Monthly Archives: October 2017

Energy Resilience

Category : Preparedness

Are you worried about your businesses energy resilience?

Centrica thinks you should be.

Some months ago I had a conversation on this subject with someone who knows a lot about the energy business. I kept meaning to look into it to find out more but never quite got around to it until I saw this article today.

I thought I would share it.

Centrica: Firms urgently need an energy resilience strategy

Centrica: Best to prepare for the unexpected

Centrica says businesses need an energy resilience strategy, suggesting energy security and continuity should not be taken for granted.

The energy firm’s Business Solutions division has produced a research-based report that outlines the poor state of energy resilience today and practical guidance for businesses to implement a more energy resilient future.

The importance of energy continuity

We live in an era of increased business risk and, whilst news headlines focus on threats to business such as cyber-crime, there is a more pervasive and immediate issue in the form of security and continuity of every business’s energy supply. Energy is vitally important to every business, but it is only when an energy-related failure occurs that the operational vulnerabilities of a business become exposed and the need for a secure energy source becomes essential.

Perception vs. reality

There is a disparity between the threat posed by energy-related failures and the degree to which businesses are preparing for them.

Centrica Business Solutions has conducted research across multiple sectors to get a true picture of the challenges posed by lack of energy continuity, and what steps businesses are taking to address them. And though many acknowledge the reality of the threats to their energy supply, most think it will either never happen to them, or someone else will take care of the problem.

The report provides insight into the poor state of energy resilience today and practical guidance for businesses to implement a more energy resilient future.

Stakes are high

The impact of a power failure on any business is potentially huge. And it doesn’t have to be long for its effects to be long-lasting. One out of every ten businesses surveyed said that an outage of only one hour would be catastrophic to their operation.

And power failures affect all areas of business. Operational downtime is a major issue that can also lead to lost inventory and equipment damage. And that all affects the bottom line. Some businesses even state that outages have damaged their overall brand and relationships with customers.

Then there is the human cost. 11% of businesses say employees have been endangered as a result of energy-related failures. That figure is simply unacceptable.

Unfortunately, the frequency of failures is only set to increase:

81% of businesses experienced at least one energy-related failure in the last 12 months and 52% think it likely that they will experience an energy-related failure within the next year – in fact, 5% say it’s a near certainty.

But why?

There are more frequent and increasingly destructive natural disasters due to climate change. Local and national electrical systems – even individual buildings – are an increasingly frequent target for cybercriminals. And the age-old problem of human error remains an unavoidable cause of power outages.

So how can we address the problem?

It’s clear that businesses need an energy resilience strategy in place to protect themselves. Centrica Business Solutions’s research shows that there is a direct correlation between businesses that have a mature energy resilience strategy and positive business outcomes.

To take the next vital step in protecting the energy supply to your business, Centrica recommends downloading the report here.


Bad Weather Preparations for Business

Category : Preparedness

As November approaches I sat down to write about how and why business owners should prepare a plan for the bad weather to come during the winter. Then I found this article published by fsb in their online publication ‘first voice’ in May 2016. I thought that it was well researched and included much of the advice I was going to write and contained some scary statistics to focus the mind.

town floods

You may also be interested in this blog I wrote a while ago. It contains links to some resources you can use to plan. 

When bad weather strikes, this is what business owners need to do.

It is a cliché that the British only ever talk about the weather, but when it comes to business we have good reason to do so. When it turns nasty, the weather could put a small company out of business. If you work somewhere that has never been affected by severe weather, you might think this is not your concern. 

But you could be wrong: indirect consequences of severe weather, such as power cuts, staff being unable to get to weather? The work or suppliers being unable to deliver can be just as disruptive as direct damage to your premises. 

Remarkably, two-thirds of the smallest businesses in the UK have been negatively affected by severe weather events during the past three years, according to research published by FSB last year. Even more worryingly, the average cost of these events was £7,000. But 46 percent of the 1,199 small businesses questioned, most employing no more than 10 people, had taken no action to manage risks related to severe weather; and only 25 percent of microbusinesses have a resilience plan that specifically includes severe weather. 

“Few small businesses have a resilience plan of any kind, let alone one that deals specifically with severe weather,” says Allen Creedy, Chair of the Energy and Environment Committee at FSB. Business owners with no contingency plans will have to hope this winter is not a repeat of 2013-14, the wettest since UK-wide records began, when more than 3,200 commercial properties were damaged by flooding and/or storms.

