Knowing Your Organizations Goal's Before Choosing a Product Brian Dirking April 9, 2009

Records Management Software Selection Information and the Economy The New Role of Records Management Knowing Your Organization What Can Be Improved? Features Evaluation Process Making the Case How To Succeed

Information and the Economy

The New Role of Records Management

Knowing Your Organization

What Can Be Improved?

Features

Evaluation Process

Making the Case

How To Succeed

“ Effective information management will be critical in the next decade, differentiating those enterprises that will implode under the infoglut from those that will use it to dominate the global economy." Gartner, June 2006 Source: Gartner; June 2006; Spotlight on Enterprise Information Management

A Tough Economy Brings New Opportunities How do we thrive in the midst of an economic downturn? Demonstrably lowering costs Being more competitive by fostering speed and transparency in decisions Lowering risk Preparing for additional regulatory requirements

How do we thrive in the midst of an economic downturn?

Demonstrably lowering costs

Being more competitive by fostering speed and transparency in decisions

Lowering risk

Preparing for additional regulatory requirements

The New Role of Records Management

The Pendulum Swings Patrick Oot, a lawyer for Verizon “Almost every case involves e-discovery and spits out ’terabytes’ of information... In an ordinary case, 200 lawyers can easily review electronic documents for four months, at a cost of millions of dollars.” The Economist: http://www.economist.com/business/displaystory.cfm?story_id=12010377

Patrick Oot, a lawyer for Verizon “Almost every case involves e-discovery and spits out ’terabytes’ of information... In an ordinary case, 200 lawyers can easily review electronic documents for four months, at a cost of millions of dollars.”

The Economist: http://www.economist.com/business/displaystory.cfm?story_id=12010377

Content Retention To persuade business unit leaders of the necessity for effective document retention, a large chemical firm’s legal department conducted an internal cost assessment of a 3-year litigation project. Their findings: They reviewed 75 million pages of text during the 3-year period. More than 50 percent of the documents they reviewed were out-of-date and should have been deleted. The cost of reviewing out-of-date documents amounted to $12 million. How much money would your organization save if you could target your outdated content, and remove it?

To persuade business unit leaders of the necessity for effective document retention, a large chemical firm’s legal department conducted an internal cost assessment of a 3-year litigation project. Their findings:

They reviewed 75 million pages of text during the 3-year period.

More than 50 percent of the documents they reviewed were out-of-date and should have been deleted.

The cost of reviewing out-of-date documents amounted to $12 million.

How much money would your organization save if you could target your outdated content, and remove it?

What is a record? Vital piece of history of how we do business Licenses, insurance policies Emails Documents Website Information Explosion – Facebook, blogs, wikis, discussion boards, chat, IM, text messages All of these are subject to discovery Therefore, we want to manage retention on information we might not consider a record

Vital piece of history of how we do business

Licenses, insurance policies

Emails

Documents

Website

Information Explosion – Facebook, blogs, wikis, discussion boards, chat, IM, text messages

All of these are subject to discovery

Therefore, we want to manage retention on information we might not consider a record

Other Data MS Outlook - Email Content Management Systems – Documents, Images HR Systems - Employee Records CRM Systems - Customer Records People may own the operation of these applications, but they do not own the data.

MS Outlook - Email

Content Management Systems – Documents, Images

HR Systems - Employee Records

CRM Systems - Customer Records

People may own the operation of these applications, but they do not own the data.

Information Universe We have defined the information universe for our organization Any information is fair game for records managers

We have defined the information universe for our organization

Any information is fair game for records managers

Knowing Your Organization

Know Thyself… Socrates Pythagoras Chilon of Sparta (Chilon I 63, 25) Heraclitus Solon of Athens Thales of Miletus The Matrix

Socrates

Pythagoras

Chilon of Sparta (Chilon I 63, 25)

Heraclitus

Solon of Athens

Thales of Miletus

The Matrix

Organization Goals Make information findable and improve business processes Ensure compliance and reduce risk by controlling information retention Empower legal counsel and reduce costs by enabling e-Discovery Provide long-term archiving of physical and electronic assets

Make information findable and improve business processes

Ensure compliance and reduce risk by controlling information retention

Empower legal counsel and reduce costs by enabling e-Discovery

Provide long-term archiving of physical and electronic assets

What are the processes? What is working? What is not working? What is the cost? Invoice processing Employee on-boarding Customer support calls Partner applications Purchase and warranties Contracts management

What is working?

