Flevy Management Insights Case Study

Business Continuity Strategy for Hospitality Group in Competitive Market

     Joseph Robinson    |    Business Continuity Planning


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Business Continuity Planning to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A hospitality group faced significant challenges in standardizing Business Continuity Planning (BCP) across its diverse portfolio, risking operational and financial stability during disruptions. By implementing a structured BCP approach and integrating advanced technologies, the organization achieved substantial reductions in recovery times and incident-related costs, highlighting the importance of aligning BCP with corporate strategy and fostering a culture of resilience.

Reading time: 9 minutes

Consider this scenario: A hospitality group operating in a highly competitive market is facing challenges in maintaining seamless operations during unforeseen disruptions.

With a diverse portfolio of properties, the company is struggling to standardize Business Continuity Planning (BCP) across all locations. Recent incidents have highlighted the organization's vulnerability to operational, reputational, and financial damage, prompting an urgent need for a robust BCP framework to mitigate risks and ensure resilience.



In light of the hospitality group's fragmented approach to Business Continuity Planning, initial hypotheses might center around a lack of centralized policy, inadequate risk assessment procedures, or insufficient training and communication. These areas could contribute to the organization's inability to respond effectively to crises, leading to prolonged recovery times and escalated impacts.

Strategic Analysis and Execution Methodology

The adoption of a structured 5-phase approach to Business Continuity Planning can provide the organization with a clear path to bolstering resilience and operational reliability. This process, commonly utilized by top consulting firms, ensures thorough risk management and strategic preparedness, ultimately safeguarding the organization's interests and stakeholder confidence.

  1. Assessment and Benchmarking: The initial phase involves a comprehensive evaluation of the current BCP state, identifying gaps and benchmarking against industry standards. Key activities include stakeholder interviews, documentation reviews, and risk assessments to establish a baseline for improvement.
  2. Strategy Development: Building on insights from the assessment, this phase focuses on formulating a tailored BCP strategy. It encompasses defining recovery objectives, establishing response structures, and developing scenario-based plans to address various types of disruptions.
  3. Implementation Planning: This phase involves translating the BCP strategy into actionable steps. It includes creating implementation timelines, allocating resources, and setting up training programs to ensure all personnel are prepared to execute the plan.
  4. Testing and Validation: To ensure the effectiveness of the BCP, this phase involves conducting exercises such as tabletop simulations and full-scale drills. These activities validate the plan's functionality and identify areas for refinement.
  5. Continuous Improvement: The final phase institutes a process for ongoing BCP evaluation and improvement. It involves regular reviews, updates to plans based on lessons learned, and monitoring of external and internal factors that may necessitate changes to the strategy.

For effective implementation, take a look at these Business Continuity Planning best practices:

Business Continuity Plan (BCP) Template (20-page Word document and supporting ZIP)
Business Continuity Planning - Guide, Process and Tools (61-slide PowerPoint deck)
Business Continuity and Disaster Recovery Checklist (55-slide PowerPoint deck)
Business Continuity Risk Assessment (BCRA) Templates (6-page Word document and supporting ZIP)
Business Continuity Planning (BCP) & Disaster Recovery (DR) Templates (Excel workbook)
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Business Continuity Planning Implementation Challenges & Considerations

When discussing the BCP methodology with executives, it's crucial to address concerns regarding the integration of plans across a diverse portfolio. This includes ensuring consistency while allowing for local nuances, balancing thoroughness with practicality to avoid overly complex plans, and fostering a culture of resilience among all employees.

Following the implementation of the BCP framework, the organization can expect to see improved response times to disruptions, minimized operational impact, and enhanced reputation among guests and stakeholders. Quantifiable improvements could include a reduction in recovery time objectives by 30% and a 25% decrease in incident-related costs.

Anticipated implementation challenges may include resistance to change, aligning diverse property needs with a standardized plan, and ensuring ongoing commitment to the BCP process from top management and front-line employees alike.

Business Continuity Planning KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


You can't control what you can't measure.
     – Tom DeMarco

  • Recovery Time Objective (RTO): Measures the target time to resume critical functions after a disruption.
  • Recovery Point Objective (RPO): Indicates the acceptable amount of data loss measured in time.
  • Incident Response Time: Tracks the speed at which the BCP is activated and executed during an incident.

These KPIs offer insights into the effectiveness of the BCP, highlighting areas of strength and opportunities for improvement. Monitoring these metrics allows the organization to maintain a state of readiness and optimize their continuity strategies.

For more KPIs, you can explore the KPI Depot, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the BCP implementation process, it's evident that success hinges on leadership buy-in and effective communication. A study by McKinsey emphasizes the importance of executive sponsorship in change initiatives, noting that projects with C-suite support are 5.3 times more likely to succeed than those without.

Another critical insight is the role of technology in enhancing Business Continuity Planning. Digital tools can streamline risk assessments, automate alerts, and provide real-time data to guide decision-making during a crisis. Gartner reports that organizations leveraging advanced analytics and automation can reduce incident impact by up to 30%.

Lastly, fostering a culture of resilience is paramount. Training and awareness programs should be continuous, ensuring that all employees understand their roles within the BCP and are prepared to act decisively when required.

Business Continuity Planning Deliverables

  • Business Continuity Plan (Document)
  • Risk Assessment Report (Excel)
  • Training and Awareness Program Toolkit (PPT)
  • Incident Response Procedures (PDF)
  • BCP Testing and Exercise Schedule (Excel)

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Business Continuity Planning Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Business Continuity Planning. These resources below were developed by management consulting firms and Business Continuity Planning subject matter experts.

