Last Updated on August 28, 2023 by Ossian Muscad
Understanding and implementing efficient records management strategies is crucial for any business in a data-driven world. Records management ensures the safekeeping of essential corporate information and bolsters organizational efficiency and statutory compliance. Records management encompasses a wide range of activities, from the initial creation of records to their eventual disposal, guided by a predetermined set of policies and regulations. But just how important is it?
This article will shed light on the importance of good records management, elucidate the types of records businesses should keep, and provide guidance on safely storing and organizing them.
What is Records Management?
Records management is the professional practice of managing the records of an organization throughout its lifecycle. This lifecycle encompasses the time from the creation of records or their receipt from a third party, their maintenance and use during the period they are declared as current records, and their final disposition through destruction or permanent preservation. RM includes identifying, classifying, prioritizing, storing, security, archiving, retrieving, tracking, and destruction or permanent preservation of records.
The overarching goal of RM is to ensure that the information can be accessed easily, can be destroyed routinely when no longer needed, and is kept in a safe and secure environment to protect the business information. Adequate records management practices can help businesses make more efficient decisions, comply with legislative, regulatory, and operational requirements, minimize litigation risks, and safeguard critical corporate and historical information.
What is Considered a “Record?”
A “record” in the context of records management is any piece of information, regardless of its physical format, created or received by an organization during its business activities. Records can be classified into various types based on their content, purpose, or function within the organization. They include the following:
- Administrative Records: These are records related to an organization’s internal administration or operational management. This could include personnel files, financial statements, policy documents, meeting minutes, or internal reports.
- Legal and Compliance Records: These records are crucial for demonstrating compliance with laws and regulations. Examples include legal contracts, permits, licenses, tax filings, and safety records.
- Client and Customer Records: These records contain information about an organization’s clients or customers. They may include contact details, invoices, service records, or correspondence.
- Financial Records: Financial records include anything related to the fiscal operations of an organization, such as invoices, receipts, payroll records, budgets, and financial statements.
- Operational Records: These records pertain to the primary business activities of an organization and may include project files, performance reports, product specifications, or quality control records.
- Historical Records: These records document an organization’s historical events, decisions, or actions. Examples might include annual reports, press releases, photographs, or company newsletters.
In addition to these, it’s crucial to understand that records can exist in both physical and electronic formats:
Physical Records
These are tangible records that you can physically touch. Examples include paper documents, photographs, blueprints, or any other printed or written record on physical media. Physical records need to be stored in a secure, organized, and accessible manner. This often involves using filing cabinets, storage boxes, or other physical storage solutions and implementing a consistent labeling and filing system.
Electronic Records
These are digital records stored on electronic media. Electronic records can include emails, digital photographs, word-processing documents, spreadsheets, databases, or anything else created digitally. Electronic records management involves organizing digital files into directories, databases, or other digital repositories, regularly backing up files, and implementing security measures to protect sensitive information.
The distinction between these categories is not always clear-cut, as a single document may serve multiple purposes. Therefore, an effective records management system must account for the multifaceted nature of business records. The system should be designed to identify, classify, store, secure, retrieve, track, and dispose of records in a controlled and systematic manner.
Benefits of Records Management
Records Management confers an array of advantages to an organization, enhancing overall efficiency and security. Here are some key benefits:
Lower Storage Costs
Implementing an effective records management system can help in reducing storage costs. Digital storage solutions, for instance, minimize the need for physical storage spaces and associated expenses. Moreover, by routinely disposing of no longer needed records, businesses can further optimize storage usage.
Ensure Regulatory Compliance
Records management aids in adhering to regulatory requirements. By keeping comprehensive records, businesses can demonstrate compliance with various laws and regulations, thereby avoiding potential legal complications and fines.
Protect Vital Information
A robust records management system safeguards sensitive and essential business information against loss or damage. It ensures the preservation of vital records, protecting them from threats like data breaches or natural disasters.
Efficient Retrieval of Records
With a well-structured records management system, businesses can swiftly locate and retrieve necessary records, saving time and boosting productivity. The system allows easy access to information when needed most, promoting efficient business operations.