What is not working?

What is the cost?

Invoice processing

Employee on-boarding

Customer support calls

Partner applications

Purchase and warranties

Contracts management

Process Improvement What improvements can we make to these processes? What are the costs of those improvements? What are the potential upsides? Understanding this business case will enable us to better choose a system that is suited to our issues and requirements 5 photocopies created Routed to 5 departments Contract received

What improvements can we make to these processes?

What are the costs of those improvements?

What are the potential upsides?

Understanding this business case will enable us to better choose a system that is suited to our issues and requirements

5 photocopies created

Routed to 5 departments

Contract received

Record Ownership Who owns the records? Who will sign off on destruction? Who will actually perform destruction?

Who owns the records?

Who will sign off on destruction?

Who will actually perform destruction?

IT Landscape What are your IT department skillsets and preferences? Which OS? Which database? What development platforms?

What are your IT department skillsets and preferences?

Which OS?

Which database?

What development platforms?

Features

Key Physical Records Mgmt. Features Space Management definition of warehouse layout searching for empty space reserving space tracking occupied and empty space Bar Code Reading / Writing need to productize label printing Circulation Services reserving and checking out physical content maintaining a due date for checked out items sending notification when overdue Charge-backs track charges for actions within warehouse generate reports indicating how much is owed by different entities (e.g., departments).

Space Management

definition of warehouse layout

searching for empty space

reserving space

tracking occupied and empty space

Bar Code Reading / Writing

need to productize

label printing

Circulation Services

reserving and checking out physical content

maintaining a due date for checked out items

sending notification when overdue

Charge-backs

track charges for actions within warehouse

generate reports indicating how much is owed by different entities (e.g., departments).

Physical/Electronic Records Differences between physical and electronic records management Lots of the same categories/classes Physical traits to manage – barcodes, checkout, chargebacks, space management Full text searchability of electronic records Instant aspect of electronic records – categorization, holds, disposition Multiple access points

Differences between physical and electronic records management

Lots of the same categories/classes

Physical traits to manage – barcodes, checkout, chargebacks, space management

Full text searchability of electronic records

Instant aspect of electronic records – categorization, holds, disposition

Multiple access points

Core Records Management Features Customizable metadata Screening/searching Placing holds/layering holds Import – files, retention plans, conversion Classification Retention management of non-records Archiving Reports, Custom reports Audits Collection, holds, export

Customizable metadata

Screening/searching

Placing holds/layering holds

Import – files, retention plans, conversion

Classification

Retention management of non-records

Archiving

Reports, Custom reports

Audits

Collection, holds, export

Other Considerations Training Maintenance costs Average deployment cycle Partners Language Support

Training

Maintenance costs

Average deployment cycle

Partners

Language Support

Retention Management More than a deletion date Retention policies combine events and actions Events Content expired (e.g. a contract) Usage statistics (e.g. document has not been accessed in 18 months) Business event (e.g. environmental impact filing) Content life cycle event (e.g. new revision checked in) Actions Delete Notify author Archive Move Delete revisions Revise

Retention policies combine events and actions

Events

Content expired (e.g. a contract)

Usage statistics (e.g. document has not been accessed in 18 months)

Business event (e.g. environmental impact filing)

Content life cycle event (e.g. new revision checked in)

