Managing records is a business-critical process

Complying with the new records retention and availability regulations and recommendations is simpler than most software vendors and compliance consultants let on. It does not depend on the particular brand of software one chooses as a management tool, nor does it depend on how much the company spends on storage and processing power. It does, however, depend on design.

"Records management is by no means an easy task, but by designing the correct processes to control records throughout their lifecycle, it becomes just another business process in a company`s daily operations," says Paul Mullon, divisional director: marketing of Metrofile. "Moreover, it not only streamlines business processes, but it ensures those involving records are accomplished at the lowest cost possible."

If a company complies with the new retention regulations and governance recommendations, its business records will go through three phases in their lifecycle: active, semi-active and archive. Managing records through these phases is crucial to the efficient and cost-effective running of a business.

When a record is created, whether it is a physical or an electronic document, it immediately enters the active stage. As the name suggests, active records are required for the successful day-to-day operations of the business. From data capture personnel to consultants, administrative clerks or call centre operators, an active record will be called up regularly in the initial stages of its life.

Easy access to these records is therefore essential to the effective functioning of the company. Conversely, the harder it is to access them, the more time it takes and the more time is wasted looking for documents instead of doing productive work. Effectively managing these records cuts time wastage, getting staff onto productive work faster, saving money in the long run.

"The easiest way to deliver these productivity gains is to ensure these physical records are digitised," says Mullon. "Storing the original document off-site ensures the company meets all its legal obligations, while streamlining the availability of the record to everybody that needs it.

"The key here is management; businesses must implement an auditable trail of processing in their efforts to digitise and index their documentation," asserts Mullon. "Leaving the legalities of a poor digitisation process aside, flawed processes will inevitably create problems in other business areas. At best this only will waste time and human resources; at worst it can affect the performance of the company."

Once the record is no longer required on a regular basis, but could still be needed on the odd occasion, it can be moved into the semi-active state. Examples of semi-active records could include long-term insurance policies that only need to be accessed in case of claims or annual adjustments.

When these records are requested they do not need to be immediately available as they are not active - waiting for a short period to receive the document does not waste money. This means they can be stored in lower-cost storage vehicles that do not provide instant access. This would typically entail off-site storage, or management in a paper-based file management environment.

Archiving is the third and final phase in every document`s lifecycle. Documents are archived once they are no longer needed for business use, expect in specific circumstances, or when they have been digitised and the physical document is no longer required on a frequent basis. Companies often choose to outsource their archives to third-parties, since this is a specialised skill most companies see no need to spend time and money acquiring and maintaining.

Managing information used to mean filing records and hoping they were there the next time you looked for them. In the current business environment where the amount of information companies need to deal with is growing exponentially, careful records management of both physical and digital records is not an option (especially with authorities legislating the minimum lifespan of certain business records).

"It is important to note, however, that legislation is only one of the lesser reasons to implement an efficient records management programme," Mullon concludes. "The primary reason is pure business: lower costs, greater efficiencies and improved productivity."