Effective Records Management In Today's Business Environment

Document Services Effective Records Management in Today’s Business Environment Contents 1 Introduction 2 Business Drivers for Records Management 6 Implications of Regulatory and Compliance Mandates 9 The Value Chain in Information Life Cycles 11 Changing Office Technologies 14 Organizational Best Practices

Records Management

Effective Records Management in Today’s Business Environment

Introduction Successful enterprises have come to rely on information as a major internal asset to leverage or as a lucrative product to sell. There is increasing public scrutiny regarding the need for corporate leaders to assure that business information in the form of records can be trusted, protected and produced when required. The importance of properly managing business records is covered in news sources almost daily, including the failure of some organizations to retain records for mandated time periods (Arthur Andersen) and the discovery in some cases of reputationdamaging emails (Microsoft and many others). Regrettably, litigation frequently is a tactic used to resolve disputes between persons and organizations. Governmental investigations routinely are initiated when audits yield findings of non-compliance with expected business practices or activities. In both of these scenarios, there is an immediate focus on how well management supported the proper retention and timely production of records, in either paper or electronic format.

The default assumption is that employees perform job functions as delineated by policy, procedure and management directives. Executive level attention to records management strategies, policies, procedures, and technology systems now is the expected practice in well-run organizations. Executive signatures required on financial statements by the Sarbanes-Oxley Act (SOX) make it critical to manage enterprise information and evidentiary records in a well-documented and consistent manner. Each organization’s value chain and information workflow must have supporting records management activities and auditable business processes that clearly document the status of activities; i.e., what is known, and when everyone knew it. A carefully developed records management strategy and rigorously enforced company information management policies are the key to achieving excellence in management that promotes customer, investor, regulator, employee and public confidence in an organization’s activities, products, and services.

Océ White Paper

1

Effective Records Management in Today’s Business Environment

Business Drivers for Records Management Today’s complex business environments generate numerous challenges for both management and employees. Fast-paced changes in office technologies, changing governmental mandates and global competition create both obstacles and opportunities. However, a common aspect of all business environments is the constant demand for ontime access to data, information and documentation. Informational business records are needed for operational guidance, reporting to auditors, documentation of intellectual capital, evidence in litigation and a variety of other tactical and strategic drivers. Business records with critical informational content must be locatable and retrievable quickly and accurately. Otherwise lost productivity, public embarrassment and damaged financial status may result. Of equal importance is the transition of most enterprises today from sifting through piles of paper to managing gigabytes of data. This shift creates a mandate for an enterprise to control and manage its office. Information is one of the most vital strategic and operational assets of organizations. Organizations depend on information to make critical strategic decisions, protect contractual rights, support innovation, develop products, deliver services, drive marketing, process transactions, serve customers, and generate revenue. This essential information is contained in business documents, or records. Business records need to be effectively managed. Senior executives

ultimately are responsible for the prudent stewardship of corporate assets. Yet many companies today lack effective policies and procedures to control, manage, preserve and retrieve critical corporate records and other business documents. Consequently, they waste valuable time searching for information when it is needed, risk severe penalties and loss of corporate reputation for non-compliance with records-related regulations and legal statutes, keep some records too long, spend too much for storage, and too often fail to protect mission-critical information from loss or destruction. Because operational effectiveness is a concern for shareholders, customers, and Boards of Directors it is incumbent on Chief Executive Officers (CEOs) to be fully aware of their current corporate records practices, requirements, and known gaps in meeting goals. Effective enterprise strategies must be in place to assure that information assets are well-managed. Records management is outside the line of business functions and core competencies of most organizations. Therefore, companies wishing to adhere to recognized best practices increasingly turn to third party solution providers with professional records management experience and expertise. Without such external professional assistance, organizations must bear the direct cost of internal development including the required expertise, facilities or equipment for the development of records management programs and solutions.

Information is one of the most vital strategic and operational assets of organizations. Organizations depend on information to make critical strategic decisions, support innovation and generate revenue. This essential information is contained in business documents or records.

