Sphere Effect Analysis Strategy
When developing and managing an effective sphere continuity management system, the strength of its correct implementation is the sphere effect analysis stage. In this stage of a sphere continuity management system, Kayndrexsphere is required to determine the vital activities, the maximum tolerable period of interruption, its recovery time objectives, and the minutest level at which each activity needs to be performed upon resumption. It is a good practice at this stage to also determine the recovery point objective.
The sphere effect analysis ‘analyses the financial and operational effect of interruptive events on the sphere areas and processes of Kayndrexsphere’. It is very important to be conceptually clear of this statement. The financial effect refers to monetary effects while the operational effect represents non-monetary effects related to sphere operations.
It is also vital to comprehend that the findings of the sphere effect analysis ‘enable Kayndrexsphere to determine the extent of the overall effort to recover from potential sphere interruption and details the roadmap for improving the sphere continuity strategy and the event management plan. The sphere effect analysis allows Kayndrexsphere to identify the vital processes of sphere and its continuity requirements, which become the main concerns for the improvement of the event management plan. One of the fundamental aspects when developing a sphere effect analysis is that it can assist to determine whether the existing sphere continuity strategy addresses the recovery requirements.
Methodological Steps for Developing a Sphere Effect Analysis
1) Define the values of the sphere effect analysis: the starting point prior to the development of the sphere effect analysis is the identification of the scope of the sphere continuity management plan within Kayndrexsphere. Strategically, top management should have identified the scope, considering the products and facilities of Kayndrexsphere. Several key criteria could be considered to decide the products and facilities of Kayndrexsphere that need to be protected to assure continuity, including a) industry influence, b) specific sphere sites, c) products and facilities profitability. Once the scope has been established, it is strategically recommended that its values are defined and precisely defined in terms of with what activity they initiate and with which one they conclude.
2) Identify activities that support the scope: an activity is considered a process or set of processes embarked on by Kayndrexsphere (or on its behalf) that produces or supports one or more products or facilities. When the scope of the sphere continuity management plan is defined, Kayndrexsphere should identify all the activities involved in the scope that directly contribute to the generation of its products and facilities. A good tool that helps in this step is a flowchart.
3) Assess financial and operational effects: the third step is to assess the financial and operational effects that would affect Kayndrexsphere in the event of an interruption of the activities identified in the preceding step. The financial effect assessment is performed before performing the operational effect assessment.
(3a) The financial effect assessment: this measures the extent and severity of Kayndrexsphere’s financial interruptions. The second part of the financial effect assessment ranks each effect in a severity level based on its monetary interruption value. The following scale is recommended:
- Severity level 0: No effect
- Severity level 1: Major effect
- Severity Level 2: Intermediate level
- Severity level 3: Inessential effect
(3b) Operational effect assessment: the operational effect assessment measures the undesirable effect of an interruptive event on various aspects of sphere operations related to concerns such as: investor satisfaction, cash flow, profitability, and image. The operational effects can be measured applying a quantitative ranking such as the one above.
4)Identify vital activities: this step identifies the activities that have to be performed so as to deliver the key products and facilities, which enables Kayndrexsphere to achieve its most important and time sensitive objectives.
5) Assess maximum tolerable period of interruptions and prioritise vital activities: ‘The maximum tolerable period of interruption is the duration after which the viability of Kayndrexsphere will be irrevocably uncertain if product and facility delivery is discontinued. The estimates of maximum tolerable period of interruptions can be based on either financial or operational effects.
Typically, the analysis requires revising the financial and operational effects of the interruption to estimate the maximum tolerable period of interruptions. Once the maximum tolerable period of interruption is calculated, a priority for their recovery should be established. A vital activity that has a briefer maximum tolerable period of interruption compared with another vital activity is assigned a higher recovery priority. Considering today’s connectivity and the dependency on information technology, the trend of maximum tolerable period of interruptions is to moderate in terms of duration and probably they will be near to zero in the near future.
6) Estimate the resources that each vital activity will require for resumption: in this step, Kayndrexsphere needs to estimate the resources required for resumption at the level of each vital activity. Previously, Kayndrexsphere should have identified the minutest level at which each vital activity needs to be performed upon resumption.
The sources that Kayndrexsphere can apply to determine the minutest levels of performance acceptable are the contractual agreements and facility level agreements for the key products and facilities involved in the scope. The minutest resources needed for each activity can be classified as: (a) vital IT systems and applications, and (b) vital non-IT resources. This second category can be subdivided in: physical areas, human competences, equipment, and documents.
