gillette presentation - caroll + calabrese june 2005
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NEDRIX ConferenceJune 2005NEDRIX ConferenceNEDRIX ConferenceJune 2005June 2005
Best Practice:Best Practice:Senior ManagementSenior Management
Disaster Exercise at GilletteDisaster Exercise at Gillette
Mark Carroll Director, Global Business ContinuityBrian Calabrese Western Hemisphere CoordinatorMark CarrollMark Carroll Director, Global Business ContinuityDirector, Global Business ContinuityBrian CalabreseBrian Calabrese Western Hemisphere CoordinatorWestern Hemisphere Coordinator
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Every morningEvery morningOf Every DayOf Every Day
Over 1 Billion people worldwideOver 1 Billion people worldwide
Will use a Gillette productWill use a Gillette product
our job is to make sure that this can
Continue !!
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The GilletteCompany
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HistoryHistory
In 1898 King C. Gillette invents first safety razorIn 1898 King C. Gillette invents first safety razor
In 1901 the American Safety Razor CompanyIn 1901 the American Safety Razor Companywas founded and in 1902 the name was changedwas founded and in 1902 the name was changedto Gillette Safety Razor Companyto Gillette Safety Razor Company
1905 Boston factory opened1905 Boston factory opened
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Company Profile:Company Profile:
2004 Revenues2004 Revenues -- $10.4B$10.4B 29,000 Employees on 6 continents29,000 Employees on 6 continents
5 Business Units5 Business Units **
100 + Commercial Operations Worldwide100 + Commercial Operations Worldwide
84 Distribution Centers84 Distribution Centers 32 Manufacturing Locations32 Manufacturing Locations
15 Packaging Operations15 Packaging Operations
6 Supply Warehouses6 Supply Warehouses
3 Dedicated Research and Development Centers3 Dedicated Research and Development Centers
* Blade and Razor, Duracell, Oral-B, Braun, Personal Care
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Business UnitsBusiness Units
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Business Continuityat Gillette
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Business ContinuityBusiness Continuity -- GoalGoal
To have business resumption plans in
place that allow Gillette to continuecritical business operations in the event
of a business interruption anywhere in
the world.
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Business Continuity
Western Hemisphere
Business Continuity
Eastern Hemisphere
Director, Business Continuity Director, Internal Audit
Manager, Internal Audit
Sr. Manager, Internal Audi t (UK)
Deloitte
Core Team
Michelle Viotty
Vice President
Internal Audit
Business Continuity OrganizationBusiness Continuity Organization
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BCP Program HistoryBCP Program History
Launched in 1999Launched in 1999
Strong Senior Management SupportStrong Senior Management Support Global in ScopeGlobal in Scope
Program CatalystProgram CatalystInternal AuditInternal Audit citingscitings
Less than effective Disaster Recovery PlansLess than effective Disaster Recovery Plans NonNon--existent Business Recovery Plansexistent Business Recovery Plans
Priority markets and operations targetedPriority markets and operations targeted
Focus on Critical ProcessesFocus on Critical Processes
Originally piloted in 9 locations on 4 continentsOriginally piloted in 9 locations on 4 continents
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BCP Program StatusBCP Program Status Plans in place for 135 sites/functions on six continentsPlans in place for 135 sites/functions on six continents
All major marketsAll major markets All major distribution centers and warehousesAll major distribution centers and warehouses All major factoriesAll major factories Critical vendorsCritical vendors
NAMED Location Plan Coordinator (LPC) at each siteNAMED Location Plan Coordinator (LPC) at each site
Extensive maintenance program in placeExtensive maintenance program in place Plans reviewed and updated quarterlyPlans reviewed and updated quarterly Plans fully tested annually (partial tests semiPlans fully tested annually (partial tests semi--annually)annually) Plan assessments included in Internal AuditsPlan assessments included in Internal Audits Monthly HQ Business Unit testsMonthly HQ Business Unit tests Annual Senior Management ExerciseAnnual Senior Management Exercise
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Executive SponsorshipExecutive Sponsorship
Failure to develop, maintain, andexercise effective plans to recover
critical business processes exposes the
Company to unnecessary business risk,and potentially has very serious
consequences to a market and its
business .
