Gillette Presentation - Caroll + Calabrese June 2005

8/12/2019 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)



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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



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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 !



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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



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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)



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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



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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



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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



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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.)



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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



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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.



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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



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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.



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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.



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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



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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.



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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 ?



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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 =



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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



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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)

Gillette Presentation - Caroll + Calabrese June 2005

Documents

Transcript of Gillette Presentation - Caroll + Calabrese June 2005