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Business Pandemic Preparedness and Recovery Planning : 

Business Pandemic Preparedness and Recovery Planning Preparing your company for the Avian Flu

Slide3: 

Ken Wilson, MBA, CMC Wilson Marketing Group, Inc.   kwwilson@wmg-mn.com www.wmg-mn.com Voice: 763.476.2216 FAX:  763.475.8275   Advisers to management, helping clients build a better customer through innovative strategies and solutions since 1986   CMC (Certified Management Consultant) is a certification mark awarded by the Institute of Management Consultants USA and represents evidence of the highest standards of consulting and adherence to the ethical canons of the profession. Less than 1% of all consultants have achieved this certification.  See Why Hire a CMC.

We Will Be Addressing : 

We Will Be Addressing Introduction Impact on Your Business The Planning Process Pandemic Business Continuity Teams Communication Plan Health and Wellness Plan Threat and Risk Assessment Essential Services/Functions Response Plan Implementation Plan Planning to stay in business

What is the Impact?: 

What is the Impact? Pandemic targets 20 to 40 year olds Boston/Oct. 1918 – 7% of 20 to 40 year olds died in one month HHS Secretary Mike Leavitt (Dec. 5, 2005) “Within 16 weeks of the theoretical Thai outbreak, 92 million Americans would have been infected with H5N1 Flu.”

The Facts: 

The Facts

Overdue?: 

Overdue? “It is not a matter of whether there will be another influenza pandemic but rather a question of when. It is 36 years since the last pandemic; with 39 years being the longest known previous interval between pandemics, the next pandemic is arguably overdue.” MacMahon Journal of Antimicrobial Chemotherapy (2005) 55, Suppl. S1, i5-i21

Where Are We Now: 

Where Are We Now Scientists think we are overdue for a Flu Pandemic. The strength and duration of Pandemics is not known. Current Avian Flu statistics and news is not good. World population and density are factors. The Global Economy.

Why Plan?: 

Why Plan? "In preparing for battle I have always found plans are meaningless. Planning is everything." Dwight Eisenhower General

Current Planning Techniques: 

Current Planning Techniques Disaster Recovery Planning BCP – Business Continuity Planning ISO 9000/Six Sigma Strategic Planning

Why is a Pandemic Different From Other Disasters?: 

Why is a Pandemic Different From Other Disasters? Widespread impact Long term duration Short notice Not a physical disaster – it is people Primary effect is on your employees

Planning Will Make A Difference: 

Planning Will Make A Difference

Benefits of Planning?: 

Benefits of Planning? Safeguarded employees (retained skills and productivity) Competitive advantage during and after recovery Keep existing and gain new customers Recover quickly Minimize financial losses during Minimize exposure to lawsuits Minimize operation costs during and after Reduce costs today while providing protection for the future Find more efficient way to operate today

SARS Emergency in Toronto Economic Impact: 

SARS Emergency in Toronto Economic Impact It has taken two years for many of Toronto’s economic indicators to return to their pre-2003 levels. Nine city-wide conventions cancelled in the summer of 2003. A cost of over $1 billion to that Toronto economy in 2003 alone. 12,000 lost jobs. Source: Public/Private Response to Sudden Disease Outbreak –Final Report Alfred P. Sloan Foundation June 30,2005

SARS Emergency in Toronto  Leadership Lessons: 

SARS Emergency in Toronto Leadership Lessons “Fear is Worse than the Disease, and Fear Drives Fear” An Emergency Unfolds in Stages—Prepare with Long Range Leadership Two Motivations for Business Preparedness: Corporate Responsibility and the Competitive Edge Leadership from the top Communications with Employees Source: Public/Private Response to Sudden Disease Outbreak –Final Report Alfred P. Sloan Foundation June 30,2005

Nine Steps in Pandemic Planning: 

