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LAW FIRMS, LEGAL DEPARTMENTS AND THE YEAR 2000:
A Practical Guide to Y2k Survival
By: William H. Skeels, IV, Esquire

What is the Year 2000 Problem?

The Year 2000 computer problem results from the adoption by early computer programmers of a six digit date (as with '01/12/97') rather than a full eight digits (as with '01/12/1997'). This practice was almost universally adopted. Computers programmed in that manner (i.e., those which have not been taught to recognize the full 4 digit year) will assume incorrectly that a year entered as '00' is 1900 (or 1980, or some other incorrect date). Common functions such as payment cycles, bill aging, scheduling, timing of mechanical operations such as air conditioning controls, 'overdue' calculations, interest calculations and an enormous variety of other critical functions may be impacted, with the potential for chaos developing. The resulting inability of 'non-compliant' computers to operate correctly, and the breadth of usage of computer programs and chips in support of business and public functions, are the basis for the much publicized 'Y2k' problem facing all of society, including attorneys.

This article will describe a practical approach for the legal organization (law firms, legal departments and other similar groups) to identify and address these Y2k problems.

Where Do We Stand?

Unlike most other human endeavors, addressing the Year 2000 problem is subject to an immovable deadline; while Y2k related problems may begin much earlier, January 1, 2000 is an absolute 'last date' for non-compliant systems.

Though considerable and encouraging progress has been made, it is clear that, in business, government and other important areas of computing, we are behind in locating and fixing the breadth of Y2k problems which we face. History is also unkind, as our collective record in bringing computer projects in on deadline is spotty at best.

How Do Lawyers Solve the Problem?

The prescription for solving Y2k problems is straightforward. Identify your computer-supported functions (especially those which cannot be done without), learn which of those items has Year 2000 problems, and fix or replace those which you identify. In parallel with that process, identify alternative methods of performing absolutely critical functions, should best-laid plans fail, hidden flaws arise , or unknown outside factors intervene. This article will outline practical means and methods to accomplish these goals.

Every firm and legal department should assemble a team to oversee its Year 2000 program. While the group will need technical expertise, the issues which will be dealt with relate to management and operation at a high level. The committee should contain and be tightly

integrated with firm / department management.

The major steps the team and legal organization must take are:

Awareness and Recognition. In initial stages, the team, and the organization as a whole, become fully educated about the nature of the Y2k problem, particularly as it applies to the law office and their own circumstances. Useful resources include seminars like the North Carolina Bar Foundation program in Greensboro on January 22, 1999, and Internet web sites dedicated to the problem. For example, the ABA (www.abanet.org/tech/ltrc/2000/home.html) and LawSight Year 2000 Resources (www.lawsight.com) web sites contain helpful material.

Audit and Review. In this stage, the Y2k team identifies the specific potential points of failure, along with the Year 2000 compliance status of each item. The general areas of focus include:

- Internal software. This includes functions which manage the business of the firm (time and billing), the firm's output (word processing) or work product (specialty practice programs such as a real estate package). Sources for information include the original program vendor (by contact or web site), or the installing consultant. Resources intended for this purpose, including a vendor status listing, are contained at www.lawsight.com/2k.htm.

- Data exchange. Law firms and departments may exchange information with financial services organizations (e.g., banks with direct deposit, accountants with tax information, investment counselors with 401k data) or clients (e.g., work product or electronic billing information). An exchange which involves dates in any manner, or which relies on date-sensitive programs, is subject to Y2k problems, even if each individual link in the exchange equation has become compliant. Look to the other exchange party (e.g., the bank for direct deposit protocols) for assistance, and develop realistic testing plans.

- Hardware. The team should review all of its computing hardware, from the desktop PCs (which are definitely subject to potential Y2k failures) and their operating systems (DOS, Windows, Windows95) to its networks and communication devices. Network operating systems (Novell, Windows NT, Unix) support your hardware, are among the more critical elements in your support systems, and may have Y2k flaws, depending on age and other factors. Information sources include the vendors of the various products, industry Y2k online resources and Y2k consultants.

