Protect Your Organizations Proprietary Information

The other day one of our overseas clients called in a state of near panic, to ask a question. At issue was whether they had unwittingly violated U.S. law by transferring technical information to a joint venture partner in a European country. After hearing a two minute description, I was able to answer a resounding "Yes"! Such are the dangers of operating in a global environment. The worst part is that my client had been lead into their misdeed by following the well intentioned advice of a Fortune 100 U.S. corporation. One that certainly should have known better, but obviously does not. The potential penalties for such errors are daunting and ignorance of the law is not a defense. For a mere administrative ("civil") infraction, the penalty is up to $100,000 per occurrence. For intentional misdeeds, which are accorded criminal penalties, well, let's not even go there.

Few business executives realize that these laws apply to a far wider range of products and technical information than the obvious military armaments. Computer software, including off-the-shelf commercial office programs for instance, are in many cases subject to export controls, as are many other seemingly commercial items having a potential dual use.

In addition to the legal dangers, are those surrounding the loss of proprietary advantage through the sharp practice of intelligence gathering by competitors and even industrial espionage. Interestingly, a recent report out of the U.K. placed France on equal standing with Russia as an intelligence threat, not for military secrets, but rather industrial espionage. Unfortunately, most companies believe that these threats only apply to military, space or ultra-high technology markets. Not so! Today, businesses in many run of the mill industries are clearly at risk. Worse yet, many still do not realize it even after they have been stung. Business plans, customer lists, technology and other strategic assets can be lost or severely compromised without even knowing it until long afterward, if ever. Companies frequently wonder how their foreign competitors suddenly "got so smart" or why they "seem to know every move we make."

Both problems are serious, but is there a practical answer short of a paranoia that inhibits healthy business openness, dialog and partnering with customers, competitors and suppliers alike? Let's look at a simple 5 Point Set of Policies that can effectively protect your organization within just a few weeks and at little or no cost.

1. Education: Every employee of your organization and any independent contractors working in the facility need to be briefed on the requirement not to disseminate any technical and /or commercial information to anyone outside the organization, except on a need-to-know-basis. This includes everyone from the Chairman and CEO to the maintenance staff. Few companies realize just how much significant information can often be parlayed at the local watering hole. Merely "hanging out at the local lunch or after work gathering spot" is an old, but tried and true technique that has enabled many a competitive intelligence gatherer to learn critical information. It is amazing what one can learn from production workers or administrative support staff over a beer or two, especially on a Friday after work. Casual conversation can reveal information such as production problems, order backlogs, customer and supplier names, quality problems, new product developments and strategies, capital expansion plans, hirings, firings, lay-offs and far more.

In addition, management, marketing, technical and contracts personnel should all be thoroughly briefed on applicable government technical data export regulations. This mandatory education for all should be standard for new hires, as well as reviewed periodically at company meetings and in newsletters and through other means.

Competitive intelligence gathering and industrial espionage are issues that are seriously underestimated by most companies today, especially in North America.

Copyright 2005 by John Di Frances

John Di Frances is an internationally recognized organizational legacy expert and keynote speaker. www.difrances.com

---

The Survey Feedback Process for Organizational Development and Change

THE PURPOSE OF SURVEY FEEDBACK:In globally competitive environments, organizations are seeking information about obstacles to productivity and satisfaction in the workplace. Survey feedback is a tool that can provide this type of honest... Read More

Performance Expectations - 5 Tips and 5 Questions

People want to understand their role - they want to do well! So by being clear, really clear about what it expected of them, makes a big, big difference! And that improves performance... Read More

Hows Your HUB?

Marketing gurus are always coming up with new lingo but oftentimes they are restating the old tried and true concepts in new terms. Marketing students from the 70's and 80's will be familiar... Read More

Classifying Motivational Needs

While there exist several useful definitions of motivation, for our purposes we will define it as an individual's desire to do something based upon a need. When a person is confronted with a... Read More

Create Your Methodology Based on a Standard Framework - Part One

OK. So you have decided that your organization has to improve the way in which it works. You have chosen to implement a methodology as the best way to achieve this goal. And... Read More

What Every Manager Should Know About How to Maximize the Two People Inside

Every one of us, in reality, has two people inside: The person we are today and the person we can become tomorrow and in the future.We go to work every day, are never... Read More

Smart Choices: How to Hire the Best

Your organization's continued growth and success depend on making smart choices and hiring the best. Today's economy is exploding with talent, allowing you to be selective about the staff you hire. Yet, the... Read More

Uncovering the Secrets to Effective Performance Management

In many ways there are no secrets to implementing effective performance management. Performance Management is a process and a process which if implemented effectively should ensure that both employees and managers remain both... Read More

Employee Turnover: Is It Eating Up Your Profits?

