INVESTMENT-DRIVEN GROWTH

Electronic Discovery:

A V l bl P j t b It lf

GROWTH

A Valuable Project by Itself and a Springboard to Information Governance

Presenter:

Jordan P Williams Senior Counsel

1

Jordan P. Williams, Senior Counsel

Introduction to NiSource

NiS I (NYSE NI) b d

Corporate Profile

NiSource Inc. (NYSE: NI), based in Merrillville, Ind., is a Fortune 500 company engaged in natural gas transmission, g ,storage and distribution, as well as electric generation, transmission and distribution.

NiSource operating companies deliver energy to 3.8 million customers located within the customers located within the high- demand energy corridor stretching from the Gulf Coast through the Midwest to New England.

Show me the $$$

Does Your Organization Have Budget to Fund itsInformation Governance Strategy over the next 12 gyMonths?

1 Y1. Yes

2. No

3. Unknown

3

Is this what RM/IG/E-Discovery Looks Like to You?

Agenda

•Key E-Discovery Trends

•From Status Quo to Business Process

•Winning the Internal Battle

•Q&A

Agenda

Key E-Discovery Trends

•From Status Quo to Business Process

•Winning the Internal Battle

•Q&A

Framing the Issue

[A] large corporation only can discharge its duty [tocan discharge its duty [to preserve evidence] by: 1) creating a comprehensive document retention policydocument retention policy that will ensure that relevant documents are retained … and 2)

The Hon. Andrew Rodovich, Haraburda v. Arcelor Mittal USA, Inc.

)disseminating that policy to its employees. Failure to abide by this duty may Haraburda v. Arcelor Mittal USA, Inc.

(N.D. Ind. 2011) result in sanctions.

Framing the Issue

Being well into the 21stBeing well into the 21st century, defendant and its counsel should have anticipated thathave anticipated that plaintiff might, at a minimum, seek evidence . . . among

The Hon. Michael Mason, N thi t H & M I t t’l (N D

the ESI of those [key] individuals.

Northington v. H & M Internat’l (N.D. Ill. 2011)

Why Information Governance?

• Ediscovery, Information Management and Data Security are convergingg g

• ESI is growing exponentially

Cloud Storage• Cloud Storage

• BYOD

• HELP!

9

Agenda

•Key E-Discovery Trends

•Winning the Internal Battle

From Status Quo to Business Process

•Q&A

Big Data = “Big Time”** Headaches

Average banker’s box holds 2,500 sheets of paper

FileSizes

= =

1 page of information on average = (.02 megabytes)

Megabytes1 2,500 5010 25,000 50020 50,000 1

Typical Gigabytes

,100 250,000 5200 500,000 10300 750,000 15

Typical LaptopTypical PC

Hard Disk

Gigabytes400 1,000,000 20500 1,250,000 25

1,000 2,500,000 502 000 5 000 000 1002,000 5,000,000 1005,000 12,500,000 250

10,000 25,000,000 50020,000 50,000,000 1

Terabytes40,000 100,00,000 260,000 150,000,000 3

Key TrendsKey Trends

Transforming a disjointed, ad-hoc process…

● Manual - Emails & Spreadsheets

● Linear Review

L Fi● Law Firm or Vendor Hosted

Review

● Manual Data Collection

● Ship to Outside Counsel, or

● Outside Vendor to Process,

De-duplicate and Blind

● Ship to VendorKeyword Filter

Key TrendsKey Trends

…into a Repeatable and Defensible Process

Preservation

Legal HoldIdentification& Collection

Early CaseAssessment Processing Review &

Production

● Automated Legal Hold Notices &

● Network Based & Automated Onsite

Collections

● Understand Evidence, Facts

& Estimated

● In House Culling

● Dates Domains

● Intelligent Review instead

of LinearNotices & Surveys

Collections & Estimated Costs Early

● Dates, Domains, File Types, Key

Words

of Linear

● In House, Law Firm, or Vendor Hosted Review

Every Business Process Has Its Own Application

Cust. Svcs

C t D t

HR

P f

Accounting

Fi

Legal

E DiCust. Data Performance Finance E-Discovery

Whether it is off the shelf or custom built

Does any HR Department really

More than spreadsheets

Lawyers are stuck in the 1990’s or early 2000’sshelf, or custom-built,

customer records are largely stored electronically

Department really have a “file” for an

employee anymore?

