A Framework for Effectiviness and Cost Reduction for Disaster Planning

Introduction

The basic goal of a disaster response organiza-tion is to minimize effectively the impact ofthe disaster. Conceptual issues of dealing withnatural and technological disasters areincreasingly becoming well defined, as evi-denced in work by Cutter[1], Lagadec[2,3],and Drabek and Hoetmer[4], among others.This article complements this conceptualwork by proposing a practical frameworkwithin which disaster management efforts[5]can balance operational effectiveness and costefficiency. This article is based on the conceptthat disaster response effectiveness and effi-ciency occur best through systematic planningwhich includes components covering costsprojections, procurement planning andresource mobilization. Making responseefforts cost efficient results in a better match-ing of available resources to the requirementsfor effective response.

Effective and efficient disaster management

Cost-is-no-object disaster managementConfronting a disaster often involves a liberalapplication of resources[3, p. 228]. The pub-lic has little patience with penny-pinchingwhen lives and property are at risk. Explicitlimits on efforts to save lives or providingrelief are uncommon. Disaster managersexpect criticism for providing too little, ratherthan too much.

However, a cost-is-no-object approach todisaster management is unrealistic. First, ano-cost-limit philosophy ignores that anorganizations financial resources are finite.While cost may not be seen as a factor duringan operation, the bills eventually need to bepaid through higher prices/lower profits,taxation, borrowing or printing more money.Inefficient (i.e. wasteful) expendituresincrease the financial burden of a disaster anddraw resources unnecessarily from recoveryefforts and normal economic activities.

Second, expectations of a no-cost-limitdisaster operation encourage several dysfunc-tional disaster management strategies. Theseinclude:

25

Disaster Prevention and ManagementVolume 4 Number 3 1995 pp. 2531 MCB University Press ISSN 0965-3562

A framework forimproving operationaleffectiveness and costefficiency in emergencyplanning and response

Charles Kelly

The authorCharles Kelly is a Disaster Management Consultant inBethesda, Maryland, USA.

AbstractPresents a practical framework within which disasterresponse operational effectiveness can be balanced withcost efficiency. This balancing is accomplished through asystematic proactive planning of response requirements,costs projections, procurement and resource mobilization.The framework is useful in general disaster responseplanning and in the development of cost-efficient proce-dures for supporting disaster response efforts. It is genericand can be adapted to local conditions and requirements.

This article is an expansion of a presentation

made at the Emergency Planning 93 Conference,

Lancaster, UK, July 1993.

poor preparations, resulting in a lack ofresources when needed (we do not haveone and there is no time to buy it);

under investment before a disaster (wewill buy it when we need it); and

expensive or unnecessary procurementduring a disaster (it is the only one avail-able or if we do not get it now we willnever have one).

These dysfunctional strategies cause time tobe spent organizing support for a responseoperation during a disaster at the expense ofactivities with a direct impact on victimshealth and safety. In the worse case, a disasterresponse focuses on its own administrativeproblems and provides no aid to the victims ofthe real disaster[2].

Third, while a cost-is-no-object strategymay be espoused publicly, general pressure torestrain all types of expenditures can beexpected to increase. Recurrent and non-critical costs are coming under severe pres-sure. Substantial aid may be expected once adisaster occurs. However, the effective use ofthese resources will be difficult if the means toplan, train and organize the use of these addi-tional resources are lacking before the disas-ter.

Fourth, procedures for the rapid disburse-ment of funds frequently are inadequate.Public statements of no limit to what can bedone immediately to address a disaster con-trast with financial and procurement policieswhich are inappropriate for rapid action.Time required to deal with this inadequacyexacerbates the administrative problemsnoted above.

Finally, post-disaster legal problems candevelop if a poor management of resourcesresults in a waste of funds or unnecessarylosses. These problems range from waste,fraud and mismanagement to criminal andcivil proceedings against those believed to beresponsible for an ineffective response.

The problems with a cost-is-no-objectapproach to disaster management presentsmajor limitations on efforts to mitigate disas-ter. The approach is wasteful, can lead tounnecessary suffering and, possibly, anincrease in lives lost.

Disaster management effectiveness andefficiencyDisaster management need not be efficient tobe effective.

Efficiency meansresources are well matchedto the problem. On the other hand, you caneffectively solve the problem in an inefficientway, by tossing many things at the problem,even if you overuse resources[3].

