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Summary and Comments

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1998-04-28 21:36:10


Self-Defence for CEO's and Board Members



If your organization loses money for anyone because of y2k, and if the courst system survives (a very optimistic assumption), you can be sure that someone is going to sue your company, and maybe you personally.

This is why I think there will be an exodus from corporate boards, beginning early next year, when all the form letters promising completed re-coding and the beginning of testing are shown to be terminally naive.

Here are some guidelines to know if your company in trouble.

It's in trouble. Count on it.

This is from the MILLENNIUM JOURNAL (March).

* * * * * * * * *

As a CEO, you are legally responsible to act in a prudent manner and in the best interest of your shareholders. If you ignore your Year 2000 problem or fall behind on your Year 2000 project, your enterprise stands to be harmed and consequently, so do your shareholders. Consult your corporate counsel on this issue so that you can take preventive measures to minimize or avoid liability.

Try to assess the impact of the Year 2000 on your enterprise. Can you or your staff answer the following questions?

1. Have you performed a financial audit to determine the cost of the Year 2000 project on your enterprise?

2. Have you begun work on your Year 2000 project?

3. Is your project on schedule and will you complete it successfully in time?

4. How often do you receive an executive briefing on the progress of your Year 2000 project?

5. Has your Board of Directors reviewed the impact of Year 2000 problems on your enterprise and on your customers?

6. Have you formed a Program Management Office?

7. Have you identified your Event Horizons? (For more information about Event Horizons, see the May 1994 Millennium Journal.)

8. Have you completed an Independent Validation and Verification process? (For more information about Independent Vaidation and Verifications, also known as Millennium Process Reviews, see the January 1998 Millennium Journal.)

9. Do you have an inventory of your applications, hardware, and embedded systems?

10. Do you know how many lines of code remain to be fixed?

11. How many systems and applications still have to be tested for Millennium Compliance?

12. Will your suppliers, customers, and vendors be compliant in time?

13. What is an acceptable definition of Millennium Compliance for your organization?

14. Do you use the same definition of Millennium Compliance for your vendors, suppliers, and customers?

If you can't find people within your enterprise who can answer these questions or if the answers you find are unacceptable, then address your Year 2000 problem now. Appoint resources to address Year 2000 issues and report their findings directly to you.


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