Océ White Paper

2

Effective Records Management in Today’s Business Environment

The business risks associated with poorly managed information resources are substantial and increasing. Unfortunately, when information management issues are covered by the news media, it often is in a highly negative context. For example, when Arthur Andersen was implicated in the accounting irregularities related to Enron, the headlines did not cover that Arthur Andersen had the foresight to have a records retention schedule and records management program. The headlines did, however, cover extensively the use of shredders and allegations of intentional spoliation of evidence. When public records used by state governments that must be made available to the public cannot be located, allegations of misconduct may arise quickly. And when small sets of emails mysteriously disappear in any organization, there can be an assumption of spoilation — that someone has tampered with the email system and has intentionally deleted potentially incriminating evidence. Information management typically is one of the largest overhead burdens of an organization. The creation of correspondence, reports, brochures, forms and graphic materials can be highly expensive due to both the cost of materials and labor. Now that much of this information flow must occur within computer systems and networks, the incremental cost of performing daily

tasks continues to grow. At the same time it becomes critical to have well-run information systems that support an organization’s business goals. Should an organization’s loss of information become publicly disclosed, the financial impact in lost customers and public confidence can be immense. These dangers are especially true for financial services, insurance and data management businesses where customer loyalty often correlates to perceived organizational trustworthiness and reliability. The electronic information glut that affects organizations makes it increasingly difficult to establish which information is of sufficient value for long term retention. For this reason, it is challenging to differentiate data, files, and documents that should be discarded early in the information life cycle from official records. Information often is created on a personal computer, printed to paper locally, saved to off-line disks, and sent through networks to many recipients. These proliferating copies of records create difficulty in establishing the identity, accuracy, and authenticity of records that require retention for long term preservation. Many individuals find themselves in the unenviable position of an office worker who no longer knows which copy of their documents should be preserved as records material. Should they preserve the paper copy or the numerous versions of electronic files? (see Fig. 1)

Océ White Paper

3

Effective Records Management in Today’s Business Environment

This situation is particularly troubling as office files continue to multiply each year (as shown in Table 1), while actual information of significant value usually lasts only a few years. Most records, once filed into filing cabinets or disk drives, seldom are referred to again after their initial usage. Many office workers, especially those new on the job, or temporary workers, waste hours daily, simply looking for information that could readily be available had it been filed using an organizational standard filing plan. Mislabeled or misfiled information imposes initial labor search costs and subsequent resource costs when it must be re-created or re-generated. The potential financial losses due to misplaced evidence, critical corporate records or lost research data related to product development can surge to millions of dollars. Document management expenses are a major component of corporate operating expenses.

•

Companies spend approximately 10% of revenue on document management, production and distribution. (IDC End User Research)

•

Knowledge workers (the economy’s highest paid workers) spend an estimated 20% of their day looking for information in documents, yet about 50% of that time they are unable to find what they’re looking for. (IDC Study, January 2005)

For reasons including the above, many organizations have decided to create formally defined records management programs that are staffed with skilled professionals working to gain control of the “info glut” that threatens to obstruct business workflow. Organizations are beginning to assign more records management responsibilities to employees. However, assuring enterprisewide proper management of information

Océ White Paper

4

Effective Records Management in Today’s Business Environment

and records is simply beyond the job description and work-place experience of most employees. Employees dedicated to line-of-business activities need to be spending time accomplishing functionally important tasks, rather than wrestling with long-term corporate records retention issues. In fact, the local, state, and federal government agency investigative research required to professionally establish records retention periods for certain classes of corporate records is far beyond the capabilities of the average office worker. Records retention research requires specialized insights and educational background. Creating a records filing and indexing system that can be used across an organization to assure that both paper and electronic records can be found also is a task that only well-trained records management professionals should undertake.

importance of retaining records and the tools available calls for dedicated professional expertise. Effective records management can reduce the cost of doing business by effectively managing information resources in a number of ways:

Developing policies, procedures, and training programs to educate employees about the

•

Ensure compliance with regulations and legal statutes, thereby avoiding costly fines and penalties to which executives may be liable, as well as damage to corporate reputations

•

Limit financial risk from pre-trial discovery in government investigations and civil litigation

•

Streamline storage requirements for both electronic and paper documents

•

Reduce time and effort required to reconstruct mission-critical information in the event of a disaster or other loss

•

Reduce labor costs to control, manage, preserve and access information.

