Y2K Forecast.
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Y2K commentators and experts recently have begun to focus attention on small and mid-size businesses, largely because a significant number of them have not done enough to adequately address Y2K. A recent Gallup poll suggested many mainstream Americans are less concerned today about Y2K's affects on them than they were just a few months ago, because government and business leaders have assured them that Y2K is apt to affect a smaller number of systems than once thought.
As a result, many people - people who own and manage small to medium-sized businesses - have become complacent, and consider Y2K to be a mere technical glitch which, once corrected in their own systems, will no longer threaten them. Unfortunately, this is like believing the flood won't damage your home because you've built a wall in front of it. Unless your upstream neighbors have done the same, your efforts alone won't stem the rising waters.
Our Y2K Triage services are designed specifically for businesses that may think they have done enough to prepare for Y2K, but haven't - businesses that we believe may be at risk, and may put others at risk, for failing to view Y2K as a business problem, rather than a mere technical problem.
At the core of this problem is understanding. Our solution to this lack of understanding is education.
Step 1: EDUCATION
Most people now are aware of Y2K. But few casual readers of the mainstream media understand what Y2K is, how it will affect them, and why they should be concerned.
It is true that Y2K started as a technical computer programming problem. But it is much farther reaching than that now. It is a business management issue that threatens the complicated and delicate business chain that connects - directly or indirectly - virtually every business and company in the country. To address Y2K properly, businesses must recognize it, understand it, and approach it from this perspective. It must be recognized as a threat to business operations, rather than merely a threat to systems or components. To do otherwise is to treat the wound and ignore the infection. First, to dispel a few myths:
- The Year 2000 technical problem is not "fixed" merely by purchasing relatively new equipment. Some software applications sold after 1996 are not completely rid of bugs which could cause malfunctions. Nor does purchasing Y2K "compliant" software and hardware end a business' compliance efforts. Much more needs to be done in virtually all cases. For example, replaced software and hardware still must be tested by qualified professionals under Y2K rollover circumstances. And even a fully "compliant" system is susceptible to contamination from non-compliant systems and applications.
- A business' Y2K "problems" will not happen solely because of any computer system malfunctions; they will happen because a business failed to plan for and manage them properly.. Every business is a link in a chain that stretches from the largest manufacturers and service providers to the consumer. When one link in that chain is weakened or broken, virtually every entity connected to it can be affected. Thus, companies of all sizes must view Y2K as a potential business problem, and take steps to address its affects on the business, rather than merely on their information technology systems.
Our education program is designed to provide the client with information, realistic hypothetical situations and training tools that will help it focus on problem-solving, management andcontingency planning. We will provide workshops for personnel and management and offer templates for proper Y2K planning and management within that company.
Step 2: COMPLIANCE AND CONTINGENCY PLAN DEVELOPMENT
A Y2K compliance plan is essential, not just for large companies and organizations, but for small businesses as well. Not only does a sound, structured plan help a company address its Y2K business problems in an efficient and effective manner, but it helps to minimize its financial and legal exposure in the future.
We have developed a business-oriented compliance plan template which can be tailored to fit the needs of a particular business. Although this plan does not provide a cure for the company's potential Y2K or business problems, it offers a systematic method of addressing, planning for, and confronting Y2K related problems as they arise. Part of this plan involves a system for determining the readiness of up-and-down stream suppliers and customers, all of whose efforts are essential in holding off the floodwaters. A company that does not have a systematic plan to address these and other critical Y2K contingencies may be woefully unprepared when and if a business disruption should occur at any link in the chain.
We will also work with the company to implement its compliance plan, and to help direct it to resources for resolving technical or legal problems that arise.
Step 3: COMMUNICATIONS AND DISPUTE AVOIDANCE
Disputes are inevitable. Even if Y2K causes what the most conservative observers predict will be "minor" inconveniences, those inconveniences are likely to result in disputes.
Effective communication with customers, clients, suppliers and others are essential if one is to minimize the potential for disputes. For example, a company should keep its customers candidly apprised of its Y2K compliance efforts to avoid unpleasant "surprises" when a Y2K-related disruption interrupts the flow of goods and services to those customers. Moreover, effective communication with one's information technology venders and service providers will minimize misunderstandings about product quality, cost and support expectations.
We have developed tools for both internal and external communications that are designed to help a company develop effective communications strategies with its customers, clients, suppliers and other third parties, including lending institutions. While not all disputes may be avoided entirely, effective communications strategies can reduce their number, severity and overall impact on a business.
Although we may refer to legal exposure or legal issues, we are not offering legal advice. legal issues that surround Y2K can have a profound financial impact on a company. The client should consult its legal counsel for advice regarding any legal matters pertaining to Y2K. If the client does not have legal counsel, we can offer referrals upon the client's request. We make no representations or warranties regarding a company's technical or legal compliance, and diisclaim any liability, including without limitation consequential damages, for any problems that result in injury or damages stemming directly or indirectly from information technology systems malfunctions or failures.
© 1999 Law Offices of Robert Wood