Improving the match between resources andneeds requires a positive management of theprocurement (i.e. cost) aspects of respondingto disasters. The disaster management struc-ture needs to manage the disaster rather thanoperate reactively. Planning provides guid-ance specific to a possible disaster situation,reduces uncertainties in mounting a response,permits the identification (and preposition-ing) of possible resource requirements andprovides data on which to formulateresponse-funding requirements.

During a disaster, detailed plans may beless important than an organizational capacityto adapt to changing conditions and a flexibil-ity in the implementation of policies, plansand procedures[3, pp. 224-5]. At the sametime, an organizational ability to modify andupdate response plans and revise resourceneeds and procurements plans are critical to aflexible and adaptive operation[2].

Disaster operations cost managementframework

The disaster operations cost managementframework provided below focuses on the useof policy statements, performance expecta-tions and disaster response plans to delineateresource requirements for disaster manage-ment efforts[6]. The frameworks planningand support activities operate within a largermanagement structure which places appropri-ate emphasis on planning, operations andrecovery as required for a specific disaster.The framework is appropriate for planningand responding to natural, technological andsocial disasters.

The framework is particularly useful inlaying the basis for political approval of disas-ter plans, developing financial and procure-ment plans and evaluating the effectiveness ofdisaster response operations. Data developedin implementing the framework can identifyfinancially and operationally efficient proce-dures and provide justification for investmentsin disaster preparedness.

The framework is divided into eight ele-ments, each covering a different step of themanagement process. The framework com-

26

Improving operational effectiveness and cost efficiency

Charles Kelly

Disaster Prevention and Management

Volume 4 Number 3 1995 2531

plements commonly used disaster planningformats.

Set the agendaThe initial element of the framework is settingan agenda. The agenda identifies clientsexpectations for the management of disasters.Clients include political and administrativeauthorities, but the term refers generally tothe public for whom disaster management isprovided and who eventually foot the bill.

The agenda provides a broad statement ofpurpose which reflects the cultural and socialvalues of those for whom the disaster manage-ment service is being provided[10]. Theagenda-setting process also permits a rankingof priorities for disaster response (e.g. lifesaving as more important than limiting prop-erty damage).

Determine objectivesA set of management objectives is derivedfrom the disaster management agenda. Theobjectives are intended as a guide to the over-all response to disaster. They are presentedthrough a statement of purpose and rankexpected disasters in terms of importance (tothe clients and specialists) and responsepriorities. The objectives should includebroad performance expectations reflecting thecultural norms of the operational area or apolitical mandate.

The statement should be comprehensive,non-technical and concise. It should avoidspecific disaster management strategies orexcessive detail, which can be covered inannexes. Strategies and tactics are covered inoperational plans based on the objectivesstatement.

The setting of objectives provides anopportunity to identify possible disasterswhich have a low public profile or for whichthe public perception appears to underesti-mate risks. This can best be accomplished bya specialist review of the agenda and objec-tives.

Secure approvalOnce a disaster management objectives state-ment has been developed, formal approvalshould be secured. The approval ensures theobjectives correspond to expectations andalerts clients to possible disasters which arenew, unexpected or different from thoseperceived.

Approval can be accomplished in severalways, depending on the political, social andeconomic situation. Whatever the process, itis important there be acknowledged (i.e.written) acceptance by the party empoweredto finance disaster management activities.

Develop operational strategies andrequirementsThe objectives statement provides guidancefor developing operational strategies andtactics to address each type and level ofexpected disaster. Disaster managementorganizations accomplish this process throughthe preparation of preparedness, operations orcontingency plans. Regardless of their form,plans should include the following informa-tion by level of expected disaster threat:(1) expected numbers of lives at threat with-

out action;(2) expected injuries, by severity (minor,

debilitating, severe) without action;(3) expected damages and losses to property

and goods (value estimates) withoutaction;

(4) losses in value of services from an eventwithout action;

(5) actions to be taken, by type and unit cost;and

(6) expected reduction in losses/damage(cost/loss assessment) as the result ofplanned actions.

The information provided in the first fouritems summarizes the anticipated impact ofan expected disaster. Item (5) is a costing ofthe assistance necessary to address the expect-ed disaster. This information is drawn fromthe operational response plans, which specifywhat resources are to be used and in whatorder.