Actions

Delete

Notify author

Archive

Move

Delete revisions

Revise

Multi-Schedule - Healthcare A publicly held hospital in California is subject to many HIPAA Records must also be retained for six years, two years after a patient's death Medicare Conditions of Participation, section 42 CFR 482.24 (b) Retain medical records for five years State of CA Welfare and Institutions Code section 14124.1 Three-year retention period for records Department of Labor regulation 29 CFR 516.6 Employment and earnings records for two years. Employment discrimination complaints for three years Internal Revenue Service Tax records for four years Sarbanes Oxley Section 103(a)(2)(A)(i) Audit work papers for seven years Occupations Safety and Health Administration (OSHA) Keep records of both medical and other employees who are exposed to toxic substances and harmful agents for thirty years

A publicly held hospital in California is subject to many

HIPAA

Records must also be retained for six years, two years after a patient's death

Medicare Conditions of Participation, section 42 CFR 482.24 (b)

Retain medical records for five years

State of CA Welfare and Institutions Code section 14124.1

Three-year retention period for records

Department of Labor regulation 29 CFR 516.6

Employment and earnings records for two years.

Employment discrimination complaints for three years

Internal Revenue Service

Tax records for four years

Sarbanes Oxley Section 103(a)(2)(A)(i)

Audit work papers for seven years

Occupations Safety and Health Administration (OSHA)

Keep records of both medical and other employees who are exposed to toxic substances and harmful agents for thirty years

DOD 5015 Organization records series Organizational file plans Organization disposition instructions Retention calculation Access controls Security classification markings Management of records stored in electronic formats Management of emails and attachments in electronic formats Linking of records to supporting materials Tools to aid the search and retrieval of records Records destruction in a manner that prevents recovery Freedom of Information Act (FOIA)/Privacy Act workflow requirements Vital records review cycles Additional metadata, including e-mail, PDF, digital photographs, images and Web records Greater data security and integrity Capability to create alerts and notifications regarding changes in metadata fields More automatic linking requirements Capability to restrict metadata access based on the contents of fields Tools to support RMA-to-RMA interoperability Additional transfer requirements Data discovery requirements Interface and behavioral requirements for integration with electronic document management systems Versions 1 and 2 Version 3

Organization records series

Organizational file plans

Organization disposition instructions

Retention calculation

Access controls

Security classification markings

Management of records stored in electronic formats

Management of emails and attachments in electronic formats

Linking of records to supporting materials

Tools to aid the search and retrieval of records

Records destruction in a manner that prevents recovery

Freedom of Information Act (FOIA)/Privacy Act workflow requirements

Vital records review cycles

Additional metadata, including e-mail, PDF, digital photographs, images and Web records

Greater data security and integrity

Capability to create alerts and notifications regarding changes in metadata fields

More automatic linking requirements

Capability to restrict metadata access based on the contents of fields

Tools to support RMA-to-RMA interoperability

Additional transfer requirements

Data discovery requirements

Interface and behavioral requirements for integration with electronic document management systems

User Adoption Most companies have tried to install RM systems, and retrain users in how to author content Costly – new licenses, throwing away old licenses, training costs User adoption is the biggest barrier to good records management

Most companies have tried to install RM systems, and retrain users in how to author content

Costly – new licenses, throwing away old licenses, training costs

User adoption is the biggest barrier to good records management

Categorizing Content Metadata Driven Content can be matched to retention policies based upon metadata

Content can be matched to retention policies based upon metadata

Categorizing Content Metadata Driven Content can be matched to retention policies based upon metadata Retention policies can be assigned by information such as which folder a user saves information into

Content can be matched to retention policies based upon metadata

Retention policies can be assigned by information such as which folder a user saves information into

Categorizing Content User Driven Content can be matched to retention policies based upon metadata Retention policies can be assigned by information such as which folder a user saves information into Users can select policies when they create and save documents

Content can be matched to retention policies based upon metadata

Retention policies can be assigned by information such as which folder a user saves information into

Users can select policies when they create and save documents

RM in Content Management Systems Allow records management features to be implemented in content management systems File plans, retention schedules, discovery, placing holds, disposition Anybody see a problem with that? Either you have records manager who is trained in administering many systems, or you have records managers who each manage their own systems. How do you coordinate file plans, retention schedules, discovery, placing holds, and disposition?