spreadsheets, software solutions are very sophisticated for

billing, accounting, audit, and cash management

1990 s or early 2000 s using word processing and office suites…we

need to grow and adapt

management

E-Discovery Has Become a Business Process

Legal IT HR Accounting Compliance

Identification

& Collection

Wrongful Termination,Harassment,

Discrimination

Internal & External Audits

Regulatory Requests

SEC, FDA, FERC

Litigation & Investigations

Electronically Stored Information (ESI)

Email Servers Storage Desktops File Servers SharePoint Cloud

The Team

Executive Sponsor(s): Legal and ITBusiness Unit Sponsor(s): LegalStakeholder Reference Group

• Records Management g• Legal• IT• Project Delivery

Business Unit Manager: Key Stakeholder(s)Subject Matter Expert: Internal or ExternalProject Manager: Internal or Externaloject a age te a o te aEnterprise Architecture and IT SecurityTest and Compliance: Internal or External IT and Business CoordinatorBusiness Coordinator

NiSource Goal: Alignment of Project to EDRM as useful shorthand and common theme

E-Discovery Phase IyE-Discovery Phase II

EDRM model was utilized throughout project due to near universal acceptance of the model and the useful shorthand understanding it provided for dialogue between internal and external g p gresources. Vendors and software options were pegged to various parts of the model for ease

of comparison.

The Project Plan

Key DatesCalendar Year

Original Date (Met)

Firm Schedule

Key Dates Feb Ma Apr May Jun Jul Aug Sep Oct No Dec

Initiation Phase

Phase I: Reviiew, Processing and Analysis

Design and Build

Phase IV driven based on product availability

and security requirement design. Final deployment

Test

Deploy

Phase II: Legal Hold

Design and Build

design. Final deployment occurred in December.

Test

Deploy and Turnover

Phase III: Automate collection

Design and Build

SRG met in late September to discuss and approve Security roles and

Test

Deploy & Turnover

Phase IV: Integrate Ediscovery & Legal Hold Solution

Design & Build

approve Security roles and organizational

responsibilities relative to Data Collection.

Test

Deploy & Turnover

The Benefits

Negotiate AgreementProvides hard dollar

business case benefits Reduces IT expense for

Phase I

Phase II

Phase III

Phase IVCurrent Ediscovery

Tool Release

I li f

legal hold, improves defensibility, mitigates risk

Improves quality and

Phase IV

Implement Ediscovery Tool

Review, Process and Analysis

Improves quality of Legal Hold process

p q ydefensibility of Legal Hold

process

Implement Phase II Identify, Collect, Preserve

Integrate Ediscovery Tool

& Legal Hold

Q2 YR Q3 YR Q4 YR

Implement Legal Hold

Q2 YR Q3 YR Q4 YR

The Results – One Small Test Case

Time26,325 Docs Time

< 20 Minutes

iew

t to

Lega

l Rev

Cost

Minimal1,666 Docs

Searched

cum

ents

Sen

t

34 DocsFiltered Cost/Time Before

526 Hrs to <20 Minutes

$ 179 694

Do

Before After

$52,650 to Minimal*

After

526 Hrs to <20 Minutes

$ 179,694Search Filter *Assumes 50 docs/hr x $100/hr

The Results

• Ediscovery Tool Provided Nearly Instantaneous Results (Even During Testing)

• Sample Ediscovery Tool Uses To Date:• Sample Ediscovery Tool Uses To Date:– Working closely with outside counsel to respond directly to written

discoveryF ll d t i d ti f d ti t– Full document review and creation of production sets

– Document culling/review and creation of exported sets for further external review

– Investigating our own data and answering specific questions

From Legal Hold/E-Discovery to IG

Which Processes Fall Under the Umbrella of Information Governance?

1. Email/Records Retention

2. Data Security & Privacy

3. eDiscovery

4 Data Storage4. Data Storage

5. Compliance

22

From Legal Hold/E-Discovery to IG

Which Department Should be Responsible for Information Governance? (Who wants the hot potato?)

1. Legal

2. Compliance/Ethics

3. IT/IT Securityy

4. Records Management

5 Other???5. Other???

6. Unknown???

23

Re-Assembling the Team…or putting the band back together**

Potential IG Project Team Members

– Executive Sponsor(s): Legal and IT– Business Unit Sponsor(s): Legal– Stakeholder Reference Group

– RM, Legal, IT, Project Delivery– Business Unit Manager: Key Stakeholder(s)Business Unit Manager: Key Stakeholder(s)– Subject Matter Expert: Internal or External, preferably both– Project Manager: Internal or External

E t i A hit t d IT S it– Enterprise Architecture and IT Security– Test and Compliance: Internal or External IT and business coordinator

