Lessons to be Learned

Is Your Business Prepared for a Disaster?

– Rick Segel

The devastation of one of my most favorite cities in the world, New Orleans, really affected me. When New Orleans is on my speaking schedule, which is usually once or twice a year, I always get excited.

I got to know the city when my daughter lived there for a couple of years. In fact she was married there. The city of New Orleans truly understands and personifies hospitality and service with panache. To think that the places we visited and enjoyed so much may be destroyed really hurts. I am disappointed, as many Americans are, with the slowness of our government’s response. Why did it take so long for our country to act? What if we were attacked—how long would that response take?

Those last three sentences are perceived by some people as political statements. However, this is not a Republican or Democratic, liberal or conservative issue. It is an issue of right or wrong.

Why do I bring this up and what does it have to do to with us running our businesses successfully? Well, I believe there are a number of important of lessons we can all take away from this disaster:

1. Business and politics don’t mix. Be very careful in discussing politics in any business dealings. Keep your personal feelings personal. We are living in an extremely divided country, so why run the risk of possibly alienating half of your customers? You may be criticized for taking this position, but it's just good business. People rarely look at the big picture. Why let a single political issue affect your business?
2. Is your business prepared for a disaster? Do you have all the proper insurances? When was the last time you checked your policies? Do you know what is or isn’t covered in your policies? Do you have a business recovery plan? Is it up-to-date and have you tested it?
3. Do you have the information in your computer backed up at a secure off-site storage facility? Have you asked and answered the question, “How would losing computer data affect our ability to carry on with our business?”
4. As a leader, what would you do during a crisis situation that would make you a respected leader? A crisis situation can be when an employee’s spouse is suddenly killed in an automobile accident. The way you react will affect the attitude and performance of every employee you have. Are you one of the first people to help? (One retailer in Massachusetts was known for sending platters of food to the bereaved home after the funeral. They had a plan in effect and their employees respected them for it.)
5. Do you know what the worst-case scenario is for every situation and what actions could be taken to overcome them? That even works in everyday business. When was the last time you came up with all of the possible responses for every objection a customer could have? That’s being prepared.
6. Do you and your employees have a list of key contacts in the event of an emergency?
7. The last one (or at least the last one for now) is do you have the cash or credit line you’ll need when that rainy day arrives?

Maybe the tragedy in New Orleans might serve as a lesson for us all—one I hope we never have to experience. God bless the people in New Orleans and I hope the worst is in their past.

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