Allow records management features to be implemented in content management systems

File plans, retention schedules, discovery, placing holds, disposition

Anybody see a problem with that?

Either you have records manager who is trained in administering many systems, or you have records managers who each manage their own systems.

How do you coordinate file plans, retention schedules, discovery, placing holds, and disposition?

Federated Records Management Allow authors to create content as they usually do Store it where they do – file shares, document management systems, SharePoint Harvest that content on a regular basis Do you copy or move that content? If you copy it, you have two copies, and upon disposition you still have the content around If you move it, you have angry users who can’t find their content

Allow authors to create content as they usually do

Store it where they do – file shares, document management systems, SharePoint

Harvest that content on a regular basis

Do you copy or move that content?

If you copy it, you have two copies, and upon disposition you still have the content around

If you move it, you have angry users who can’t find their content

In Place Records Management Allow content to remain in system where it was created Monitor that content and categorize it according to the file plan If it’s a record, keep the file from being deleted If the system cannot relinquish that control, have a backup strategy Upon disposition, take action on the file

Allow content to remain in system where it was created

Monitor that content and categorize it according to the file plan

If it’s a record, keep the file from being deleted

If the system cannot relinquish that control, have a backup strategy

Upon disposition, take action on the file

Single Console Records management across all your systems Email document management physical records Single place to perform discovery place holds perform disposition

Records management across all your systems

Email

document management

physical records

Single place to

perform discovery

place holds

perform disposition

Shared Content What about content outside of our organization? M&A, board information, partners, employees taking work home? Control who can view/print/copy Revoke access at any time Audit usage Ensure content updates Disposition of remote content Clawbacks

What about content outside of our organization?

M&A, board information, partners, employees taking work home?

Control who can view/print/copy

Revoke access at any time

Audit usage

Ensure content updates

Disposition of remote content

Clawbacks

Evaluation Process

Organization Processes What are your organizations processes around: Contracts System Requirements Pricing and Billing RFPs

What are your organizations processes around:

Contracts

System Requirements

Pricing and Billing

RFPs

What will we need to evaluate? RFP/RFI Demonstration Pilot Consulting Training (Admin and End User) Support contract

RFP/RFI

Demonstration

Pilot

Consulting

Training (Admin and End User)

Support contract

RFPs Keep it to the point Nobody wants to fill it out, nobody wants to read it Should weed out some vendors Focus on your goals – cost cutting, e-discovery, user performance, long term archiving Why should you not put out an RFP in March, June, September, or December?

Keep it to the point

Nobody wants to fill it out, nobody wants to read it

Should weed out some vendors

Focus on your goals – cost cutting, e-discovery, user performance, long term archiving

Why should you not put out an RFP in March, June, September, or December?

Demonstrations When you have narrowed down to 2-3 vendors Get a demonstration showing your content See the administrator’s experience See the end user’s experience

When you have narrowed down to 2-3 vendors

Get a demonstration showing your content

See the administrator’s experience

See the end user’s experience

Pilot How long? How many employees involved? What is the feedback process from users? Have a mock discovery Look at audit trails and certificates of destruction – will these stand up in court?

How long?

How many employees involved?

What is the feedback process from users?

Have a mock discovery

Look at audit trails and certificates of destruction – will these stand up in court?

Services Find out how much consulting, training, and support will be involved in Your first implementation Running your system thereafter

Find out how much consulting, training, and support will be involved in

Your first implementation

Running your system thereafter

Beyond Implementation Will this system be useful to solve other problems within your organization? Contract repository Knowledgebase Website Regulatory submissions

Will this system be useful to solve other problems within your organization?

Contract repository

Knowledgebase

Website

Regulatory submissions

Making The Case

ROI Stakeholders will want to see a strong ROI, especially in current economic environment Where are the areas we can show this? Soft numbers – productivity Hard numbers – call center times, discovery costs, storage costs Go back to the processes you reviewed and see what you can improve Don’t boil the ocean – pick an area to focus on

Stakeholders will want to see a strong ROI, especially in current economic environment

Where are the areas we can show this?

