Is it time to replace BCP with WFH ?

In several countries especially the US, Australia and parts of Europe, companies have a clearly defined set of people who are employed on a work-from-home contract, right from the outset. In many others, particularly in Asia, including those with either large or specialized white-collar workforce, the concept is virtually alien and limited to a small minority even at local arms of multinational entities. In several local organizations, large or mid-sized, the model is practically unfamiliar and viewed as a cultural mismatch.

 All multinational companies have a structured Business Continuity Plan in every country that they operate in. The efficacy of those plans is questionable though in a large number of their offices worldwide. This is most likely due to variance in risk perception locally and more of a tick-in-the-box approach just to be compliant with internal company policies.

Another reason,  among this group as well as local companies, is that in many geographies they have not seen disruption of such a magnitude that has affected other  locations. This has been seen in the past, more in insulated markets, however that is changing with faster global integration.

Presently, the pre-condition for most large contracts is that the bidder must have and demonstrate a robust BCP. While some organisations do have one, several others have it just on paper, however, are able to “sell” it appropriately, especially when the bid price is very favourable to the contracting company.

The key ingredient of a robust BCP is that there has to be periodic testing of the same, similar to a fire drill. The companies who have disruption prevention in their DNA, carry these out at regular intervals internally as well as with vendors. When the BCP preparedness of a supplier of services is being tested, an activity known as a Table-Top-Exercise is conducted wherein several disruption scenarios are presented one at a time and the vendor’s team has to respond as if it were an actual event. The client scores the responses and if the results are below a threshold level, the supplier needs to take required steps immediately and get the minimum acceptable score in a repeat exercise a week or two later

While a Table-Top-Exercise is a new concept for many vendor organizations, the activity is  an eye-opener of sorts. In mature organizations, the vendor team gears up to set right the areas requiring attention. The same improvement in readiness is also conveyed to other customers as well as projected in sales pitches and that enhances their credibility as well as customer retention and new business.

While the efficacy of execution during actual contingencies varies depending on the level of preparedness, the nature and gravity of the situation that has emerged also plays a part. Most BCPs fail or underperform in terms of efficiency as well as response time, during exigencies that restrict the workforce from entering the workplace as well as the alternate, adequately equipped fallback location. These could be at times of multi-location shutdowns implemented overnight by the government, massive earthquakes or similar natural calamities, large scale terrorist attacks or even, as at present, lock downs of multiple locations due to the Corona Virus.

When an office based BCP for a service organisation fails due to accessibility issues, there is a scramble to get teams to start working from home. There is always a certain lag time before people get functional and there is a pile-up that results. Several team members are then in fire-fighting mode, assuring the contact person at the customer organisation that their people are going to be attended to soon. There is usually a commitment of a short period of time, however if that is not met, then there is pandemonium and further disarray. All in all, not a very happy state for either the servicing entity, the stressed-out team members as well as the customer.

Once the dust has settled, customers would most likely have an “introspection” session with the vendor, that actually turns out to be an aggressive post-mortem, with high tempers and leaving in its wake a lot of frayed nerves. The customer may threaten to move the business and the vendor may highlight force-majeure clauses in the contract. Eventually the situation eases, however yet leaves a bitter taste at both ends.

 The entire scenario triggers the need to explore more sustainable and robust solutions. The one that appears to fit the bill is to have a larger percentage of work-from-home-only team members. This could be structured as a separate administrative unit within the company and be governed by a policy independent of units that function within the office space.

There would be a structured onboarding process for this unit, similar to all other divisions. The only variance would probably be to validate home facilities available, as an essential first step, in case the terms of employment require self-provided work enablers. In most cases, it would be company provided or reimbursed. Either way, it would include hardware, licensed software, internet stability and speed as well as appropriate web-conferencing facilities.  Most of this workforce would not have the luxury of a separate home-office, however for those who need to engage with customers regularly, a demarcated quiet space or even an appropriate uncluttered surrounding area.

With these facilities in place and a periodic routine remote maintenance to ensure a secure online environment and validation of their efficacy, there would be in place a robust and reliable alternate to a traditional Business Continuity Plan.

The other benefits that emerge from this organisation structure have tremendous value in terms of cost optimization. The more important area that it would affect positively is the level of  employee engagement.  

Among others, the most visibly evident would be  :

·       The biggest savings would be in terms of rentals with the space requirement being reduced by the number of the workforce forming part of this unit.

·       With a smaller sized office space, the variable expenses including electricity and maintenance would also reduce, resulting in higher profitability or increased competitiveness due to lower costs.

·       24/7 services can be set up without the additional recurring costs that go into such an arrangement including transportation and refreshments.

·       Cost of providing or reimbursing equipment costs would be similar to providing the same in the office, with the exception of probably internet facilities, though multi-location bulk user plans are now available in many locations. In any case this would be offset multi-fold by the other savings.

·       The workforce would have several advantages with the facility of flexi-hours, being around children rather than having them in a creche all day, additional time due to no requirement to commute, and a variety of additional benefits depending on their individual needs and solutions that emerge by working from home. All in all, enhanced work-life harmony that leads to significantly higher engagement levels, which is a high priority for most organisations.

·       The rest of the team who work from the office would also be motivated with the availability of such a facility within the organisation. Talented individuals would also be attracted to work for the company, customers would be more inclined to work with the organisation and part of the cost saving and enhanced revenues can be shared with the team by way of performance incentives, which further boost the overall morale.

Necessity is the mother of all inventions. With an innovative thought process what starts off as an exercise to address a single need of a robust BCP can result in multiple benefits for the organisation as well as the workforce. For those organisations or leaders who are reluctant and profess the philosophy of “ we’ve never done that before”, its time to introspect. Due to the Corona Virus triggered lock downs and preventive measures, a large portion of their existing teams are probably working from home at the moment. If its happening, and possible in a crisis situation, why not during normal times !  

The author, Suresh Makhija is Chief Strategist at W2H Consulting, inspired by the ideology of several motivational giants and acclaimed Life Coaches. He is a well acknowledged Corporate Thought Leader, Moderator of Panel Discussions, Keynote Speaker and Mentor.

His Management and Strategy Solutions for small and mid-sized enterprises have yielded commendable results that have improved efficiencies as well as overall performance of the workforce.  

Suresh’s professional expertise extends over General Management, Business Strategy, P & L Management, Analytics and Business Development, in fields of Travel, Aviation, Hospitality, Advertising, Journalism, Training and Coaching.

In addition to career advice that has benefitted several teams, the Signature Solutions of W2H Consulting that add value to professionals are :

·       Mentor on Demand

·       Solutions on Demand

·       Resume Refining & Brand Enhancement

Register at  www.W2Hconsulting.com   to benefit from the W2H Solutions. Do also “Follow”  the W2H Consulting page https://lnkd.in/fMQuq8t for Lifehacks, Inspirational Insights, and Motivational Muses that will help you smartly navigate your work day and achieve work-life harmony.