This document discusses the importance of implementing a thorough electronic records retention policy for companies. It outlines 7 key steps to ensure compliance with e-discovery rules and avoid sanctions, including: 1) understanding IT systems, 2) creating a detailed retention schedule and procedures, 3) instituting a litigation hold process, 4) training employees, 5) designating a records manager, 6) forming a retention committee, and 7) preserving former employees' hard drives. Failure to follow these steps could result in massive monetary penalties or adverse inferences, as shown in several court cases discussed in the document.