The latest Fulbright & Jaworski Litigation Trends Survey is out – slightly less litigation in 2011 compared to 2010, yet the cost of litigation per company rose. However, regulatory actions and internal investigations are climbing.
The report also reveals that whistle-blowers remain a concern in the coming year stating that one-quarter of respondents anticipate an increase in the number of claims or lawsuits brought by whistle-blowers next year. This year, 22% of respondents said their organizations were subjected to whistle-blower allegations. I suspect that this percentage has been increasing steadily over the last few years, but 25% !!! That certainly registers on the “take-notice” meter.
I also listened to a TechLaw10 podcast #42 this week, where Jonathan Armstrong was talking about the many challenges of internal investigations… more regulations, businesses being more global, more value on corporate data, more employee turnover. This last one certainly resonated – the work force of today statistically averages 2.2 years per company, a far cry from our Dads’ generation when jobs were for life. Whether people today are stealing corporate secrets more than they were before is not the issue; but the chance of this happening is significantly higher simply because people move around more and it is much easier to ‘take’ secret data with you.
All put together, I sense the perfect storm brewing to corroborate this trend of increasing investigations.
So to the people who actually have to do the work and respond to this trend, my question is how are you coping? In this economy it is not simply a case of asking General Counsel for a bigger budget – more people and more technology. It’s more complicated than that. It requires putting together a well thought out “mini-business plan” – what are the key areas of focus, how do you prioritize investigations, when and how do you deploy resources (locally and internationally), what policies and processes do you have to train and educate employees, etc. And of course if additional resources are required they need to be justified via an ROI calculation. This last piece is absolutely key – coming from the sales side, believe me, sales commission are directly proportional to a customer’s ROI.
Faced with an increase in internal investigations, the key is to use technology to your advantage – at Catelas, we are all about upfront intelligence – arming you with the facts about a case as early as possible, so that you can prioritize your investigations, spending time on the important, not the trivial, one’s, collecting only the relevant data specific to that investigation and thereby saving time and cost per investigation.
If you are interested in learning more, look here.