Single Point of Failure

Single Point of Failure - Element or part of a system for which no backup (redundancy) exists and the failure of which will disable the entire system.

Recently, Steve Jobs has taken medical leave from Apple.  This left investors nervous as Apple is Steve Jobs and Steve Jobs is Apple.  Jobs' departure from Apple in the past left the company adrift especially when he left during the mid-80s. Does one man make a company?

When I was in high school, my parents owned a plumbing shop in a small town in Colorado.  My father was not a plumber.  In most states, to operate a plumbing business you need have a Master Plumber's License or employ an individual who has the license.  So, my father was reliant on the good graces of our Master Plumber. 
The arrangement worked well until my parents decided to move back to Texas for a better opportunity.  However, the risk of losing our Master Plumber to another shop in town was very real and source of stress for my father.  Had we lost "our" license, my parent would have had to shut down the shop.

Certainly, my family's small business was not on the same level as Apple but both were faced with a single point of failure.  In both cases, the core business centered around one individual.  The lesson learned is to make sure you minimize the risk to your business by providing redundancy.  Analyze your processes, identify those single points of failure and develop plans and actions to mitigate the risk to the business.

Let me know what you think.