Keeping the cost of doing business down, yet providing a quality product or service, is one of the most critical components of success for today's leader. What many fail to realize is that... Read More

Tales from the Corporate Frontlines: Finding The Perfect Balance

This article relates to the Work/Life Balance competency, which investigates how your staff feels with regard to the balance between work and personal life. It explores issues such as priority of family and... Read More

A Comprehensive Sarbanes Oxley Act Summary

Individual and corporate security stand in the center of the Sarbanes Oxley Act summary, as they are the areas that suffered most changes. New criminal and civil penalties were announced for security violations... Read More

The Silent Assassin - What to Do When They Visit You?

IntroductionThere are a group of people in the community that will some time in their career visit your business; the silent assassin.The silent assassin displays all the qualities of a serial killer as... Read More

The Myth of the Management Team

Every business has problems. That is why the average life span of a large industrial company is 40 years. Some are learning disabilities where companies are not prepared to learn from their mistakes.... Read More

A Journey of a Thousand Miles

You can't build a reputation on what you are "going" to do. Henry Ford Everyone procrastinates in their own way. For some, procrastination results from the belief that there is always one more... Read More

Thoughts on Empowerment

People are empowered when they are given the authority and responsibility to make decisions affecting their work with a minimum of interference and second guessing by others.Empowerment is an overused and under?practiced term.... Read More

Internal Communication: 12 Essential Elements

There are 12 essential elements of a successful internal communications strategy:1. Effective employee-directed communications must be led from the top Effective communications require the active commitment and endorsement of senior managers. It... Read More

What Every Manager Should Know About How to Overcome Boredom

Do you find yourself easily becoming bored or tired at work for no apparent reason? If that's the case, then pay close attention. Research has shown that fatigue and a worn-out feeling are... Read More

Ten Business Reasons Why Asking for Help Works

In fact, bringing your people - any of them - into your confidence and asking for help, is a very powerful tool indeed. The form of words' "I need your help", works best.... Read More

Interviewing Applicants Can Be Hazardous to Your Wealth

1st Fact: Interviewing applicants is the most common way companies decide whom to hire.2nd Fact: Research proves most interviewers do lousy at predicting if an applicant will succeed ? or flop ? if... Read More

Qualities of a Great Manager

In the call center environment we are often only as successful as the people we hire. While our front line employees are critical to our business, choosing the right managers powerfully impact your... Read More

Five Ways to Turn Resistance into Opportunity

Resistance. It isn't something people cherish or enjoy encountering. We experience resistance everywhere at work:People don't like that idea.People don't want the work flow to change.Someone doesn't agree with the feedback they received... Read More

Leadership Style: What Makes A Good Boss?

In today's competitive environment, companies realize that a good boss is one who can identify and build on the talents of the staff and knows how to retain top performing employees. Take this... Read More

Why People Resist Us

There's a one-word reason most ideas never see the light of day: Resistance.Resistance is often behind the glassy-eyed stares you get following a presentation, the sarcastic put-downs you have to put up with... Read More

Creativity and Innovation Management: The Creative State

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this field, for example, creativity can be... Read More

How Bad Communication Can Hold You Back and How to Break Free of It

The reason jobs are often not done right and employees are fired is because of lack of skill. Right? Wrong! Poor communication and ineffective human relations are the major causes. Remember: Communication is... Read More

Executive ESP: A Pathway to Success!

We all have psychic abilities that we use daily, although most of us don't even realize that. The full study of this issue would take many books, and years of experience to grasp... Read More

Indecent Proposal in the Workplace ? An Overview of Workplace Harassment & Employer Liability

An allegation of harassment in the workplace is a growing phenomenon facing companies across the U.S. The following is an article derived from a 2003 seminar I attended at the National Business Aviation... Read More

Are You Using the Right Form of Energy?

As we near the end of summer, here is a question I have for you, "Are you using the right form of energy to grow your business?" Are you having trouble growing your... Read More

Preparing a Budget

Ok, you say, I know I need a budget, but how do I prepare one? The most common budget period is one year, but this can vary depending on whether or not your... Read More