"Cost of Non-Compliance" Series Part One What you will learn today: What human resources in a typical manual process will cost you What physical items will cost at small, mid, and enterprise-sized organizations The average cost of an automated solution and the cost of administering the solution Differences in automated solutions and pricing models

1. Policies and Procedures
Management:
The Cost of Resources for
Manual Lifecycle Management
PART ONE: COST OF NON-COMPLIANCE SERIES

2. Agenda
Introduction to the types of resources being depleted due to manually managing the policies and procedure
lifecycle
What you will learn today:
◦ What human resources in a typical manual process will cost you
◦ What physical items will cost at small, mid, and enterprise-sized organizations
◦ The average cost of an automated solution and the cost of administering the
solution
◦ Differences in automated solutions and pricing models

3. Human
Resources
Human resources are the silent killer in managing the
policy lifecycle manually. Your human resources seem to
have a little bit of time each day for a quick search or
modification on a policy– But when there is no clear
method for searching through countless amounts of
emails and shared drives, and when they have spent time
revising and reviewing the wrong version of a document,
the minutes turn into hours of wasted time through
multiple levels of management. Not to mention– If your
employees are unaware of proper policies and
procedures, they could be wasting additional time to
perform their required functions.
• Policy Manager and Coordinator
• Policy Writer
• Policy Approvers
• Review Committee Members
• Employees receiving policies
• Internal Auditors

4. Physical
Resources
• A majority of companies managing policies and
procedures manually are faced with issues such as
taking up storage space on hard drives or having to
purchase filing cabinets to store the countless amounts
of documents associated with the creation, renewal,
retirement, and acknowledgments of policies and
procedures.
• This not only costs the company an excess in office
supply spending that is unnecessary, but it also takes a
toll on a company’s “green” thumbprint, and the
environment.
• Paper
• Policy handbook
• Revisions
• Renewals
• Retired documents
• Sign-off’s and quizzes
• Filing cabinets

5. Employee Salary Impact
Average hourly rates and role involvement estimations for manual processes
ROLES
AVERAGE HOURLY
RATE
ERRORS CAUSED BY MANUAL
PROCESSES
AVG. EST. NUMBER OF PEOPLE
INVOLVED AND HOURS
YEARLY COST
Policy Manager(s) $50.07 (Salary.com)
Searching and following up with the below roles and
tasks, missed dates and tasks, inability to track status,
no indicator of deadlines
1 | 384 Hours
$19,226.88
Policy Writer (HR Manager) $28.85 (bls.gov)
Keeping track of versions and ensuring edits are made
to latest version
3 | 816 Hours $70,624.80
Reviewer Committee
Members (HR Director)
$47.94 (Payscale.com)
Number of meetings to review documents, multiple
without version control in place, missed dates, tasks
5 | 168 Hours $40,269.60
Approvers $60.15 (glassdoor.com)
Missed dates, inability to view previous versions or
modifications, no way to track deadlines
2 | 84 Hours $10,105.20
Employees (Mid-level
career at average size
company in US)
$24.04 (Payscale.com)
Time wasted performing incorrect procedures at all
levels, searching for latest version of policy, and
documents that apply to them
Small: 250 | 8 Hours
Mid Size: 1,000 | 12 Hours
Enterprise: 5,000+ | 16 Hours
Small: $48,080.00
Mid Size: $288,480.00
Enterprise: $1,923,200.00
Auditors $31.73 (Indeed.com)
Lengthy audit searches, failed audits due to
misinformation or inability to locate appropriate
documents
2 | 40 Hours $2,538.40
TOTAL -- -- --
Small: $190,844.88
Mid Size: $431,244.88
Enterprise: $2,065,964.88

