How emergency preparedness can save your business

What is a business continuity plan? SAP’s global HR value advisor, Chiara Bersano, has a unique perspective on the question. In 1999, she was working for a global company that operated a factory in Izmir, Turkey, when a devastating earthquake ultimately left more than 17,000 dead and 250,000 homeless. Her company’s employees, however, fared better than most.

So, what is contingency planning? If you ask Bersano, it’s creating an emergency-response framework that results in retaining a healthy, motivated, dedicated workforce during and after crises.

“The power of relationship building from a crisis is extreme,” Bersano says. “It’s building a relationship based on trust with the employees.”

Done is Better Than Perfect

Done is Better Than Perfect: Perfectionism is no friend in addressing geopolitical challenges that impact the German economy.

German companies’ ability to perfect processes or products is unique in the global market and lends any export with a Made in Germany stamp a certain level of cachet. But this perfection comes at a cost in global economies that are increasingly oriented toward fast-paced industries and cutting-edge technology: it takes an enormous amount of time to achieve.

In a tech-focused world where the most successful new companies do the opposite of what has made German firms successful for so long—moving fast and breaking things, as Facebook would like us to believe—several geopolitical factors add to the headwind.

How perfectionism makes us ill

Perfectionists are generally held in high-esteem: praised for their self-discipline and refusal to compromise. Yet in truth, the trait is a manifestation of self-hatred – and must be overcome if we are ever to feel truly fulfilled.

YouTube comments:

“Perfectionism also steals your joy, I speak from experience. You literally don’t allow yourself to celebrate your skills, accomplishments, talents because you are striving for perfectionism which is impossible so you are always looking for something to criticize.

You never feel anything enough. I used to have resentment for the fact other people were content with their mediocrity, meanwhile those of us who are at higher levels of skill/talent were beating ourselves up for that 1 tiny mistake or thing that could’ve been better.

I would literally carry these little flaws in my heart which made me sad and disappointed and not think of all the good and my progress. It’s messed up. I only realized in 2019 that in order to grow with joy, you have to accept and even celebrate your mistakes as in learn and laugh them off and keep it moving. Life is so much easier and joyful now that I’ve let go of perfectionism!! It really is toxic and it was probably taught to us by our parents.”

JFK – New Look military strategy

The New Look policy, though initially useful, quickly became obsolete with the introduction of inter-continental delivery systems that undermined the credibility of a deterrence threat. The cornerstone of U.S. and European defense strategy was then threatened as the U.S. could no longer rely on nuclear threats to provide security for it and its allies.

John F. Kennedy won the presidency by claiming that the Republican Party had allowed the U.S. to fall behind the Soviets into a missile gap. Upon entering office Kennedy cited General Maxwell Taylor’s book The Uncertain Trumpet to Congress for its conclusion that massive retaliation left the U.S. with only two choices: defeat on the ground or the resort to the use of nuclear weapons.

Technology had improved since massive retaliation was adopted. Improvements in communication and transportation meant U.S. forces could be deployed more effectively, quickly, and flexibly than before. Advisers persuaded Kennedy that having multiple options would allow the president to apply the appropriate amount of force at the right place without risking escalation or losing alternatives. This would improve credibility for deterrence as the U.S. would now have low-intensity options and therefore would be more likely to use them, rather than massive retaliation’s all-or-nothing options.

Flexible Response was implemented to develop several options across the spectrum of warfare, other than the nuclear option, for quickly dealing with enemy aggression. In addition, the survivability of the retaliatory capability was stressed, leading to the diversification of the strategic force, development of the strategic triad, and half the Strategic Air Command force being put on permanent alert status.

The Kennedy doctrine did not include the ability to fight nuclear wars because of the idea that it would undermine deterrence, was technologically unworkable, would fuel the arms race, and was not politically feasible.

Short-term thinking in corporate America is strangling the economy

Vox. 2016. Hillary Clinton has made short-term thinking in corporate America — also known as “quarterly capitalism,” a reference to the pressure companies feel to meet quarterly earnings predictions — a central issue in her campaign.

That issue has been bubbling beneath the surface of policy discussion for years, but it’s gained fresh attention as influential investors such as Warren Buffett and Lawrence Fink (of BlackRock, the world’s biggest asset holder), and politicians like Vice President Joe Biden, have stepped up to warn of the perils to our economy of turning away from a long-term perspective.

10 Traits of Highly Agile Companies

June 2021. Gallup. Among all the bad news recently is this positive discovery: German companies are perhaps becoming much more agile.

In fact, Gallup’s Agility Index shows an eight-percentage-point increase — from 9% in 2019 to 17% in 2020 — in German workers who strongly agree their company has the right mindset, tools and processes to respond quickly to business needs.

Agility Hacks

How to create temporary teams that can bypass bureaucracy and get crucial work done quickly.

In the past 20 years, the agile approach to improving products, services, and processes has swept the business world. Rooted in software development, agile has spread to many other functions, and some companies have turned much of their organization, including the C-suite, into agile teams.

But agile is not suitable for all circumstances, particularly in carrying out the many key operations and functions of an organization that require consistency and efficiency.

This article describes how large established companies can use agility hacks to temporarily bypass their standard processes to act quickly and effectively while leaving the overall system alone.

“Firms will go bust”

The Guardian. April 2022. Firms will go bust’: Germany prepares for a future without Russian gas.

In Germany, they call it “Day X”. Businesses up and down the land are making contingency plans for what is seen as a growing likelihood that Russian gas will stop flowing into Europe’s biggest economy.

“It would be a disaster – one which would have seemed almost unthinkable just two months ago, but which right now feels like a very realistic prospect,” the owner of a hi-tech mechanical engineering company in western Germany said. The firm produces everything from battery cases for electric cars to train clutch systems. 

The speaker did not want to be named, or for his company to be identified, in part for fear, he said, of appearing to support Russia’s war by making the case that if the gas is turned off, his century-old business “will likely not survive”.

But he says he is in a deep quandary and feeling very vulnerable, as he is not only heavily reliant on gas – the cost of which has already soared – but also on metals such as nickel and aluminium, much of which comes from Russia.

Be prepared when ‘what if?’ happens.

Natural disasters. Power outages.  Mechanical failures.  Events like these may be rare, but if they happen your business could be at risk, potentially costing you millions in lost sales and productivity. In today’s complex world a simple checklist won’t do when ‘what if?’ happens.  

Only a thorough contingency plan ensures you have properly assessed your risk and have the right backup systems and strategies in place to activate on a moment’s notice.  Trane can help.  Our experts work closely with you using a strategic, multi-step approach to identify, prioritize and mitigate the risks you face. You get an action plan to safeguard your critical operations and peace of mind knowing that you’re prepared.

Did Short-Term Thinking Harm the Long-Term Success of U.S. Workers?

Aspen Institute. 2015. While the immediate value of reducing these costs is easily seen on the company balance sheet, the lost revenue of reduced worker performance goes uncounted. What’s worse, all of these practices create arms-length relationships between employers and workers, weakening trust and dampening enthusiasm for the work.

This in turn reduces the likelihood that businesses will invest in productivity-enhancing training of the workforce. Recent research bears this out, noting that an “easy hire, easy fire” policy leads to diminished worker productivity and innovation.

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