Océ White Paper

5

Effective Records Management in Today’s Business Environment

Implications of Regulatory and Compliance Mandates Today’s news headlines about records and recordkeeping systems often are uncomplimentary regarding organizations’ roles in records destruction. A classic case is that of Arthur Andersen employees shredding documents in an attempt to reduce the records available, subsequent to discovering court proceedings were in progress. The losses suffered by many organizations due to improper attention to accounting irregularities and other executive misdeeds have focused both public and governmental attention on the needs for excellence in recordkeeping. This heightened news media focus and resulting public attention means that organizations and their leading executives must introduce unimpeachable records management programs with consistently well-implemented policies and procedures. Although many firms have been in the news with respect to inappropriate records related actions, none is more visible than the case of Arthur Andersen. In November 2001, the U.S. Securities and Exchange Commission (SEC) delivered a subpoena to Arthur Anderson requesting records about the public accounting work performed for Enron. Subsequently in January, Arthur Andersen revealed that it had destroyed a number of documents related to the Enron audits. In March 2002, Arthur Andersen was charged with obstruction of justice for inappropriate records destruction, and the company was subsequently convicted in June 2002. Within less than a year, many of Arthur Andersen’s clients withdrew their business, and a $9 billion company with a long

history of professional credibility was virtually destroyed simply because of court decisions that it had not followed its own records management policy. A major outcome of this action has been increased public scrutiny of accounting practices, records management practices, and executive responsibility in general. For firms that have demonstrably supported and enforced existing records management programs, this level of visibility and management practices review does not pose a problem. However, companies that have failed to invest any significant resources to ensure official records are created and managed with the requisite attention and priority, risk serious consequences should records become suspect during audits, regulatory review or legal actions. (as shown in Table 2) The Sarbanes-Oxley Act of 2002 brought new focus on the issue of records accountability and proper records control during auditable business processes. The law requires that the CEOs and CFOs personally attest to and certify many records used in reporting financial status. Among other things, the Act creates guidelines for the establishment of audit committees, requires that documents relevant to possible government investigations be appropriately retained, and specifies that “audit work papers” be retained for seven years. Stiff criminal penalties are provided for executives in non-compliance, including that CEOs and CFOs making a false approval of company financial status potentially be

The losses suffered by many organizations due to improper attention to accounting irregularities have focused attention on the need for excellence in record keeping.

Océ White Paper

6

Effective Records Management in Today’s Business Environment

fined up to $1 million and/or be sentenced to prison for up to 10 years. If the false representations are deemed to be willful and intentional, the fine may reach $5 million and the prison sentence could reach 20 years. These admonitions apply to “anyone who knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes false entries in records or documents.”

the costs of electronic records discovery often are paid by the defendant, creating significant incentive to settle cases quickly.

Another area of growing concern for corporations is the stringent attention paid by courts to the preservation of records when the prospect of litigation arises. Just as SarbanesOxley legislation addresses the destruction of records, “spoliation” of evidence is similarly of importance to courts expecting to see high quality fully disclosed documentation. Spoliation is the destruction or alteration of evidence by actively destroying information or simply failing to preserve it. When records are destroyed at a defendant’s site or while under management control, the courts generally will find in favor of the plaintiffs even when ill intent on the part of the defendant may not be present. Courts have awarded fines and sanctions against organizations that failed to preserve records on magnetic tapes, optical disks, or older computer systems when the data could not be read or used. In addition,

•

The Securities and Exchange Act of 1934, Rule 240.17a-4 prescribes nonrewriteable non-erasable media for recording some electronic records

•

The National Association of Securities Dealers Rule 3010 directs that organizations oversee the communications of authorized representatives with the public, including assurance that employees comply with policies. To assure compliance there can be expectations of monitoring emails received internally or sent externally, as well as the ability to select for separate treatment emails that may have legal implications.

•

SEC regulations require that organizations provide comprehensive electronic records retention and search capabilities that ensure the latest two years of records are readily accessible.

Influence by regulatory agencies in the recordkeeping processes of business is growing. There is increasing need to assure records creation and retrieval occurs accurately and quickly, with proper supervision.