Easy Automation of Workflow
Through records management, businesses can automate their workflows, enhancing efficiency and accuracy. This includes automatic categorization and filing of records, reminders for records due for disposal, and easy tracking of records throughout their lifecycle. This automation reduces manual tasks and potential errors, significantly increasing operational efficiency.
Components of Records Management
Records management encompasses various components, which can be summarized as follows:
Policies and Procedures
The backbone of an effective Records Management (RM) system lies in well-defined policies and procedures. These guidelines dictate how records should be handled and managed within an organization. They establish the structure, control, and authority that direct and control the creation, preservation, and disposal of records. Policies may include the types of records to be preserved, the individuals responsible for performing these tasks, and the procedures for managing records throughout their lifecycle.
Records Retention Schedule
A Records Retention Schedule is a comprehensive document that outlines how long business records must be kept before they can be destroyed. This schedule provides a timetable that reflects the organization’s operational, legal, fiscal, and historical needs, ensuring that records are kept only as long as necessary and disposed of appropriately when no longer needed.
Records Filing System
A Records Filing System is a method by which records are organized and stored. This system could be physical (like filing cabinets) or digital (like electronic databases), depending on the needs and resources of an organization. A good filing system should allow for easy retrieval, preservation, and disposal of records, which can significantly enhance operational efficiency.
Training and Auditing
To ensure the efficacy of an RM system, regular training and auditing are crucial. Training educates employees about their role in records management, the importance of adhering to established policies and procedures, and the correct methods for filing, preserving, and disposing of records. On the other hand, auditing ensures the RM system is adhering to the defined policies and procedures, identifies areas for improvement, and ensures the organization is maintaining compliance with regulatory requirements.
Manage Records Using a Low-code Platform
If you’re looking for an efficient and cost-effective solution for managing your business records, then a low-code platform could be the answer. Low-code platforms like DATAMYTE make it easy to develop applications without code, enabling businesses to build their system tailored to their specific requirements. With DATAMYTE, you can quickly develop custom applications and templates that facilitate effective records management, including secure document storage, automated categorization and filing of records, reminders for records due for disposal, and records tracking throughout their lifecycle.
DATAMYTE is a quality management platform with low-code capabilities. The DataMyte Digital Clipboard is a low-code workflow automation software with a built-in checklist and smart form builder. This feature, along with its drag-and-drop interface, allows you to create any checklist and form template you need—including documents for records management—in a matter of minutes. With its powerful reporting and analytics capabilities, DATAMYTE ensures you have the insights needed to monitor and optimize your RM system.
To create a checklist or form template using DATAMYTE, follow these steps:
- Log in to DATAMYTE and navigate to the ‘Checklist’ module.
- Click “Create Checklist” to create a new checklist or form template.
- Add a Title to the checklist or form template; select the category it belongs to.
- Click “Add Item” to start adding items to the checklist or form template.
- Add appropriate descriptions to each item, the type of answer required, and other relevant specifications, such as reference documents, acceptance criteria, or potential limits.
- Assign the personnel responsible for completing the checklist.
- Indicate any required approvals from other relevant personnel, such as supervisors or quality assurance managers.
- Save your checklist; it will now be available on any device. You can also print a physical copy of your checklist.
DATAMYTE also lets you conduct layered process audits, a systematic review of critical process steps. This auditing method focuses on the areas with the highest risk of failure or noncompliance. By conducting LPA using DATAMYTE, you can effectively identify and correct defects before they escalate.
With DATAMYTE, you have the perfect solution for creating and implementing an efficient Records Management system. Book a demo today to learn how DATAMYTE can help you safely, securely, and effectively manage your business records.
Conclusion
Efficient records management is a critical function for any organization. It ensures compliance with regulatory requirements and contributes to improved operational efficiency. By leveraging low-code platforms like DATAMYTE, businesses can customize their records management systems to their specific needs, automating tasks such as categorizing, filing, and tracking records.
This digital transformation eases the burden of manual processes, minimizes potential errors, and paves the way for a more effective and streamlined workflow. By investing in an effective records management strategy, organizations can be assured of a reliable, secure, and future-proof solution to their record-keeping needs.