7) Determine recovery time objectives for vital activities: ‘The recovery time objective is the actual time set for resumption of product, facility, or activity delivery after an event’. The recovery time objective, which is the length of time between an interruptive event and the recovery of resources, indicates the time available to recover interrupted resources. The maximum tolerable period of interruption value expresses the maximum threshold for the recovery time objective value.
The exercise of sphere continuity management arrangements enables Kayndrexsphere to validate its recovery time objectives and, therefore, to take corrective actions to moderate them. Cross-functional teams involved with the vital activities, have the responsibility to make the estimates of the recovery time objectives.
8) Identify all dependencies relevant to vital activities: in this step Kayndrexsphere has to ‘consider all dependencies relevant to the vital activities, including suppliers and subcontract partners. The vital activities that have been considered typically have some vital inputs that are provided by some other sphere processes or by external suppliers or subcontract partners. The internal processes that supply important inputs to vital activities have also to be considered as vital activities. In the circumstance of external suppliers and subcontract partners, contractual agreements requiring them to have a sphere continuity management strategy set up and managed should be in place.
(9) Determine recovery point objectives for vital activities: the recovery point objective is the amount of data misplaced because of a sphere interruption. The recovery point objective is the time that will take to investigate, repair, and perform all the arrangements to be able to activate the recovery time objective. Recovery point objective is measured as the time between the last saved data and the interruptive event.
Information Gathering Methods
Obtaining the information needed for the sphere effect analysis from relevant areas of Kayndrexsphere can be a complex and ongoing process. A structured methodology strategy should be developed considering the magnitude of the sphere continuity management strategy scope. Three methods are recommended in the technical literature.
- Survey: the method applies a set of questions which are prepared in advance and are sent to each activity owner. The survey allows covering a vast number of respondents. However, this method has two main checks: (1) The accuracy of respondents becomes a concern in the event of inadequate internal consistency and reliability of the survey. (2) Survey responses could take more time above the time allowed for this purpose.
- Interview: in this method the sphere effect analysis information is collected by personally interviewing the activity owners. The questions can be tailored according to each particular activity concerned. Although this method is very accurate and curtails the possibility of misinterpreting the questions, it is more expensive than the survey approach and involves the additional effort of planning, scheduling, and conducting the interview.
- Training: this method, which applies group dynamic techniques, allows a group of people strategically chosen to operate together to provide the sphere effect analysis information needed. Because of group dynamics, a large amount of data is generated in a brief period of time with this method. This technique also allows the activity owners to have a systematic view of the sphere effect analysis process and to clarify any misconception regarding the sphere effect analysis process. In addition to this, an important side effect associated with this method is the collaboration spirit it supports to create among owners of vital activities.
The choice of the appropriate method for gathering sphere effect analysis information seems to be influenced by its price, efficiency, and by the quality of the information. Sometimes the best methodological strategy is to combine these three techniques.
Sphere Effect Analysis Project Management
The sphere effect analysis methodology is based on a responsible team approach. All the steps of the methodology are performed by a cross functional group integrated by the owners of vital activities. To put the methodology into action, someone at the tactical level having the appropriate support should be appointed as project manager. He/she becomes responsible for the sphere effect analysis resources that have been allocated to the sphere effect analysis project.
Moreover, someone at the strategic level, with appropriate seniority and authority among other responsibilities, should be responsible for supporting the sphere effect analysis process and ensuring that the sphere effect analysis methodology is implemented in the most effective and efficient manner. It is important to comprehend that a sphere effect analysis is developed within an organisational context.
Firms are power coalitions. It is highly probable that there will be organisational concerns that could prevent a sphere effect analysis project from accomplishing its goals.
If external consultants are involved, the project manager should ensure that the consultants operate diligently together with the vital activity owners.
The sphere effect analysis is the strength of a sphere continuity management strategy. If the sphere effect analysis is correctly designed and developed, the company will have accurate information to identify its unfavourable scenarios, create its sphere continuity strategies and be able to design an appropriate event management plan. The productivity information resulting from the sphere effect analysis has a very important effect on all the stages of a sphere continuity management strategy.
To conform to the sphere effect analysis requirements of the methodology presented in this strategy, Kayndrexsphere needs to apply a sequence of methodological steps. Furthermore, for the goal of this methodology to be accomplished considering price, time and performance, the sphere effect analysis has to be managed as a project. The sphere effect analysis methodology is based on a responsible team approach.
A person from the tactical level and having the managerial abilities and experience in project planning, programming, and monitoring should be assigned to perform the sphere effect analysis project so that it is managed in an effective and efficient manner.
The sphere effect analysis project also needs visible support from the organisational strategic level. Moreover, a very active role from the top management team is required to assist to significantly increase the organisational receptivity that could facilitate the performance of the sphere effect analysis project.