2007 Emerson Record 2007 Emerson Record Retention TrainingRetention Training

Process Systems & Solutions Division, Austin site employees & contractors

Allison Burch, Records Officer

Training AgendaTraining AgendaTraining AgendaTraining Agenda

Understanding Records Management and Retention

Review of Emerson’s Records Retention Policy

Annual Records Review & Certification of Compliance

Effectively Managing Your Records

Understanding Records Understanding Records Management & Management & RetentionRetention

What Are Records?What Are Records?What Are Records?What Are Records?

Records are the evidence of business activity and transactions within an organization. They are valuable information assets central to corporate strategy, research and development, customer relationships, regulatory compliance and much more. Like any other asset, records have value & costs and must be properly managed.

Records relating to company business, whether or not prepared on company time or at company facilities, are considered company records and are company property, not personal records.

Records come in many formats: Physical Paper – memos, contracts, reports, etc. Electronic – Web site content, files saved on servers, hard drives, PDAs, flash drives,

etc. E-mail – Including attachments & instant messages Data – Information captured in an organization’s databases Records include drafts, substantive notes and calendars.

What are Records Management & Records What are Records Management & Records Retention?Retention?What are Records Management & Records What are Records Management & Records Retention?Retention?

By definition records management is the systematic control of records throughout their life cycle.

A records retention policy defines the periods of time during which records are maintained for operational, legal, fiscal and historical purposes. These retention times are often dictated by government statute or regulation.

Example Records Retention PolicyExample Records Retention PolicyExample Records Retention PolicyExample Records Retention Policy

14. Product Guarantees & Warranties • Original copy Until 5 years after expiration of warranty • Other copies Until expiration of warranty 15. Purchase Contracts, Orders & Agreements • Original copy Until 5 years after termination • Other copies Until termination 16. Real Estate Contracts See “Real Estate,” p. 52 17. Other Sales Contracts & Agreements • Original (signature) copy Until 5 years after termination of contract • Other copies

Until termination of contract

• Specimen copy of form contracts or

agreements Until 5 years after superseded

A Records Retention Policy is organized by record type and will indicate the document retention time, or how long a document should be kept.

Why is Records Management Important?Why is Records Management Important?Why is Records Management Important?Why is Records Management Important?

An effective records management program and records retention policy ensures that information is retrievable, authentic and accurate.

Compliance with a corporate records management program & records retention policy…

Provides economic, operational, legal benefits to the company Improves employee productivity through organization and efficient access to active and

archived records Ensures records are handled consistently across the corporation Provides for proper handling of records during litigation and government investigations Ensures compliance with governmental requirements Saves physical and virtual space by stopping the needless accumulation of paper and

electronic files Identifies and corrects “troublesome” records

Overview of Emerson’s Overview of Emerson’s Record Retention PolicyRecord Retention Policy

Emerson’s Records Retention PolicyEmerson’s Records Retention PolicyEmerson’s Records Retention PolicyEmerson’s Records Retention Policy

The Emerson Corporate Legal department writes the mandatory Emerson Records Retention Policy, which sets out the required retention period for categories of records.

Each Emerson division appoints a Records Officer who customizes the Policy for the division and ensures compliance.

Access the Process Systems & Solutions Records Retention Policy

(The Records Retention Policy is for internal use only and may not be shared outside of the company.)

Complying with Emerson’s Records Retention Complying with Emerson’s Records Retention PolicyPolicyComplying with Emerson’s Records Retention Complying with Emerson’s Records Retention PolicyPolicy

The Records Retention Policy & the records retention times set out in the policy are mandatory.

Do not keep records longer than the retention time because you “may need them later.”

Do not discard records prior to their retention time, it will not only violate the corporate policy but may also violate a legal requirement.

Any selective exceptions to the Policy should be discussed with the Division Records Officer and the Emerson Records Officer or an assigned attorney.

Any questions of interpretation should be directed first to the Division Records Officer and second by the Emerson Records Officer, if necessary

Important Exceptions to the Retention PolicyImportant Exceptions to the Retention PolicyImportant Exceptions to the Retention PolicyImportant Exceptions to the Retention Policy

There are two important exceptions to the records retention policy that apply in the following circumstances:

Pending or active litigation, investigations or enforcement proceedings

Conflict with local laws for subsidiaries and organizations outside of the U.S.

Exceptions: Litigation & InvestigationsExceptions: Litigation & InvestigationsExceptions: Litigation & InvestigationsExceptions: Litigation & Investigations

Halt all destruction of records (print, electronic & e-mail) that may be relevant to litigation, investigations or inquiries.

– Criminal and civil sanctions may be imposed on the Company and its employees if records relevant to a government investigation or inquiry are destroyed after the Company learns of the investigation or inquiry.

