership with the Huntsville-Madison Chamber of Commerce to discuss Business Continuity Planning with leaders in our area. The Covid-19 Pandemic caught many organizations unprepared and they have struggled through how to keep their business going during this time.  One reason for the lack of preparedness is misconceptions organizations have regarding Business Continuity Planning. 

    Misconception #1: My organization doesn’t have the time to create a Business Continuity Plan. And besides, we’ll never need it. 

    Yes, Business Continuity Planning takes time. It’s not something you can create overnight. And it takes input from multiple sources within your organization and possibly even outside of your organization. A successful Business Continuity Plan is designed by a team, not an individual. And even once designed, it requires regular review and updates. But the time you spend up front to create a solid Business Continuity Plan will save you time should you ever need to respond to a large-scale emergency. It will also ensure that you’re able to get your organization back up and running quickly and efficiently and minimize the impact to your employees & their families, clients, vendors, and your revenue. 

    I think it’s safe to say that many organizations now understand and acknowledge that they do have a need for a plan. But they’re scrambling to try and create that plan as they respond to the impact of the pandemic and doing so could be detrimental to the design of the plan.  

    Misconception #2: My organization isn’t big enough to need a Business Continuity Plan. 

    Regardless of the size of your organization, you need to assess your potential risk due to possible large-scale emergencies and determine how you would need to respond in order to keep your organization afloat and to insure the safety and well-being of your employees, their families, and your customers.

    One of my biggest concerns during the pandemic has been small businesses and how they will survive. Many small businesses were required to close their doors and that had a major impact on their revenue and their ability to retain employees. Sadly, some may not survive. Creating a plan to help assess the impact and determine how to respond could be the difference between surviving a large-scale emergency or having to close your doors permanently.  

    Misconception #3: Our employees will know what to do in the event of a disaster. 

    Employees are trained and prepared to handle small-scale emergencies and can usually do so without much direction. Your system goes down temporarily, your power goes out for the day. But they aren’t trained or prepared to handle large-scale emergencies. They look to leadership to guide them and through that guidance to put them at ease. And leadership needs to be prepared in advance to provide that guidance, to make critical decisions and implement those decisions, to reroute employees to assist with the restoration of critical functionality, and to honestly be the calm in the storm. 

    Watching leadership flounder in a time of crisis could be devastating to an organization’s employees, customers, and vendors. It could also have a negative consequence on your organization’s public image and reputation. 

    Misconception #4: We’ll just communicate with our employees if the need arises. 

    Last summer my father had open-heart surgery which resulted in pneumonia and a second surgery. I remember talking with my mother when he was readmitted to the hospital trying to determine who needed to be notified, who was going to notify them, and what they needed to be told. Neither of our minds was in the right place to be making those decisions at that time (and I’m sure we forgot some people). 

    The same goes for organizations. Determining who needs to be notified, who is responsible for notifying them, and what information to share should not be done in the middle of a stressful situation. Plan your communication in advance. By doing so, you can create a checklist of who needs to be informed and when, who will handle that communication, and what needs to be shared. The information you provide to your employees may be quite different from the information you share with customers and vendors. And some notifications may need to be made as soon as possible, while some can be delayed. By creating a list in advance and drafting scripts for each group, you can efficiently get that communication out and be sure that all necessary parties receive notification. 

    Misconception #5: We have insurance policies to cover us. 

    Most insurance policies will cover physical damage, many will not cover, or fully cover lost revenue. Review your insurance policies and determine if you need to adjust limits on a regular basis. In addition, your organization may want to consider adding Business Interruption Coverage. 

    While these policies can certainly help in a time of need, none of these insurance policies are going to get your organization back up and running. They may provide financial assistance to do so, but it is up to your organization to respond to and recover from an emergency. 

    Designing and implementing a Business Continuity Plan is no small feat, but if the Covid-19 Pandemic has taught us anything, it’s that the unexpected can happen and we need to be prepared for if and when it does. Is your organization prepared? 

     

    Here are some additional resources on Business Continuity Planning: 

    Preparing for the Worst: Business Continuity Planning

    Defeating the Kobayashi Maru, the No-Win Situation 

    4 Keys to Leading Through Crisis

    Creating a Business Continuity Plan Webinar & Worksheets

  • Defeating the Kobayashi Maru, the No-Win Situation

    Defeating the Kobayashi Maru, the No-Win Situation

    My 13-year-old came to me last week and said “Mom, we are living through history. In five to ten years, kids will learn about this pandemic in history class and I’ll be able to say ‘yeah, I was there’!” And he’s right. 