The Road to IG

Admitting We Have an E-Mail Problem

• E mail is a system for receiving sending and storing electronic• E-mail is a system for receiving, sending, and storing electronic messages

• 294 billion email messages are transmitted per day2 8 million emails are sent every second– 2.8 million emails are sent every second

– 90 trillion emails are sent per year

• Indispensable business tool– According to some estimates 60-70% of business-critical data is at some point– According to some estimates, 60-70% of business-critical data is, at some point,

contained in email– Supports almost all business processes

• De facto collaboration tool • Transmission vehicle for attachments

The Road to IG

E il i th l di i f id t d t i il t i l t d

Admitting We Have an E-Mail Problem

• E-mail is the leading piece of evidence requested at civil trials today

Informality of e-mail and carless communication can pose significant legal risk

• Around 90% of the trillions of messages sent annually are spam and viruses

S it b h ft itt d i il• Security breaches often committed via e-mail

• Skyrocketing storage costs

• Deceptively time consuming• Deceptively time-consuming

• Inadequate Training

• Corporate Culture of reflexive/reactionary responseCorporate Culture of reflexive/reactionary response

The Road to IG

Admitting We Have an E-Mail Problem

The Road to IG – What We Found When We Started

Stale Policy and Outdated Practice

• E Mail Policy last updated in 2008• E-Mail Policy – last updated in 2008

• Transitory files should be discarded on routine basis, and retained no longer than 60 days

• E-Mail “records” should be transferred to folder or printed to paper (emphasis added to highlight the ridiculous)

Size Limitation of 1 Gigabyte• Size Limitation of 1 Gigabyte

• Poor options for “Archive” / Storage Locations

The Road to IG

E-Mail Management Goal/Objective

Given soaring volumes, legal risk and wasted time related to current e mail practices how do werelated to current e-mail practices, how do we enhance productivity, and reduce risks and costs associated with unnecessary email retention?associated with unnecessary email retention?

The Road to IG

Focus Groups and Meeting Objectives

• UNDERSTAND current e mail use organization and storage• UNDERSTAND current e-mail use, organization and storage• IDENTIFY differences and similarities among various business

functions, as well as unique requirementsDEFINE t ti d d• DEFINE retention needs and reasons

• DISCUSS current “best practices” for managing e-mail

The Road to IG

80% of received e mail is transitory and should be deleted within 60 days True?

Focus Group Discussions – How is E-mail Used?

• 80% of received e-mail is transitory and should be deleted within 60 days. True?• What is the nature of your e-mail messages?• How do you use folders?

– Are folders created and named by Person? Topic? Project?e o de s c eated a d a ed by e so op c oject– About how many folders do you have?– When do you move e-mails to folders?– Do you delete e-mail from folders? When?

• How far back in time do you typically refer to older e-mails?• How do you manage attachments? Do you move them to an alternative location or

do you leave them attached to the e-mail message? Both?• Do you store e-mails in any other locations? As PDFs? As hardcopy printouts?Do you store e mails in any other locations? As PDFs? As hardcopy printouts?• Do multiple team members all retain the same e-mails?

The Road to IG

D l th bj t li h il?

Focus Group Discussions – How is E-mail Used?

• Do you always use the subject line when you compose e-mail? • Are you consistent in how you use the subject line? (For example,

for all e-mails related to a specific project, do you always include the j t i th bj t li ?)project name in the subject line?)

• Do you save all received messages, or just the most recent and complete “string”?

• Do you save all sent e-mails?• How old is your oldest e-mail?• How do you search for e-mail?y• Do you have trouble finding e-mails?• Do you use mobile devices such as iPads and Blackberries to

access e-mail?access e mail?• Have you ever been informed that you are on a “Legal Hold” and you

may no longer delete e-mail until further notice?

The Road to IG

R t i il i d ith it “b i l ”

The Zone Approach

Retain e-mail in accordance with its “business value”

• E-mails that are not tagged or moved to folder by users are considered to be “transitory” and are autousers are considered to be transitory and are auto-deleted after a specific time period

• E-mails related to on-going work or projects are• E-mails related to on-going work or projects are tagged or moved to folders, and are auto-deleted after 18 to 36 months

• E-mail that is considered official company records are tagged as such by users and stored in a records repository where records management requirementsrepository where records management requirements and retention rules are applied

The Road to IG

The Zone Approach

Zone 1 Zone 2 Zone 3

The Road to IG

The Zone Approach

The Road to IG

The Zone Approach• Removes unnecessary transitory email from the email system• Removes unnecessary, transitory email from the email system• Improves server performance and reduces storage costs• Provide a centralized system that supports the retention of email “records”

in accordance with the Retention Schedulein accordance with the Retention Schedule• Reduces risk of over-retention• Enhances productivity in finding needed e-mails