Océ White Paper

7

Effective Records Management in Today’s Business Environment

Litigation e-discovery costs resulting from the need to produce emails and other electronic records can be significant and push defendants into out-of-court settlements. For instance, most organizations today know that their email systems are out of control with respect to the volume of emails transmitted and the capacity of their servers to store the records in a wellorganized manner for retrieval. This is simply an IT systems performance issue and organizational inconvenience until a court decides that: 1) this performance failure has been known for some time; and 2) management’s failure to address it means that email critical to resolving legal disputes has been lost. Courts may decide to award damages to plaintiffs simply because the defendant has made it impossible to accurately assess the validity of their own defense or courts may decide that recordkeeping activities affect the quality of the records produced for legal purposes. In the recent Zubulake vs. UBS Warburg case, the plaintiff (“Zubulake”) filed suit against UBS, her former employer, alleging gender discrimination and retaliation. This matter came before the court after Zubulake’s motion to compel UBS to produce email messages that existed only on backup tapes and other archived media. United States District Court Judge Shira A. Scheindlin issued five groundbreaking opinions in the case. The Zubulake decisions are of particular interest in the U.S. because they originated from the influential Southern District of New York, and the case provided lawyers with new best practices related to the legal and technical aspects of electronic discovery. Zubulake greatly increased the scope of a party’s duty to preserve and produce electronic records, and imposed sanctions for spoliation (destruction of evidence).

Zubulake vs. UBS Warburg greatly increased the scope of a party’s duty to preserve and produce electronic records, and imposed sanctions for spoliation (destruction of evidence).

Océ White Paper

8

Effective Records Management in Today’s Business Environment

The Value Chain in Information Life Cycles All information has a life cycle that begins with creation and ends with a final disposition of information to an archive or destruction. Creation of information can be in either paper or electronic format. Increasingly, most information is created on computer systems as electronic files or data. After creation, digital computer files can be printed, transmitted to other users by email, made accessible by posting on Internet web sites or other means. Eventually, digital information must be stored for future retrieval or may simply be deleted. During the various phases of the information life cycle, some of this information becomes sufficiently valuable to be considered “record material” and other information simply remains in general document or data format for eventual discard. This distinction of becoming a “record” for preservation is critical to the concept of records management, in that all defined records series should have a mandated retention period, whereas “nonrecord” materials should be discarded soon after their initial use, often within one year of creation. For this reason, when an organization establishes a value chain for products and services, the important records that add value to the

creation or management of those products and services should be identified early and should be managed throughout their entire life cycle. Documents or data that does not need to be retained will clutter up disk drives or desktops and can be eliminated as soon as is practical in the life cycle of the information by quickly moving it toward destruction or deletion. A typical document workflow in an organization might occur as seen in Fig. 2. It is common for organizations with collaborative projects such as architectural, engineering, or manufacturing firms to produce both paper and electronic records materials during project workflow. In some cases, records may initially be produced on computers, stored during the project in records centers, and eventually scanned or simply stored as paper off-site. It is obvious that not all organizations are properly staffed and equipped to perform records tracking in an integrated manner for both paper and electronic files across multiple departments over time. Many organizations are similarly not staffed or trained to capture and manage the records generated from such complex business processes if the documents must be scanned into images for multi-user access from many different jobsites.

Océ White Paper

9

Effective Records Management in Today’s Business Environment

In these cases, it may be most cost effective to contract for outside assistance with some of these records management issues so that internal personnel can focus their attention on the organization’s line of business and delegate some information management services to more highly skilled, trained specialists. Contemporary concerns about technology obsolescence and digital preservation are the source of another information life cycle issue. All computer systems run on hardware and software that begin to become obsolete from the moment they are installed and configured. As hardware systems such as tape, magnetic disk, and CD/ DVD drives wear, the information recorded with those devices is in danger of becoming inaccessible over time. As office desktop computer software versions change yearly, the various data formats being created may not be re-usable in the future depending on the backward compatibility of each vendor’s software offering. For this reason, many organizations are creating digital document preservation strategies that include a migration of electronic records over time from the original native file formats to more permanent file formats, such as PDF or TIF, to archival media such as CD-ROMs, and eventually to printing and preservation on acid-free archival-quality paper media.