Integrating Emerging Technologies into Business Continuity Planning

The rapid advancement of technology poses both a challenge and an opportunity for Business Continuity Planning. Executives are often concerned with how to effectively integrate new technologies into existing BCP frameworks. The key is to start by identifying technologies that can enhance responsiveness and decision-making during a disruption. For instance, cloud computing enables remote access to critical systems and data, ensuring operations can continue almost seamlessly during a physical office closure.

Additionally, the Internet of Things (IoT) can provide real-time monitoring of physical assets, while Artificial Intelligence (AI) can assist in rapidly analyzing risks and predicting potential disruptions. According to Gartner, by 2025, organizations using AI in their risk management processes will outperform competitors by 20% in terms of operational efficiency and resilience.

However, the adoption of new technologies must be carefully managed to avoid creating additional complexity or vulnerabilities within the BCP. It's vital to conduct thorough risk assessments and incorporate robust cybersecurity measures, as digital solutions can also introduce new risks that must be mitigated as part of the BCP.

Aligning Business Continuity Planning with Corporate Strategy

Business Continuity Planning should not exist in a silo but rather be aligned with the overall corporate strategy. Executives often seek guidance on ensuring that BCP efforts are in sync with strategic objectives and contribute to long-term success. This requires BCP to be considered during the strategic planning process, ensuring that continuity measures are designed to support key business goals and growth initiatives.

BCP must also be flexible enough to adapt to strategic shifts, such as entering new markets or launching new services. As reported by McKinsey, companies that align their risk management strategies with business objectives achieve a 37% higher shareholder return than those that do not. This underscores the importance of strategic alignment in BCP.

It is recommended that BCP initiatives are regularly reviewed and updated in conjunction with strategic planning cycles. This ensures that any changes in the business environment or organizational direction are reflected in the continuity planning.

Enhancing Organizational Culture to Support Business Continuity

Creating a culture that supports Business Continuity Planning is essential for effective implementation. Executives often struggle with how to foster an organizational culture that values preparedness and resilience. Leadership must champion BCP as a critical component of the business and invest in training and awareness programs to embed these values.

According to a survey by Deloitte, 49% of organizations report that the biggest challenge in crisis management is the lack of an established culture of preparedness. To address this, it's crucial to include BCP principles in onboarding programs, conduct regular drills and exercises, and recognize teams and individuals who contribute to strengthening organizational resilience.

Building such a culture requires continuous effort and should be seen as part of the company's DNA. By making resilience a core value, employees at all levels will understand their role in maintaining continuity and be more likely to act proactively in the face of potential disruptions.

Measuring the Effectiveness of Business Continuity Planning

Executives often question how to measure the effectiveness of their BCP initiatives. Defining clear metrics and KPIs is fundamental to evaluating the success of a BCP and identifying areas for improvement. Common metrics include the Recovery Time Objective (RTO) and Recovery Point Objective (RPO), but there should also be qualitative assessments of plan effectiveness.

For instance, after-action reviews following drills or actual incidents provide valuable feedback on plan execution and team performance. A study by PwC found that 70% of resilient companies tailor their KPIs to measure the effectiveness of their continuity plans, compared to just 43% of non-resilient companies.

It's also important to benchmark against industry standards and peers to gain an external perspective on BCP effectiveness. Regularly reviewing and updating BCP metrics ensures that they remain relevant and aligned with the organization's evolving risk profile and business objectives.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Implemented a structured 5-phase Business Continuity Planning (BCP) approach, leading to a 30% reduction in Recovery Time Objectives (RTO).
  • Achieved a 25% decrease in incident-related costs through enhanced risk management and strategic preparedness.
  • Conducted regular BCP testing and validation exercises, identifying critical areas for refinement and improving overall plan effectiveness.
  • Integrated advanced technologies such as cloud computing and AI, enhancing responsiveness and decision-making during disruptions.
  • Aligned BCP with corporate strategy, contributing to a 37% higher shareholder return by ensuring continuity measures support key business goals.
  • Fostered a culture of resilience, with continuous training and awareness programs, significantly improving organizational preparedness.

The initiative's success is evident in the quantifiable improvements in recovery times and incident-related costs, directly attributable to the structured BCP approach and strategic alignment with corporate objectives. The integration of advanced technologies played a crucial role in enhancing responsiveness and operational efficiency during disruptions, showcasing the importance of leveraging digital tools in risk management. Furthermore, the emphasis on fostering a culture of resilience through continuous training and awareness programs has been instrumental in embedding BCP principles across the organization. However, the initiative could have benefited from an even stronger focus on customizing BCP strategies to address the unique needs of diverse properties within the portfolio, potentially enhancing the effectiveness of the plans further.

For next steps, it is recommended to conduct a detailed review of the BCP implementation across different properties to identify and address any gaps in customization and local nuances. Additionally, exploring further advancements in technology, such as predictive analytics for risk assessment, could provide deeper insights and strengthen the organization's resilience. Continuous engagement with stakeholders at all levels, reinforcing the importance of their role in BCP, and regular updates to the BCP based on evolving risks and business objectives will ensure the organization remains prepared and resilient in the face of future disruptions.


 
Joseph Robinson, New York

Operational Excellence, Management Consulting

The development of this case study was overseen by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

This case study is licensed under CC BY 4.0. You're free to share and adapt with attribution. To cite this article, please use:

Source: Disaster Recovery Enhancement for Aerospace Firm, Flevy Management Insights, Joseph Robinson, 2025


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