Chuck Cramb
Sr. Vice PresidentCFO
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Business Recovery ProcessBusiness Recovery Process
Property Protection & Disaster PreventionReadiness position via BRP Plans
Factory Mutual inspections
Safety & environmental mgmt
Hazardous material stds IT Security testing
Preparedness
BRP
Declaration
Local Crisis
Managementassesses risk to:
employees customers
products environment facilities/operations image
(if expecteddowntime is
unacceptable)
Invoke Business Resumption Plan
resume critical business processes
Emergency Response fire/flood/earthquake
facility damage environmental
medical
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Gillette HQ Crisis TeamsGillette HQ Crisis TeamsGroup Membership Purpose
Special Situations CEO Operating Oversee management ofCommittee (SSC) Committee Members significant HQ, global or local
disasters (e.g., war, tamper, etc.)
(i.e., company-level issues).
HQ Crisis Management SVPs, VPs and other Coordinate HQ assessment andTeam (CMT) key HQ personnel recovery activities
(i.e., HQ-based issues, not global).
Business Unit Teams HQ Personnel from key Coordinate and execute business
business units unit operational recovery for
critical operations
(i.e., function-level issues).
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BackgroundBackground
Established in 2001Established in 2001
Supports the CEOSupports the CEO
Addresses companyAddresses company--level threats and riskslevel threats and risks
Formed in response to company (Gillette) specific issueFormed in response to company (Gillette) specific issue
Assembles only when necessary (no set schedule)Assembles only when necessary (no set schedule)
Need: Ensure team effectivenessNeed: Ensure team effectiveness
Solution: Incorporate into maintenance programSolution: Incorporate into maintenance program
Develop annual testing processDevelop annual testing process
First SSC Exercise held in May, 2002First SSC Exercise held in May, 2002
While not required, CEO has participated in every testWhile not required, CEO has participated in every test
Special Situations Committee (SSC)
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CEO Support of HQ and local initiativesCEO Support of HQ and local initiatives
Direct involvementDirect involvement Ongoing Support of Continuity ProgramOngoing Support of Continuity Program
Management SupportManagement Support
Acknowledged local recovery plan ownershipAcknowledged local recovery plan ownership Resources committed to development and testingResources committed to development and testing
Must make good use of managements timeMust make good use of managements time
Consistent approach/processConsistent approach/process
Centralized Program officeCentralized Program office
Resources provided (i.e., funding)Resources provided (i.e., funding)
History of successful recoveriesHistory of successful recoveries
Critical Success Factors
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Senior ManagementExercise
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Purpose Preparation Debrief SummaryD-Day
Preparedness
Test modelTiming
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Purpose of exercise: Test Senior ManagementPurpose of exercise: Test Senior Management
preparedness and response in the event of apreparedness and response in the event of acompanycompany--level disaster.level disaster.
Test model applied:Test model applied:
-- TimeTime--bound exercisebound exercise-- Location focusedLocation focused-- Realistic scenarioRealistic scenario-- Ongoing / continuous developmentsOngoing / continuous developments
-- Escalating to disaster *Escalating to disaster *-- Limited resources requiredLimited resources required
* Not an immediate crisis (* Not an immediate crisis (stretchstretch now,now, breakbreak later)later)
Purpose Preparation Debrief SummaryD-Day
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Timing of Exercise:Timing of Exercise:
Annual eventAnnual event -- component of maintenance programcomponent of maintenance program
Built around CEOs scheduleBuilt around CEOs schedule
Limited optionsLimited options1 date available in first half of year1 date available in first half of year Initially planned and rescheduledInitially planned and rescheduled
Senior Management (SSC, CMT) personnelSenior Management (SSC, CMT) personnelscheduled immediatelyscheduled immediately
Purpose Preparation Debrief SummaryD-Day
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Event Planning
Planning TeamComposition
Function
Preparation Debrief SummaryD-DayPurpose
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Event PlanningEvent Planning
Organize Planning TeamOrganize Planning Team
Determine resources requiredDetermine resources required
Internal Gillette SupportInternal Gillette Support
External vendor supportExternal vendor support
Set milestonesSet milestones
Script eventScript event
Schedule walkthroughsSchedule walkthroughs
Need to plan well in advance !Need to plan well in advance !
