The Value of Information Management: Compliance versus Business Outcomes

I want to share my thoughts on the ongoing debate within the information management industry about how to effectively sell the value of investing in information management. Some argue that the focus should be on business outcomes and solving the problems that keep decision-makers up at night, while others emphasize the importance of compliance and risk mitigation. I'll discuss my perspective on this topic based on my experience working with various organizations.

The Compliance Perspective:

As someone who has worked extensively in the compliance space, I understand the importance of adhering to regulations and mitigating risk. However, I've also encountered clients who simply don't prioritize compliance. One company I worked with made it clear that they didn't care about compliance, despite my initial assumptions based on their reputation. They were more concerned with litigation support, as they knew they would always face lawsuits.

The Importance of Context:

I've learned that the approach to selling information management depends heavily on the context of the organization. While some large, reputable companies have a deep understanding of the value of information management and have been implementing best practices for years, others may not prioritize compliance at all. Paying the fines and doing enough to stay out of jail are risks they feel they can afford to take. I'm not advocating this approach, but it is, unfortunately, a reality. On the other hand, for smaller and mid-sized organizations, a lack of compliance can be devastating, both financially and reputationally. A lawsuit or regulatory action could potentially put them out of business.

Focusing on Business Value:

In my experience, focusing on the value that information management brings to the organization is always the primary selling point. It's essential to align information management initiatives with the company's overall strategy. However, if the organization is frequently under investigation or subject to audits, and the cost of these processes is significant, then emphasizing the value of streamlining these processes can be effective. The goal is to make processes that don't directly generate revenue more productive and cost-efficient, and information management can play a key role in achieving this.

The Customer Service Example:

Some people believe that customer service doesn't necessarily make money, but I disagree. In fact, I've observed companies, such as cable providers and utilities, eliminating customer service departments and replacing them with bots. In some cases, the only way to reach a human representative is by threatening to cancel the service. This is a prime example of how neglecting customer service can lead to significant problems and damage a company's reputation.Alienating customers not only costs money since it costs more to get a new client than to keep an old one. And, it can be reputationally damaging when the company is featured on the local or national news for being out of touch with its clients. Not a good look.It's crucial to invest time and energy into areas that truly matter to the business and its customers.

Conclusion:

Theapproach to selling the value of information management should be tailored to the specific context and needs of the organization. While compliance and risk mitigation are undoubtedly important, focusing solely on these aspects may not resonate with all decision-makers. By emphasizing the business outcomes and demonstrating how information management can solve the problems that keep stakeholders up at night, we can more effectively make the case for investment in this critical area. Ultimately, the goal is to use information management to make processes more efficient, productive, and valuable to the organization as a whole.

This blog post is based on an original AIIM OnAir podcast recorded on March 5, 2024. When recording podcasts, AIIM uses AI-enabled transcription in Zoom. We then use that transcription as part of a prompt with Claude Pro, Anthropic's AI assistant. AIIM staff (aka humans) then edit the output from Claude for accuracy, completeness, and tone. In this way, we use AI to increase the accessibility of our podcast and extend the value of great content.

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