Presentation I gave at the Business Fundamentals Bootcamp (March 25, 2011) hosted by Supporting Strategies and Acceleration Partners at the Cambridge Innovation Center.
2. Who is The Lorenzi Group? Data Security & Digital Forensics Consulting Firm Focus on digital forensics & data security services for litigious situations for past 5 years Digital Forensics practice primarily consists of: Obtaining, reconstructing and analyzing data for parties involved in litigation or criminal trial.
3. Why are WE talking about Productivity? Employment litigation and disputes make up the core of our business We have been analyzing and reporting on employee usage for years!
4. Don’t believe us, trust the experts….. US businesses deal with $994B/yr = 7%GDP Fraud schemes typically last 2 or more years before being detected Median Loss = $175K, 50%+ = $1M Organizations w/ Anti-Fraud controls average only $70K/yr in losses Data for this slide came from ACFE & FBI websites
5. More Small businesses suffered highest median loss of all groups The media loss for businesses w/ less than 100 employees = $200K/yr Everyone is involved including AcctingDepts (29%) and Upper Mgt (18%) Fraudsters are typically 1st timers Data for this slide came from ACFE & FBI websites
6. And more…. Top 2 red flags: Living beyond means Experiencing financial difficulties Family, Friends, Business Partners, and Vendors are all in on the action Data for this slide came from ACFE & FBI websites
7. W Edwards Deming “Lack of knowledge – that is the problem.” “If you do not know how to ask the right question, you discover nothing.”
8. Knowing IS half the battle!!!! The first step is to better understand how your organization uses its technical resources What is your technology telling you?
9. What are the options? Turning Security Information on its Head Re-analyzing available data to make money
10. Did you know? Productivity in front of a work computer is at a measly 70% Most workers do not even realize it! Psst: Workplace productivity is going down
11. Porn Pornography is so common in the workplace that if we don’t see porn during our analysis, it’s a red flag 29% of employees view porn regularly at work (Neilsen – 2010). This number is increasing. NOTE: Although men are the leaders, women’s ranks are increasing rapidly.
19. PRODUCTIVITY!!!!!!!!!!!Leverage this knowledge Internet Usage Which sites are most visited? Which users are Productive surfers? Bandwidth Consumption Where are the bottlenecks? Why? Application Usage What’s being used? How? Do some employees need more training? chat, webmail and Email Usage How are these tools used? Security risks? Search activity Looking for Jobs or looking for Clients?
21. 15 minutes a Day 120,000 minutes/work year (2000hrs) 15 minutes/day = 3000 minutes/year 2.5% of Annual Revenue
22. How? Part I What tools already exist? Windows Login Info (Employee) Firewall Logs (Web-time & Employee) A/V Software (Employee & Frequency) OTHER: Specialized Software Tools
23. How? Part II Explain the rules of the workplace Provide weekly feedback to users Send “reminders” to get back to work if too much idle time or web surfing time Identify Best Practices Improve the workflow process Reducing dead weight
25. And your HR Department & Lawyer will love it!! … (so will your Accountant) Data to backup an Employee Termination Data available pre-litigation Harassment claims? No problem With all data being archived spoliation risk is lowered significantly Avg Cost of Employee Lawsuit = $40,000 Avg Monthly cost Active Network Monitoring (25 computers) = $375
26. Top Questions Asked Does fraud really happen? – Yes… and it’s on the rise. Can we do this? – Yes. Is it illegal? – No, in fact many organizations (financial/medical/identity/etc) are required by law to be doing this. Ask your lawyer (or ask ours!). I want to trust my team. Do I have to see everything? – No. We can set it up so you only see what you want to see. How much is productivity increased? On Average, expect to see 5-10% increase in Workplace Productivity
27. FIN The Lorenzi Group Rob Fitzgerald www.thelorenzigroup.com 866-632-9880 x123 Spectorsoft Mark Inda www.spectorsoft.com 772-469-2788