If disaster strikes, what’s your
plan?
As I write this, it is the fourth
anniversary of the terror attack of 9/11, and it is impossible
to find a news channel that is not completely consumed by
Hurricane Katrina coverage. There are plenty of people,
primarily partisan politicians, who contend that planning could
have prevented the 9/11 attacks and the devastation of New
Orleans.
Of course, those people are right in a
sense, but terribly wrong in another. Planning is
important, but very few people —
businesses or governments — can afford to plan for
catastrophes. Insurance is expensive. Information gathering is
expensive. Hurricane-proof buildings are expensive. And expert
advice is expensive.
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We could probably build a car that would
protect inhabitants against injury under any circumstances, but
it would probably cost as much as a space shuttle. And speaking
of the space shuttle, the space program is paralyzed by
planning in an attempt to make each mission accident-proof.
Business owners are well aware of the
phenomenon. Readers of this column know the 1,001 things a
business should do or should be doing to avoid litigation,
employee discontent, and legal problems. But who can afford the
expense of doing all that? Besides, if a business has never
been sued, burned to the ground, flooded, or been close to ruin
for lack of business, why worry when things are going great?
Darn. I am almost convinced that this
article should end here. To heck with planning. If it
ain’t broke, don’t fix it.
What are the odds that I will hire an
employee named Katrina who will cost me $200,000 in legal fees
and damages because one of my managers commented on her
backside? We’ll pump the water out of the basement when
it floods, so why regrade the parking lot? Planning is just an
unnecessary expense.
For those of you who have not stopped
reading, however, there are good solid business reasons for
planning. Businesses can do many things, at a reasonable
expense, that can have very real, measurable benefits for the
operation. Here are my suggestions for rational, inexpensive
business planning.
First, start with an analysis of your
workforce. Do you have the right people? Do you have enough
people? Do you have too many? Who are the people you need and
who are the people you should replace? Who needs to be trained?
Who needs a different method of compensation?
Next, take steps to implement the
personnel decisions you decide are in the best interest of the
company. If you end up with the right workforce, you are way
ahead of the battle.
Second, make sure you have all the core
documents of your business. Employee handbook, stock book with
minutes, insurance policies, material safety data sheets, and
every other document required by the bank, the lawyers, the
accountants, and state and local governments. Use the Internet,
if necessary, to compile your list. Why wait until disaster
strikes to assemble those documents?
Third, take a look at your future. Can
you make money doing the same thing two, five, or ten years
from now? Is the business changing, and are you keeping up with
the change?
Remember, there were many
successful video rental stores in the early ’80s. Quick,
name one now other than Blockbuster. And will there be a
Blockbuster ten years from now, or will “on demand”
put it out of business? Make business decisions based on your
conclusions.
Fourth, make a list of all the business
consultants you need in the event of a catastrophe. Lawyers,
accountants, engineers, insurance agents, etc. Put a copy in
your house, as well as your office filing cabinet.
In sum, expect the worse and hope for the
best. Plan for the future, but not at the expense of the
present. It makes sense to plan for what could reasonably
happen, so take a few hours this week to ask yourself some of
the questions contained above. Or buy a lottery ticket.
It’s your call.
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