Cost recovery policy and plan

Cost Recovery: Creating a Policy &

PlanA NPCI Webinar

September 30, 2009

Cost Recovery: Creating a Policy & Plan

Today’s Speaker

Nina Platt Principal Consultant

Nina Platt Consulting, Inc.

Cost Recovery: Creating a Policy & Plan

Agenda

• Developing a policy that outlines the what, when and how of cost recovery

• Developing a cost recovery plan and procedures that detail how the policy will be implemented

• Creating and implementing a cost recovery communication plan

Cost Recovery: Creating a Policy & Plan

First Course of Action

Quit waffling

Decide

Cost Recovery: Creating a Policy & Plan

Cost Recovery Policy

• Based on – Firm’s overall financial goals– Cost of contracts or subscriptions in place– Firm culture– Client response

Cost Recovery: Creating a Policy & Plan

Cost Recovery Policy Elements

• Firm will invoice clients for online research expense including ...[list resources could be a separate document]

• Exceptions to the policy must be approved by …

• Engagement letters must include ….[again, a separate document could be used]

Cost Recovery: Creating a Policy & Plan

Cost Recovery Policy Elements

• Discounts will be applied as follows…• The following resources will be provided to

the client at no cost ...• Training will be required for the following

resources including refresher courses on a [ … ] basis

Cost Recovery: Creating a Policy & Plan

Cost Recovery Policy Elements

• Certification will be provided for those who attend …

• Individuals will be required to make corrections to disbursements that do not have a correctly formatted or incorrect client/matter numbers upon request.

Cost Recovery: Creating a Policy & Plan

Policy Discussion

• Do any of you have a policy in place now? If so, can you briefly describe it?

• Other questions or comments?

Cost Recovery: Creating a Policy & Plan

Cost Recovery Strategy/Plan

• What goals do you have for recovery?• Who will participate and what roles will

they play?• What will your process be?• How is disbursement done?• How will you track your success?• When will you review for the need to make

changes?

Cost Recovery: Creating a Policy & Plan

Cost Recovery Strategy/Plan

• Goal(s)– What resources (contract vs. subscriptions)– What % of cost will be disbursed to clients– What will be discounted or made available

without cost– How the budget is created– Communication will be transparent

Cost Recovery: Creating a Policy & Plan

Roles

• List individual positions taking part in the process

• Describe each role• Note any special task for each

Cost Recovery: Creating a Policy & Plan

Process Documentation

• Document workflow between those involved

• Include specific tasks for each• Be as detailed as possible when

describing tasks• Include process for creation of

engagement letters

Cost Recovery: Creating a Policy & Plan

What to Include in Procedures

• Title of procedure• Who’s involved• Knowledge needed• Supplies• Time needed to complete• Steps to take• Conclusion

Cost Recovery: Creating a Policy & Plan

Tips for Writing Procedures

• Create steps as numbered lists– limit to 10 • Limit each step to one task• Put conditional info first• Use action verbs• Provide only the information needed to

complete the task• Provide workflow or play script• Refer to related procedures if necessary

Cost Recovery: Creating a Policy & Plan

Disbursements

• Weekly vs. Monthly vs. Quarterly• Vendor usage statements• Use of other cost recovery tools

– Client/Matter validation– Exception management– Usage reports

Cost Recovery: Creating a Policy & Plan

Strategy/Plan/Procedures Discussion

• Have you documented your strategy, plan and procedures?

• What roles do partners, accounting and the library play with cost recovery of online legal research at your firms? Is it working?

• Other questions or comments?

Cost Recovery: Creating a Policy & Plan

Communication Plan

• Use the 4 P’s of Communication– Purpose - Why– Picture - What– Plan - How– Part - Who

Cost Recovery: Creating a Policy & Plan

Internal Communication

• Announcement of policy by management committee

• Explanation of plan by library director / accounting director / executive director

• Use various formats to introduce plan– Email, meetings, individual visits, small groups,

orientation

• Link plan to policy (handouts, intranet links, etc)

Cost Recovery: Creating a Policy & Plan

External Communication

• Existing Clients– Billing partner has responsibility– Library/Accounting can provide materials

• Policy• Talking points

• New Clients– Engagement letters– Additional materials

Cost Recovery: Creating a Policy & Plan

External Communication

• Vendors– Goal to provide cost effective research – Provide copy of policy– Tell them you expect them to act as partner in

recovery– Work with them to form their communication

to researchers

Cost Recovery: Creating a Policy & Plan

Talking Points

• One to two sentence description of policy • Goal is to provide most cost effective

research through training• Value of online research

– Provides substantive research– Saves time– Includes sources directly related to matter

Cost Recovery: Creating a Policy & Plan

Talking Points

• Discounts• Free resources• Exceptions

Cost Recovery: Creating a Policy & Plan

Communications Discussion

• Do you have any communication experiences that worked well? Are there any recommendations you would like to make based on those experiences?

• Other questions or comments?

Cost Recovery: Creating a Policy & Plan

Tracking Success

• Determine audience– Management committee, administrators, group

heads, individuals, etc.• Define metrics• Develop reports• Create reporting schedule • Build in feedback/response • Adjust tracking and/or make change to policy

and plan

Cost Recovery: Creating a Policy & Plan

Conclusion

• Cost recovery requires a policy and plan to be successful for the long term

• Planning should include a strong communication component

• Tracking the results of putting a Cost Recovery Policy & Plan in place is essential to demonstrate ongoing benefits

Cost Recovery: Creating a Policy & Plan

Contact Us for More Information

• Nina Platt Consulting, Inc. (NPCI) nplatt@ninaplatt.com

Call us: 612-235-7485

Visit us on the web: www.ninaplatt.com

Read our blogs: http://strategiclibrarian.com

http://lawfirmintranet.com

http://electronicresourcereview.wordpress.com