Preparation Debrief SummaryD-DayPurpose
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Organize Planning Team:Organize Planning Team:
Identify key support personnelIdentify key support personnel
Define specific roles/responsibilitiesDefine specific roles/responsibilities
Similar to a recovery plan itselfSimilar to a recovery plan itself
Business ContinuityBusiness Continuity--ledled Temporary forumTemporary forum -- lives and dies with eventlives and dies with event
Weekly status reviewsWeekly status reviews
Preparation Debrief SummaryD-DayPurpose
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Planning Team CompositionPlanning Team Composition
Corporate SecurityCorporate Security Human ResourcesHuman Resources
Risk ManagementRisk Management
Corporate CommunicationsCorporate Communications Information TechnologyInformation Technology
Facilities (HQ)Facilities (HQ)
Landlord (Boston Properties)Landlord (Boston Properties)
Outside support (optional)Outside support (optional)
Preparation Debrief SummaryD-DayPurpose
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Planning Team Function:Planning Team Function:
Assist with exercise preparation for individualAssist with exercise preparation for individualfunctionsfunctions
Function as sounding board for defined scenarioFunction as sounding board for defined scenario
Assist with development of scenario stepsAssist with development of scenario steps Review ongoing refinementsReview ongoing refinements
Address functionAddress function--specific tasksspecific tasks
Attend walkAttend walk--throughsthroughs
Facilitate simultaneous crisis activitiesFacilitate simultaneous crisis activities
Preparation Debrief SummaryD-DayPurpose
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Scenario
ScheduleComponents
Evacuate
Transport
Reassemble
Engage
Declare Disaster
D-Day Debrief SummaryPurpose Preparation
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ScenarioGas Leak at Corporate
Headquarters
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Events communicated to the Crisis Teams:Events communicated to the Crisis Teams:
7:30 AM7:30 AM Gas Leak DetectedGas Leak Detected7:40 AM7:40 AM Boston FD & EMS arriveBoston FD & EMS arrive8:00 AM8:00 AM HQ EvacuatedHQ Evacuated
-- Teams assembleTeams assemble
-- Technical Team (IT) alertedTechnical Team (IT) alerted-- Transportation AlertedTransportation Alerted
8:30 AM8:30 AM Crisis Teams (SSC, CMT) transported to Command CenteCrisis Teams (SSC, CMT) transported to Command Center9:00 AM9:00 AM Teams begin the processTeams begin the process
11:00 AM11:00 AM Executive test concludesExecutive test concludes
1:001:00 -- 4:00 PM Business Unit Teams Recover4:00 PM Business Unit Teams Recover
D-Day Debrief SummaryPurpose Preparation
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Evacuation of Executive committees:Evacuation of Executive committees:
Security monitoring of morning arrival of team personnelSecurity monitoring of morning arrival of team personnel
PrePre--arranged transportation resourcesarranged transportation resources
Contact personnel and reaffirm exerciseContact personnel and reaffirm exercise
Evacuate to relocation areaEvacuate to relocation area ReRe--enforce actual evacuation logisticsenforce actual evacuation logistics
Board transport shuttlesBoard transport shuttles
D-Day Debrief SummaryPurpose Preparation
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Dogwood and Pine
Route to SSC/CMT Relocation
Oak and MaplePoints of Evacuation Redwood and DogwoodSSC/CMT Relocation Area
Christian Science CenterRelocation Area (Maple St.)
D-Day Debrief SummaryPurpose Preparation
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Transport:Transport:
Relocate to local Gillette CommandRelocate to local Gillette Command CenterCenter**
Vans contracted (for exercise)Vans contracted (for exercise)
Reroute (2) facility shuttles (in real situation)Reroute (2) facility shuttles (in real situation)
Coordinated by Gillette SecurityCoordinated by Gillette Security Led by Gillette Security shuttleLed by Gillette Security shuttle
* Note: Specific Command* Note: Specific Command CentersCenters defined for local,defined for local,citywide or regional crisiscitywide or regional crisis
D-Day Debrief SummaryPurpose Preparation
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Reassemble:Reassemble:
Staging LocationsStaging Locations Simulate facility setup (e.g., IT)Simulate facility setup (e.g., IT)
5 minute5 minute stopoffstopofffor actual 2for actual 2--3 hour process3 hour process
CommandCommand CentersCenters PrePre--determined conference rooms (2)determined conference rooms (2)
Outfitted with necessary equipment Phones, PCs,Outfitted with necessary equipment Phones, PCs,Printers, Cable TV, etc.Printers, Cable TV, etc.