- Embedded systems are devices based, not on traditional computers as we know them, but on chips which are embedded in mechanical or electronic devices (usually internally and thus difficult to locate). Embedded chips manage devices ranging from copiers, climate control, building admission and security systems, bar code readers, elevator systems and beyond. A more comprehensive checklist of such embedded systems may be found at www.lawsight.com/emb.htm.

- Services. The team should review services which may be affected by Year 2000 problems. Examples are services that manage profit sharing plans or that handle payrolls. Special attention should be given to insurance policies, and whether the coverage of those policies includes various Year 2000-related eventualities.

Any areas which are subject to question, including all systems identified as critical, should be tested on a realistic basis. As a general rule, acceptance of compliance assurances is inadequate to insure that no Y2k problems will occur. For each step, the organization should document its findings, test results, proposed action and results in a methodical and thorough manner.

Action and Remediation. The team must take steps to fix or 'remediate' the Y2k problems it identifies. The first step is the most important: to identify those items which are most critical, and to prioritize Y2k work on that basis. One structure for this step is to divide functions into 'zones' of approach.

- Red Zone. Functions on which the organization absolutely depends, including billing, payroll, basic network services, telephone systems, and practice support systems for which there is no easy workaround.

- Yellow Zone. Functions which are used and useful, but not absolutely necessary to the function of the organization. These may include billing aging, systems which automate billing of copier or similar services, publications of directories, redundant scheduling systems and substantive practice systems for which there is a simple workaround.

- Green Zone. Functions, the loss of which will have little or no negative effect on the organization. These may include management or billing reports no longer used in any depth, out of date or never-fully-implemented document management systems and the like.

Though it may seem obvious, it is critical that the organization focus on red zone items, which have priority over other functions. Yellow zone items are addressed only after all red zone items are fully handled, and must not be allowed to pull attention or resources from the red zone. Green zone items offer the benefit of spring cleaning, freeing space and resources for the more critical items in the other zones. Information and assistance may be obtained from the sources identified during the Audit and Review process, as well as from fellow attorneys, seminars and consultants specializing in Year 2000 remediation.

Contingency Plans. Every critical service is subject to disruption, Y2k being only one prominent reminder of this fact. Alternative plans should be established to accomplish any red zone items, even those for which it appears that Y2k is not a problem, or which have been remediated in previous steps. These contingency plans may be as simple as running a network billing temporarily on a standalone PC, or working with a chalkboard schedule instead of an online scheduling program. Contingency plans should be simple, tested and, as always, should rest on a foundation of solid, tested information backup systems which include periodic off-site storage. As with all other aspects of the Y2k preparation process, contingency plans should be thoroughly documented.

Year 2000 Information and Readiness Disclosure Act

The federal 'Year 2000 Information and Readiness Disclosure Act', enacted on October 18, 1998, provides protections to year 2000-related statements which may be of significance to legal organizations and their clients. Several aspects of the Act provide for limited time periods under which organizations may act to protect prior statements under specific criteria. Lawyers need especially to review these provisions on a priority basis. A review of the various issues involved with the legislation is found at www.lawsight.com/2k.htm.

Conclusion

No legal organization can afford to ignore Y2k. While there is no time to spare, the current period is a particularly good time to start. During the remainder of 1998 and perhaps the very early portion of 1999, sufficient time and resources should be available to perform the activities discussed above on a straightforward and reasonable basis. As 1999 progresses, this picture may change, with resources becoming scarce and accurate information more difficult to obtain. Immediate attention to these problems will benefit both the law firm and legal department and the clients they serve.

Bill Skeels is a strategic database and Year 2000 consultant to legal and business organizations. He is the founder of www.lawsight.com, which maintains an active resource section on Y2k for the legal and business communities.