Nine Steps in Pandemic Planning Step 1: Create a Pandemic Planning Team High level / Cross functional / Has authority Develop a WHO phase based Business Pandemic Plan Step 2: Educate Team Members Pandemic issues and Implications Step 3: Develop Corporate Policies Step 4: Create a Communications Plan Designated spokesperson with backups Employees, customers, and suppliers

Nine Steps in Pandemic Planning: 

Nine Steps in Pandemic Planning Step 5: Create an Employee Health and Wellness Program Step 6: Identify Essential Services/Functions Step 7: Develop Response plans with trigger points (Mild, Moderate, and Worst Case) Educate and orient staff Step 8: Develop a Flexible Recovery Plan Step 9: Test, Revise, Update and AUDIT

The Impact on Your Business: 

The Impact on Your Business Social disruptions may be wide spread Utilities and basic services Civil services overstretched or lacking: long wait times; EMS /Fire /Police Public transportation limited Air travel Mass transit Gasoline availability Schools closed Overtaxed healthcare services Exaggerated media reports Grocery supplies lacking (looting?) No public gatherings, no movies, no parties, etc. Overcrowded ER’s, hospital wards and clinics

The Impact on Your Business: 

The Impact on Your Business 20-60% of working population unable to work for 2- 4 weeks Each wave may last about 8- 10 weeks Vaccine availability in 6 or more months Loss of people and expertise Loss of customers/sales/revenue/profits Source: National Institute of Health & Center for Disease Control

Policy Decisions you Need to MakeNOW - Before the Pandemic: 

Policy Decisions you Need to Make NOW - Before the Pandemic Senior Management Flexible hours, work from home, etc. Just-in-time Inventory Policy Pull employees out of “Hot Zones” overseas & US Security How will you ration products/services? Your Companies Reputation Management Structure - crisis management team Information Technology Close the business

Policy Decisions you Need to MakeNOW - Before the Pandemic: 

Policy Decisions you Need to Make NOW - Before the Pandemic Human Resources Attendance Policy Counseling Employees and Families Cross Training for key functions/jobs Insurance Coverage Pay Policy - Motivating employees Travel Policy Vacation Policy Validating Sick Leaves

Policy Decisions you Need to MakeNOW - Before the Pandemic: 

Policy Decisions you Need to Make NOW - Before the Pandemic Finance Banks closed Not liquid enough to pay workers You want to manufacturer, but your suppliers have stopped deliveries Impact on product lines and/or production sites Prices will rise Insurance rates will rise

Policy Decisions you Need to MakeNOW - Before the Pandemic: 

Policy Decisions you Need to Make NOW - Before the Pandemic Legal Liability Employees Customers and Vendors/Suppliers Sarbanes-Oxley ISO 9000/Six Sigma Local, State and Federal Regulations – OSHA The National Standard on Disaster/Emergency Management and Business Continuity Programs (NFPA 1600)

Slide24: 

“Those who cannot remember the past are condemned to repeat it.” George Santayana Philosopher

Short Break: 

Short Break Please return in 10 Minutes !!!! Did you know: The new IRS employee manual includes provisions for collecting taxes in the aftermath of a nuclear war.

Slide26: 

Scott Stantis, The Birmingham News, 4/2/03

The Most Important Step: 

The Most Important Step Appoint Pandemic Business Continuity Manager Good Leadership Have Decision making authority Form Team(s) (Pandemic Business Continuity Planning Team or steering committee) Select appropriate people with knowledge of the companies operations Involve all that may be needed

Planning Team: 

Planning Team Including Key Stakeholders Customers - Delivery of products or service Key Suppliers - Pandemic readiness plans Local Government (health departments) Unions Legal Council

Guidelines for Ethical Decision-making: 

Guidelines for Ethical Decision-making Reasonable Open and Transparent Inclusive Responsive Accountable

Psychological Barriers that Need to be Addressed: 

Psychological Barriers that Need to be Addressed Fear and Panic Anxiety, Hopelessness or helplessness Confusion and Dread Fight or flight

How To Effectively Communicate in a Crisis: 

