1 The History of Records Management Part 1 The Sumerians, Incas and the Dead Sea Scrolls

2 Lean Records Management A Lifecycle Model Charlotte ARMA Presentation October 12, 2006

3 The Information State Volume: The volume of records being received, created and maintained is rapidly increasing , IM, spreadsheets, databases… business exabytes (mega, giga, tera, peta, exa) Stretching our abilities to manage effectively Compliance: Requirements are growing Sarbanes-Oxley, HIPAA, Patriot Act, SEC 17a-4, ….. Legal: Electronic records are becoming a dominant focus Amendments to Federal Rules of Evidence regarding E-records effective December 2006 Skyrocketing discovery and production costs We are drowning in information and starved for knowledge. -Unknown

4 The Value of Information Information and Knowledge constitute THE major asset of any organization In 1998, Coca-Cola had a market value of $148 billion, and net assets of $6 billion It’s hidden value was 96% of its market value Clearly the value of a company far exceeds that of its physical assets Records represent an organizations attempt to capture that value.

5 Using our information? Over 80% of a company’s information is created by individuals at the desktop 80-85% of documents created are never referred to after their initial creation or use 90% are never referred to after 18 months A professional spends on average 5-15% of their time using information and… Up to 50% looking for it (on average 30%) At any one time 3 to 5% of an organizations files are missing The average cost to recreate a document is over $200

6 What is Lean? Connected with Six Sigma Quality programs Elimination of defects Less focus on measurement, analysis, and statistics Lean manufacturing is a management philosophy focusing on reduction of the seven wastes Over-production Waiting time Transportation Processing Inventory Motion Scrap in manufactured products or any type of business.

7 What is records management? The field of management for the efficient and systematic control of the creation, distribution, use, maintenance, and disposition of records and information about business activities and transactions in concordance with legal and operational obligations

8 Lean Principles An emphasis on maximizing value Identify the value stream in the eyes of the customer Make value flow at the pull of the customer Waste minimization – eliminating all activities that do not add value & safety nets, maximize use of scarce resources (capital, people and space) Continuous improvement – reducing costs, improving quality, increasing productivity and information sharing Involve and empower employees

9 Lean Records Principles Meet the information needs of our employees and customers (Right information, time, place, form) Avoid information overload Reduce the volume of unneeded information Ensure the timeliness and accuracy of the information Reduce costs by eliminating the need to manage unnecessary documents/records/stuff Conduct periodic reviews of documents types to evaluate need, use and effectiveness Conduct periodic reviews of procedures used to create documents

10 Lean Information Lifecycle Creation of information Creating only that which we need Ensuring that it is trustworthy and accurate Maintenance (Active) Who needs it, in what format,… Use How do we use and communicate this information Storage and retrieval (Inactive) Where, what media, how secure, how long do we keep it? How do we access it? Disposition Eliminating that which we no longer need What is the appropriate means for that disposition

11 Create This is where it all starts Documents should be created for specific purposes Information created should add value Don’t over create Documents should be created with a lifecycle plan Reductions in records produced cascade savings Reduce information overload Ease access Increase productivity Fewer discoverable documents Regular review of the creation process and documents to seen that they are still relevant or provide the needed information

12 Distribute Make team decisions on a value stream Develop SOP’s for information distribution Making the information available to those who can use it. Avoid over distribution, limit copies Used shared areas rather copies Regular review

13 Use Gather the needed information for the task at hand Process and procedure If information is inadequate for the task at hand revisit distribution See if the information is already created and acquire access Otherwise look to adjust your process to find or create the needed information Best, not perfect use of information After the work is done, discard the information that is no longer required (as appropriate)

14 Maintain Does the information qualify as an official record subject to your Records Retention Schedule? If so, Where is it to be maintained In what format How can it accessed Who is responsible for maintaining If not, What is the requirement for maintaining this information Destruction should be systematic

15 Dispose All information created or received needs to have a lifecycle plan that includes the final disposition This is applies to all records and non-records Make sure that this is done in a systematic manner that ensures proper approvals Ensure that document preservation requirements for litigation, audit or investigation are followed

16 A Practical Leaned Activity

17 Going beyond the Clean Up Day Most companies conduct sporadic Record Clean Up (Office Purge) days Big trash bins Everybody gets to wear jeans Clear off the desks Clear overloaded file cabinets Box up old records Straighten office areas Prizes for the oldest document Donuts and Pizza!

18 5S your Clean Up Day What is 5S? A process to achieve and sustain a clear, clean, safe and workplace focused on organization and quality. The 5 S’s are: Sort - Eliminate what is not needed This is an ideal time to train on records procedure and your Records Retention Schedule Set - A place for everything and everything in its place Organize for productivity and efficiency Shine - Cleaning and looking for ways to keep it clean Standardize - Systemize the maintenance of the first 3 S’s What process and procedures need to be created, updated or eliminated Sustain - Stick to the rules. Show real progress. Spread the rules to other areas of the facility. Regular review.

19 Thank You Roger Hansen, CRM Ingersoll Rand