6.2 Support Processes and Operational Planning

Purpose

This Item examines your organization’s key support processes and your operational planning with respect to financial management and planning for the continuity of operations, with the aim of improving your overall operational performance.

 

Comments

- Your support processes are those that support your daily operations and your product and service delivery but are not usually designed in detail with the products and services. The support process requirements usually do not depend significantly on product and service characteristics. Support process design requirements usually depend significantly on your internal requirements, and they must be coordinated and integrated to ensure efficient, effective linkage and performance. Support processes might include finance and accounting, facilities management, legal services, human resource services, public relations, and other administrative services.

- This Item calls for information on how your organization evaluates and improves the performance of your key support processes and shares information with other organizational units to drive learning and innovation. Four approaches frequently used are (1) process analysis and research, (2) benchmarking, (3) use of alternative technology, and (4) use of information from customers of the processes. Together, these approaches offer a wide range of possibilities, including minor process modification and complete redesign (“re-engineering”) of processes.

- Many types of analyses can be performed to ensure adequate financial resources are available to support current operations and new business investments and to assess their financial risks. For current operations, these efforts might include the analysis of cash flows, net income statements, and current liabilities versus current assets. For business investments, the efforts might include analysis of discounted cash flows, return on investment (ROI), or return on invested capital (ROIC). The specific types of analyses will vary from organization to organization. These analyses should help your organization assess the financial viability of your current operations and the potential viability of and risks associated with your new business initiatives.

- Efforts to ensure the continuity of operations in an emergency should consider all facets of a business that are needed to provide products or services to customers. You should consider both your value creation and your key support processes in your planning. The specific level of service that you will need to provide will be guided by your type of business and your customers’ needs and requirements. For example, a public utility will likely have a higher need for services than businesses that do not provide an essential function. Your continuity of operations efforts should also be coordinated with your efforts to ensure data and information availability (Item 4.1) and workplace preparedness (Item 5.3).