Without a sound data migration strategy, organizations may in the future try to retrieve electronic files that are not readable on contemporary computer equipment. This will greatly impact organizational success in addressing records retrieval needs and could negatively impact the overall success of the organization in the marketplace. (see Fig. 3) Defining an organization’s information life cycle within the operating framework of lineof-business processes and value chain is critical to the identification of critical records needing long term retention. Each organizational business process that generates revenue must have the critical records for that process defined in a Records Retention Schedule, retention periods assigned, and applicable policies and procedures developed to address them. In addition, appropriately trained personnel must be assigned to assure that those records are captured and preserved, or the loss to the organization may be substantial, financially or in public perception. In contrast, well-managed organizations with highly skilled personnel assuring that record-keeping systems are properly managed will enhance the marketplace reputation and viability of an organization and its management.

Océ White Paper

10

Effective Records Management in Today’s Business Environment

Changing Office Technologies Computers and the networks that connect them have created quantum-level change in today’s business environments. In fact, the vast majority of paper that is used within organizations was initially created, stored, and transmitted on computers. The personal computer has brought immense information creation and delivery power to office workers and the Internet has within only a decade transformed our expectations regarding information communication and accessibility. Computer technology and its benefits, however, come at a price that often includes organizational change for both business processes and employees. The use of computers in the workplace and their effect on information management must be planned carefully to avoid losing control of our information assets. Computer files exist in many systems, including electronic mail, personal computers, web sites and database applications, and are distributed across many locations. Organizations

increasingly conduct business electronically. This causes valuable business intelligence, evidence for legal proceedings, process documentation, and intellectual capital to be placed at risk if electronic business records are not properly protected and preserved. However, the variety of information in electronic format is almost overwhelming: 1. Desktop computer files, including word processing, spreadsheets, small databases, graphics files and some email stored locally on hard disks 2. Local Area Network-based server files, including server-based emails, shared project directories, and printer management servers 3. Document management, content management, workflow, imaging systems and other workflow or collaboration oriented server-based applications for global use 4. Dedicated applications that support forms processing, document scanning, engineering or design business processes

Océ White Paper

11

Effective Records Management in Today’s Business Environment

5. Enterprise accessible database systems for business functions such as accounting, human resources management, or handling facilities maintenance requests 6. Intranet web sites for publishing internal policies, research data, or other private information 7. Extranets and public web sites that offer web-based documents and data to business partners or the general public. In fact, there is a continual synthesis and integration of data that results in changing information content format and presentation. For instance, in creating a monthly report, a person might download data to a spreadsheet, paste the spreadsheet as a table into a word processor, attach the word-processing file to an email, send the email to an Intranet web publisher, and then post the monthly report on an Intranet. It can become difficult to follow the chain of records that constitute the final document. Without documented records management procedures, the evidentiary sources of the final published report can be lost and difficult to produce should evidence of the reports’ production processes be needed. Fig. 4 is a conceptual illustration of the diverse types of interconnected computer software, systems and electronic records repositories that may impact a typical office worker.

Much of the records material produced within these systems either is archived to backup tapes that must be restored to be useful, or the information is protected by offloading the data to CD-ROM, DVD, or a form of magnetic disk or tape. This practice exacerbates a complex growing information duplication problem unless the disks or tapes are organized and labeled to indicate the content of the media. Unfortunately, much of the information stored off-line on computer media external to originating computer systems often is poorly labeled, difficult to retrieve, and filed locally in paper filing cabinets. This can seriously disrupt electronic records discovery. A major improvement in controlling paper documents can come from implementing barcodes and RFI sensitive labels to track physical files. Implementing computer network resident records management software to track both physical and electronic files also can reduce the time required to find records. An opportunity for outsourcing of electronic records creation and storage can occur when paper documents are scanned into electronic images that must be stored on CDs or other long term storage media. To ensure that the electronic records being created in these repositories can be coordinated, controlled and managed, responsible

There is a continual synthesis and integration of data that results in changing information content format and presentation.

