Posts Tagged ‘relevance of military strategy to business’

Here’s the link to my April 2017 column on Defence Leadership or download as PDF.

Here’s the link to my June 2017 column on Defence Leadership or download as PDF.

 

 

By Richard Martin

© Alexskopje | 123RF Stock Photo

The recent spate of natural disasters (hurricanes, earthquakes) have shown once again the need for readiness and resiliency for operational and business continuity. I’ve also been working with a client organization to review and upgrade its continuity programme. Here are some basic principles to keep in mind.

  • Readiness for business continuity is a leadership responsibility. It is a strategic concern and must be led by senior leadership and executed by the entire organization and its “chain of command.”
  • Business continuity is part of contingency planning and preparedness to respond and recover after prevention has failed. In other words, it’s part of your risk/threat mitigation strategy.
  • Insurance is needed to help recover and rebuild after a disaster or a crisis, but it can neither prevent nor mitigate the impacts as they unfold. That is where the entire preparedness and readiness programme come into play.
  • There are three phases to business continuity planning and management: preparation, response, and recovery. The preparation phase should always be in effect, and not just an afterthought.
  • Business continuity planning (BCP) must be conducted on a cyclical basis, for instance every year. It must be aligned with other normal management processes such as annual budgeting and capital planning so any required investments can be identified and adequately resourced.

© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

by Richard Martin

© Kheng Guan Toh

I’ve been answering questions lately (from my daughters, among others) about the threat of war, specifically nuclear war. This obviously comes from the worries about North Korea’s nuclear capabilities and intentions, as well as American ones.

Although this concerns military strategy and geopolitics, the underlying analytical approach can be applied to any consideration of threats, whether a generic SWOT analysis, or the evaluation of a specific security or competitive menace.

Threat analysis goes beyond risk analysis. Risk is the product of the probability and impact of a negative event or cause. Risks are usually categorized under three headings: natural, technological, and human. Focusing on the last, there are criminality, security, labour conflict and many other sub-categories of human originated risks. The problem, however, comes in evaluating the likelihood of a human risk. If we are considering only generic risks, we can talk about probability and impact in abstract terms. For instance, what is the probability of a criminal act? We can use statistics about, say, white collar crime in corporate settings as a starting point for assessing the risk. There are statistics describing the probability of certain acts in certain situations along with average impacts (including their statistical distribution).

But how can we assess a specific threat where there is no historical or statistical data to illuminate the analysis? That’s where military-style threat analysis can be very useful. Military threats are broken into two parts: capability and intent. Capability is self-explanatory: What can the potential or actual enemy do? What are the quantitative and qualitative characteristics of his forces? How many tanks can he deploy? How many aircraft? In the case of North Korea, how many nuclear bombs, of what type, and through what means can they be delivered? I discussed this at length in early September with Dr. Sean Maloney of RMC, an expert on nuclear history and strategy.

While there is uncertainty in capability assessment, at least we’re dealing with tangible realities. Intent is a completely different ballgame. How do we know what the enemy will do? How will he react to our own threats or efforts at conflict resolution? These are imponderables and we must consider a range of scenarios to determine the inevitable commonalities that arise in each, so we can prepare for them. We must also examine the action-reaction cycles that occur because of the moves and countermoves by both sides.

An analogous approach can be used in analyzing and assessing business threats, even though the stakes are obviously of a completely different order and importance. Whether you’re trying to assess your competitors’ next moves, or your market’s reception of your new product, you can learn a lot by considering the threat as both capability and intent. This allows you to disentangle what is possible (given assessed capabilities) from what is probable (given assessed intentions) over a range of scenarios. The insight gained can then be incorporated into your own strategy and contingency planning.

© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

by Richard Martin

Copyright: Tomas Griger

After the magnitude 8.3 earthquake in Mexico last week, an acquaintance of mine was fretting about how these natural disasters couldn’t be a simple coincidence.

Of course, that acquaintance was referring to the apparently large number of violent systems in the South Atlantic this hurricane season in combination with an earthquake. I’m not sure what these phenomena have to do with each other. How are weather and geology supposed to be connected? Perhaps in the very long term, on the scale of eons. But over days or hours? Not likely.

Humans have a propensity to see causality and correlations where there is just coincidence. Most things happen for no reason at all. It’s easy to see patterns where there are none, especially in nature. If you see linkages where there are none, you can drive yourself crazy with anxiety and paranoia. Things happen. Sometimes they bunch up in time and place. Other times they are more or less spread out.

