Winning the Paper Chase: Documenting Your Internal Investigation Delivers Immediate and Lasting Benefits

If you are conducting an internal investigation, success or failure hinges on results. So, you might believe you’ll be judged by your final product, not your process. Except that is not the case. In the old children’s game, the Paper Chase, a team of “hares” runs cross country, dropping shreds of paper to mark their trail. The team of “hounds” later pursues, spying the paper scraps and following the trail to catch the hares. No one bothers to pick up the paper. Today, however, we’re more concerned about litter than in the past. We’re also more concerned with processes. The regulations governing investigations are voluminous, and the consequences for violations are potentially severe. Investigators must pick up every scrap to document the paper trail that proves they complied with all pertinent laws.

In this article, we offer a few points to illustrate why detailed documentation of your investigation is so important, not only for the resolution of your case, but for the future of your organization.

Protecting the integrity of the investigation

People must trust the process to accept the results. Thorough documentation helps ensure that investigators captured the facts accurately. Accuracy is crucial in the event of subsequent litigation or scrutiny by external parties, such as regulators or auditors.

A professional investigation must be objective and free from personal biases. Without proper documentation to support its findings, an investigation will not inspire confidence. Acting upon its conclusions will be problematic for the organization.

Solid evidence of substantive violation facilitates the closing of the case

Proper documentation ensures there is a clear and consistent record of all the steps taken, including interviews, analysis, findings, and decisions. If that clear record supports your conclusion that someone has committed a violation, you have a firm basis for subsequent actions. It becomes easier to pursue an appropriate remedy, such as demanding restitution and separating the offending worker from the company. Concrete evidence also mitigates the risk of subsequent litigation alleging unfair treatment, bias, retaliation, or another employment law violation.

Evidence of compliance with privacy laws forestalls enforcement actions

Some industries require companies to retain certain records for a specific period to comply with legal or regulatory standards. Maintaining investigative documentation for the required timeframes avoids fines or penalties. Additionally, internal investigations often deal with sensitive information, which can trigger liability for any mishandling. Securely maintaining proper documentation ensures this information is restricted to only authorized personnel and reduces the risk of unauthorized access or data breach. If the investigation triggers any enforcement action, documented materials can show that the company behaved reasonably and lawfully.

Reinforcement of processes that build an ethical company culture

Properly conducted internal investigations should help a company achieve two goals: deterring deviant behavior that weakens the organization and reinforcing ethical behavior that strengthens the culture. Investigations conducted according to best practices uphold the values of the organization in several ways:

• Demonstrating good faith — An organization that wants loyalty and honesty from its employees must be willing to show the same. Evidence that the company acted in good faith is important for internal morale and builds loyalty.
• Accountability — Proper documentation enables the organization to hold individuals accountable for their actions and decisions, which is vital to building an ethical culture.
• Prevention of retaliation — Once an issue is settled, the organization must move forward. The closure that a well-documented investigation provides helps mitigate the risk of retribution from dissatisfied parties.
• Facilitating consistency of processes — Fairness requires equal treatment for individuals in similar circumstances. Having a record of one investigation enables the company to treat similar issues in a like manner. This can prevent any perception of bias or favoritism.
• Policy evaluation and improvement — A reliable record allows a company to review steps taken in individual cases, as well as patterns and trends over time. This can highlight areas where policies may need to be updated, training is required, or potential risks must be mitigated.

Each of these elements helps bring about a corporate culture that deters the type of deviant conduct that made the investigation necessary.

Contributing to institutional knowledge that improves future performance

Thorough investigative documentation serves as a useful reference for future investigations, eventually becoming a template for how to proceed. Over time, retained materials help build a body of knowledge that can allow an organization to improve its handling of investigations, from refining interview techniques to streamlining reporting.

Keeping thorough records helps leadership identify potential risks and weaknesses in the organization. Records can highlight areas where further action is necessary, such as tightening policies, improving internal controls, or addressing employee concerns.

Best practices for documenting internal investigations

In many cases, hiring a reputable outside party experienced in investigations can streamline the process and reduce risks substantially. However, if you wish to conduct your own investigations, here are a few essentials when it comes to documentation:

• Confidentiality — Keep all documents confidential, ensuring that only authorized individuals have access to investigation records.
• Clarity and detail — Ensure that the documentation is clear, detailed, and organized, including dates, names, actions taken, and conclusions.
• Retention period — Follow organizational and regulatory guidelines for retaining investigation materials, which may vary depending on the nature of the investigation or the jurisdiction.
• Consistency — Maintain a standard approach for documenting and storing all investigations across the organization.

Perhaps we can close with another analogy. From early schooldays, teachers demanded that you “show your work.” Inevitably, some students grumbled, “What difference does it make, if I got the right answer?” Well, for one thing, displaying your work showed you didn’t get the right answer by peeking at someone else’s paper. You didn’t break the rules. The evidence is right there. In the context of an investigation, properly documenting your processes and retaining materials can protect your organization from allegations of wrongdoing and subsequent liability. It can also give you a paper trail that leads to a better organizational culture.