Counting the cost

Nor is it just the immediate aftermath of an incident that can be problematic. When storms damaged power lines and telephone lines in Berkshire, ValueMAxess, a consultancy serving the pharmaceutical industry, was left without power for 24 hours, and without Internet or phone services for four weeks. Owner Andreas Guhl had to rent an office during this period, adding to operational expenses.

Once the problem was resolved, he put in a claim for compensation, based on costs incurred and lost earnings. At first, the telecoms provider offered him £13, then, after he complained, around £100. 

He then launched legal action. Two days before the hearing, it paid him the full amount claimed. “Don’t be shy,” he says. 

“Take those guys to court.” Mr. Guhl has now relocated to Northamptonshire and put arrangements in place to use rented offices in Northampton or Milton Keynes if necessary. 

Are severe weather events becoming more frequent, possibly as a by-product of climate change? In October, Mark Carney, Governor of the Bank of England, in a speech at Lloyds of London, warned climate change poses a huge risk to global stability. He said the number of registered weather-related loss events had tripled in 30 years. But Carney was talking on a global scale. Are severe weather events occurring more frequently in the UK? “I’m not sure they are,” says Andrew Morrish, Claims Operations Director at Aviva, although he says his firm watches such trends closely. “But even if it’s not a catastrophic, wide-ranging event, for any individual business major weather events can be a catastrophe.”

Action plan

What can small businesses do to protect themselves? Simply keeping up with weather forecasts can help – the Environment Agency provides a free flooding-alert service for firms (and homes) at risk of flooding, with warnings sent by phone, email or text. According to FSB’s research, more than one in five businesses (22 percent) based in flood-risk areas were unaware of this service last summer. FSB also recommends that small companies produce a resilience plan covering the potential impacts including on their supply chain, and consider how easily staff could work remotely if necessary.Resources are available to help a small firm create a continuity plan, but they vary in quality, says Mr. Creedy. “We’re trying, with Government, to set up a one-stop shop, where businesses can get a resilience-plan template, good insurance and advice.” 

It’s important to develop a strategy that suits the needs of the company, says Mark Nicholas, Managing Director of Easy Continuity, a business continuity product and service provider. 

“Look at risks that could render your building ineffective. You need recovery options for buildings, staff and IT.” You also need to have a plan in place that will help you communicate with staff, customers and business partners in the event of an incident. “Customers are more likely to react sympathetically to a disrupted service or a closed facility if they know what’s going on,” says Tim Morris, Director of Marketing at emergency communications technology provider Crises Control.

Take cover

The other key precaution is to ensure you have all the insurance you need. In November, the Flood Re initiative, which helps homeowners at risk from flooding find affordable flood insurance, came into force – but there is no equivalent for small businesses. More than half (52 percent) of small firms based on floodplains do not have flood insurance, with 9 percent reporting difficulties in finding cover, and 6 percent having been refused, says FSB. It is asking the Government for measures to ensure small businesses can access affordable flood insurance. 

Meanwhile, firms finding it hard to get cover should contact brokers who specialise in obtaining it even where there have been previous flooding losses, says Martin Bridges, Technical Services Manager at the British Insurance Brokers’ Association (BIBA). “Our members understand the risk associated with an individual business, and the measures they have taken to reduce the effects of flooding,” he says. 

“The broker may also have details about the likelihood of flooding that they can share to obtain better terms.” In addition, business-interruption insurance can compensate businesses for any reductions in profit and increases in operating costs caused by a business interruption. But only 46 percent of small firms have this type of insurance in place, according to FSB. If you do buy it, check the small print. The 2013-14 floods left Oxford Ironmongery, an architectural ironmongery firm, unable to reach its premises and serve customers for five days, even though the premises themselves were not flooded. Managing Director Julian Newman put in a claim on his business-interruption insurance for five days’ worth of profit – about £2,500 – based on average takings and outgoings over the previous three years. 

The insurer’s loss adjuster recommended that the insurer offer the firm just £47.
“I got in contact with the local media,” says Mr Newman. “The television interview went out at 6.30pm on a Tuesday evening, and at 6.35pm I was having a phone conversation with the head of the insurance company.” The insurer subsequently improved its offer. No one wants to be forced to put the strength of their insurance policies to the test or end up in lengthy media or legal battles. For most small businesses, the priority should be to take reasonable precautions and think of how any impact can be mitigated, should something unexpected strike. As the old phrase goes, forewarned is forearmed.

