How Do I Create a Comprehensive Data Retention Plan?

Clients ask me that question everyday. I wish therestorage, less valuable data can reside on less
was a one-size fits all answer. Unfortunately, dataexpensive disks.
retention policies are not that simple. They areMany businesses embrace data classification as a
directly dependent upon the specific data andmeans of mitigating legal risk and meeting
applications. Add in the complications of regulatorygovernment compliance demands. Other companies
requirements, and data retention becomes a problem,experience a more fundamental need to know what
which needs a custom solution.data is available and where it is located in their
Businesses must ask the following questions: Whatstorage architecture.
data should be kept and for how long? What are theAgain, each business determines what data is
best ways to evaluate what data is important toimportant to its needs and implements the most
keep? How do you identify and categorize data thatefficient policy to retain that data.
is mission critical, business critical and operationallyHow do you categorize the different types of data
important?that is important to your company?
Answers will of course vary by business. One thing isBreaking down our data analysis further, we can
certain: human input will form a data protection policy,explore data that is business critical, mission critical
not computer software and hardware. Dataand operationally important.
protection is a team project. IT executives,Business critical data: This is information or recorded
accounting and operational personnel must workdata stored that is crucial to the existence of the
together to develop the right plan. That lendsbusiness or organization as a whole. In other words,
integrity to the entire data retention process.the data stored can make or break the business.
Most businesses fall short in their data retentionThese business-critical records come in many forms,
policies and procedures. A recent survey by Cohassetfrom high-profile financial reports to the simplest
Associates Inc. indicated that 76 percent of theMicrosoft Excel and Word documents.
respondents believed that improvements areFor example, companies use Excel for the reporting
necessary to their data-retention managementand analysis of corporate data. A purchasing
program.department must compile and organize hundreds of
According to the survey, many businesses do notcontracts with different renewal dates. More than
plan enough to create a quality data protection policy.one person checks a centrally held spreadsheet. For
To lay a solid foundation and keep pace with thecompliance reasons, companies must retain and
growing trend of data retention policies, the chiefarchive these live, dynamic documents.
information officer (CIO) of any business mustSecurity of such business critical data is paramount.
answer those important questions mentioned before:Organizations must develop a security plan for
What data should be kept and for how long?off-site storage of its business critical data, such as
The best practice is developing a classificationan online data storage service. They can offer the
process to determine if the data is necessary tohighest levels of encryption and remove human error
store.from the process.
This classification process can include input by theData loss through accident or malicious damage is so
creators of the data and/or an IT committee or anwidespread that off-site backup is now compulsory in
executive making the determination.most sectors.
IT executives must determine which records areMission critical data: By definition, mission critical refers
relevant to business functions before they canto any procedure which is crucial to the successful
identify the data that must be stored. These recordscompletion of a project. The storage of this data is
can include documents, journals and e-mails.vital to the success of a project.
Recent research indicates that Web users exchangeTherefore, mission critical data is important in terms
36.2 billion e-mails a day. Businesses often use e-mailsof how the data affects the completion of a project
within their intranet to exchange business criticalor business operations.
information. Instant messaging is also evolving into aData storage industry leaders suggest that the most
primary means of communication with manycommon mission critical data storage issue for
businesses, and those messages can includebusinesses is separating useful important data from
information worth keeping.information that requires less management.
Only data that contains information critical to theOne trap many businesses fall into is storing every
functions of the business should have a long-termpiece of data without rhyme or reason. Sometimes
retention period. Generally, important businessthe staff has the habit of archiving everything. Some
documents and contracts should be retained sevenanalysts argue that e-mails should not be
years or permanently; payroll data three to sevenmission-critical data, while others suggest that e-mails
years; and employee records three years.with important documents attached are certainly
Again, this varies depending on how the datamission critical.
retention relates to a business' function.Customers and inventory are an example of mission
What are the best ways to evaluate what data iscritical data. That data should be accessible in
important to keep?real-time to meet the needs of the customers. Any
First, businesses must institute a global hierarchicaldown time will break down the credibility and
data archival and retention management system. Thiseffectiveness of the business.
system controls the technologies and the usersThe bottom line is that companies must execute a
involved. When creating policies, businesses mustdisciplined approach to data storage. That means
follow corporate mandates to meet all requirements.deciding what data is most important and allocating
Management of this data retention system shouldstorage spending accordingly. While it is more work, it
sort through the requirements of what constituteshelps an organization in operational effectiveness, risk
import data.reduction and cost avoidance.
Establish a manageable set of classifications that canOperationally important data: Any data that affects
suit the entire organization. A business shouldthe day-to-day operations of a business is
approach data classification in small pieces. Foroperationally important. Loss of this data can be
example, the classification could start with specificextremely inconvenient, but it does not jeopardize
data types, such as backups or e-mail and thenthe viability of the company.
move to more general categories of company data.Data retention must be timely, and ensure that
If this process is overwhelming, consultants anduseful, quality data is at the fingertips of the user.
professional services can help the process. TheseFor instance, inventory is important to sales. If a
agencies cannot determine the true value of thecustomer requests 30 pieces of merchandise, it is
company's data, but they can ask the meaningfulimportant to know the availability immediately.
questions that will get process going in the rightIn summary, these processes have to be reviewed
direction.to manage both the regulatory requirements and the
Ironically, in this computer age, evaluating what datarisk associated with the data. You must assess the
is important to keep is almost entirely a humanentire technology infrastructure, from the smallest
decision-making exercise. Software and hardwareapplet to the largest server.
products are available to help discover data within theCompanies must continually improve these processes
organization. They determine its location, set policiesfor reliable audit preparation. This platform must be
on that data and measure the adherence to thosescalable to allow technologies, processes and business
policies. However, no product has the intelligenceneeds to keep pace with new regulations and
needed to determine the value of a company's data.changing market conditions.
In terms of hardware devices, storage subsystemsA solid plan for efficient, reliable and secure data
can add an indirect benefit to data retention. Forretention must be a priority. Any company that sees
example, a tiered storage system may indirectlyit differently is putting itself at risk.
support data classification. By influencing the cost of