Tame Your Paper Tiger

New Requirements for Publicly Traded Companies:

Sarbanes-Oxley Act

The Sarbanes-Oxley Act of 2002 is considered to be the most significant change to federal securities laws in the United States since the New Deal. It came in the wake of a series of corporate financial scandals, including those affecting Enron, Arthur Andersen, and WorldCom.

For publicly traded companies in the US, Sarbanes-Oxley section 404 compliance efforts have turned out to be substantially more difficult, time consuming and expensive than the U.S. government forecasted when it passed the law in 2002. It also was much more of an issue than corporations anticipated.

The recently enacted Sarbanes-Oxley Act (SOX) requires publicly traded companies to maintain accurate documentation.  Failure to keep and find this information, when required, could result in significant financial penalties. This means that companies will have to spend money on organizing voluminous records so they can find what they need when an auditor needs it.

In a recent survey of its membership, Finance Executives International (FEI) found that first year compliance costs for section 404 averaged $1.9 million, including an additional $509,000 in auditing expenses and $700,000 in IT consulting and software. The effort has cost the companies an average of 12,000 hours of internal time (i.e., about seven “full-time equivalent” years). For the largest companies (revenues in excess of $5 billion), FEI found an even greater burden. Initial year expenses were $4.7 million, including 35,000 hours (i.e., 20 FTE-years) of internal time.

In the past, management has blamed employees for disorganization, and employees have blamed management. In fact, they were both right.   It is senseless to think that you can organize a company without organized individuals!   It is also senseless to think that employees can be organized without the support of the company.  Now, more than ever, it is essential that companies provide productivity training for their employees.

The Paper Tiger software and training is the most economical way to get a company in compliance with Sarbanes-Oxley section 404.

Employee Retention

As the economy begins to pick up, employee retention becomes an increasing concern.  One way to entice employees to stay is to provide training that will make their jobs less stressful, which will impact their personal lives, as well.

Another major corporate concern is health insurance costs.  Research shows that 80% of illnesses are stress-induced.  Teaching employees how to be more productive, therefore reducing stress, will be a major benefit to companies. 

While workloads increase, workforces decrease.  Therefore, training employees how to be more productive will become even more important.

   Benefits of The Paper Tiger and how it works
  (audio presentation: 3.5 minutes - turn speakers on)

How to purchase The Paper Tiger...

You can purchase both the single user and the network version of the software a la carte or with training and support from our Products page.  Please contact Kathy at kathy@orgcoach.net for more information about our Paper Tiger productivity training programs.

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