10/9/2013. How to Create an Effective Disaster Recovery Plan. Hurricane Ivan and the Clover Hill Foods Flood of 2004 PRESENTERS
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1 How to Create an Effective Disaster Recovery Plan PRESENTERS Frank Kellander President, Berhorst & Crawford, Ltd. Tim Shipman, President, The Shipman Group, LLC John Long, Senior Vice President, Warehousing, Dot Foods, Inc. Clover Hill Foods warehouse Bridgeville, Pennsylvania September 18, 2004 Hurricane Ivan and the Clover Hill Foods Flood of 2004 There was no plan in place Getting over the shock Empowered leadership is important 1
2 Starting a plan is nearly overwhelming Conference room for the week after the flood Creating a disaster specific plan vs. generic oregional Disaster Flood, tornado, hurricane, earthquake obuilding Disaster Fire, sinkhole, sprinkler discharge olocal problem The backhoe cuts the fiber optic cable Disaster planning vs. business continuity What is the number for the railcar mounted crane company to lift the 48 foot trailer out of the creek? Your employees may have problems of their own. Getting started now is critical Not a one man job, get key people involved o Finance and insurance review o IT and communications o Warehouse operations Document and publish recommendations Practice and find the flaws o This is not a secret plan Having confidence in the plan can be the key to recovery 2
3 What type of potential disasters do we face each and every day? Hurricanes Tornadoes Winter Storms Flooding Fires Earthquakes Terrorist Attacks Civil Disturbance Workplace Violence Think about the investment you have in your facilities. People Structure Product Equipment Community Investment Reputational Risk You receive a call at 3pm on a Saturday afternoon informing you that one of your distribution centers that services 264 of your retail stores has been struck by a tornado. You begin getting damage assessments via phone from management on the You begin getting damage assessments via phone from management on the You arrive on the scene and this is what you are faced with You begin getting damage assessments via phone from management on the You arrive on the scene and this is what you are faced with. It becomes apparent very quickly that you have a major disaster to deal with. 3
4 You begin getting damage assessments via phone from management on the You arrive on the scene and this is what you are faced with. It becomes apparent very quickly that you have a major disaster to deal with. What do you do? Do you have a plan in place? You begin getting damage assessments via phone from management on the You arrive on the scene and this is what you are faced with It becomes apparent very quickly that you have a major disaster to deal with. What do you do? Do you have a plan in place? Has your plan been tested? Does everyone know their role? Let s talk about a plan and what you needed included in the plan You will need a different type of plan depending on the type of incident. We will use a hurricane for the purposes of this presentation. How to develop a plan for a hurricane. o Create your team o Develop your action steps and trigger points o Develop your strategy (What do you want the outcome to be) o Develop your plan o Test your plan Create your Team Decide who will be the ultimate leader of the Core Team. Core Team consists of decision making leadership from each key department: o Emergency Manager o Facility Management o Operations Management o Occupational Safety o Food Safety o Risk Management o Loss Prevention/Security Department o Legal Department o Human Resources o Corporate Communications Proactive Approach What do you need in place to be properly prepared & to appropriately safeguard your associates & assets? Weather Service dedicated to your facilities. o Various weather services are available that will provide you up to date forecasts for each of locations as well as in the moment notifications to facility management and your emergency manager as it relates to severe weather watches and warnings. o Sign up for free weather alerts at sites such as o Software such as Hurrtrak that can provide very detailed hurricane forecast for each location. o Appropriate supplies to guard against flooding such as sand bags or a produce called FloodSax. Hurrtrak Example 4
5 Brainstorming session with your Core Team Determine in a worse case scenario what will you need if your facility goes down? o Communication plan for associates and customers o Prearranged plan to reallocate retail customers to other locations as well as back filling transportation needs o Portable Radios, Hard Hats, Gloves, Generators, Portable Lights, Wireless Internet Service, Satellite Phones, Salvage Company, Restoration Company, Dumpsters additional equipment that may be needed if you lose access to your equipment inside the facility. o DO NOT WAIT UNTIL DISASTER STRIKES TO DEVELOP PARTNERSHIPS AND DEVELOP CONTRACTS WITH FIRST WRITER REFUSALS WITH VENDORS YOU MAY NEED DURING A DISASTER! o DEVELOP PARTNERSHIPS AND RELATIONSHIPS WITH LOCAL AND STATE OFFICIALS SUCH AS EMERGENCY MANAGEMENT OFFICES (BOTH STATE AND LOCAL) AS WELL AS FEMA. Create your Global Team Global Team consisting of one representative from each needed support department. The Global Team will be directed by the Emergency Manager and other key decision making members of the Core Team. Your plan needs to fully explain what the expectations are for each member of the Global Team. They need to understand what they are responsible for. Put together agenda s for both Core Team and Global Team Conference Calls. (It is very important to make sure that you limit the Core Team calls to just Core Team members). Create your Global Team (cont d) Assign someone the responsibility of documenting everything covered in both the Core and Global Team calls. It would be preferred that someone in the Legal Department take on this responsibility and that the notes only be disseminated by an attorney in the Legal Department on an as needed basis. Test your plan over and over and make adjustments where needed. Always schedule a debriefing after each incident with the Core Team, discuss what went right and what went wrong and make adjustments to your plans accordingly. Disaster Plan Key Components of Plan Key components Departmental concerns vary Example of drilling down Plan realities Time and money No one plan fits all Assumptions These will help drive out plan Planning Committee Clarity and accountability Goals Disaster response team Categories and departments within the plan o Communication 5
6 Departmental Differences All Include People Admin/Customer Service Phones and systems/computers Warehouse Equipment, systems, alternate storage options by temperature, etc. Transportation Fleet, fuel, carrier partners, inbound and outbound, routing systems IT Critical component across functions Drilling Down.Communication What o Status o Impact on who you re communicating with o Initial steps of plan Drilling Down.Communication Drilling Down.Communication Who? o Location management o Location employees o Employees from another location coming in to support o Customers o Suppliers o Local and state officials o Other? How? o Phone lists o Texting service o Other? Plan Realities No one size fits all Won t be perfect Similar to insurance!! Time investment $ investment discussion will occur o Generator(s) and/or hook-ups o Back up systems/redundancy **A Bad Plan is Better Than No Plan!** Summary Proactive approach Clarity and ownership clearly defined Fundamentals apply like any type of plan Benchmarking and information sharing 6
7 Questions??? 7
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