For disaster events where there has beenlittle local experience, role-playing an eventwith experienced response personnel cangenerate (and validate) cost data. A post-operations review can provide the basis fordeveloping operational procedures and acatalogue of required resources. This infor-mation can be used to formulate completeoperations plans[11].

Item (6) is an assessment of the effective-ness of the expected response operation. Thisitem may not always show the proposed disas-ter response to be 100 per cent effective. Acertain level of loss may be acceptable, asdefined by the agenda-setting process,

27




Charles Kelly

particularly where damage from a type ofdisaster is frequent and has been incorporatedas part of the local economic system[12].

For high magnitude/infrequent disasters,the costs of total prevention may not be justi-fied by the expected event frequency. In thiscase, an event is planned for it is acknowl-edged that the event may occur and somecontingency plans are developed but politi-cal and public expectations (as presented inthe disaster management objectives state-ment) do not anticipate that the disastermanagement organization can prevent signifi-cant damage.

The information and assessments devel-oped in items (1) to (6) can be set out as aseparate document, although this informationwould be part of any well thought-outresponse plan. Item (5) also forms the basisfor a resource mobilization list, as discussedbelow.

The data in items (1) to (6) can be format-ted into a table summarizing impacts ofexpected events, requirements to mitigateevents and expected losses (or lack of losses)from a successful response. Such a documentis useful in explaining cost and benefit trade-offs and to support funding requests.

Confirm approval for disaster manage-ment plansOn completion, an additional review of theoperational strategies and requirements isnecessary. This review is the first (and proba-bly only) opportunity for authorities to see therequirements and costs of the disaster man-agement objectives approved previously.

The review should focus on the informa-tion identified in items (1) to (6) (above), withspecific attention to the costs involved inaddressing potential disasters and the expect-ed effectiveness (item (6) prevention oflosses and damage) of the plans. The respon-sible authorities either accept the levels oflosses expected and the level of inputsrequired, or change the objectives of themanagement effort.

Several revisions of the disaster manage-ment strategy and operational documentsmay be necessary. If changes result in modifi-cations of the management objectives, caremust be taken to ensure the impact of thechanges are clear to those who set the initialobjectives. The objectives, plans and cost/lossestimates are built on sand if they are based on

deniable (i.e. undocumented) changes fromthe expectations set forth in the agenda/objec-tives setting process.

Mobilize resourcesWith approval of operations plans the processof mobilizing resources can begin[14].Resource mobilization includes procurementof, or making arrangements and plans for,personnel, services and equipment needed tomanage a disaster.

Resource mobilization should be plannedto consider funding availabilities, operationalrequirements (based on the risk and potentialimpacts of an expected disaster) and train-ing/personnel requirements (e.g. the need forskilled personnel to operate specialized equip-ment). Core to making disaster responsemore cost efficient is minimizing the need todevelop procurement plans and negotiatebudgets in the intense disaster response peri-od.

Considerable lead time may exist beforethe projected funding is actually needed, ifonly because many bills will not need to bepaid until after the disaster. This paymentdelay means a commitment of funds (i.e. theauthority to order) and is more importantthan an actual transfer of funds in the earlystages of a response operation.

The cost of disaster mobilization can bedivided into four groups[15]:(1) Core and recurrent costs expenditures for

a basic capacity to respond to expecteddisasters; normally met through fundingwarning systems, core staffing, trainingand commodities such as radios, special-ized vehicles and protective equipment.

(2) Mutual assistance costs unreimbursedcosts associated with an organizationsresponse under terms of a mutual aidagreement. These costs can be significantand need to be either budgeted orapproved as needed.

(3) Co-operating party costs costs of mutualassistance from other organizations notnormally charged to the agency receivingassistance.

(4) Operations costs additional staffing,services and commodities related directlyto a disaster response operation or toreinstating an organization to its predisas-ter status. These costs are developed aspart of a disaster operations plan, asdescribed above. The funds to meet these

28


Charles Kelly



costs are needed only as a disaster eventbegins.

In planning expenditures attention needs tobe paid to procurement procedures. Procure-ment options include special and off-the-shelfpurchases, stand-by agreements, mutual aid,conscription and volunteers. Under mostcircumstances a mixture of the techniques willbe used[15].

Using procurement methods effectivelyrequires resource requirements (includingspecifications, procedures and legal authori-ties) to be developed before a disaster. Prepar-ing specifications, concluding contracts,developing stand-by agreements, trainingvolunteers and assembling inventories of off-the-shelf items in the predisaster phase iseasier and less costly than trying to define,locate and procure supplies and servicesduring a disaster.

