As any BCM professional would agree, Recovery Time Objective (RTO), is one of the most important parameters that drive the BCM program. RTO is the time within which a process should restart after a disruption.
RTO itself is driven by another key parameter viz. Maximum Tolerable Period of Disruption (MTPD). MTPD is the maximum period a process can be disrupted after which the results of the disruption become unacceptable.
The question here is: Unacceptable to who?
At times, BCM professionals get lost in jargon. RTO, MTPD, RPO etc.
Who actually decides the MTPD and hence the RTO?
Short answer:The CUSTOMER
Business Continuity as the name suggests is closely linked to “Continuing Business“.
Business exists to meet the needs of the customer. This need has to be met at the right time and at the right quality, even in face of disruption.
Imagine that FMCG company has to deliver a product e.g. chips to retail stores. If it cannot do so during a disruption, competitors may be able to grab a share of its market.
Hence, MTPD is actually driven by customers of a service or product. It then also logically follows that RTO is actually driven by customers.
These customers could be “external” customers, consuming an organization’s products or services.
These customers could be “internal” customers, consuming IT services delivered by the internal IT Department to finally deliver products or services required by “external” customers.
Ultimately, whether the customers are internal or external, it is the EXTERNAL customers that will drive MTPD and RTO.
Why is this important to know?
When making BCPs, departments must identify MTPD and RTO keeping external customers CLEARLY IN MIND. Else BCPs may never achieve the goals they were meant to achieve i.e. continued delivery of products and services at an acceptable level in face of a disruption.
(c) Keith Prabhu
(Keith Prabhu is the Founder & CEO, Confidis. Confidis helps companies in areas of Information Security, Privacy and Business Continuity. In case you need any information security, BCM or Privacy services, please drop me a mail at info (AT) confidis (dot) co)