How to plan for severe weather

Create a resilience plan that covers the potential impacts of severe weather on your business and your supply chain
Investigate the level of flood risk you face and sign up to the Floodline Warnings Direct service (www.gov.uk/sign-up-for-flood-warnings)
Plan for staff to be able to work remotely or from home if necessary
Consider additional continuity arrangements
Make sure you have insurance that is appropriate to the risk you face. You can get free insurance-related advice from FSB Insurance Service (www.fsb-insurance-service.co.uk/)

Case Study – Alight buoyant again after floods

Amante Witherick runs the Alight Balloon Company, creating decorative products (pictured) for weddings, corporate events and similar occasions, from a large garage workshop next to her house in the Somerset village of Moorlands. 

When the 2013 floods struck, she expected the house and garage to be flooded, so she moved some stock and equipment to higher surfaces. But the floodwaters rose to a height of 1.5 metres and stayed there for weeks, wrecking the family home and the garage workshop. 

Ms Witherick lost thousands of pounds-worth of stock, equipment and personal belongings. She now believes she could have saved more, but at the time felt unable to do so. “It’s so overwhelming – with everything devastated, you go into this sort of numbness,” she says. “I didn’t answer emails for about a fortnight, so I lost a lot of business.” The family home and garage have now been refurbished, and the company is thriving again. A government grant for domestic flood defences has funded the construction of a new wall that should offer the property more protection. If she were flooded again, the main thing Ms Witherick would do differently would be to act more quickly to move items into a storage facility, and keep trading from there, she says.

 

Handling the Psychological Impact of Distressing Incidents

Category : Preparedness

Employers need to consider the people side of business resilience. People are our greatest asset but their resilience is often overlooked when it comes to business continuity plans.

I found the following article that details six steps to building a successful strategy to help your staff and therefore your business recover quicky from traumatic or distressing events. 

Managing the psychological impact of distressing and traumatic incidents: six steps to build a successful strategy

 

When organizations encounter sudden, unexpected and disruptive events, business continuity plans aim to quickly restore operational functioning. However, without stabilising the people who deliver those operations, the best laid plans may only be partially successful. Liz Royle looks at six steps that organizations can take to manage this area.

Managing the emotional impact of a distressing or traumatic event should begin before an incident has happened – particularly for organizations with a predictable risk of encountering them. Strategic planning ensures a proactive, clear and consistent approach for safe systems of work and faster recovery from the people perspective. This article sets out six steps required for a successful strategy and some of the questions that should be considered before implementing any plan.

Step 1: Assess the nature and type of risk
Step 2: Create a clear rationale for intervention
Step 3: Identify responsibilities and engage key people
Step 4: Develop procedures and prepare resources
Step 5: Train staff
Step 6: Test, monitor and evaluate.

The steps themselves should be reassuringly familiar but how do they relate to the psychological aspect?

Step 1: Assess the nature and type of risk

When it comes to distressing and traumatic events, it is worth keeping in mind the following definition:

Psychological critical incident: An event or series of events that may cause significant emotional or physical distress, psychological impairment or disturbance in people’s usual functioning.

There are four main areas to consider and the examples shown for each below are not exhaustive!

  • Major incident: e.g. act of terror, active shooter, multi-casualty incident, line of duty death, man-made disaster (e.g. chemical leak, fire) or natural disaster.
  • Incidents related to the organization’s activities: e.g. armed robbery, transport / heavy machinery accident, violence or physical assault. Some employees will have repeated and extreme exposure for instance emergency services workers, cash handling and transit services, security professionals.
  • Secondary trauma: e.g. repeated exposure to others’ trauma as part of role (think social worker / journalist / emergency services).
  • Unpredictable ‘life events’: e.g. the sudden death of a colleague or suicide of a member of staff. These events can have a huge impact on colleagues. Shock and grief can impact on a team’s functioning just as heavily as a cyber-attack or flood.

Risk management plans can be a good place to start when considering hazards and threats arising from the organization’s activities or certain roles within it but think more broadly. People may be at risk directly or as a witness. One of the most challenging workplace events is a line of duty death. The ripple effects are significant as many people who are not directly involved will be impacted by the recognition that “it could have been me.” This can have a major impact on operational functioning and productivity.

Initial questions to consider in step 1:

  • What are the potential risks to your organization in these four areas?
  • What are the likely frequency and severity of these?
  • Who has been identified as potentially at risk? As well as those directly involved, who may be psychologically affected by these events? Related teams, call handlers / reception staff? 

This is not about wrapping people up in cotton wool but identifying risks in order to address them. As with any assessment, the control measures will be appropriate to the level of risk.