How To Effectively Communicate in a Crisis Simply – make it simple Timely – as soon as reasonably possible Accurately – with all the known facts Repeatedly – deliver the same message over and over Credibly – do not deviate from the truth Consistently – be consistent

24/7 NEWS: 

24/7 NEWS Larry Wright, Detroit, Michigan, The Detroit New

Communication Plan: 

Communication Plan To Employees Rumor control - Address employee fears Employee “Hot Line” Pandemic fundamentals education Prevention information for home and work At-home health care information Company preparedness and plan Compensations and sick leave policy changes during the Pandemic

Communication Plan: 

Communication Plan To Customers, Vendors, and Suppliers Customer “Hot Line” Supplier/vendor “Hot Line” Redundancy plans for communications To your Community Business and health insurance vendors State and local public health authorities Monitor Federal health authority web sites

What Question will Your Employees Ask First?: 

What Question will Your Employees Ask First? What does this mean to me? Are my family and I safe? What can I do to protect my family? What have you found that may affect me? What will happen to my pay and job?

Employee Health and Wellness Plan: 

Employee Health and Wellness Plan Prevention is Key Stay home if you’re sick Cover your cough Wash your hands Use alcohol hand gel Avoid touching eyes, nose, mouth Increase “social distancing”

Protective Barriers: N95 masks, face shields, gown and gloves: 

Protective Barriers: N95 masks, face shields, gown and gloves Toronto - 2003

2 April – Vancouver, Canada: 

2 April – Vancouver, Canada Selling Surgical Masks Dave Heel, left, and Shane Gray sell surgical masks to prevent the spread of severe acute respiratory syndrome, or SARS, along Marine Drive on the road to Vancouver International Airport in Canada. The pair claimed to have sold dozens of masks at $10 each. (AP Photo / CP, Chuck Stoody)

Phases of a Pandemic: 

Phases of a Pandemic Declared globally by the World Health Organization Declared nationally by the Department of Health and Human Services Interpandemic Pandemic Alert Pandemic Phase I Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 Mitigation and Preparedness Response I I

Implementation Levels: 

Implementation Levels CDC Phase Level 4– services/functions that can be suspended for a longer period of time. CDC Phase Level 5– services/functions that can be suspended for a short period of time (month). CDC Phase Level 6 – essential services/functions only. Note: The CDC adopted the World Health Organization Phase level system

Assumptions CDC/WHO Worst Case Scenario: 

Assumptions CDC/WHO Worst Case Scenario H5N1 severity equal to WHO “worst case” [Spanish Flu virulence; global spread rapidly]. At least 25% of people in every country will contract H5N1 influenza and 10% of those who get sick will die. The others will be very sick and unable to work for 1 month. 50% of the workforce will not be available to attend work (25% sick + 25% stay at home). The first wave of illness and death will strike most major cities in the world within 1 month of the first identified epidemic and the wave in each city will last 3 months. There will be major impacts on all aspects of a company’s value chain and stakeholders. There will be significant disruption to all elements of society and a general downturn of business lasting beyond the first wave. There will be NO government (outside) help for your business.

Threat and Risk Assessment: 

Threat and Risk Assessment Identify all essential services/functions. Identify any “surge activities” that may be created. Identify any process or function that has a exposed supply line (time or distance). Identify services that may be done from home or contracted out.

Essential Services/Functions Business Impact Analysis: 

Essential Services/Functions Business Impact Analysis Identify Required Skills and Staff Number of staff (by priority classification) needed to maintain essential services/functions. Include essential services/functions created or increased by the “surge activity”. (for example, customer service, data entry, accounts, etc). Identify special requirements need to perform these services (for example, CPA, license to operate heavy equipment, CNC operator, etc).