D-Day Debrief SummaryPurpose Preparation
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EngageEngage::
StatedStated Current ConditionCurrent Condition9:00 AM9:00 AM All employees evacuatedAll employees evacuated
Primary and Backup power shut offPrimary and Backup power shut off Indeterminate period of timeIndeterminate period of time Causes shutdown of computers and phone systemCauses shutdown of computers and phone system
Gas leak investigationGas leak investigation Yields nothing suspiciousYields nothing suspiciouspossibly a broken sealpossibly a broken seal
Evaluation ongoing; no knowledge of when resolvedEvaluation ongoing; no knowledge of when resolved
D-Day Debrief SummaryPurpose Preparation
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Updates continue ...Updates continue ...
Gillette SecurityGillette Security Gas leak, 500 employees evacuated, fire department on theGas leak, 500 employees evacuated, fire department on the
scenescene
Boston Properties (Landlord)Boston Properties (Landlord) Gas company investigating. Power turned off in facility,Gas company investigating. Power turned off in facility,including backup generators. Estimate 48 hours away fromincluding backup generators. Estimate 48 hours away fromaccess.access.
Gillette FacilitiesGillette Facilities Monitor Boston Properties hot line. No new information toMonitor Boston Properties hot line. No new information toreport.report.
D-Day Debrief SummaryPurpose Preparation
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Updates continue ...Updates continue ...
Gillette SecurityGillette Security Explosion at Headquarters. Fire Department hasExplosion at Headquarters. Fire Department has
established perimeter. News crews very activeestablished perimeter. News crews very active
Boston Properties (Landlord)Boston Properties (Landlord) Explosion confirmed. Limited, minor injuries. AppearsExplosion confirmed. Limited, minor injuries. Appearsaccidental but not confirmed. Glass damage throughout.accidental but not confirmed. Glass damage throughout.No access for at least 2 weeks.No access for at least 2 weeks.
Media updateMedia update -- CNN misreportCNN misreport Gillette Executives trapped in corporate Tower.Gillette Executives trapped in corporate Tower.
D-Day Debrief SummaryPurpose Preparation
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Exec Committee discussion re:Exec Committee discussion re:
Employee welfareEmployee welfare
Notification to other Gillette sitesNotification to other Gillette sites
Immediate requirements (e.g., CEO events)Immediate requirements (e.g., CEO events)
World issues (i.e., Is this accidental situation?)World issues (i.e., Is this accidental situation?) Press communication (or not?)Press communication (or not?)
Review of short term, key calendar commitmentsReview of short term, key calendar commitments
Coordinate with Landlord (Boston Properties)Coordinate with Landlord (Boston Properties) Coordinate with HQ Crisis Management TeamCoordinate with HQ Crisis Management Team
Consideration of all optionsConsideration of all options
D-Day Debrief SummaryPurpose Preparation
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Declaration of Disaster:Declaration of Disaster:
Inform Crisis Management TeamInform Crisis Management Team
Contact Gillette LocationsContact Gillette Locations
Contact 3Contact 3rdrd party providers (e.g.,party providers (e.g., SungardSungard))
Engage Business Unit teams in recoveryEngage Business Unit teams in recovery Communicate to BU personnelCommunicate to BU personnel
Transport to mock business recovery locationTransport to mock business recovery location
Conduct review of situation, status, etc.Conduct review of situation, status, etc.
Conduct review of procedures, equipment, etc.Conduct review of procedures, equipment, etc.