    Students will hear about how our world came together to fight COVID-19. They will be amazed by the fact that we quarantined, that so many businesses had to close their doors, but hopefully, they’ll be inspired by the way we innovated to overcome this pandemic and support those in the front lines. 

    I don’t know that we ever could have been fully prepared for what this virus has presented us with, but I do think we could have been more prepared than what we were. In my fifteen years in HR, I’ve only had one client that had the forethought to create a Pandemic Response plan. Even during my time in healthcare, the facility I worked at had a plan for outbreaks, we managed the H1N1 flu with ease, but wouldn’t have been prepared for something of this magnitude. 

    While we as a nation weren’t prepared for the worst-case scenario, and we’ve quickly exhausted our usual resources, we’ve stepped up to the challenge and begun to think outside of the box. So many people and companies have come forward to help, from people around the country sitting at sewing machines making masks for healthcare providers, using 3-D printers to make masks, veterinarians donating their equipment, reconfiguring CPAP machines to function as ventilators, automakers shifting to make ventilator parts, breweries making hand sanitizer, and the list goes on. 

    There’s a saying out there “expect the unexpected, then it becomes the expected.” Imagine how much quicker we could have responded if we had thought outside of the box before a pandemic hit if we had imagined the absolute worst-case scenario instead of just what we were used to. That company I mentioned above that had a Pandemic Response plan in place, together we took that plan and turned it into a full-scale Business Continuity plan. They were prepared for the worst-case scenario, they knew what to do if they had to shut down their facility if their employees all had to work remotely. They went into this pandemic prepared, simply implementing the plan they already had in place. And in speaking with them recently, that implementation went very smoothly. And not only were they prepared for a pandemic, but they’re also prepared to handle other worst-case scenarios such as a natural disaster. 

    How could having a Business Continuity Plan have impacted your organization’s response to this pandemic? 

    1. Assess. Business Continuity plans help organizations consider the Kobayashi Maru, the no-win scenario. What major events could impact your organization’s ability to function? Plans help organizations assess the risk of a pandemic, a natural disaster, a blizzard, a major power outage, data loss, and other “it would never happen here” situations. 
    2. Prepare. Business Continuity plans allow organizations to do just what Kirk did in Star Trek; redefine the problem to create a winning solution. Once you’ve assessed those worst-case scenarios, you can start to determine how your organization would need to react in each case. Who is considered a key employee to help get your organization through the situation, who is responsible for communication, how will you keep your employees working and continue to be able to pay them? What resources might be at risk and how do you acquire alternative resources? How do you implement remote work, do you need to stand up an alternative work site or data center? Is there something your organization can offer others in each scenario to help minimize the impact or provide necessary resources to your community? Once your plan is complete, practice it. Make sure everyone knows their role and responsibilities. And review the plan annually to make sure it is up-to-date. 
    3. Respond. So many companies are struggling right now because they didn’t have a plan in place. Some struggled to figure out alternative work solutions, set up remote access for employees, determine how to manage a remote workforce, who is considered key employees, how to keep from having to furlough or layoff their workforces. By having a plan in place before disaster strikes, when it does strike, your organization is prepared to respond. You’ve already figured out the critical tasks that need to be completed to stay afloat, it’s just a matter of notifying your Disaster Response team that it’s time to act. And your response will be much faster and must smoother than organizations that didn’t plan ahead. 
    4. Recover. While the response is critical, planning for recovery is just as important. A major part of any good Business Continuity Plan is the recovery phase, which must begin almost immediately. Most Business Continuity Plans address the short-term needs of recovery, looking at recovery in three phases- the first 24-hours, the first week, and the second week. During these phases, organizations should be assessing their long-term needs and planning to meet those needs. As the recovery phase continues, some of those needs may change, so you must constantly be assessing and reassessing long-term needs. 

    How could your organization have been more prepared for this Kobayashi Maru? 

    For more information on Business Continuity Planning, check out Preparing for the Worst: Business Continuity Planning. 

     

  • Don’t Hoard Your Organization’s Wealth

    Don’t Hoard Your Organization’s Wealth

    “Knowledge is power. Knowledge shared is power multiplied.” – Robert Boyce

    Organizations contain a wealth of knowledge. Some organizations spread that wealth, and some hoard it. Those that share the wealth of knowledge maximize their potential success. 

    I’m currently reading The Starbucks Experience by Joseph Michelli and even though my brother and sister-in-law are both former partners (that’s what Starbucks calls their employees), I had no idea just how strong of an emphasis Starbucks places on knowledge at all levels of the organization. From formal training and incentives for completion, requiring partners to sample all core products twice per year, providing every partner with one bag of coffee each week so that they stay familiar with products, and encouraging partners to share their knowledge with customers to help educate them on products, Starbucks understands the value knowledge adds to their business, the partner experience, and the customer experience. 

