Industrial action and operational exposure: Lessons from Birmingham’s bin disruption

The immediate effects, including missed collections, public frustration, and added pressure on the system, are easy to see. However, the deeper lessons are just as important. This situation reveals a common issue many organisations face: the hidden risks that come with depending on external providers for essential services. These risks often become apparent when relationships with outside stakeholders are tested.

When stakeholder risk becomes operational risk

Employees sometimes need to work together to address issues in complicated job situations. However, this also reveals how service delivery can be affected by factors beyond an organisation's immediate control.

This highlights a key risk: even well-organised internal processes can be significantly impacted by outside events. While the source of the risk may not lie within your organisation, the repercussions nearly always will.

In both private and public sectors, we frequently see organisations that are confident in their continuity plans but have not thoroughly assessed their external dependencies. When these plans are tested, whether during an audit, a practice exercise, or in response to a disruptive event, these assumptions can quickly fall apart.

Accountability is perceived, not allocated

A key takeaway from the Birmingham experience is the issue of perception. For end-users, such as residents, customers, or regulators, there is often little distinction between internal staff and third-party contractors. When a service is disrupted, the organisation as a whole is held accountable, regardless of where the problem originated.

Customers don’t differentiate between delays or failures caused by suppliers, regulations, or other factors; they simply expect a smooth service and hold the service provider responsible when it falters.

Managing third-party risk should therefore be viewed not just as a contractual or operational issue but as a vital part of overall operations and business continuity planning.

Embedding third-party resilience into operations

Organisations need to ensure that third-party risk is integrated into their broader business operations. This includes:

• Conducting a Business Impact Analysis (BIA): Clearly identify business-critical services, quantify the impact of disruption, and define appropriate recovery timeframes and tolerances.
• Documenting recovery strategies and responsibilities: Ensure that clear recovery plans are in place for each critical service, including roles and responsibilities spanning both internal and external stakeholders.
• Mapping service interdependencies: Understand the upstream and downstream impacts of disruption. A breakdown in a single outsourced function can quickly cascade across the wider organisation.
• Assessing and assuring supplier resilience: Request and regularly review continuity plans from key suppliers. Where services are critical, build in joint testing and structured assurance.
• Testing and validating plans: Simulations and scenario testing help ensure that plans work in practice, not just on paper, and highlight issues before they become failures.

A strategic approach to resilience

Organisations that take a strategic view of resilience embed it into their everyday decision-making, from procurement and contract management to risk assessment and performance review. Resilience is no longer simply about internal readiness; it’s about system-wide visibility to ensure coordinated planning and response.

The events in Birmingham provide a case study with broader application. They reinforce the need to plan not just for internal risk, but for disruption introduced by external stakeholders, particularly those who sit within critical service delivery chains.

Final reflection

In a complex and interconnected operating environment, resilience cannot stop at the organisational boundary. Industrial action, supplier failure, and stakeholder disputes all have the potential to disrupt business-critical services.

When that disruption happens, accountability will land with the organisation in the public eye, regardless of where the fault lies. The question isn’t who owns the risk, it’s who owns the response.

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The recent industrial action in Birmingham is a reminder of the vulnerabilities inherent in relying on third-party providers for critical services, highlighting the importance of integrating third-party risk into broader business continuity planning and operational strategies.

At Forvis Mazars, we specialise in strengthening operational resilience across sectors. To speak to one of our experts, get in touch using the button below.

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