Implementing a BCMP in a Company-Wide Change Context

Transcription

1 Implementing a BCMP in a Company-Wide Change Context The Desjardins Group Experience Marc Lapointe, Director - Business Continuity, Desjardins Financial Group Eve-Marie Cormier, Vice President, Plante & Associates September 11, 2012 Objective & Agenda Share with BCM experts the lessons learned during the last two years of the company-wide project to comply with new legal requirements Desjardins Group The 2010 Context The 2012 Results, & Key Success Factors Key takeaways 1

2 Desjardins Group Network of financial service cooperatives caisses and credit unions - and some twenty subsidiary companies in life and general insurance, securities brokerage, venture capital and asset management. Top cooperative financial group in Canada administrated by elected officers 6th largest in the world Founded in 1900 Ranked 18th among the world s 50 safest financial institutions (Global Finance Magazine ) Named Top Corporate Citizen in Canada by Corporate Knights $190,1 billion in total assets (December 31st, 2011) 2 Desjardins Group It s all about people 5,6 millions members and clients business customers in Canada employees $81 million in community support It s all about members and clients 397 Caisses, 888 points of services ATMs Expansion in Western Canada One bank in Florida Active in 25 developing and emerging countries 3

3 The 2010 Context The new Desjardins... Desjardins Group was implementing its new Group-wide organizational structure announced in 2009 From legal, autonomous & independent entities to 5 business segments (see appendix a) Caisses network Personal services Business services Wealth management and Life & Health Insurance Property and Casualty Insurances Creation of shared services IT, Human Resources, Risk Management, Communications, Real Estate, etc. Business Continuity Team under Operational Risk Management (see appendix c) 4 The 2010 Context The new AMF requirements Aligned with international standards & inspired by the Basel Risk Framework Released in April 2010 AMF principles (see appendix b) General framework Identification & analysis of major incidents Development & implementation of BCP Difficulty to define the intended scope Required interpretation & positioning No specific or dedicated support provided to organizations Harmonization with other legal requirements & specific operational realities AMF: Autorité des marchés financiers 5

4 The 2010 Context The BCM heritage... No centralized BCM in place Roles were spread out in the different entities Limited centralized BCM processes in place at the time Different approach, guiding principles and templates from one entity to the other Generic guidelines released in 2009, but... not applied Major challenge was foreseen regarding the project s acceptance and integration to an already changing environment 6 The 2012 Results The structure Strategic level Policy & Governance Crisis Management Committee Tactical level Program Management, Process & Support Business Continuity Team Operational level Program Components Departmental Coordination Cells Regional Coordination Teams Implementation of a three levels governance structure that allies planning & crisis coordination needs 7

5 The 2012 Results The BCM documentation Business units 250 Business Impact Analysis interviews More than 1,700 activities identified critical activities Business Continuity Plans created for each of the 135 critical business units Network of Caisses Business Continuity Plan adapted to the 397 Caisses Business Continuity Plan adapted to the 47 Business Centers Business Continuity Plan adapted to the 12 Administrative Centers Regional Crisis Management Plan adapted to the 17 regions Creation of a unique Information Management System 8 The rate of change is not going to slow down anytime soon. John P. Kotter 9

6 Trustworthy Leadership & Trusting Followers Authority & Effective followership Charisma Competency Trustworthiness Establishing confidence & stability Sharing the vision Creating and maintaining a representative multidimensional team Establishing strong & credible leadership Balance of experience, expertise & charisma Building a centralized project team of experts Internal & external experts, PMO, executive support. etc. Roles & responsibilities Balancing vision, openness, listening & decision-making Translating technical terminology into organizational jargon 10 Capable Champions Supporting the project actively Representing their specific organizations Creating synergy and giving energy to the project Empowering Champions Providing Champions with sufficient technical knowledge Dealing with the already in place Champions Building on external expertise to obtain and demonstrate objective and neutral views Taking the time to adequately select and empower new Champions in each business unit Associating a BCM advisor to each business unit to act as a SPOC Implicating and promoting the converted Champions work 11