Soft numbers – productivity

Hard numbers – call center times, discovery costs, storage costs

Go back to the processes you reviewed and see what you can improve

Don’t boil the ocean – pick an area to focus on

Retention Management and Storage Typical Content Growth Example company - storage, archiving, services costs Email 10,000 user mailboxes, 100 MB per mailbox = 1 TB 10 sent msgs/day, 25 rec’d @ 15 K per = 5.25 GB Growth rate of 137% Documents 10,000 users storing 2.5 GB documents = 25 TB Create 1 MB/day = 100 GB Growth rate of 100% Calculated at $50/GB annual storage/archiving/ service cost

Typical Content Growth Example company - storage, archiving, services costs

Email

10,000 user mailboxes, 100 MB per mailbox = 1 TB

10 sent msgs/day, 25 rec’d @ 15 K per = 5.25 GB

Growth rate of 137%

Documents

10,000 users storing 2.5 GB documents = 25 TB

Create 1 MB/day = 100 GB

Growth rate of 100%

Calculated at $50/GB annual storage/archiving/ service cost

Storage Savings Storage, archiving, services Deleting content kept beyond it’s retention period can save up to 33% of your storage costs Based upon deleting 50% of your content that is beyond it’s retention period. Projected Storage Projected Costs Managed Storage Savings 2007 26,000 $1,300,000 26,000 $0 2008 53,365 $2,668,250 40,365 $650,000 2009 80,730 $4,036,500 47,548 $1,659,125 Total $8,004,750 $2,309,125

Deleting content kept beyond it’s retention period can save up to 33% of your storage costs

Based upon deleting 50% of your content that is beyond it’s retention period.

Restoration Costs The Cost to IT What would it cost to find everywhere content exists in your organization – file system, email, applications, repositories, desktop, archives, backup tapes. What would it cost you to restore this content for review? Projected Content Restoration Costs Managed Storage Savings 2007 26,000 $15,843,750 26,000 $0 2008 53,365 $32,519,297 40,365 $7,921,875 2009 80,730 $49,194,844 47,548 $20,220,586 Total $97,557,891 $28,142,461

What would it cost to find everywhere content exists in your organization – file system, email, applications, repositories, desktop, archives, backup tapes.

What would it cost you to restore this content for review?

Discovery Costs Discovery costs are typically $1,800 to $2,500 per GB One time discovery on 20% of your data at $1,800 per GB Projected Content Discovery Costs Managed Storage Savings 2007 26,000 $9,360,000 26,000 $0 2008 53,365 $19,211,400 40,365 $4,680,000 2009 80,730 $29,062,800 47,548 $11,945,700 Total $57,634,200

Discovery costs are typically $1,800 to $2,500 per GB

One time discovery on 20% of your data at $1,800 per GB

Litigation Preparedness In case of litigation, it is important to have strong control over your content Know what evidence you have Quickly search it for relevant information Know the strength of your case – called “knowing hand” Present organized data at discovery meetings Catalog of content, per new Civil Rules of Federal Procedure

In case of litigation, it is important to have strong control over your content

Know what evidence you have

Quickly search it for relevant information

Know the strength of your case – called “knowing hand”

Present organized data at discovery meetings

Catalog of content, per new Civil Rules of Federal Procedure

Litigation Savings A typical $1B revenue company has 146 lawsuits per year. 25% of lawsuits are settled earlier based on “knowing hand” and immediate access to evidence (140 lawsuits x 25% = 35). Estimated savings approximated at 20% per early settled lawsuit ($1.5 million average lawsuit cost x 20% = $300,000). Year 1 Savings: 35 lawsuits settled early at a savings of $10.5 million. Year 2 Savings: 35 lawsuits settled early at a savings of $10.5 million. Year 3 Savings: 35 lawsuits settled early at a savings of $10.5 million. Total Savings 3 Years: 105 lawsuits settled early at a savings of $31.5 million.

