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  Trade Center Recovery Success Validate Business' Needs for Strategy
by Bob Cox September 29, 2001 Fort Worth Star-Telegram



"What we didn't want to have happen was have information technology or real estate be an issue" for the New York management team, said David Kliman, vice president of administration and one of two executives who led the disaster recovery effort for Fireman's Fund.

Fireman's Fund had a twofold task: assessing how and where to relocate its New York offices, and taking care of customers in the World Trade Center complex and nearby that would have insurance claims.

Before the day was over, Fireman's Fund officials had determined they could relocate most of their employees to offices of the company or some of its affiliates, and placed orders for office furniture and 250 laptop computers. By Wednesday, MCI and other companies were installing additional telephone and data lines.

Similarly, Morgan Stanley was able to make plans to relocate the bulk of its people within the first couple of days and order needed equipment. When securities trading resumed on Sept. 17, the office was fully functioning and handled the bulk of the company's trading activities that day.

The cost of this kind of preparation is relatively modest, Malik said, about 2 percent of a company's annual information technology systems budget. The price for not having a plan can be high. Research shows that two out of five businesses struck by a disaster fail within five years.

Both Morgan Stanley and Fireman's Fund now face the challenge of finding and equipping new long-term office space. But that won't be nearly the challenge they faced in the first few hours and days after the World Trade Center was destroyed.

"It was an incredible experience," said Kliman, the Fireman's Fund executive. It's "one we wouldn't like to go through again."

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