NEXT STEPS…• Conduct remaining Focus Groups• Develop Requirements SpecificationsDevelop Requirements Specifications• Update E-Mail Policy• Design Technical Solution• Pilot SolutionPilot Solution• Address “legacy” e-mail• Phased implementation

The Road to IG

Choosing the “Right” Tools

• Software comes in all shapes and sizes• Be willing to bend or flex as necessary• Test, test, test• Take the time to do your homework up front• Don’t let the perfect be the enemy of the good• Frankenstein solutions are not necessarily bad• address collaboration tools, file shares,

desktop and mobile device management• Policy changes are good, but policy change coupled with work flow, change

management, and the right tools is even better• This is all easier said than done

E d t t th t th i “ d d t ” t th j t it i• Everyone needs to accept that there is no “end date” to the project, it is a continuous process of learning, implementation, and improvement

Agenda

•Key E-Discovery Trends

•From Status Quo To Business ProcessWinning The Internal Battle

•Q&A

Roles

• Executive Sponsorship is Key (Your Sledgehammer** and source of $$$)

• Business Unit Sponsors are your key advocates• Stakeholder Reference Group is vital to ensuring buy-in at all

le elslevels• The Team

• Legal IT Records ManagementLegal, IT, Records Management• Project Management (internal or external)• Enterprise Architecture and IT Securityp y• Test and Compliance• Outside Experts• Internal Subject Matter Experts

Develop a “Game Plan” for Implementation

• Project Team Member Updates – regular meetings and update stakeholders

• Milestone Achievements – recognize steps along the path both with the team and with sponsors

• Key Takeaways To Date – revisit progress, goals and original mission to ensure ongoinggoals, and original mission to ensure ongoing focus and staying on track

• Next steps – never be afraid to look atNext steps never be afraid to look at alternative uses for the products beyond original project scope

Deployment Activities…or how to “Shock the Monkey”**

Adoption does not occur “magically”Vendor provided end-user training is a “must”Vendor provided Admin. training is a “must”p gIdentifying internal resources to be “champions” both for change and for the use of the new programs is keyRecognize and reward internal champions by promoting their interest in the subject matter and productsU f t b d tUse of new systems becomes mandatoryUse of new systems becomes part of annual performance measures

After Action Review: A Crucial Step

“We were looking for Best Practices embedded

in the tool”

T j h ll i IT

“Things happened just like they were supposed

to – and we had fun”

• Two major challenges – engaging IT server operations effectively and scheduling and getting dates; however quality of work was good

• One half of the project was plug and play – other half requited tweaking to meet expectations

• Leaders understood the importance and time commitment required to implement the project

• Project manager established clear milestone dates knew escalation points; good consistent q g p

• Legal Hold solution seemed to be more off the shelf than it really was. Asking the questions in the right way would have gotten us to the nature of how the vendor would deliver. How many versions of your product do you support for

dates, knew escalation points; good consistent inter-team communication

• RFP and vendor demo process were absolutely crucial in helping team make the decision Exterro had excellent training versions of your product do you support for

different customers? How did your last half-dozen significant releases and why did things happen?

• We did not effectively cover questions about their internal IT development processes.

Exterro had excellent training• Solid Supply Chain process – they told us the

how – team did the what• IT was actively engaged in the entire

procurement process • Issues with configuration/QA management; we expected smoother implementation– this negatively impacted testing

• Legal Hold solution more configurable than we realized; we thought configuration was parameter

procurement process• Leader commitment to using the new tools after

implementation “This is the only way to issue a legal hold. ” Message reiterated at Legal Summit, department meetings: consistent messaging realized; we thought configuration was parameter-

driven. Make sure vendor documents customizations and copies implementation notes

department meetings: consistent messaging related to implementation and use of the solution; measured in PMW’s

Wrap-up

• EDRM Model Provides common language

• Executive Sponsorship is your “Sledgehammer”**• Executive Sponsorship is your Sledgehammer

• Implementation does not end with “going live”

D l d t bj t tt t• Develop and nurture subject matter experts

• Allow for sufficient timetable, but adhere to deadlinesdeadlines

• Celebrate milestones in the project

**All apologies to the Rolling Stones, Peter Gabriel, and any other musicians or bands that I shamelessly used for bad humor in this presentation

Agenda

•Key E-Discovery Trends

•From Status Quo To Business Process

•Winning The Internal Battle

Q&A