– Destruction of records responsive to a subpoena can result in criminal or civil sanctions against the Company and the individual.

– When an internal investigation is initiated, records that may be relevant to the investigation must be retained.

– Increasingly, plaintiffs’ attorneys are specifically requesting production of electronic records, including e-mail. Existing laws in Federal and state courts permit broad discovery requests for electronic records.

DESTRUCTION OF RECORDS RELEVANT TO A SUBPOENA, ACTIVE LITIGATION, GOVERNMENT INVESTIGATION OR INTERNAL INVESTIGATION IS ABSOLUTELY FORBIDDEN.

Exceptions: Litigation & InvestigationsExceptions: Litigation & InvestigationsExceptions: Litigation & InvestigationsExceptions: Litigation & Investigations

When these situations arise, the Division will form a team that includes the Emerson attorney, Records Officer and an IT manager, that will determine which documents may need to be produced.

The Division management will notify affected employees to preserve documents and to suspend any normal destruction of records.

In Austin, general notice of active litigation is posted on the Records Retention website.

Exceptions: Local LawsExceptions: Local LawsExceptions: Local LawsExceptions: Local Laws

The Records Retention Policy is based on U.S. laws and also applies to non-U.S. operations and subsidiaries.

However, local laws in these countries may require a different retention period.

The longer retention period should always be followed.– Where there is no local statutory requirement, follow the Emerson Policy

– If the local statutory retention period is longer than the Emerson retention period, follow the local law

– If the statutory retention period is shorter than the Emerson retention period, follow the Emerson Policy

– For example: If local law indicates a record type should be kept for 3 years but the Emerson Policy states 5 years, follow the Emerson Policy and vice versa.

Non-U.S. ContactsNon-U.S. ContactsNon-U.S. ContactsNon-U.S. Contacts

Name Phone

Emerson Fred Eberbach 314-553-1362

Emerson Asia Sara Bosco 011-852-2829-8788

Emerson Europe Renata Jungo 011-41-41-768-8788

Emerson Mexico Victor Trujillo 011-52-55-5366-6180

Sources for assistance with local laws for non-U.S. organizations

Complying with Emerson’s Records Retention Complying with Emerson’s Records Retention PolicyPolicyComplying with Emerson’s Records Retention Complying with Emerson’s Records Retention PolicyPolicy

Records review, clean-up and disposal is an ongoing process that occurs throughout the year with the added incentive of company wide record clean-up days prior to the compliance certification.

An internal audit of the Records Retention Policy & Program is a part of the financial audit.

Emerson Divisions are required to annually certify their compliance with the Records Retention Policy. The certifies are due to Corporate Legal on July 1st of each year.

Annual Records Review Annual Records Review & Certification of & Certification of ComplianceCompliance

Annual Records Compliance ProcessAnnual Records Compliance Process1. Go through the records under your control. Review all formats: print,

electronic & e-mail. Verify the record retention periods & procedures for the types of records

you maintain:– 2007 Process Systems & Solutions Records Policy

Changes for 2007 are marked with a right arrow ► in the document. Take the time to review the manual, especially if the records you handle are within the following affected areas:

• Environmental

• Legal

• Medical & Industrial Hygiene

• Personnel Payroll & Benefits

– Departmental specific procedures • If you are unsure of these procedures, contact your manager or departmental records coordinator.

– Local instructions / guidance• If you are in a country outside of the U.S. there may be local retention periods to consider.

Ask questions, get clarification– If you need assistance contact your manager, departmental records coordinator,

or the records officer.

Annual Records Compliance ProcessAnnual Records Compliance ProcessAnnual Records Compliance ProcessAnnual Records Compliance Process

2. Allocate time on record clean-up days to go through your files, organize & dispose of records that have met their retention periods.

– Clean-up days in 2007 are Friday, May 25th & Friday, June 1st.

– There will be extra confidential shred bins near the freight elevators. These should be used in order to preserve security.

3. Print and sign the individual compliance form and give to your manager or departmental coordinator by the due date, June 8th.

Managers / Directors will sign a form for their group(s) and send the form to their supervisor by the due date, June 15th.

