Could key personnel losses create chaos? Business continuity plans often neglect such issues as how the company will respond when critical staff are incapacitated. (Viewpoint).

Companies increasingly recognize the importance of having a business continuity plan to ensure the timely resumption of business in the event of a disaster. But management tends to overlook a critical component of these plans: the human factor.

Plans typically spell out what should be done for each possible type of disaster. They address catastrophes that range from natural calamities such as earthquakes and floods to manmade crises such as bomb attacks. They also cover day-to-day interruptions such as power failures, server malfunctions, and virus attacks. But they generally do not address how the company will respond when staff who play a critical role or possess unique skills and knowledge suddenly become incapacitated or unavailable for some extended period of time.

To plug this gap in the contingency safety net, companies should first identify which positions and personnel within the company are vital to the organization's continued performance of its core competencies and to its financial viability. After determining which positions and personnel are central to the organization's economic survival, management should then consider the market availability of the skill set needed to fill the position and the impact of having the post vacant for some period of time. In addition to the obvious executive-level jobs that would qualify as important, positions that might be deemed crucial to the company include managers for large clients or key regions, managers of strategic business units, and key project coordinators.

Each key position is a potential "single point of failure" (SPF) comparable to other SPFs related to basic infrastructure, networks, hardware/soft-ware, public utilities, and the like.

One approach is for the company to begin by classifying or ranking each key position. For example, a company might rank positions identified as key into one of three groups: critical, vital or sensitive.

A position would be deemed critical if the cost to the organization of having the position vacant even briefly would be very high and if filling the position would be very difficult. A position might be deemed vital if there was a somewhat lower cost in terms of the impact of having the position's functions disrupted for a short time. In addition, a vital position could be adequately filled or managed temporarily by other available personnel. A position would be ranked as sensitive, rather than critical or vital, if it could be adequately managed for more extended period of time by other available personnel.

Management should then decide which classifications require contingency plans. For example, perhaps only positions identified as critical or only those that are either critical or vital would be included in the contingency planning process.

For those positions included, the company should identify the following:

* Name of the SPF

* Key responsibilities

* Required competencies

* Classification

* Pool of candidates for progression

* Candidate's existing competencies

* Training required for candidates

That information serves as the basis for developing the contingency plan, which should document for each key person/position: the classification, a chain of personnel who could potentially step in to fulfill that role, the person with the authority to invoke that contingency, and other information required to ensure a smooth transition.

In addition, organizations should go beyond listing potential replacements by identifying other contingency options, such as insurance for the loss of key personnel. The company would also be advised to offer the training needed to provide the requisite competencies to personnel identified as potential backups for key positions.

Unlike nonhuman SPFs, the key position SPFs in the contingency plan need not be tested every six months, but these provisions of the plan should be reviewed and updated at Least quarterly or on an event-driven basis (such as when personnel leave or are hired, when new positions are created, or when job descriptions change).

In conclusion, the human aspect is a critical factor in business continuity planning. Companies should make sure that they flesh out their programs to include key personnel-because without that central brainpower, the corporate body cannot function.

Selvaraju Balaji is a senior software engineer, quality assurance, with Future Software Limited, Chennai, India.