Step 2: Create a clear rationale for intervention

It is important to consider exactly what you are trying to achieve by implementing a support programme. These may be things that the organization is seeking to improve, address or change. Each organization will have a slightly different perspective on this and there will be many people within the organization who think that being proactive and supporting employees is a bit ‘pink and fluffy’.

Any policy must therefore have a clear rationale with an analysis of associated costs and benefits. Often, we find that the people closest to the operational ‘frontline’ have the strongest motivation to address trauma but struggle to convince those with power and influence to implement changes. We can’t be emotional about this topic and have to make a sound business case.

So why should an organization invest in being proactive?

Save money? Early intervention and effective treatments result in financial savings including reduced sickness absence, and costs of sickness cover or overtime and recruitment.

Reduce employee turnover? An effective psychological critical incident programme can contribute to better working relationships and increased employee satisfaction resulting in the organization being able to attract and retain high quality workers.

Increase productivity? As symptoms of mental distress escalate, the individual is likely to experience deterioration of focus, decision making, concentration and assessment of risk. The organization is also negatively affected by mistrust and cynicism towards leaders. If the organization is not perceived to care then why should its employees?

Increase employee morale, health and wellbeing? Supportive management involvement, as part of the post incident procedures, leads to organizational empowerment and reduced stress for managers (and ultimately increased productivity again), through employees being healthier, happier and better motivated. Leadership and morale are both closely linked to resilience and peer support, and can actually help protect individuals against traumatic stress. 

Maintain reputation as a socially responsible organization? There is a wider cost to society arising from psychological critical incidents. Unresolved distress and trauma can lead to family breakdown, violence – inside and outside the home, alcohol or drug abuse and even suicide and homicide.

Protect against litigation? Good procedures for psychological recovery and rehabilitation can reduce exposure to reputational damage and the financial costs of prosecution or litigation. A sound policy will ensure that the organization is able to meet the requirements of health and safety legislation in respect of risks arising from potentially traumatic incidents at work.

Reduce human distress? Last but by no means least, if we get it wrong the results can be devastating in terms of the human suffering and the ripple effect to families and colleagues.

These driving forces will have varying relevance depending on organizational aims and vision.

Initial questions to consider in step 2:

  • What are the top priorities for your organization?
  • Is there consensus on this?

It is important that all those involved are in agreement as to the most important driving forces. For instance, a trade union that perceives the focus as being solely cost-driven rather than welfare-oriented may provide challenges. These two rationales shouldn’t be incompatible but it’s down to how it is presented to all involved!

Step 3: Identify responsibilities and engage key people

Now that you have established the risks and a clear rationale for action, the next step is to engage all involved. The larger the organization the more potential stakeholders there will be to consult with. In order for the plan to be effectively implemented this consultation should be thorough so that any resulting policy dovetails with existing practice.

Avoid simply delegating responsibility to an Employee Assistance Programme or Human Resources. Responsibility should be shared through all levels of the organization.

The organization is responsible for driving the initiative forward, providing the necessary resources (including appropriate professional support), conducting psychological risk assessments for employees and monitoring the overall effectiveness of the process.

Managers and supervisors are responsible for encouraging a working environment where issues of psychological impact may be raised in a supportive and timely manner, identifying when intervention is required and which members of staff may require further assistance.

All employees (at every level) have the responsibility to engage in health and wellbeing initiatives and observe safe systems of work.

Professional support teams, whether this is done via the Human Resources department or an outsourced Employee Assistance Provider, are responsible for providing clinically effective group and individual interventions, liaising with senior management regarding implementation and trends and advising on rehabilitation plans.

Initial questions to consider in step 3:

  • What health and welfare sources are available to employees who are identified as needing further support?
  • Does the service offer effective trauma treatment? N.B. In the UK, many people are unaware that guidelines produced by NICE (National Institute for Health and Care Excellence) specify that non-directive counselling is not usually appropriate for crisis and trauma reactions. It can actually re-traumatise and delay recovery.
  • How has post-incident support been viewed traditionally? Is it acceptable or implicitly stigmatised?

Step 4: Develop procedures and prepare resources

The procedure following a critical incident can be very briefly simplified into three stages each requiring its own detailed process.

1) Identification of critical incident and those in need of support: Managers are the obvious choice for doing this but need to be aware of the major factors predicting psychological trauma and how their team is responding to an event. Responsibility for requesting assistance can be widely shared for example between managers, trade union representatives and employees.