Essential Services/Functions Risk Assessment: 

Essential Services/Functions Risk Assessment Suppliers Current suppliers – impact on your operations Critical vendors/suppliers – what are their plans Your Key inventory items Alternative or backup suppliers Sub-contract services, production, logistics Backup workforce Contractors Other non-essential function/service employees Retirees

Essential Services/Functions  Example Company/Division __What-not Division_____ Page __1__ of __2__: 

Essential Services/Functions Example Company/Division __What-not Division_____ Page __1__ of __2__

Dependency Analysis: 

Dependency Analysis Manufacturing Accounting Purchasing Supplier 2 Sales Supplier 3 Supplier 1 The Function or Services that have to operate to keep the company open

Plan for the worst case, but build a phased response: 

Plan for the worst case, but build a phased response “A good plan executed right now is far better than a perfect plan executed next week.” General George S. Patton US Army

Response Plan - Example: 

Response Plan - Example

Implementation Plan: 

Implementation Plan Implementation plan is the process of developing a plan of action and putting it into practice. An implementation plan is a guide to who does what, when, where, and with whom.

Implementation Plan - Example: 

Implementation Plan - Example

Recovery Plan: 

Recovery Plan Based on your Implementation Plan Maximum/Minimum time needed to restart Staffing – Key individuals/skills Suppliers – Dependency (sole supplier, major suppliers, alternative suppliers)

Plan Activation: 

Plan Activation The Activation Procedure is based on the WHO/CDC Phase Level and is automatic. Test, Test, and Test

Final Steps : 

Final Steps Documentation of the plan – in detail Senior Management approval

Revise, Test, Update and AUDIT your plan: 

Revise, Test, Update and AUDIT your plan "Without constant practice, the officers will be nervous and undecided when mustering for battle; without constant practice, the general will be wavering and irresolute when the crisis is at hand.“ Sun Tzu “The Art of War” General - 2 BC

Building Your Business Case: 

Building Your Business Case Is your case financially sound? How quickly can it be implemented? How important is your case in terms of improving the company’s position? Where do you think it falls in the list of corporate priority and why?

Building Your Business Case: 

Building Your Business Case You need to answer this question – What is in it for my company? People who plan win; people who don’t lose

Building Your Business CaseThe Answer: 

Building Your Business Case The Answer Safeguarded employees (retained skills and productivity) Competitive advantage during and after recovery Keep existing and gain new customers Recover quickly Minimize financial losses during Minimize exposure to lawsuits Minimize operation costs during and after Reduce costs today while providing protection for the future Find more efficient way to operate today People who plan win; people who don’t lose

Summary: 

Summary How a Pandemic can impact your company What you can do to minimize the impact How to develop a competitive advantage during the recovery

Resources That Are Available: 

Resources That Are Available Next six slides

Web Based Resources for More InformationPersonal and Family Health: 

Web Based Resources for More Information Personal and Family Health Pandemic Flu Planning Checklist for Individuals and Families (CDC) www.pandemicflu.gov/planguide/checklist.html Family Emergency Health Information Sheet (CDC) www.pandemicflu.gov/planguide/familyhealthinfo.html Stages of a Pandemic (CDC) and The World Health Organization (WHO) www.who.int/csr/resources/publications/influenza/WHO_CDS_CSR_GIP_2005_5.pdf Emergency Contacts Form (CDC) www.pandemicflu.gov/planguide/emergencycontacts.html Pandemic Influenza Planning: Guide for Individuals and Families (CDC) www.pandemicflu.gov/plan/pdf/guide.pdf Signs and symptoms of human infection (CDC) www.cdc.gov/flu/symptoms.htm Pets - Questions and Answers: Avian Influenza (U.S. Department of Agriculture) www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2005/10/0458.xml Protecting Birds & Other Animals (U.S. Department of Agriculture) www.fao.org/ag/againfo/subjects/en/health/diseases-cards/avian_cats.html www.aphis.usda.gov/vs/birdbiosecurity/hpai.html

Web Based Resources for More InformationBusiness: 

