-Caveat Lector- 7/27 15:11 ET PR experts preparing to spin-doctor Y2K NEW YORK (Reuters) - Worried about what Y2K will do to your computer, fuel bills, credit-card accounts and bank deposits? Don't worry. Some of the nation's top image-making firms are preparing to ease your fears -- to explain them away or make you forget them. It's a byproduct of what many American corporations are calling ''crisis preparedness.'' Two of America's largest public-relations agencies, Burson-Marsteller and Hill and Knowlton, have set up teams and processes to help companies counter consumer fears and intensified media stress on the perils of computers unable to cope with the shift to the year 2000. But some may wonder: is the Y2K frenzy already only a simple case of too much hype leading to an awful letdown? Christopher P.A. Komisarjevsky, chief executive officer of Burson-Marsteller Worldwide, does not seem concerned by that possibility. '`No one knows what will happen,'' he said, ``but we see heightened interest and concern about it. It's both a technological and a perception issue. We see volatile moves among consumers, like hoarding water and food, hiding their cash and so on while the media reintensifies the issue, especially as we get closer to the end of the year. ``Companies that never got questioned about their methods will be barraged by the media and will have to respond to them, to customers, vendors and others. That's where we can help.'' Even those who may be skeptical surely recognize the Y2K hysteria that has gripped business and the public. Many banks, utilities and others have already assured their customers that they are taking steps to avert any problems come Jan. 1, 2000. However, in recent weeks, some airlines have announced no flights on New Year's Eve. At least one major company has pulled an advertisement on Y2K, fearing it would lead to more questions than answers. Companies have spent billions of dollars preparing their computers to recognize the year 2000 instead of reading it as 1900 or freezing up. Aggressive insurance companies have offered policies covering possible computer glitches, and some are already being sued by corporate customers to recoup money spent on preventive repairs. A rash of suits from consumers and advocacy groups is expected as the public finds itself anxious over potential electronic interruptions in basic services. Early in July, Congress passed a bill shielding businesses from computer-related suits by giving companies 90 days to fix Y2K problems before a suit can be filed. Whether this will curb litigation is hard to say. Hill and Knowlton aims in its new program to ``prepare business in continuity planning, in case, say, a payroll goes down, the company can properly communicate with its employees or to exert damage-control in many other ways,'' said Michael Van Dusen, H&K's senior vice president responsible for global Y2K activity. ``We will work in teams, pulling together from 45 to 50 people in such of our practices as advanced technology and crisis communications.'' Van Dusen said he expects the most interest in the project to come from companies in telecommunications, finance, health care, food and auto parts. At Burson-Marsteller, Komisarjevsky said, ``We believe that Y2K has the potential to be a major disruption for companies dealing with the public even if not a single computer malfunctions on New Year's Day. That's because the 'millennium bug' is no longer just a problem of technology but one of perception, too.'' Noting that ``irrational behavior'' can disrupt fourth-quarter business and hurt profits at thousands of companies, he said, ``the solution lies in guiding public perceptions and creating informed opinion now rather than letting uninformed opinion take the upper hand in coming months. That's where we come in.'' Komisarjevsky added that 24 ``communications command centers'' have been set up domestically and abroad to provide communications help between Dec. 31 and Jan. 3. Burson-Marsteller will get its revenues from the project in either of two ways -- by charging existing clients for staff time to help them with Y2K issues or, in the case of new clients, it will charge a fixed fee. Hill and Knowlton is offering its program as a ``value-added'' or additional service to clients, rather than as a separate service, Van Dusen said. ``I think what the agencies are doing is a valid effort,'' said Fraser Seitel, a public relations consultant and author of a standard college text on the subject. Asked whether the Y2K issue is perhaps being overdone, he responded: ``Well, many consultants have gotten rich helping corporations to get their systems arranged. But it's clearly a perception problem, too. If Armageddon looms, you have to be prepared for it. It's an extension of crisis preparedness.'' As more public relations agencies, advertising agencies and marketing consultants join in the spin-doctoring effort, it could conceivably breed an entire new professional services segment: ''Y2K Image Control.'' Story Copyright � 1999 Reuters Limited. All rights reserved. DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. 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