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Laid off or not - Workers may be stealing corporate crown jewels

By | March 1, 2009, 8:00am PST

Summary: Who is really watching this situation? There’s an interesting article in CIO.com (and Network magazine). If you manage people, you really ought to check this one out as it describes the things people take from their employer on the way out the door. Things like customer lists, confidential data & memos, etc. The stats were staggering and [...]

Who is really watching this situation?

There’s an interesting article in CIO.com (and Network magazine). If you manage people, you really ought to check this one out as it describes the things people take from their employer on the way out the door. Things like customer lists, confidential data & memos, etc.

The stats were staggering and I was surprised to see that it wasn’t just terminated employees who make off with company assets. Here’s one soundbite from that article:

A survey of 945 individuals who were laid off, fired or quit their jobs in the past 12 months shows that 59% admitted to stealing company data and 67% used their former company’s confidential information to leverage a new job.

Theft of corporate data remains a problem - a problem that more IT and HR professionals need to team up on to conquer. Even this week, I took a call from an HR executive who was dealing with a very serious version of this issue. I hear stories like this every year and the consequences of them are severe. I know of companies litigating against former employees. I know one firm whose former employee stole client records and used them at his new employer to harass a former client. That one alone cost a massive amount in attorney fees.

One thing I have learned in all of these circumstances is that statements in an employee handbook aren’t enough. Great firms have identity management systems and managers who are really on top of employees and their use of corporate systems. I also know that companies with remote workers and/or lots of laptops are more at risk for data loss.

Read the article and ask yourself if you, your IT group and your HR department are doing enough on this issue.

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Brian is currently CEO of TechVentive, a strategy consultancy serving technology providers and other firms. He is also a research analyst with Vital Analysis.

Disclosure

Brian Sommer

I am co-owner of TechVentive, Inc. The company has been engaged on numerous consulting engagements, often for technology firms, service firms and litigators. As a general rule, I do not write about current clients of TechVentive. Should that occur, I will note this in blogs. Readers should assume that I have had client relationships with many ERP and other technology providers. Some of these relationships may be quite small and short-lived while others more significant. One of TechVentive's business units publishes research reports about technology providers. As a result, this business receives small amounts of revenues from a wide variety of software firms, software buyers and others when they purchase copies of reports. Some firms do secure reprint rights to these reports. None of these purchases, individually, represents a significant amount of total revenue for me and the nature of it is hard to predict where it will come from. I also provide some marketing strategy and/or market segmentation work for software firms as I have developed a unique database that segments the largest 4000+ technology buyers in the world. Many technology firms periodically engage me for unique views into this database for future marketing campaigns. I do not blog about these efforts and do not blog about client firms while they are active clients unless some pressing news story erupts. If that event occurs, I will indicate any perceived or real conflict of interest. Occasionally, I will develop unique intellectual property pieces for technology or service providers. If I should blog about a vendor with whom I have recently developed a special information product, I will note this in a blog to avoid any appearance, real or unintended, of bias. For the most part, I have no investments in technology firms. While I've been offered friends and family stock and other inducements in the past, I have steadfastly refused these. I used to be a partner with Andersen Consulting and had no ownership stake in the firm for many years. I frequently refer to this in my blogs and do not hide my prior association with the company. I did purchase a few shares of Accenture and Cognizant stock in late - 2008. I have sold some of those positions in late 2009. Readers should assume that most software conferences that I write about involved some measure of fees waived and/or travel reimbursement. I do not charge vendors to attend these events nor will I accept payment for same. I do get reimbursed for many speaking engagements. I generally note at the end of blogs whether the vendor reimbursed me for travel expenses. Generally, this includes airfare and hotel. I do not request, receive nor accept travel perks such as first class airfare.

Biography

Brian Sommer

Brian is in a unique position to diagnosis the winners and the losers in technology and services. He was the longest running (10 years) and most senior director of Andersen Consulting's (now Accenture's) global Software Intelligence unit - a position that required him to pick the best possible software solutions for hundreds of clients globally. He advised the firm on ERP software market forecasts and helped establish manpower planning estimates by vendor for deployment globally.

Brian continues to remain close to technology buyers and sellers. When he left Andersen Consulting, he co-created a dot-com with blogger and former arch-enemy at Price Waterhouse, Vinnie Mirchandani. That firm helped broker efficient services contracts between software buyers and systems integrators. Since then, he's created TechVentive, Inc. - a company that helps technology firms better understand their markets - and Vital Analysis - the research and publishing arm of TechVentive.

Brian still travels the world and publishes an impressive number of articles, research reports and blog posts annually to help software and services buyers make better business decisions. He can be reached at: brian @ vitalanalysis.com

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