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Disaster Recovery and Other Happy Subjects

By: Dave Berkus



Have you ever lost all of your data on your smartphone, laptop, or desktop PC? If not, it is probably only a matter of time until you do. Those of us who have experienced this heart-stopping event now regularly back up our data and many of us create images of our entire hard drives often, ready this time to address an effective recovery.

But what about the shock of a fire, a major natural disaster, or even the loss of an important company top executive? Are you or your board prepared to immediately jump into a pre-planned recovery? From experience on more than forty boards over the years, I can state that few have even considered the possibilities. All of us have a phone listing of our employees and associates. But very few have a phone tree for simultaneous contact of larger numbers of people to marshal a recovery from any type of disaster.
Boards of directors for companies of all sizes should have a person or better yet a committee dedicated to considering the preparations for disaster recovery. Often, we consolidate this task into the audit committee of a board; and often we expand the subject to ‘risk management‘ which includes examination of all forms of risk, from insurance coverage to OSHA compliance and more.
When a company is very small and the company’s assets reasonably replaceable with existing or easily borrowed funds, the event is less likely to threaten the existence of the organization. As a company grows in size and complexity, more stakeholders depend upon the wisdom of the CEO and the board to think in advance of these unpleasant things, and to attempt to insulate the company’s dependents from a disaster.
How about yourself? Have you been open in sharing your knowledge and talent with a backup, or even a potential successor? It is prudent and certainly a sign that you take this responsibility personally as a leader among your peers and subordinates.
I have three unfortunate examples in my past of founder-CEOs dying suddenly at their prime. The shock to each organization was a threat to the very core in all three instances. Yet as we will discuss in detail in a future insight, in one, the board stepped in immediately to reassure the stakeholders, elect a new CEO from within the board, and reach out to the community with a plan for succession that allowed the business to continue with minimal interruption. In another, the creditors threatened to close the company, and the board was completely unprepared to respond. The contrast was quite a lesson to me—one that I would never want to repeat as a board member or senior manager.
What if? How about dedicating at least a half hour of your next executive or board meeting to the subject, and creating a checklist and assignments for covering at least the greatest three risks identified? It is yet another sign of your growth and growing wisdom as a leader.
This article was originally published by Berkonomics
Published: June 18, 2013

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Dave Berkus

Dave Berkus is a noted speaker, author and early stage private equity investor. He is acknowledged as one of the most active angel investors in the country, having made and actively participated in over 87 technology investments during the past decade. He currently manages two angel VC funds (Berkus Technology Ventures, LLC and Kodiak Ventures, L.P.) Dave is past Chairman of the Tech Coast Angels, one of the largest angel networks in the United States. Dave is author of “Basic Berkonomics,” “Berkonomics,” “Advanced Berkonomics,” “Extending the Runway,” and the Small Business Success Collection. Find out more at Berkus.com or contact Dave at dberkus@berkus.com

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