The trick to being prepared isn’t so much to predict specific causes or events, it’s to prepare for generic outcomes and effects. If you’re in a hurricane or seismic zone, you can’t predict when or where events will occur, but you know that they will occur with a certain frequency and power. For instance, every decade or two, there is a major hurricane in your zone. Every year there is at least a major tropical storm. Geological risks are much harder to characterize, but if you are in high-risk seismic region, then you have to prepare for the worst case.

Of course, preparedness and resiliency are largely a function of wealth. Storms, earthquakes and other natural events are a lot costlier in wealthy regions, but relatively less destructive of life and limb. In poor regions, the relationship is inverted; there are many more deaths and the destruction, although extensive, costs much less. However, the time to rebuild and recover are a direct function of wealth. The greater the capital resources, the faster and easier it is to absorb the costs of reconstruction and resiliency.

These factors also play into the perceptions of coincidence, causality and correlation. We must keep things in perspective when assessing probabilities and impacts. Human destruction is greater in poor countries and increases toward the past. Material destruction was less in the past and is continually increasing. This isn’t because of some connection between events. Rather, it comes from the increased investments in infrastructure, housing, and transportation networks. What was the damage along the Gulf Coast or in Florida prior to people building houses right on the water?

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

by Richard Martin

Here is an easy to use four-step to help in readiness for anything, any time.

Step 1: Mobilize

  • Confirm situation and mission
  • Do time estimate
  • Activate team and support network
  • Prepare equipment, dress, “ammunition”
  • Inform “troops”

Step 2: Reconnaissance

  • Terrain (market)
  • Objective (client, goal)
  • Enemy (competitors)
  • Weather (context, conditions)

Step 3: Plan

  • Aim, factors, options, decision, plan
  • Tactics: frontal, flanking, bypass manoeuvres
  • Exploit/protect centre of gravity
  • Economize and mass for optimal impact
  • Pit strengths against weaknesses, exploit gaps

Step 4: Deploy

  • Brief team, supporters, colleagues
  • Initial and final rehearsals
  • Update plan, develop contingency plans
  • Final preparation – material and psychological
  • Morale – How is your will to win?

© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

 

by Richard Martin

Back in March I put out a Strategic Readiness Bulletin titled “Is Canada Facing an Incipient Refugee Crisis?

The situation has evolved to the point where the Canadian Forces have been tasked to set up a temporary reception centre near the Quebec-US border. Asylum-seekers are being temporarily lodged in Olympic Stadium and the old Royal Victoria Hospital in Montreal. The Canadian Border Services Agency (CBSA) and RCMP have sent reinforcements south of Montreal to help with the overflow of migrants arriving on foot at the border. Most are of Haitian origin, but it seems that other nationalities may also be arriving and that the mix could very well change quickly.

You can surmise from reading my bulletin, referenced above, that this situation was entirely predictable, if not in its specifics, then at least in outline. I don’t think we’re at a crisis point yet, but that could develop rapidly, as we saw when the same thing happened in Europe two summers ago.

A crisis occurs when you lose control of a situation, and you are constantly reacting to conditions rather than shaping them. If at any point border crossings or reception and housing facilities are overwhelmed, then it will be a crisis.

The question at this point is whether plans and actions can be undertaken now to prevent and/or mitigate these possibilities. Organisations must stay ahead of events by envisaging various scenarios and possibilities and implementing plans and measures to cater to them, before they occur.

And this isn’t just a federal or provincial government responsibility. Municipalities, private businesses and non-profits can be affected. Some small municipalities are already being stretched by the demands of reacting to the situation.

If you are running a business, can this affect you? What if you are near a border area, or have clients in the US, or depend on shipments to and from the US? Could you be affected. I talk more about this in the bulletin, so you should definitely check it out.

Also, here are some other articles I’ve written over the years that you may find of interest, especially for interagency cooperation and planning.

Five Myths About Crises: Why we’re surprised by unsurprising things.

Crisis? What Crisis?: The type of crisis we’re facing, and how it is likely to unfold.

Mobilizing for Readiness: What you need to do to mobilize your team or organization.

Proven Techniques for Crisis Leadership: Leading effectively before, during, and after a crisis.

Battle-Proven Principles for Disaster Leadership: The focus of this article was disaster management, but there is a lot of good information, especially for public agencies.

© 2017 Alcera Consulting Inc. Reproduction and sharing permitted for non-commercial reasons.