BUSINESS CONTINUITY MANAGEMENTBRITISH RED CROSSIntroductionNon-profit organizations have a much more difficult task balancing financial sustainability with mission that their private-sector counterparts because these dual objectives may conflict. Their primary stakeholders are the consumers of their services as well as the volunteers who contribute to their efforts. The Red Cross may depend on its donors for support, but its primary stakeholders are its volunteers and the people they provide services. Although not governed by Civil Contingencies Act (2004), the British Red Cross works very closely with Category 1 & 2 responders thus a BCM to ensure the continuity of its operations during crisis. Stakeholder AnalysisA stakeholder analysis provides information on key stakeholders to help manage relationships with them.
The type of information included in a stakeholder analysis includes, names and organization of key stakeholders, their roles on the project, unique facts about each stakeholder, their level of interest in the project, their influence on the project, suggestion for managing relationships with each stakeholder. The concept of stakeholders acknowledges that no business is an island and that business interacts with society in a number of different ways.
The objectives of an organization will be circumscribed by the extent to which relationships with stakeholders are successfully managed. Nowhere is this more important than in BCM since their response to the organization in the post-crisis phase will have an impact on the success of recovery efforts and, ultimate, survival of the company (Elliot et al. , 2002, p. 86). Fig. 2.1KEY STAKEHOLDERSEmployeesVolunteersDonorsCorporate PartnersPeopleOrganizationBritish Red CrossExternalExternalExternalExternalRole on projectProject SupportProject SupportProject SupportProject SupportProject BeneficiaryUnique factsLevel of interestsHigh HighVery HighVery HighVery HighLevel of influenceHighVery HighVery HighVery HighVery HighSuggestions on managing relationshipsKeep them informedLet them see the project’s importance.
Encourage them more. Encourage them more and let them know the value of their contribution to humanityLet them know you need them and how their support make things possibleLet them see the organization’s dedication, honesty, and will to helpFig. 2.2Fig. 2.3Analysis of Stakeholders Relationship and their ImportanceOf all stakeholders’ relationships, those that non-profit organizations have with members or volunteers may be at the same time the most tenuous and the most necessary (Lamb et al. 2005, p. 141). Stakeholders who enter into a relationship with a non-profit group, whether it is an alumni association, a professional group, or a social service agency, usually have some need or goal that motivates their joining, donating, serving, or attending.
The relationships between such organization and their stakeholders are best maintained when they are founder on mutual trust built and maintained through meeting mutually recognized needs and interests. Thus, organization’s with a clear sense of their mission and an articulation of how the stakeholders are aligned with that mission are the most likely to succeed in building those types of relationships. DonorsFor many organizations, donors, and other stakeholders play a very important role in providing stability and viability.
They are important sources of support in terms of time (dedication of volunteer’s hours), talent (supplying professional services such as accounting, marketing and communications, management and technical advising) and money (financial donations). In return for their commitment, they must receive something from the organization that meets their needs and expectations. In this way, donors and other stakeholders need to be understood in much the same way that clients need to understand (Rogers et al.
2001, p. 165). The expanding importance of stakeholders is the perhaps the single most important elements in the “Age of Accountability” (Savitz and Weber 2006, p. 79). In fact, it is possible to examine most or all of the crucial sustainability issues an organization will face in terms of stakeholder relationships. Sustainability thus means embracing and collaborating with stakeholders rather than assuming that they are adversaries to be defeated, sceptics to be lectured to, or at best, temporary allies to be held at arm’s length. Only by making stakeholder engagement a systematic and permanent element of an organization’s management style can they hope to shepherd all the resources the organization depend on.
These include environmental, social, and economic to achieve lasting success in today’s interdependent world (Savitz and Weber 2006, p. 80).