The output format of the resourcemobilization exercise depends on the organi-zations specific disaster plan format. Theinformation on procurement requirements,sources, costs and procedures should be partof each specific disaster response plan,complementing or forming a part of theresource requirements list developed in item(4) of the framework. The resource mobiliza-tion information needs to be available readilyto the operations manager, as resource mobi-lization is a key to mitigating or preventingdisaster.

Circulating mobilization plans (modified toprotect proprietary information) to partiesinvolved in the plans implementation isrecommended. Providing edited plans topotential suppliers, particularly those fromwhom off-the shelf and conscripted resourcesmay be required, is also useful. This providesfor an informal check of the plans accuracy(Are the 25 MT cranes really available?)and serves to alert suppliers of their possibleinvolvement in response operations.

Support operationsThe manner in which disaster response opera-tions are conducted depends on a number offactors, including the type of disaster, stan-dard procedures, roles and mandates of theresponse organizations and local conditions.For the purpose of this framework somestructure similar to the incident commandsystem (ICS)[7] is anticipated.

The ICS is a comprehensive task organiza-tion structure which covers all the staff, oper-ations and support requirements associatedwith response operations. Under ICS,response efforts are divided into commandand line (operations, planning, logistics andfinance) responsibilities. At the least, ICSprovides a checklist covering all tasks whichmust be accomplished for a completeresponse to a disaster.

In this framework, the ICS planning sec-tion uses resource mobilization plans to callforward resources from the finance (procure-ment) and logistics (supply) sections, as andwhen required[16]. All three units work fromthe same mobilization plan. The planningsection monitors operations and works withthe operations section on staging resourcesand revises the resource requirementsdepending on the success or failure of theoperation[17]. The review of operations is acritical task of the planning section. Thisperiodic assessment provides information torevise resource mobilization plans developedbefore the disaster. If the resource mobiliza-tion plan has been comprehensive (and theprojections of requirements accurate), thenthe periodic revisions of the plan should onlyinvolve changes in delivery timing and quanti-ties of resources required. If assessmentsindicate the plan is no longer appropriate, theplanning section would revise the mobiliza-tion requirements and forward new plans tothe operations, finance and logistics sectionsfor action.

The planning section is also charged withscheduling the close-down of operations. Thisschedule, a resource demobilization plan,serves to minimize expenditures through atimely cessation of procurement actions(paying off unneeded personnel and serviceproviders, demobilizing volunteers and mutu-al assistance and halting off-the-shelf andother commodity procurement).

Given the compressed time frame in mostdisaster response efforts, a mobilization back-log can be expected. Early demobilization willrelease unneeded resources in a mobilizationpipeline quickly, thus minimizing costs.

Post operations reviewPost-operations reviews are a standard part ofany response effort. For the purposes of thisframework, the review should cover the fol-lowing elements:

29




Charles Kelly

(1) the accuracy of the resource mobilizationplan, particularly the requirement andspecification statements;

(2) the appropriateness of the procurementprocedures employed; and

(3) the identification of new commodities,skills and services which should be avail-able to improve response to a similardisaster.

The results of a post-operations review shouldbe used to revise specific disasteroperations/response plans. They can alsoprovide input on changes to an entitys man-agement agenda, objectives, strategies andtactics. Whatever changes are made, a newconfirmation of political approval may beneeded and changes to the operationsresource mobilization plans necessary.

The third element of the post-operationreview provides data to justify investments inpreparedness (training, equipment, person-nel), to the extent that a review shows resolv-able weaknesses. A review of all plans follow-ing an actual disaster is recommended as theexperience of one disaster can identify neces-sary changes in the other plans.

Finally, the resource mobilization plansneed to be reviewed and revised periodically.Changes in the plans can be dictated by peri-odic changes in the guiding operations plansor response policies and objectives. Updatingresource availability and price information isprobably necessary biannually.

Conclusion

The framework presented in this article canhelp disaster managers improve the costefficiency of disaster management whileimproving disaster response effectiveness.The framework provides for the integration ofa structured resource mobilization processinto the development and implementation ofdisaster management plans.