Direct reports to President send group forms in by June 22nd. President certifies compliance for division to Corporate Legal by July

1st

– All Compliance forms are available from the Records Retention Website at: http://pss.emersonprocess.com/elibrary/Records/Records%20Retention.htm

Austin Compliance Certification Schedule - Austin Compliance Certification Schedule - 20072007

Fri., May 25th RECORDS CLEAN-UP DAY #1

Fri., June 1st RECORDS CLEAN-UP DAY #2

Fri., June 8th INDIVIDUAL COMPLIANCE FORMS DUE TO MANAGERS

Fri., June 15th MANAGERS’ GROUP FORMS DUE TO VPs

Fri., June 22nd VPs FORMS FOR THEIR GROUPS DUE TO DIVISION PRESIDENT

Fri., June 29th DIVISION PRESIDENT LETTER DUE TO CORPORATE

Austin Departmental Records CoordinatorsAustin Departmental Records CoordinatorsAustin Departmental Records CoordinatorsAustin Departmental Records CoordinatorsDepartment Coordinator Phone

AO Asset Optimization Vivian Hamilton 512-834-7388

Finance & Accounting Sean Egan 512-834-7018

HEIC & RCIC Sales and Sales Support Susan Lohman 512-834-7143

Human Resources Cyndi Turner 512-832-3407

IT Celina Street 512-832-3521

Legal Matt Talpis 512-832-3363

Logistics & Trade Compliance Sylvester Levario 512-832-3744

LSFB & PEMO Sales and Sales Support Julia Gonzalez 512-834-7240

Marketing Claudia Rojas 512-418-7487

LSFB Project Management Julia Gonzalez 512-834-7240

Quality Marti Johnson 512-832-3321

Systems & Solutions Project Group John Walkup 512-832-3569

Technology Stephanie McCray 512-418-7400

Worldwide Procurement CJ Sides 512-832-3931

Effectively Managing Effectively Managing Your RecordsYour Records

Responsibilities for Maintaining RecordsResponsibilities for Maintaining Records Originator Rule: The author or department creating the record

typically has primary responsibility for the original copy of a record. If more than one person or department is involved in the creation of a record, there should be consensus as to who will maintain the original copy.

An original record may be electronic if the final hard copy may be reproduced accurately from the electronic version.

Originals can include marginal notes or substantive notes on copies

Other Copies: Copies of an original are often created & distributed in the course of business.

– Copies should be disposed of as soon as they are no longer needed, unless otherwise indicated in the Policy

– Copies should not be retained longer then the original copy

Drafts: Drafts are tentative or interim records which are not final records.

– Drafts should be disposed of as soon as they are superseded by another draft or the final record.

– Drafts should be disposed of if it is determined that no final record will be made.

Electronic Records ManagementElectronic Records ManagementElectronic Records ManagementElectronic Records Management Consider saving documents in subdirectories that correspond to

record retention periods.

Users have primary responsibility for deleting outdated electronic records from PCs and servers.

Simply erasing files does not assure that the files are destroyed. Files continue to exist until the disk space is overwritten.

– Systems & Solutions network backup has a four-generation weekly rotation = files deleted by users today will exist on backups for 4 weeks, then overwritten

– Individual hard-drives and laptops are NOT backed up by IT – users are responsible for backing up these devices

File deletion utilities are designed to assure that files are destroyed completely.

Division IT Departments can work with users regarding file deletion utilities (programs) that may be useful for sensitive records

E-Mail ManagementE-Mail ManagementE-Mail ManagementE-Mail ManagementEmerson Policy: E-mail should be destroyed electronically after 90

days, unless:

– It forms part of or is a longer term document.

– It is relevant to an investigation, inquiry, enforcement proceeding or litigation.

Any e-mail may be kept longer than 90 days if it is needed for operational, legal, fiscal, or historical purposes:

– E-mail can be stored in PST folders or appropriate project folders on the network file servers or local hard drives

– E-mail can be printed and filed with other documents of like subject and retention period.

In Austin, e-mail that remains on the exchange server will be automatically deleted in 90 days.

E-Mail ManagementE-Mail ManagementE-Mail ManagementE-Mail Management

Review e-mail in the following folders: Inbox, Drafts, Quarantine, Sent. After 90 days, e-mails are deleted from these folders. Any e-mails that need to be kept longer should be moved to PST files, network files, or printed

Within the PST folder you can create your own filing system for folders and subfolders. Consider saving documents in subdirectories that relate to record retention periods.

Suggestions for filing e-mail:

– by records retention policy record type category

– by project name or number

– by year in which the messages should be destroyed

– or a combination of all three

E-Mail Management: Filing ExampleE-Mail Management: Filing ExampleE-Mail Management: Filing ExampleE-Mail Management: Filing ExampleABurchPST Administration

– Budget Documents

• FY2007 Cost Center budget (not “record” copy) - <2 years

• FY2007 Expense Reports (not “record” copy) - <1 year

– Purchases / Receipts (materials) – keep until reimbursed, <1 year

– Subscriptions / Renewals – keep through subscription period or until superseded, generally <1 year

Vendors

– FY2007 Contracts & Contract Correspondence with vendors – 5 years

– Correspondence with vendors, non-contractual - < 1 year Records Retention documentation - <1 year, supersede previous

E-Mail Retention ResponsibilitiesE-Mail Retention ResponsibilitiesE-Mail Retention ResponsibilitiesE-Mail Retention Responsibilities

If an e-mail needs to be kept longer than 90 days, how do you determine the original copy of the e-mail? It depends upon who originated the message:

You – If you originate the message, you are responsible for keeping the message.