Web Based Resources for More Information Business Protecting Workers (CDC) - Interim Guidance for Protection of Persons Involved in U.S. Avian Influenza Outbreak Disease Control and Eradication Activities www.cdc.gov/flu/avian/professional/protect-guid.htm Avian Influenza Protecting Poultry Workers at Risk (U. S. Department of Labor - Occupational Safety and Health Administration) www.osha.gov/dts/shib/shib121304.html Signs and symptoms of human infection (CDC) www.cdc.gov/flu/symptoms.htm Business Planning Pandemic Influenza Checklist (CDC) www.cdc.gov/flu/pandemic/pdf/businesschecklist.pdf Pandemic Influenza Planning - Planning Assumptions – (US Department of Health and Human Services) www.pandemicflu.gov/plan/pandplan.html Businesses and the Workplace (CDC) - www.cdc.gov/flu/workplace/ Centers for Disease Control and Prevention (Overview) – ohden.sph.unc.edu:9002/pandemic/federal.htm#CDC

Web Based Resources for More InformationBusiness – cont.: 

Web Based Resources for More Information Business – cont. Frequently Asked Questions: Avian Influenza – Public Health Agency of Canada www.phac-aspc.gc.ca/influenza/avian_qa_e.html World Heath Organizations Pandemic preparedness www.who.int/csr/disease/influenza/pandemic/en/ Cover Your Cough Poster (CDC) – Various language posters for download www.cdc.gov/flu/protect/covercough.htm Healthy habits, and Germ Stopper posters (CDC) – English only www.cdc.gov/germstopper/materials.htm Stopping the Spread of Germs at Home, Work & School (CDC) – Information and posters in various languages – www.cdc.gov/flu/protect/stopgerms.htm CDC - Posters, buttons, stickers, and flyers - Materials for the 2006-07 Flu Season www.cdc.gov/flu/professionals/flugallery/?s_cid=ccu082806_seasonal1_r_e

Web Based Resources for More Information Influenza Monitoring Sites: 

Web Based Resources for More Information Influenza Monitoring Sites USA - CDC Weekly Reporting www.cdc.gov/flu/weekly/ Canada - FluWatch reports - Public Health Agency of Canada www.phac-aspc.gc.ca/fluwatch/index.html European Influenza Surveillance Scheme (EISS) - EISS Weekly Electronic Bulletin www.eiss.org/cgi-files/bulletin_v2.cgi World Health Organization – By Country – Look for latest report on the country www.who.int/countries/en/

Web Based Resources for More Information Traveler’s Information: 

Web Based Resources for More Information Traveler’s Information CDC - Travelers Guide www.cdc.gov/travel/ CDC - Avian Flu Travels Information www.cdc.gov/travel/other/avian_flu/ CDC – Traveler’s Health www.cdc.gov/index.htm CDC – Traveler’s Health Kit www2.ncid.cdc.gov/travel/yb/utils/ybGet.asp?section=recs&obj=travelers-health-kit.htm World Health Organization recommendations relating to travelers coming from and going to countries experiencing outbreaks of highly pathogenic H5N1 avian influenza – www.who.int/csr/disease/avian_influenza/travel2005_11_3/en/index.html World Health Organization – See Reports section for situation updates by Country – Look for latest report on the country www.who.int/csr/disease/avian_influenza/en/index.html CDC - Travelers Heath Outbreak Notice www.cdc.gov/travel/other/avian_influenza_se_asia_2005.htm

Web Based Resources for More Information Avian Influenza: 

Web Based Resources for More Information Avian Influenza CDC's Avian Influenza website: www.cdc.gov/flu/avian/index.htm USA Food and Drug website – Personal Protective Equipment www.fda.gov/cdrh/ppe/fluoutbreaks.html Minnesota Department of Health - Pandemic Flu website www.health.state.mn.us/divs/idepc/diseases/flu/avian/index.html Wisconsin Department of Health (Avian Influenza) – dhfs.wisconsin.gov/communicable/avian/index.htm

Questions and Discussion: 

Questions and Discussion Jeff Stahler, The Columbus Dispatch, Ohio

First case of bird flu in the U.S.?: 

First case of bird flu in the U.S.?