D-Day Debrief SummaryPurpose Preparation
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Watched . silentlyWatched . silently
Responded when viewpoint sought outResponded when viewpoint sought out
Maintained posture of business as usualMaintained posture of business as usual
Meetings/forumsMeetings/forums Outside communicationsOutside communications
Very actively involved in postVery actively involved in post--exercise assessmentexercise assessment
What did our CEO do during all this ?
D-Day Debrief SummaryPurpose Preparation
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IncidentReview
Evaluations
Return to H.Q.
Follow-upActions
PresentResults
DebriefD-Day SummaryPurpose Preparation
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Name:
________________________________________
Business Unit:
________________________________________
Strongly Disagree, 2 = Disagree, 3 = Neutral, 4 = Agree, 5=Strongly Agree please circ le only one
The simulation was well organized and run 1 2 3 4 5
The simulation effectively illustrated a real word scenario. 1 2 3 4 5
The activities and exercises were useful. 1 2 3 4 5
The exercise encouraged hands-on participation. 1 2 3 4 5
The instructors encouraged participant input 1 2 3 4 5
The instructors were effective in moderating/facilitating the activities. 1 2 3 4 5
The exercise met my expectations. 1 2 3 4 5
The simulation effectively tested disaster preparedness. 1 2 3 4 5
9. Did the exercise enhance your knowledge of Gillette disaster preparedness?
10. What did you l ike most about the exercise?
11. What improvements would you suggest for futu re simulations?
12. Any other thoughts , suggestions or comments?
1 =
DebriefD-Day SummaryPurpose Preparation
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SSC Scored Evaluations (Questions 1SSC Scored Evaluations (Questions 1--8)8)
Overall Score 4.4
High - Activities and Exercises were useful 4.6
Low (tie) -
Exercise encouraged hands-on participation 4.2
Instructors encouraged participant input
CEO Score 5.0
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly
Disagree Agree
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CMT Scored Evaluations (Questions 1CMT Scored Evaluations (Questions 1--8)8)
Overall Score 4.2
High - Activities and Exercises were useful 4.5
Low (tie) -
The simulation successfully tested disasterpreparedness 3.9
Instructors encouraged participant input
1 2 3 4 5
Strongly Disagree Neutral Agree Strongly
Disagree Agree
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Highlights:Highlights:
Overall Senior Management supportOverall Senior Management support Solid ExecutionSolid Execution
Logistics (organization, evacuation, transport, etc.)Logistics (organization, evacuation, transport, etc.) -- flawlessflawless Exercise (interaction, decisions, dialogue)Exercise (interaction, decisions, dialogue)solidsolid
Highly evaluated by Senior Management attendeesHighly evaluated by Senior Management attendees
Realistic scenarioRealistic scenario Heightened knowledge of preparednessHeightened knowledge of preparedness
Identified need areasIdentified need areas Infrastructure improvementsInfrastructure improvements Integration of landlord processesIntegration of landlord processes
DebriefD-Day SummaryPurpose Preparation
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Strong Support
Realistic
Successful
Not Perfect
Lessons LearnedNext Round
SummaryD-Day DebriefPurpose Preparation
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CEO Support of HQ and local initiativesCEO Support of HQ and local initiatives
Direct involvementDirect involvement Ongoing Support of Continuity ProgramOngoing Support of Continuity Program
Management SupportManagement Support
Acknowledged local recovery plan ownershipAcknowledged local recovery plan ownership Resources committed to development and testingResources committed to development and testing
Make good use of managements timeMake good use of managements time
Consistent approach/processConsistent approach/process Centralized Program officeCentralized Program office
Resources provided (i.e., funding)Resources provided (i.e., funding)
History of successful recoveriesHistory of successful recoveries
Critical Success Factors
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Next RoundNext Round -- 2004 Exercise:2004 Exercise:
Date establishedDate established **
Criteria to be determinedCriteria to be determined
New dynamic (i.e., New dynamic (i.e., event/threat change onlyevent/threat change only
would be repetitive)would be repetitive) What do we want to accomplish?What do we want to accomplish?
How will will this validate resolution of lastHow will will this validate resolution of lastyears open issues?years open issues?
Again, minimizing resource impactAgain, minimizing resource impact
D-DayPurpose Preparation SummaryDebrief
* - Next day for next year (actual event 13 months later)