    Starbucks has over 11,000 locations worldwide, and a level of financial resources for training that most organizations don’t have. So how can smaller organizations help employees share the wealth of knowledge? 

    • Encourage a learning and teaching environment. Studies show that up to 90% of what we learn is through informal training. But most organizations focus their attention on formal training such as classes or certifications, with limited funds to support these efforts. When I chose a career in HR I knew very little about it. I was fortunate to work for a company that encouraged a learning and teaching environment. While I was encouraged to get certified, most of what I learned about HR I learned through those that I worked with. When client issues arose that I didn’t know how to handle, I was encouraged to seek the help of senior team members. As I advanced in the organization, I became that senior team member that others sought out for help. Ask yourself “what is one thing I taught someone this week?” and “what is one thing I learned from someone this week?” 
    • Cross-train and up-train staff. Giving employees insight into other areas of the business has many benefits. One way to do this is through cross-training, giving employees the opportunity to walk in other’s shoes so to speak. It helps create an understanding of the various departments and positions within the organization, encourages communication and collaboration, and increases employee engagement. In addition to cross-training, organizations need to plan for their future and up-training is a great way to prepare employees for advancement. As the saying goes, a leader’s job is to help develop their staff to one day take their place. Too often organizations create a succession plan but fail to prepare employees for advancement. 
    • Utilize internal resources. Training doesn’t have to be costly. A great way to reduce training costs is to use the resources you have within your organization. By providing internal training, an organization ensures that the training is relevant to the organization’s business and employees are better able to relate to the training. A great way to provide internal training is to have employees lead lunch and learn sessions. Employees are given the opportunity to share a glimpse of what they really do and share their expertise with their peers. It’s also a great way to help employees understand how the work of an individual or a department contributes to the overall goals of the organization. 

    While the return on investment may not be measurable using metrics, the sharing of knowledge has many benefits for employees, organizations, and their customers. The sharing of knowledge creates a culture of collaboration, improves employee morale, increases productivity, and contributes to organizational growth. Organizations see an improvement in problem-solving, decision-making abilities, customer delivery, and reduction in the loss of know-how due to turnover. 

    Does your organization share its wealth of knowledge or hoard it? 

  • The Confusion Over Cannabis

    The Confusion Over Cannabis

    Written by: Lorrie Coffey, Horizon Point Consulting

    Ten states plus DC have legalized marijuana for recreational use. Thirty-four states have legalized it for medical use. And CBD oil is readily available in most states. 

    But marijuana is still classified by the Drug Enforcement Agency as a Schedule 1 drug, which means it is still illegal to grow, buy or sell, possess, or use under federal law. 

    Oh, and while CBD shops popped up on every street corner as soon as the Farm Bill was signed back in late 2018, the Farm Bill did not legalize the general production, sale, or use of CBD oil. It only legalized it under certain circumstances outlined in detail in the Farm Bill. It is still classified as a Schedule 1 substance and thus is in general illegal under federal law. (The possession or use of CBD oil is reportable against federal security clearances.) 

    According to a 2017 study conducted by Statistical Brain, 56% of U.S. employers surveyed conducted pre-employment drug screens. 

    What does all of this mean for those employers that drug test? How can marijuana be both legal and illegal at the same time? Should employers continue to maintain a drug-free workplace policy? And what’s the legal liability if they do? 

    Unfortunately, the answer isn’t necessarily clear cut. While many states have legalized marijuana use in some form or another, very few states have offered any guidance to employers on how those laws impact drug-free workplace policies. So how do employers navigate through what I’ve come to refer to as the cannabis conundrum? 

    1. Do your research. Understand the laws in your state regarding marijuana use. Don’t believe everything you hear. For example, medicinal marijuana is NOT generally legal in Alabama. Yet. A bill was signed in June by Gov. Ivey to create a commission to study legalizing medical marijuana. Their findings are due in December. Look up case law to see if your state has set any precedents through court decisions regarding employers and employees. Find out if there is a state-supported drug-free workplace program (available here). 
    2. Get in line with your state. If your state does have a drug-free workplace program, make sure that your program is in line with state guidelines. Most states that have a program provide very detailed information on how to get your organization’s program approved or certified. Most states that do have a program offer a discount (usually 5%) on your Worker’s Compensation insurance if you are a certified drug-free workplace employer. And once you get certified, make sure you stick to the program. If you do, you’ll ensure that you are within the state law with regards to drug testing and how you handle positive tests. 
    3. Multi-state employers beware. If you have locations in multiple states, be sure to research each state. What’s acceptable in one may not be in another. You’ll also need to take into consideration if the employee works and lives in two separate states, if they travel extensively for work, or if they telecommute. 
    4. Evaluate why your organization drug tests. Here’s my unpopular opinion. If an employee enjoys marijuana on their own time in most cases it isn’t impacting the organization. Now, if an employee enjoys marijuana on their own time on their way to work and shows up to work under the influence, that can impact the organization. It may impact productivity, brand image, and most importantly could pose a safety risk to the employee or others. Understand why your organization drug tests when they test and ask yourself if the reasons are bona fide. If the answer is no, it may be time to rethink your policy. 