The framework makes the disaster man-agement effort more efficient by making thepredisaster planning more complete. Thisplanning approach will also assure a betteravailability of resources during a disaster, asresource requirements are reflected in, andare part of, response plans. The result will bethat more effort can be directed towardsmanagement of the disaster rather thanadministrative support tasks.

The framework is generic. Variations andadaptations of the guidelines are necessary tofit local conditions. However, modificationsneed to retain the principle that efforts spentin preparing for a disaster will provide formore effective and efficient management inthe event of a disaster and lower losses andless suffering on the part of the victims.

Notes and references

1 Cutter, S.L., Living with Risk, The Geography ofTechnological Hazards, Edward Arnold, New York, NY,1993.

2 Lagadec, P., Preventing Chaos in a Crisis: Strategiesfor Prevention, Control and Damage Limitation,translated by Phelps, J.M., McGraw-Hill Book Co.,New York, NY, 1993.

3 Lagadec, P., States of Emergency: TechnologicalFailures and Social Destabilization, translated byPhelps, J.M., Butterworth-Heinemann, London, 1990.

4 Drabek, T.E. and Hoetmer, G.J., Emergency Manage-ment: Principles and Practices for Local Government,International City Management Association, Washing-ton, DC, 1991.

5 This article focuses on the operational response todisaster. Herein, disaster management refers to theplanning and conduct of urgent operations to mitigateor prevent a specific disaster. The cost-managementconcepts described in the article can be used in otherphases of disaster response, such as supportingdecisions on mitigation measures such as insuranceand structural protection.

6 These guidelines are based on material in Drabek andHoetmer[4], Fire Protection Publications[7], Office forForeign Disaster Assistance[8] and United StatesAgency for International Development[9], as well asthe authors experiences in disaster managementactivities.

7 Fire Protection Publications, Field Operations Guide(ICS 420-1), Incident Command System Publication,Oklahoma State University, Stillwater, OK, 1983.

8 Office of Foreign Disaster Assistance, ComprehensiveEmergency Management, Advanced Technology, Inc.,for Office of Foreign Disaster Assistance, United StatesAgency for International Development, Washington,DC.

9 United States Agency for International Development,AID Handbooks, Vols 1, 8, 9, and 23, Washington, DC.

10 The manner in which the agenda is developeddepends on the cultural, social and political context inwhich the disaster manager and clients exist. Careshould be taken to ensure the agenda is not a self-serving promotion of the needs and preferences of thedisaster manager and his/her organization.

11 Puffenberger, D., personal communication, 1992.

30


Charles Kelly



12 Howe and Cochrane[13] provide a summary of how toassess economic damage from disasters. Theseguidelines may be useful in developing a conceptualbasis from which to project damage from infrequentdisasters.

13. Howe, C.W. and Cochrane, H.C., Guidelines for theUniform Definition, Identification, and Measurementof Economic Damage from Natural Hazard Events, withComments on Historical Assets, Human Capital andNatural Capital, Special Publication No. 28, Programon Environment and Behavior, Institute of Behavioralscience, University of Colorado, Boulder, CO, 1993.

14 The resource mobilization process will probably requireparticipation of procurement, contracting and legalspecialists. From experience, the time required tocomplete the first set of resource mobilization planscan be significant and should be seen as a learningexperience for all involved. Because of this learningexperience, consideration should be given to keepingthe team which completed the first planning exercisetogether to complete the rest of the resource mobiliza-tion plans.

15 Kelly, C., Organizing effective and efficient procure-ment to support disaster response activities, forth-coming, 1994.

16 Organization-specific criteria for commodity andpayroll management to prevent theft and misuse ofsupplies could be the responsibility of the finance andlogistics sections or a separate audit or oversight unit.

17 Among other publications, suggestions on running theplanning and logistics operations of a major disasterevent can be found in Pagonis[18]. While Pagonisdiscusses support for the Gulf War, review of hisexperiences is appropriate in view of the similarities use of scenarios, abrupt initiation of operations,personnel limitations, rapid mobilization and demobi-lization of diverse resources, use of local resourcesand hostile environments between military anddisaster response operations.

18 Pagonis, W.G. and Cruikshank, J.L., Moving Moun-tains: Lessons in Leadership and Logistics from theGulf War, Harvard Business School Press, Boston, MA,1992.

31




Charles Kelly

A Framework for Effectiviness and Cost Reduction for Disaster Planning

Documents

Transcript of A Framework for Effectiviness and Cost Reduction for Disaster Planning