7 Involved Mid-management Key to effective change management (trendmakers) Best source of information through high-level and operational knowledge Choosing the appropriate subject matter experts Guiding the managers in their analysis Dealing with limited time, resources and interest Identifying the appropriate level of management to involve in BIA and BCP processes Establishing objectives & orientations with senior management prior to work sessions Facilitating their tasks with accommodating schedules, pre-filled templates, group sessions, etc. Managing management expectations and demonstrating added value 12 Systems Thinking = 3 Unique, centralized and clearly communicated frameworks Various cultures and Business Continuity philosophies (entities vs centralization) Plan the implementation of solutions by prioritizing projects Implementing a unique & common governance structure and inclusive framework of processes and the associated documentation Building on an added value BIA to understand, assess and harmonize the organizational needs and critical processes and activities Integrate dependencies business and technologies Creating coherent BCPs by applying similar strategies & methods to similar teams Harmonizing criticality & adapting solutions accordingly 13

8 Communications Systems Communicating coherent key messages to all stakeholders Understanding the needs and realities of all stakeholders Planning appropriate and timely bidirectional communications Catalyze open, quick and clear communication among stakeholders Fight mixed messages from stakeholders Getting the messages to all the stakeholders Catalyzing regular discussions with all project stakeholders Consult all stakeholders harmonize results... and repeat... and repeat... Building a unique and common framework of processes and documentation Buffering senior management expectations with tactical concerns & operational needs 14 Accountable Culture Governance Appropriate planning High-level support Consequences for employees who succeed or fail Existing culture S in entities Unclear objectives & responsibilities Focus on compliance Heavy risk reporting processes Catalyzing the discussion with senior management Formalizing periodic reporting Demonstrating the added value, beyond compliance, for day-to-day business Focusing on organizational objectives Forcing leader accountability for the end-results through reporting processes 15

9 Innovative Culture Institutionalizing innovation Celebrating creative-thinking, risktaking & mistake making Broadening outreach to additional stakeholders Traditional management behavior Stakeholders belief in a traditional methodology Standards and best practices Adapting guidelines and requirements to your reality and context Evolving from compliant continuity to operational continuity Evolving from a specific scenarios approach to a consequences approach Adding value from all the collected information instead of strictly relying on plans Using integrated databases to document all business continuity components 16 Key takeaways Don t forget the ultimate objective Adapt your expertise to the operations Elect one methodology and stick to it Rigorous and tight project management Don t limit data collection to compliance - exploit it to create information and intelligence Yes, your organization can change! Image: 17

10 Questions Implementing a BCMP in a Company-Wide Change Context The Desjardins Group Experience Marc Lapointe, Desjardins Financial Group marc.lapointe@desjardins.com, ext Eve-Marie Cormier, Plante & Associates emcormier@planteassocies.com, ext Appendix A The 2010 Context - The centralization From to Ref.: 19

11 Appendix B AMF Seven Principles General framework 1. Responsibility of senior management & the board 2.Strategy, policy and procedures Identification & analysis of major incidents 3.Identification of major operational incidents 4.Identification of critical functions 5.Assessment of impact on critical activities Development & implementation of BCP 6.Business continuity planning 7.Verification of the reliability of the BCP and update 20 Appendix C Business Continuity Team - Roles and Responsibilities Consultant and supporter Provide expertise and coordinating the deployment of expert resources offering support in terms of business continuity Harmonizer Ensure leadership, harmonization, efficiency, mutualization and the identification of all business continuity plans, solutions, priorities and dependencies Response and coordination Ensure leadership regarding the coordination of events and incidents that can affect Desjardins operations Surveillance and accountability Ensure accountability towards regulatory authorities 21

12 Appendix D Conceptual reference Building Organizational Capacity for Change 1. Trustworthy Leadership 2. Trusting Followers 3. Capable Champions 4. Involved Mid-management 5. Communications Systems 6. Systems Thinking 7. Accountable Culture 8. Innovative Culture 22