1. Montague Technology Management1 Contingency Planning for Year 2000 Montague Technology Management November 19, 1998

2. Montague Technology Management2 What is Contingency Planning ? Awareness of possible threats Based on the probability of threat occurrence, and the amount of ensuing damage, implement strategies to: –Lower the probability of threat occurrence –Minimize the damages - costs and time Document, train, update, test plans in an ongoing program that reflects company changes

3. Montague Technology Management3 “Normal” Contingency Planning Activation date unknown Limited disruption or destructive scenarios (fire) Emergency services operational Alternate site strategies Offsite backups

4. Montague Technology Management4 “Normal” Contingency Planning Incomplete integration: –Technology/business –Companies/government Human factors Telecommunications and transportation work (except for severe weather scenarios)

5. Montague Technology Management5 “Normal” Contingency Planning Failed? IT projects Limited training Scope: –Site, data center, all data centers, business functions. Suppliers and customers???

6. Montague Technology Management6 “Normal” Contingency Planning Executive management rarely involved in plan testing. Generally not a corporate-wide function (across all divisions and sites).

7. Montague Technology Management7 Year 2000 Contingency Planning is a Whole New World Multiple simultaneous infrastructure failures must be considered Ripple effects Existing strategies may not work Closer relationship to IT systems Need to emphasize company survival New issues of social responsibility

8. Montague Technology Management8 Year 2000 Infrastructure Issues The primacy of electrical power The threat of multiple simultaneous failures The interdependence of all infrastructure elements The interdependencies of the global economy: ripple effects The threat of social unrest

9. Montague Technology Management9 This is more than a business issue: people will be hurt some may die.

10. Montague Technology Management10 Contingency Planning has never had a stronger mandate. Contingency Planning has never had a more important mission.

11. Montague Technology Management11 The Brave New World of Year 2000 Scenario scope changes: –Multiple, prolonged regional infrastructure services outages –Emergency services disruptions –Inadequacy of existing strategies –Transportation disruptions –Social issues and human factors.

12. Montague Technology Management12 The Brave New World of Year 2000 NEW RESPONSIBILITIES: –IT remediation fallback plans –Supply chain, distribution channels –Business preparedness –Employees and their families –Community –Integration of technology, business, and community

13. Montague Technology Management13 The Brave New World of Year 2000 –Legal liabilities Due diligence Regulatory disclosure –Insurance issues Directors and Officers Building systems Liability coverage ? Self-insurance

14. Montague Technology Management14 The Brave New World of Year 2000 Year 2000 contingency planning mandates Integrate technology and business Implement business preparedness projects Corporate-wide scope Employee awareness and training programs Community connection

15. Montague Technology Management15 The Brave New World of Year 2000 Contingency Planning becomes Emergency Preparedness Emergency Preparedness and Response Program and Response Program

16. Montague Technology Management16 Emergency Preparedness and Response Cost related to size and complexity: less expensive than bankruptcy Preparedness for uncontrollable events A significant factor for: company survival enhancing public image minimizing financial impacts

17. Montague Technology Management17 Program Goals Assure company survival through Year 2000; minimize impacts of infrastructure failures Plan for cost-effective, creative contingency strategies Implement at all critical sites

18. Montague Technology Management18 Site Emergency Response Teams

19. Montague Technology Management19 Simulation Exercise Scenario: Multiple simultaneous Y2k infrastructure failures Length of exercise: 4-6 hours Timeframe of exercise: 5-10 days Objectives: –Test effectiveness of pilot emergency capability –Extend awareness to management of all businesses

20. Montague Technology Management20 Employee Awareness Program Development and Packaging –Content developed in conjunction with corporate policy –Delivery Approach –Handout Materials –Ongoing elements –Language/culture issues

21. Montague Technology Management21 Deployment Planning Emergency Response Program –Develop site delivery schedule –Organize teams for delivery; estimate costs Employee Awareness Program –Develop site delivery schedule –Organize teams for delivery; estimate costs

22. Montague Technology Management22 Emergency Response Schedule The Schedule is REAL. The schedule CANNOT slip, because after midnight on Friday, December 31, 1999 Emergency Response must handle... whatever happens.

23. Montague Technology Management23 And… we will handle it!

24. Montague Technology Management24 Contact Information For questions or further assistance: Kathleen Lucey phone 516-676-3152 email luceyk@erols.com