The element of BC methodology that has the best brand awareness is, hands down, the BIA, or business impact analysis; however, misconceptions abound about what the BIA is and how to conduct and benefit from it. Today, we’ll look at the top six challenges companies encounter in doing BIAs and share tips on how to overcome them.
The Strange Fate of the BIA: Incredibly Famous and Virtually Unknown
The BIA is without a doubt the best-known concept in business continuity. It’s the most commonly searched term on the MHA Consulting web site and the one aspect of BC that is known to everyone who has even a minimal acquaintance with the field.
Unfortunately, the name of this foundational aspect of BC practice is often the only thing people know about it. In my experience as a BC consultant (25 years and counting, working with organizations in almost every industry, from Fortune 100 level on down), relatively few people know what the BC is for. Even fewer know how to conduct one properly and take full advantage of its powerful benefits.
In today’s post, we’ll try to go at least a short distance toward rectifying this situation.
The Top Six Challenges Companies Face in Conducting BIAs
Below are the top six challenges companies face in conducting BIAs, plus tips on how you can manage them to get the benefits of this critical tool and improve your organization’s resilience.
1. Understanding What the BIA Is
File this under strange but true: The number one problem we see in organizations trying to do BIAs is a lack of an understanding of what the BIA is. For the record, the BIA is an analysis of an organization’s business processes, systems, and applications, conducted department by department through interviews with departmental subject matter experts (SMEs). It aims to identify the organization’s most critically time sensitive processes, systems, and apps; that is, the ones whose interruption for a period of time would cause the most damage.
This information is used to identify which processes, systems, and apps warrant the most protection and eventually to craft the recovery strategies and plans that make up the actionable part of the BC program.
This lack of a basic understanding of the BIA’s nature and purpose leads to many knock-on problems. Examples include people’s believing that once they have completed the BIA their work is done and a tendency on the part of some to reject the results of the BIA without understanding how they were derived and what they mean.
For a company’s BC team, the best way to counter this common BIA challenge is to make sure they have a clear understanding of what the BIA is and does and then to seek opportunities to educate their colleagues.
2. Determining the Scope of the BIA
The next challenge, after the organization understands what the BIA is, is determining what the scope of their BIA will be. Many organizations come to grief in this area, either by trying to do much and getting overwhelmed or doing too little and failing to gain meaningful insights.
We often tell clients, “Don’t try to boil the ocean.” An ill-defined, overly ambitious BIA can suck up a BC initiative and make it disappear without a trace.
To overcome this challenge, organizations should focus on the most critical departments or business functions first, using representative samples to gather relevant data. Asking key questions—such as, "What are the top 10 departments essential for survival?"—can help prioritize efforts. Consultants can provide valuable guidance in navigating this process, especially for large enterprises such as those in manufacturing or healthcare.
3. Identifying the Right SMEs to Interview
A successful BIA depends on gathering accurate information from the right subject matter experts (SMEs). Selecting the wrong participants can lead to incomplete or inaccurate assessments. Often, organizations assign either senior executives (who lack deep process knowledge) or junior employees (who may not have a comprehensive view of operations) to the BIA interviews.
The key to overcoming this challenge is to identify SMEs who are directly involved in the business unit’s daily operations and have a deep understanding of its processes. Typically, this means selecting two to three individuals per department who can provide detailed insights into what their processes, systems, and applications contribute and how their disruption would impact the organization. The critical success factor here is ensuring that the right people are engaged and actively contributing to the BIA process.
4. Selecting a Toolset for the BIA and Using It Properly
I’m going to come right out and say it: It’s impossible to conduct a quality BIA using only a pencil and paper. A software toolset is necessary. The challenge companies face in this area is deciding which to use and how to use it. There are three basic options: using Word and Excel, subscribing to a specialized BC software platform, or building something in-house. Smaller organizations can get away with using Word and Excel. Medium and large ones are generally better off buying a commercially available platform. (Building a tool in-house is generally an option for only the largest organizations; it’s also not a good choice for the faint of heart.)
