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Alex van Os de Man Senior Business Continuity Consultant BCM and Value on Investment

ROI VOI - 2010 PfM

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Calculate ROI and/or VOI for your BCM Business Case

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Page 1: ROI VOI - 2010 PfM

Alex van Os de ManSenior Business Continuity Consultant

BCM and Value on Investment

Page 2: ROI VOI - 2010 PfM

The big challenge• Improving Market position

• Finding New markets• Improving Efficiency

• Increasing production (service)• Compliance to Regulation

• Minimum to Maximum (e.g. Basel II)• Controlling Costs

• Get much for minimal expenses• Sustainability

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Page 3: ROI VOI - 2010 PfM

Return on Investmenta.k.a. Rate of Return• The relation between return and investment

(dividing the return of an investment by the cost)• Required time to earn back an investment

(expressed in years or months)

Issue:• Based on tangible and financial data• Not precise (growth of project, depreciation,

earn back time, company growth, weight, etc.)

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Page 4: ROI VOI - 2010 PfM

Price of BCM“The cynic knows the cost of everything and the value of nothing”Oscar Wilde

•What does BCM do•What does BCM cost•What does BCM deliver•What is the value of BCM•How to sell BCM (processes)

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BCM Process

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What is holism• The theory that whole entities, as

fundamental components of reality, have an existence other than as the mere sum of their parts.

in other words:• Everything is connected• It is more than the sum of its components

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Added Value of BCM

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• Financial Institutions• Resilience• Compliance to Regulators

• Service Companies• Resilience• Client Requirements

• Public Sector• Responsibility to the Community• Compliance to Regulators

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Precondition• Management Buy-In• Business Case• Awareness• Execution• Maintenance• Securing

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ROI and/or VOI• Return on Investment (tangible result)

• Increased Productivity• Increase of Income• Cost Savings• New Markets

• Value on Investment (plus intangible advantages)• Reputation (being prepared)• Labour Force (ownership plus motivation)• Customer Care (commitment)• Sustainable business (social involvement)• Personal (employee involvement)

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Added ValueIn other words: What is the Business Case• Risk Analysis process

• BCM and Security

• Market• Competition

• Realisation• Training and Leadership

• Processes• Efficiency

• ROI and/or VOI© PfM Consultancy

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How to sell BCM

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Page 13: ROI VOI - 2010 PfM

What’s in it for . . .• Buy or Lease ?• Insurance vs ‘What If’ ?• A new car or an old-timer ?• Why is reputation so important ?• Proof of Concept

• Spin off opportunities

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Examples• Fire at LaSalle in Chicago

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LaSalle in ChicagoWhat is the value of BCM?• Employees can get straight back to work• Clients can be served again• Faith in the company (reputation)• Positive news coverage• Leadership is trained• Company employee pride• Community involvement• Company Health & Safety organisation

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Examples• Fire at LaSalle in Chicago• Mexican Flu (H1N1)• Training• BCM Software• Bankruptcy• SaaS (Software as a Service)• BP America Oil Spill Disaster

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Return on Investment

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Thank You

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For doing this discussion with me

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ReputationBP America has suffered much reputation damage due to the oil spill disaster off the coast of Louisiana (April 20). In order to confine this, they have started a charm campaign. They are using Social Media Services like Twitter.

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