A typical $1B revenue company has 146 lawsuits per year.

25% of lawsuits are settled earlier based on “knowing hand” and immediate access to evidence (140 lawsuits x 25% = 35).

Estimated savings approximated at 20% per early settled lawsuit ($1.5 million average lawsuit cost x 20% = $300,000).

Year 1 Savings: 35 lawsuits settled early at a savings of $10.5 million.

Year 2 Savings: 35 lawsuits settled early at a savings of $10.5 million.

Year 3 Savings: 35 lawsuits settled early at a savings of $10.5 million.

Total Savings 3 Years: 105 lawsuits settled early at a savings of $31.5 million.

Total Savings Quantifiable Cost/Savings Comparison: Storage savings over 3 years: $2.3 million Restoration savings, 2009: $20 million Discovery savings, 2009: $12 million Litigation savings, per year: $10.5 million Non-Quantifiable Cost/Saving Comparison: Decreased corporate risk (exposure) though implementation of document retention process. Increased flexibility for new Federal Rules of Civil Procedures – i.e. “Meet and Confer” – early access/understanding of scope of evidence. Less vulnerability to “nuisance” lawsuits Decreased cost due to employee ability to locate knowledge resources amidst less clutter

Quantifiable Cost/Savings Comparison:

Storage savings over 3 years: $2.3 million

Restoration savings, 2009: $20 million

Discovery savings, 2009: $12 million

Litigation savings, per year: $10.5 million

Non-Quantifiable Cost/Saving Comparison:

Decreased corporate risk (exposure) though implementation of document retention process.

Increased flexibility for new Federal Rules of Civil Procedures – i.e. “Meet and Confer” – early access/understanding of scope of evidence.

Less vulnerability to “nuisance” lawsuits

Decreased cost due to employee ability to locate knowledge resources amidst less clutter

How to Succeed

Executive Support How do you engage executives and win support? Understand their goals Make information findable and improve business processes Ensure compliance and reduce risk by controlling information retention Empower legal counsel and reduce costs by enabling e-Discovery Provide long-term archiving of physical and electronic assets How do you maintain that support and ensure continued funding?

How do you engage executives and win support?

Understand their goals

Make information findable and improve business processes

Ensure compliance and reduce risk by controlling information retention

Empower legal counsel and reduce costs by enabling e-Discovery

Provide long-term archiving of physical and electronic assets

How do you maintain that support and ensure continued funding?

Other Constituents IT Application Owners End Users/Content Creators People who touch the processes Legal Counsel Figure out who your constituents are and recruit a strong and supportive person from each group to be on your team

IT

Application Owners

End Users/Content Creators

People who touch the processes

Legal Counsel

Figure out who your constituents are and recruit a strong and supportive person from each group to be on your team

How to implement Management – Constituent buy in Manageability - Start small and learn Mojo evangelizing choosing vocal early adopters Momentum Milestones Maintenance Moving On - Next Project

Management – Constituent buy in

Manageability - Start small and learn

Mojo

evangelizing

choosing vocal early adopters

Momentum

Milestones

Maintenance

Moving On - Next Project

Partners Your organization may have specialized requirements due to your industry or other factors, but more than just a feature comparison, your selection should consider which vendor‘s product, people and approach best aligns with your goals. You need strong partners to guide you… Evaluation, file planning, implementation, roll out

Your organization may have specialized requirements due to your industry or other factors, but more than just a feature comparison, your selection should consider which vendor‘s product, people and approach best aligns with your goals.

You need strong partners to guide you…

Evaluation, file planning, implementation, roll out

Summary Records managers – your organization needs you You can align your organizations’ information goals with it’s information practices Your experience with retention management, holds, and disposition practices can result in strong return on investment

Records managers – your organization needs you

You can align your organizations’ information goals with it’s information practices

Your experience with retention management, holds, and disposition practices can result in strong return on investment

For more information… http://bdirking.blogspot.com/ [email_address]