6. Items Required to Continue Manual
Processes
PHYSICAL COSTS
SMALL ORGANIZATION
(250 EMPLOYEES)
MID-SIZED ORGANIZATION
(1,000 EMPLOYEES)
LARGE ORGANIZATION
(5,000 EMPLOYEES)
Policy Handbook Paper 150 documents@2 pages, for 250
employees each = 75,000 sheets
Policy Handbook Paper 500 documents@2 pages, for 1,000
employees each = 1M sheets
Policy Handbook Paper 1,000 documents@2 pages, for 5,000
employees each = 10M sheets
Paper Draft edits 150 documents@ 2 pages, 3 revisions = 900
sheets
Paper Draft edits 500 documents@ 2 pages, 3 revisions = 3,000
sheets
Paper Draft edits 1,000 documents @ 2 pages, 3 revisions = sheets=
6,000 sheets
Minimal Filing Storage Retired Documents (Organization with 5
different locations, 5 filing cabinets)
Minimal Filing Storage Retired Documents (Organization with 10
different locations, 10 filing cabinets)
Minimal Filing Storage Retired Documents (Organization with 20
different locations, 20 filing cabinets)
Sign-offs & Quizzes 150 documents, 250 employees, 2x per year sign
offs = 75,000 sheets of paper -- Not including multiple sheets for
quizzes
Sign-offs & Quizzes 500 documents, 1,000 employees, 2x per year
sign offs (=2Msheets) , 1x per year 2 page quizzes (=2M sheets)= 4M
sheets
Sign-offs & Quizzes (1,000 documents, 5,000 employees, 2x per year
sign offs(=10M sheets), 1x per year 2 page quizzes(=10M sheets) = 20M
sheets
Renewal Revisions Revision edits 150 policies @ 2 pages, 3 revisions
= 900 sheets
Renewal Revisions Revision edits 500 policies @ 2 pages, 3 revisions
= 3,000 sheets
Renewal Revisions Revision edits (1000 policies @ 2 pages, 3 revisions =
6,000 sheets)
Total papers used: 151,800 ($5,613.56)
Filing cabinets: 5 ($214.75)
Total papers used: 5,006,000 ($185,121.88)
Filing cabinets: 10 ($429.50)
Total papers used: 30,012,000 ($1,109,843.76)
Filing cabinets: 20 ($859.00)
$5,828.31 per year $185,551.38 per year $1,110,702.76 per year
*500 sheets of paper = $18.49
*1-drawer filing cabinet = $42.95

7. Total Cost for
Manual Process
Management for
Policies and
Procedures
Lifecycle
Small Organization (250 employees, 150 documents)
◦ Human Resource Cost: $190,844.88
◦ Physical Cost: $5,828.31
◦ Total: $196,673.19
Mid Sized Organization (1,000 employees, 500 documents)
◦ Human Resource Cost: $431,244.88
◦ Physical Cost: $185,551.38
◦ Total: $616,796.26
Enterprise Organization (5,000 employees, 1,000 documents)
◦ Human Resource Cost: $2,065,964.88
◦ Physical Cost: $1,110,702.76
◦ Total: $3,176,667.64
This cost breakdown is reflective of the
estimations based on two factors:
1. Roles, average salary, and time
spent performing policy lifecycle
best practices in a manual manner.
2. Cost of paper and minimal storage
associated with manual processes.

8. Average Cost of Solutions for Mid-Sized
Organizations (5,000 employees)
TYPE OF PRODUCT AVG. COST OF PROGRAM TIME REQUIRED TO
ADMINISTER
COST OF
ADMINISTRATION
TOTAL COST PER YEAR
Internal Built Solution Approximately $200,000 for development,
testing, QA, etc. over 6 months of work with
two developers
Two full-time employees Approximately $100k per year $300k in year one
$200k in administration, support, bug fixes,
improvements, QA testing per year
Partial Lifecycle Solution $45,000 + ongoing support at $9,000 per
year
Implementation, ongoing workflow
adjustments, adding/removing users and
access
Approximate Time of One PTE $54k in year one
$34k in administration and support per year after
Full Lifecycle Solution –
Hosted
$60,000 + ongoing support at $12,000 Implementation, ongoing workflow
adjustments, adding/removing users and
access
Approximate Time of One FTE
($50,000 average salary)
$72k in year one
$72k in administration and support per year after
Full Lifecycle Solution –
ConvergePoint*
Most cost effective option with multiple
licensing options – contact
ConvergePoint at 1-888-484-8048 for
more information
Implementation period, maintenance
made easy.
Approximate Time of One PTE Most cost effective option – contact
ConvergePoint at 1-888-484-8048 for more
information
*ConvergePoint is the leading full-lifecycle policies and procedures management solution provider on the SharePoint platform, leveraging state of the art
features, best practices in no-cost software updates with active license, and user-friendly end-user administration tools.

9. Conclusion
Contact ConvergePoint for a demonstration of our
lifecycle solution at 1-888-484-8048
Stay tuned for Part Two and Three of -
The Cost of Non-Compliance Series:
Penalties, and Damage Control
• The Human Resource element takes
the biggest hit with manual
processes
• Manual processes become
extremely expensive for mid to
enterprise sized organizations
($600k+ for mid sized organizations
and $3M+ for large organizations)
• Automating the process is a more
cost effective choice versus building
an internal solution
• Automating with ConvergePoint
allows leveraging internal
investment in SharePoint and is the
most cost effective for the full
lifecycle management of policies
and procedures