    While many states have legalized marijuana, they have not restricted the rights of employers to maintain drug-free work environments. However, that doesn’t mean that you as an employer don’t still need to be cautious before acting. And don’t be afraid to seek outside assistance if you’re still not sure how to maintain your drug-free policy or how to handle an employee situation. That’s what the experts are there for. 

     

  • Killing the College Misconception

    Killing the College Misconception

    Did you know that Alabama has a “College Application Campaign”? A statewide initiative with the goal of having EVERY high school senior in the state apply to at least one college. I found this out last week thanks to the high school guidance counselor’s weekly email blast. I’ll be honest, as an HR professional, I had to hold myself back from sending her an email outlining the negative impact of such a campaign. I’m still tempted to. 

    I graduated high school many moons ago, in an era when high schools still had classes like shop, mechanics, and electrical design. I still have a lamp I made in Mr. Roberts’ shop class when I was in sixth grade (and it still works!). My high school had a separate vocational building that housed these classes and the students put their talents together each year to build a prefabricated home on the school grounds that they auctioned off; the proceeds going to charity and to the next year’s project. If students had issues with their cars, all they had to do was drop it by the garage at the school and the mechanics students would take a look at it. 

    I also graduated high school at a time when the push to attend college was ramping up. Students were told that college was a necessity if they wanted to get a good job. Vocational schools were starting to be looked down upon and going straight into the workforce after high school was deemed disgraceful. 

    And 20+ years later, we are seeing the impact of that push. 

    • According to data from the Huffington Post in the 20+ years since I graduated high school, student debt has almost doubled, going from approximately $18,000 up to almost $32,000. All while the median wage has barely budged, going from $39,000 to $43,000. We constantly hear about the rising cost of college and the increasing impact on those graduating these days. 
    • Based on a 2012 study conducted by EMSI, 53% of skilled workers were 45 or over, with 18.6% being between the ages of 55 and 64. Our skilled workforce is aging out and we’ve known it for years. But we aren’t doing enough to replenish that workforce. 
    • According to a 2016-17 US Talent Shortage Survey conducted by Manpower Group, the hardest jobs to fill in the US are those in the trade industries. 

    Our skilled trades are dying out as a result of our education system thumbing its nose at manual labor. Yet we continue to push high school students towards college and away from trade careers. We still trick them into believing that a college education is the only way to be successful, to earn your top salary potential, and to be happy in the career you choose. 

    My father has owned his own construction company in Virginia for almost 50 years. He is 68 years old and still works five to six days a week, still flips homes on the side, and still enjoys his passion for woodworking on the weekends. He never went to college. Yet he has made a great career out of something he has always been passionate about and he is well known, respected, and sought after for the work he does. Growing up I spent a lot of time helping him and in the process learned to love it too. 

    Local school systems are starting to see the need to revive vocational courses in education and are focusing on establishing Career Technical schools. But these efforts are not enough if we are continuing to push students to go to college and continuing to turn our noses up at trade careers. Instead, we need to encourage students to take their own path, whether that’s college, a technical school, or going straight into the workforce. 

    Some schools across the country are starting to do it right, like Connally ISD in Waco, TX or Powhatan High School in Richmond, VA, who both participated in the first National Signing Day sponsored by SkillsUSA and Klein Tools. It was designed to recognize students who are signing letters of intent for job offers, accepting apprenticeships, or attending technical schools after graduation. 

    And employers aren’t exactly helping either. The majority of jobs posted today require a minimum of a Bachelor’s Degree to even be considered. Yet when I speak with clients, many of them say they don’t care what major that degree is in, just that the candidate has one. What does that say about the requirement? The response I often get is “it shows the candidate has initiative.” But does it really? Or does working hard and advancing in a career show initiative? Does being self-taught, seeking out education through training courses, certifications, or apprenticeships not show initiative? We as employers need to rethink our requirements as well. Does a position truly require a degree? Or do we need to give more consideration to experience over education? 

    What will happen in the next twenty years if we don’t shift our way of thinking if we don’t encourage students to explore alternatives to college and continue pushing them into thinking that a Bachelor’s Degree is the only way to be successful?