Companies are always planning for how they will improve and evolve to remain competitive and get more business. Of course, there are times when these types of plans are not successful. This is where contingency planning can be very helpful.
A contingency plan is put in place when an outcome of something is different than one that was expected. This can apply to almost any situation where there is an expected outcome.
It is important to know how to react when things do not go according to plan so that the company can still get through problems with as few difficulties as possible. Having a contingency plan for as many different situations as possible can help to ensure your company is able to always operate in the best way possible.
Most companies will need to have a variety of different contingency plans for as many different situations as possible. For example, if your company is performing a major technology upgrade, there should be a contingency plan in place for what to do if the upgrade does not go smoothly. This could be to roll back the change, or to implement temporary solutions to get through the event.
Another type of contingency plan that many companies have is in the event of a disaster or other emergency. Knowing how the company will react to this type of event can help to keep employees and equipment safe and protected when it otherwise could be injured or destroyed.
Once you create contingency plans, they should be distributed to everyone who could be impacted by the event. These types of plans are only useful if those who are impacted know what they are and how to implement them should the unexpected occur. Many companies will print off these types of plans and distribute them to the necessary departments to ensure they are properly followed.
Similar Glossary Terms
- Emergency Action Plan (EAP)
- PFEP (Plan for Every Part)
- Fire Prevention Plan
- Change Management
- Safety Management Plan
- Continuous Improvement
- Organizational Structure