Other Emerson employee – You are not the originator if you receive an e-mail from within the company. You can treat that e-mail as a copy.

– If you respond to the message – then YOU are the ORIGINATOR of your response and YOU must manage that e-mail per the policy

Individual outside of Emerson – Individuals outside of Emerson are not bound by our policy, so you may need to keep the message as the original for records retention purposes if it needs to be retained.

Document CreationDocument CreationDocument CreationDocument Creation

Do: Use only relevant facts. Write clearly and concisely. Indicate the source of your information,

if you do not have first-hand knowledge. Identify assumptions and theories as

such. Send the document only to those who

need to know. Assume that the document will have a

wide distribution, which you cannot control.

Don’t: Make exaggerated claims. Speculate or make assumptions. Use jargon or ambiguous words and

phrases Defame another’s character. Use sarcasm or irony; it does not work

in a business document.

The creation of a document begins the life cycle of recorded information. Follow the Do’s & Don'ts of writing for the record to

maintain the integrity of company information:

Do’s & Don'ts Excerpted From Archives & Records Management Association (ARMA) Brochure.

““Troublesome” DocumentsTroublesome” Documents““Troublesome” DocumentsTroublesome” Documents

A “troublesome” document may contain:

False or misleading statements, including “stretching the truth”

Vague and poorly written statements that may be misinterpreted

Statements which are not addressed, left hanging

Statements that appear to conflict with laws and regulations

Accusations/ “finger-pointing”

Types of “troublesome” documents may be:

Planning/Growth Conference materials

External Correspondence

Internal Memos

E-Mail & Marginal Notations

Product test reports and Failure Mode & Effects Analysis (FMEA)

Marketing/sales strategies

Promotional Material

“A poorly written document may give the appearance of impropriety – even though none exists. Conversely, a well-written document will not

cover up impropriety when it does exist.” – Archives & Records Management Association

Identifying “Troublesome” DocumentsIdentifying “Troublesome” Documents Identifying “Troublesome” DocumentsIdentifying “Troublesome” Documents

Your answers to the following questions can indicate a “troublesome” document:

– Is a statement inappropriate or inaccurate?

– Do you feel uncomfortable when you read a comment?

– Is a significant, unresolved business issue mentioned?

– Would you want an outsider to read the comment?

– Would you want to see the comment in writing?

– Do I have any hesitation signing my name to it?

Resolving “Troublesome” DocumentsResolving “Troublesome” DocumentsResolving “Troublesome” DocumentsResolving “Troublesome” DocumentsHow should you handle troublesome documents? Bring the documents to the attention of your supervisor

and/or records officer.

If needed, involve the Division’s attorney

Do not destroy the documents prior to the retention period indicated in the Retention Policy

Remedy the troublesome document by:

– Asking the originator to clarify the intent (without modifying original)

– Respond to any accusations truthfully in written form

– Act on business issues and document action

Summary & Summary & ResourcesResources

Benefits of the Policy and ComplianceBenefits of the Policy and ComplianceBenefits of the Policy and ComplianceBenefits of the Policy and Compliance Share a common understanding of the importance of managing

records

Ensures consistent handling of records across the corporation

Improves employee productivity through improved organization, less clutter, and efficient retrieval of active and archived records

Provides for proper handling of records during litigation and government investigations

Ensures compliance with governmental requirements

Saves physical and electronic space

Identifies and corrects “troublesome” records

Manages risk and costs

ResourcesResourcesResourcesResourcesRecord management & retention resources are available on the

Records Retention section of the eLibrary website

The Process Systems & Solutions Record Retention Policy

Other Resources:

– Emerson Corporate Policy

– Departmental Procedures & Policies – contact your manager or departmental records coordinator if you are not aware of any procedures or policies specific to your department.

– Local Guidance documents – for non-US organizations

– Legal Holds

– E-mail Organization & Retention Guidelines

Questions?Questions?Questions?Questions?

If you have any questions you may contact:

Allison Burch, PSS Records Officer

512-834-7255

eLibrary Records Retention Web site

Training FormTraining FormTraining FormTraining Form

Thank you for taking the time to review the Records Retention Training Material.

Please complete and sign the training record form, have your manager sign it, and return it to Human Resources as indicated on the form:

http://pss.emersonprocess.com/forms/hr/Training%20Record.doc