For smaller organizations, using Word and Excel to conduct a Business Impact Analysis (BIA) can be a practical and cost-effective choice. These familiar tools provide a straightforward way to document processes, analyze critical functions, and track dependencies without the need for expensive software.
The advantage of specialized BC tools (such as BCMMetrics, which we designed and which MHA Consultants use in carrying out engagements for our clients) is that they aggregate data and automate many BC processes, reducing the risk of errors and cutting down on manual labor.
Unfortunately, many organizations that do obtain specialized BC tools never take the time to understand and configure them properly, leaving the BIA to stall out or produce incorrect results. Mistakes here can and often do lead to crippling difficulties down the road.
The key to overcoming this common BIA challenge is to give the critical decision of toolset selection and use the attention it deserves. Research the matter carefully and choose a platform that is a good fit for the organization’s size, industry, and resources. Then invest the time and effort needed to use it effectively.
5. Validating the Results of the BIA
The challenge here is that people often skip this step completely; they don’t even know that validating the BIA results is part of the process. In fact, it’s a critical part of doing a BIA; MHA would never conduct one without including this step.
To put it simply, validating the results means making sure they pass the smell test. This is done by showing the BIA findings to people in a position to know and asking if the results make sense to them. Teams that skip this step often face rude surprises when they share their results with management. It’s not unheard of for them to get laughed out of the room. Sometimes BC teams get so wrapped in their work they lose touch with the real world.
To overcome this challenge, share your results with knowledgeable, practical people throughout the organization and ask them what they think. Do they basically agree with the BIA’s prioritization of the company’s processes, systems, and apps? Do they think any are missing or are included unnecessarily?
This process provides an opportunity to fine-tune the data and address any discrepancies before finalizing recovery priorities and continuity strategies. It also helps prevent surprises when the results reach upper management.
6. Collaborating Effectively with Management
The final challenge in conducting a BIA is for the team doing the work to successfully manage its relationship with the company’s executives. Many BIAs come apart in this critical area.
Although last in this list, developing a positive relationship with management should be a priority of the BIA team from the beginning.
Many teams struggle with how to present findings in a way that resonates with decision-makers. A common pitfall is failing to align the results with management’s expectations, leading to skepticism or outright rejection of the recommendations.
To overcome this, the BIA team should tailor its presentations to management’s priorities, focusing on risk mitigation, financial impact, and operational continuity. It is crucial to frame the discussion in a way that highlights the business value of the BIA, demonstrating how it supports strategic goals and justifies the investment in business continuity efforts. Securing management buy-in is critical for ensuring the successful implementation of BIA findings and the overall resilience of the organization.
The Benefits of a Quality BIA
Successfully conducting a Business Impact Analysis requires overcoming several common challenges, from understanding its purpose to effectively engaging management. Organizations that take the time to properly scope, execute, and validate their BIAs will gain critical insights that enhance their overall resilience.
By addressing these resilience roadblocks, businesses can ensure their continuity planning efforts are built on accurate, well-supported data. A well-executed BIA is not just a compliance exercise—it’s a strategic tool that strengthens an organization’s ability to withstand disruptions and protect its most essential operations.
Help in Mastering a Critical BC Component
Are you interested in getting help in making sure your organization’s Business Impact Analysis is a success? The consultants at MHA have the knowledge and experience necessary to help you navigate your BIA challenges, whether you need help right-sizing your assessment, identifying the right SMEs, engaging management, or something else.
Additionally, BCMMetrics' BIA On-Demand module provides a streamlined, data-driven approach to conducting BIAs. It enables organizations to identify critical business processes, determine recovery time objectives, and gain actionable insights to inform decision-making. Contact us today to learn how we can help strengthen your business continuity strategy.
Further Reading
- Navigating the World of BC Software: Insights from a CEO and Platform Creator
- Tools of the Trade: Finding the Right Software to Manage Your BCM Program
- BIA Blunders: 6 Common Mistakes Organizations Make When Conducting BIAs
- The Secret to a Successful BIA Interview: Get Their Information Ahead of Time
- The Human Side of Conducting BIAs
- BIA Interviews: 5 Tips for Streamlining the BIA
- Using BCM Software: 4 Ways It Can Change Your Life