Océ White Paper

12

Effective Records Management in Today’s Business Environment

organizations implement electronic records management (ERM) software. ERM software facilitates efficient and cost-effective storage, retrieval, and retention of electronic business records. Records creation computer systems, such as email or desktop computers, serve well for information creation and distribution. However, such systems have been designed to maximize user creativity or computer performance rather than to assure long term business records retention and preservation according to approved corporate retention schedules and procedures. For these reasons, records creation systems generally are not good record-keeping systems. In many cases emails, legal documents, engineering drawings or software programs may be stored for departmental sharing purposes in an electronic document management (EDM) system. However, unless records retention functionality is integrated into the operations of an EDM system, it is difficult to be sure that business records will be retained according to legal and regulatory requirements, as well as fulfill the operational needs of business units. It is important to ensure that both paper and electronic records can be accessed in an integrated manner so that information can be located regardless of the media in which it is stored. In response to the global need to control electronic records, several software standards have been created that specify how electronic records should be managed. These standards include the U.S. Department of Defense DoD 5015.2 Standard, and electronic records management standards developed in Europe (MoReQ), Great Britain (PRO), and Australia (VERS).

Most major software companies recognize the need both to meet emerging international standards and to offer software solutions to manage electronic records. IBM, Open Text, EMC/Documentum, Summation, Interwoven, Stellant, and FileNet are among the companies that now offer software solutions designed to manage both paper and electronic records. The need to distinguish between these standards and ERM requirements often encourages organizations to seek outside expertise from records management consultants and outsourcing services companies with accredited records management professionals to assure that the software procured meets business needs. One of the most important aspects of using these standards to implement ERM solutions is that they all address both paper document and electronic records tracking to some degree, creating a seamless system where a single query may recall information on both paper and electronic documents. Corporations that wish to command the respect and trust of their customers, business partners, employees and investors are rapidly moving toward electronic systems to achieve fullspectrum management of electronic records. This holds true for government agencies that wish to demonstrate they meet the public’s demand for accountability and openness. However, many organizations are new to records management program development and deployment and are just beginning to develop initiatives. An important option to effectively implement best practicesbased records management programs is to partner with external records management service providers such as commercial records centers and ERM systems consultants, or outsource to leading document process management companies such as Océ Business Services.

Océ White Paper

13

Effective Records Management in Today’s Business Environment

Organizational Best Practices Best practices organizations recognize and act on the growing business imperative for formally defined and consistently administered records management programs. This is occurring due to government requirements for records compliance as well as for the substantial cost savings and productivity gains associated with the ability to quickly find and access business information. Although the size and scope of programs varies widely, they share common elements. These elements are global policies, specific procedures, IT support systems, on-going records management training, and personnel dedicated to assuring that this enterprisewide responsibility is wholly addressed.

period in months and years (based on legal, regulatory, and best practices research) 3. An organizational File Plan that lists primary records types by functional unit so that information can be located without dependence on any one employee 4. A Vital Records Program that identifies and protects those records that are critical for immediate restart of an organization’s business processes following a disaster

The primary components of a high quality Records Management Program are:

5. A Records Management Implementation and Training Program that works with identified Records Coordinators in primary functional units to train them in the policies, procedures, workflow, and systems required to assure quality recordkeeping occurs

1. Policies and Procedures for creating and storing records in both paper and electronic format that are demonstrably supported by an organization’s executives, including the Chief Executive Officer, Chief Financial Officer, Chief Information Officer, Chief Legal Counsel, and Chief Compliance Officer

6. Increasingly, the presence of a dedicated hardware/software electronic records system repository so that employees have a place to store personal computer files, electronic mail messages, and any other electronic documents for long term retention based on a formally defined Records Retention Schedule and business rules

2. A thoroughly documented Records Retention Schedule that lists Records Series (categories) and the expected retention

7. Periodic Audits to assess the clarity of procedures, effectiveness of training, and that provide an enforcement vehicle

Outsourced business services relationships often support a well-planned records management program.

Océ White Paper

14

Effective Records Management in Today’s Business Environment

Outsourced business services relationships often support a well-planned records management program. A contractual relationship with an offsite commercial records storage center enables inexpensive and secure long-term retention of paper documents, electronic media, or computer system backup tapes in a disasterresistant environment. Commercial records centers can protect vital records from on-site disasters at their customers’ locations, and assure that expensive office space is not consumed by local storage of older low-value records. Records management consultants or expert business process outsourcing firms often provide focused knowledge of records in highly regulated industries, skills in ongoing management of paper and electronic records programs, or expertise in electronic records management software selection and implementation. Increasingly, records management program activities are outsourced to full-service document process management firms with specialized expertise in records management. These outsourcing firms can provide some or all of these managed services. Since records management is not the core competency of most organizations, outsourcing can free internal resources and investment to focus on core business competencies.

