We live in an increasingly digital era where market leaders use digital technologies to augment or create new business value. In this environment, businesses must run 24/7 across all time zones, and the consequences of failure can be severe, impacting corporate brand and position within the market. These are moments of truth for all brands.

So, what can business leaders learn from last month’s CrowdStrike outage about being effective operators in the digital age? Recently, I had the opportunity to sit with a group of CIOs and discuss this topic. This Advisor shares those insights, and these lessons extend well beyond the CrowdStrike crisis.

Be a Good Operator

Organizations need good operators. Competent, skilled operators are essential to ensuring smooth operations and that the organization can handle issues that can arise at any time. They are the backbone of a resilient organization, maintaining operations and implementing changes seamlessly.

Embrace Change Sanely

Digital organizations must be adept at managing change. The digital landscape is ever-evolving, and businesses need to be able to adapt quickly to new technologies and market conditions. However, with change comes the potential for failure. As exemplified by CrowdStrike, it is crucial that organizations plan for this possibility.

Plan for Failure

It may sound like an oxymoron, but digital operators actually plan for potential failure. This involves creating strategies for rolling back changes if things do not go as planned. It also involves recognizing that pushing changes simultaneously can complicate recovery efforts, so it is important to stage changes and roll them out incrementally. Stepped releases and thorough testing before implementation can mitigate the risks associated with change.

Vendor Management

The supply chain crisis following the COVID-19 pandemic highlighted the risks of single sourcing. Diversifying suppliers reduces risk and ensures continuity. Businesses must be proactive in managing vendors. As one CIO put it, “Don’t be a passenger.” Actively manage your vendors to ensure they have appropriate testing and backup plans in place.

Continuity & Crisis Planning

Continuity and crisis planning are vital. Prebuilding systems and being ready to go in case of failure can save time and resources. Fixing aging infrastructure, especially for mission-critical systems, is essential to prevent disruptions. As the experience of Delta Airlines shows, tech debt can slow recovery efforts.

Transparency, Risk Management & Communication

Transparency about risks and their impacts is crucial. Creating a robust, communicated risk management plan helps ensure that all stakeholders are aware of potential issues and the steps being taken to mitigate them. Clear channels for communication between stakeholders are necessary to manage crises effectively.

Effective Governance, Risk & Compliance Processes

Ensuring that governance, risk, and compliance processes are in place is fundamental. These processes help maintain order and provide a framework for managing risks. One CIO shared a success story: “I was pleased when my team executed our plans with discrete roles. I approved the response and communicated. Another engaged contingency escalation paths. Others began remediating ‘turfed’ systems. Two hours later, I gave the all-clear.”

Key Takeaways

To summarize, the CrowdStrike crisis yielded the following key takeaways for business leaders:

• Invest in skilled operators who can maintain and improve operations.

• Be prepared for change and adapt quickly to new technologies and market conditions.

• Plan for potential failures with strategies for rolling back changes and staged releases.

• Actively manage vendors to ensure they have proper testing and backup plans.

• Develop and implement continuity and crisis plans, fix aging infrastructure, and manage tech debt.

• Be transparent about risks and impacts and have a robust risk management plan.

• Ensure clear communication channels between stakeholders.

• Maintain strong governance, risk, and compliance processes.

Conclusion

In the digital era, businesses face numerous challenges and opportunities. By learning from experienced CIOs and adopting their strategies, business leaders can navigate these challenges effectively. Good operators, adaptability, and meticulous planning are key to ensuring business continuity and success. Active vendor management, crisis preparedness, and clear communication further enhance resilience. By implementing these practices, businesses can thrive in the digital age and safeguard their brand and market position.