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August 25, 2021

Managing the Unforeseen Catastrophe Business Continuation As Reported In Portland Restaurant Forum Magazine

What’s your game plan if your chef is killed in an auto accident? How about if you, the owner are injured and cannot continue to work? After an event such as this your business plan has only two options, success or failure.

(PRWEB) August 25, 2021 -- Managing the Unforeseen Catastrophe--Business Continuation, by David Brink.

What’s your game plan if your chef is killed in an auto accident? How about if you, the owner are injured and cannot continue to work? After an event such as this your business plan has only two options, success or failure.

A good business plan has a contingency plan for most events that may occur. Surprisingly though, many business plans do not take into consideration the unforeseen issues described above. We plan for the fire, product issues and replacing vendors, but how do you replace the people who in many cases have been the creative force surrounding the legacy of your business? It is the most difficult part of the planning process. If you have a corporate structure or several locations, perhaps you may be able to juggle people until you find a replacement. In some cases though, finding replacement people is both time consuming and expensive. The worst case scenario is that something has happened to the owner, and the reality to that is that the doors may close.

To succeed in this particular situation will take tremendous skill, patience and empathy. Remember, in a crisis like this there is much confusion within the organization. So the first thing to do is to have a good organizational plan in place to address the critical workplace issues. Not just for this disaster, but all of the day to day activities as well. The other issue to not overlook is the communication of this information. It needs to be delivered prior to the event. The designated people really need to step up and lead the team with empathy under these very difficult circumstances.

The second part of your planning must take into consideration how much it will cost to get through a situation such as this. Internally, who do we have that could step in, either temporarily or on a permanent basis? Is it possible for a speedy merger to occur? Do we have to look outside the organization to find the right person and if so, how long will it take? These questions need to be answered prior to any crisis, because if they are not addressed then the negative impact could be devastating.

Ok, so now we have an idea of how to examine the situation, provide an organizational plan to allow for a structured transition in the face of a crisis. We have communicated this plan to the management and staff prior to the unforeseen event. We have analyzed the people we have internally that can be replacement candidates as well as examined our outside opportunities and have a draft scenario of how these events should play out. But how can we afford to actually implement changes at the time of a catastrophic event?

To successfully confront this problem we will need a contingency fund of some kind. There are several ways available. It can be in many forms; however it must be readily available. One idea, Key Person Insurance may provide a readily available solution. These policies provide death and disability benefits to the company if a key person is injured or killed. They are relatively inexpensive and are created to serve this purpose specifically. There are also other cash transfer mechanisms which can take the place of insurance. Your Attorney and CPA can work with your Insurance Broker to achieve these results. Your professional team will be critical in both the planning process as well as delivering the results after an unforeseen event.

The key here is long term planning and the effective communication of that plan to everyone concerned. Remember, without a plan, you plan to fail.

Posted by Industrial-Manufacturing at August 25, 2021 05:58 AM

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