We all rely on individuals to keep our organizations running. Whether you run a one-woman shop or work in a small organization, key person risk is an often overlooked threat to the continuity of operations.
Sometimes we get lucky and we find out about that risk because the one person in accounting that knows everything calls in sick for a day and complete chaos erupts. I say lucky because when that happens we get an opportunity to address the fact that nobody knows how to do their job and there are zero procedures or documentation to help someone to cover. Lucky because we now get the opportunity to document their processes and make sure we have a back up to access the key systems they operate. Also lucky because it gives us a chance to think about training a back up and even consider if we have more individuals like that in our organization.
But what if one day your key person wins the lotto or is hit with a more unfortunate situation and will simply not return to work ever or at least for a very long time? That's when we tend to sit back and wish that we had taken the opportunity of a sick day to prepare, to create a backup, and to just take this whole key person risk thing a little more seriously.
Preparing for key person risk does not have to be overly complicated or time consuming, but it does take a conscious effort. Here are a few tips:
A is for Applications
There is a law in the universe that states that whenever a key individual is out, someone will need access to a system, a password reset, or cover a process that the key individual usually runs. The law is reliable and it has proven over and over that it is indeed going to cause some problems for your organization when you forget about it. Start by creating an inventory of all the applications your business uses. One way to easily capture this information is by looking at all the folks you pay on a monthly, quarterly, or yearly basis. Do you pay them for the use of a system or application? If so, put those applications on a spreadsheet and determine who all has access. Who can actually make changes and most importantly, do they have a backup? A general rule of thumb is to have two administrators per application to ensure continuity. Save the list in an easy to access location and remember to give a couple of other folks access, so that when you yourself win the lotto they still have the information. And then set a monthly or bi-monthly reminder in your calendar to update the list if needed.
B is for Better Start Documenting
Start capturing your processes, and especially those that only your key folks know. Sit down with your key people and make a list of the top 5 critical processes they perform. Then set a goal to have them document one process per week. Don't make this overly complicated for them - a simple list of steps for the process is a great start. Just like your application list, save these processes in an easy to access location and share with folks where they are. Set a monthly reminder to ask your folks to look at their processes in case something has changed. The worst thing is to experience an emergency and find that your process documentation is outdated and completely useless.
C is for Continuity
When it comes to business continuity and resilience, testing your plans is a crucial step. But who said testing had to be dull? Here's what you'll need for a simple and interactive exercise:
One bag of your favorite candies like M&Ms, Skittles, or any sweet treat.
One piece of paper.
Your key person is at work, but they're temporarily sidelined from their usual role. Meanwhile, their backup (you did designate a backup, right?) steps up to the plate and takes over for the entire day. Whenever the backup encounters a problem, such as struggling with an application or grappling with unclear documentation, your key person gets to enjoy a piece of candy magic. They swoop in, lend their expertise, and save the day.
Have your key person document each instance where they had to step in and provide guidance. These moments will uncover any gaps in your plan that need more work. Once the simulation wraps up, gather your key person and their backup to tackle these identified gaps together. Brainstorm solutions, update procedures, and strengthen your plan based on the valuable insights gained during this exercise.
If your candy-inspired simulation reveals no significant gaps, kudos to you! You can give yourself a pat on the back and feel confident that your plan is ready to take on whatever comes your way.
One of my favorite quotes when it comes to business continuity are these famous words by President Dwight D. Eisenhower:
"In preparing for battle I have always found that plans are useless, but planning in indispensable."
If you're ready to tackle key person risk head-on but need some guidance or help with your planning, don't hesitate to reach out to me!
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