How to plan for disaster.

In the last few years, we've seen software companies hit by earthquakes, floods, hurricanes, fires, power blackouts, and a variety of other disasters. Such events are inherently unpredictable, of course, but it is possible to map out a formal disaster recovery plan to speed up the recovery process. We asked disaster recovery expert Dr. Steven Lewis about the elements of a good recovery plan:

* Create an A list: "Not all departments can be resurrected at once," Lewis points out. "So you should start by deciding what operations you really can't live without. It may be devastating for your company to be unable to accept orders or schedule deliveries." However, Lewis says that the absolute top priority in disaster recovery is usually the accounting department. "Bill collection is really the way you meet the payroll," he notes, "so you want to make sure your accounting files are backed up most often and stored off-site."

* Keep a written record of essential equipment and resources: A good inventory list, says Lewis, should provide detailed information about key hardware and software systems, as well as emergency numbers for vendor contacts, descriptions of data files and formats, and even samples of business forms. "Keep in mind that if you rely on a supplier for more than 50% of your business, you'll have a disaster of your own if something happens to their business. Know who you depend on and create a secondary list of potential suppliers."

* Assign the heroes ahead of time: Employees often demonstrate extraordinary dedication and initiative during disasters--but Lewis argues that it's better to assign responsibilities (and appropriate authority) ahead of time. "We constantly tell people to assume that the normal decision-making person won't be available when a disaster strikes. There was a company in Colorado whose corporate office blew up. The president was killed, and the executive vice president was trying to run the operation from a hospital bed. Needless to say, they faced a management nightmare."

Dr. Steven Lewis, president, The Systems Audit Group, 25 Ellison Rd., Newton, Mass. 02159; 617/332-3496.