Océ White Paper

15

Effective Records Management in Today’s Business Environment

Today, it is increasingly common to see record management staff working more closely with legal counsel, tax, auditors, compliance officers, and IT personnel to assure that records are preemptively identified, located, organized, and preserved before a crisis occurs. Organizations that anticipate impending litigation now are considered responsible for preserving records, even before receiving pending litigation hold orders from courts. Destruction of evidence in advance of court appearances can be considered a federal crime as many discovered during the Arthur Andersen case. New Sarbanes-Oxley and other legislation often specify “working papers” and other forms of records such as financial reports that must be created with sufficiently rigorous “chain-of-custody.” This is evident in auditable internal workflow processes so that executives can demonstrate they have appropriate level oversight of the activities they manage. Bernard Ebbers, former WorldCom CEO, found this to be true when he was convicted of multiple counts of fraud, despite claims he was not aware of the accounting irregularities that occurred under his oversight. IT personnel have for many years had the displeasure of appearing in court as witnesses regarding the presence of e-mails on backup tapes. Many of those e-mails could have been discarded during the normal course of business if a records management program committee had been included in records retention decisions regarding tape creation, rotation, and ablation. Records management is both a professional discipline and a vital business process within an organization. Its disciplined adherence demonstrates commitment

to operational excellence. The goal of a records management program is to ensure that high quality recordkeeping activities and systems have integrity and reliability, as well as that the records being managed are authentic and accurate when preserved over time. Historically, records management has promoted economies and efficiencies in operations. As modern organizations increasingly rely on informational data and documents, records management programs have become strategically and tactically critical to their ongoing operation and prosperity. Advanced strategic planning that addresses recordkeeping issues adds credibility and professionalism to organizational management. Tactically, high quality recordkeeping systems and programs enable organizations to survive corporate audit requirements, regulatory compliance investigations, aggressive litigation, and even environmental disasters. In addition, the strategic long-range benefits of a well-run records management program include betterserved customers, satisfied regulators, more productive employees, and investors confident that information assets are being well-managed. A well-planned, comprehensively implemented records management program is visible proof that management expects and supports accurate, accountable internal work processes. In addition, a well-run and consistently enforced records management program clearly demonstrates that executives intend for their organization to create reliable business records, and to manage those records to high professional standards, wholly in compliance with laws and regulations.

Records management is both a professional discipline and a vital business process within an organization.

Océ White Paper

16

Effective Records Management in Today’s Business Environment

Why Océ Business Services improves business performance Océ Business Services is one of the world’s leading providers of document process management services. The company seamlessly integrates technology, processes and people to manage document assets throughout their lifespan of value. Océ solutions span print and copy management, fleet management, comprehensive mail services, imaging, records management, and professional document assessment services. Advanced business

performance management software and benchmarking tools support document best practices and innovation for the future. Today, a workforce of more than 8,000 professionals serves its clients in North America and Europe. Océ outsourcing solutions help organizations reduce and control costs, increase productivity, manage document risk and enhance business performance.

Océ White Paper

17

Advancing document process management to a higher level

Océ Business Services is a leading international provider of document process outsourcing services and technology to businesses and the public sector. We improve and manage non-core yet critical document processes to enable organizations to reduce costs, increase efficiency, mitigate risk and improve operational performance. Our solutions span the document lifecycle from creation through disposal, including business records, eDiscovery, imaging, print and mail management. Proprietary service delivery methodologies apply Six Sigma to improve results. ®

Records Management

Océ Business Services 460 West 34th Street, New York, NY 10001 [email protected] 1-888-623-2668 Advancing to a Higher Level

www.obs-innovation.com

© 2009 Océ. Océ is a registered trademark of Océ-Technologies B.V. All other trademarks are the property of their respective owners.

OBS-07-09