2) Immediate support: Ideally some form of initial support will be put in place before employees leave the workplace. This is informal, focused on safety, practical and welfare needs and may be carried out by a manager or colleague trained in psychological first aid. Information handouts should be made available that normalise responses and offer basic strategies to manage crisis reactions along with sources of support and advice.

3) Follow up intervention and monitoring of recovery: From the point of the incident occurring onwards, assessment is continually required for identifying current and emerging needs. For many people, education and support in the workplace will be enough but you need to consider how and where you will refer those individuals who need a higher level of care. Processes for accessing specialist trauma support and mechanisms for rehabilitation should be clear.

Initial questions to consider in step 4:

  • How will you identify a critical incident and who can start the response process?
  • Do you have incident logs or are you relying on managers to do this? In the latter case, you may be influenced by their subjective judgment of the situation if they are untrained.

Step 5: Train staff

There are different levels of preparation that can be considered by organizations and their relevance very much depends on the level of risk that has been identified. This may take the form of simple awareness building for all employees whether through training or informal input such as briefings or articles in staff magazines.

The higher the risk, the more relevant preparatory training is.

For those who are more likely to encounter critical events, preparatory training can be very beneficial. If they understand the nature of traumatic stress, and are aware of helpful coping strategies, they can take their part in healthy behaviours, feel in control of their recovery and have an expectancy of a return to full functioning. This will help them to be resilient and ‘bounce back’ effectively. It also has the added effects of reducing stigma and making everyone the eyes and ears for colleagues’ welfare.

Psychological first aid skills can be taught to managers or appropriate peer supporters. This ensures that managers have the skills to be able to identify and support employees experiencing traumatic stress reactions. It empowers them in being proactive with their support, avoiding many of the common problems caused by uneducated supporters and ensures that the appropriate level of support is made available to employees involved in traumatic or distressing incidents.

Initial questions to consider in step 5:

  • What training or initiatives are currently provided to support employees’ mental health/wellbeing?
  • Can these be adapted to include information on the new strategic plan?
  • If peer supporters, or psychological first aiders, are appropriate, who will they be and how many are needed to provide resilient levels of cover?

Step 6: Test, monitor and evaluate

Following implementation, an evaluation process is essential to ensure that the policy is operating effectively and not just sitting on the shelf gathering dust. There is no point in it looking wonderful on paper if it doesn’t work or doesn’t get used! Plans for managing the psychological impact of events should be tested as part of any other crisis simulation exercises.

Going back to step 2 and the rationale for intervention, organizations need to consider how they can best measure the effectiveness of the trauma support programme with regard to their original rationale for it.

Examples may include:

  • Sickness absence figures
  • Turnover rates and information from exit interviews
  • Information from workforce surveys
  • Information from team and branch meetings
  • Feedback from managers and peer supporters.

Initial questions to consider in step 6:

  • Who will be responsible for monitoring the implementation and effectiveness of any policy and when / how often will this be done?
  • How are concerns about the process captured and dealt with?
  • What action will be taken in instances where the procedures haven’t been followed, e.g. education of managers?

Conclusion

This article is a first step towards considering your plans and asking some of the right questions. Managing major incidents and roles that are vulnerable to secondary trauma brings additional, more complex challenges so always seek qualified, professional support. Planning for these risks involves many other aspects beyond the scope of this particular article.

A good strategy should be clear, simple, cost-effective and embedded in organizational culture. Where the human side of post-incident operations is handled well, there are great benefits for all concerned with a faster return to operational functioning so it is well worth the effort!

The author

Dr Liz Royle is an international author and speaker with substantial experience of the strategic management of trauma and proactive and responsive interventions for high risk organizations. Her professional experience of trauma was cemented during her time as senior welfare officer for Greater Manchester Police providing 24/7 critical incident interventions to police officers, developing post-incident procedures and managing responses to major incidents such as line of duty deaths and multiple fatalities. She was the lead person for the European Society for Traumatic Stress Studies (ESTSS) Managing Trauma in the Uniformed Services task force for eight years. Since leaving the police service in 2004, she took her skills and knowledge into the private, corporate and voluntary sectors. Dr Liz Royle has written trauma support policies for city councils, police forces and security companies and provided strategic and crisis response support to organizations affected by acts of terror, natural disasters, deaths, violence and serious accidents.

Dr Liz Royle will be speaking at BCI World in November.

Contact office@powertorecover.com

Note: The six steps described in this article are adapted from ‘Power to Recover: A complete guide to managing psychological trauma at work’ by Dr Liz Royle and Catherine Kerr (CPsychol).