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Cost Recovery: The
Basics
A NPCI Webinar
February 12,
2009
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Today’s Speaker
Nina Platt
Principal C...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Agenda
• Trends in Cost Recovery
• Bud...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Trends in Cost Recovery
Movement towar...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Current Trends in Cost Recovery
AmLaw ...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Current Trends in Cost Recovery
AmLaw ...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Trends in Cost Recovery –
ABA Survey
%...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Trends in Cost Recovery –
Expert Inter...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Trends in Cost Recovery –
The Value of...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Trends in Cost Recovery –
The Value of...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Trends in Cost Recovery –
The Value of...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Trends in Cost Recovery –
The Value of...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Budget
• Face the responsibility w/o a...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Budget Example
GL for use in paying ex...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Budget Example
Percentage expected to ...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Budget
• Set up two accounts
• The two...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Budget
• Work with Pro Bono to budget ...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
ERM Tools – The Players
• Lookup Preci...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
ERM Tools – Market
Penetration
• Surve...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
ERM Tools - Market
Distribution
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
ERM Tools – The
Features and Functiona...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
ERM Tools – Past Issues
• Difficult to...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
ERM Tools – Use in Practice
Functional...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Disbursement Management –
Vendor Tools...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Resources
• Westlaw Cost Recovery Solu...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Disbursement Management -
Vendor Tools...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Tracking Progress – Reports,
Reports a...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Tracking Progress – Reports,
Reports a...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Tracking Progress –
Reports,
Reports a...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Communicating Recovery to
Firm Leaders...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Conclusion
• Cost recovery is here to ...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Questions? Need Help?
Contact Us
• Nin...
Cost Recovery: The Basics, a NPCI
webinar
Cost Recovery: The Basics, a NPCI
webinar
Contact Us for More
Information
• Nina...
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Cost Recovery : The Basics

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Cost Recovery : The Basics

  1. 1. Cost Recovery: The Basics A NPCI Webinar February 12, 2009
  2. 2. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Today’s Speaker Nina Platt Principal Consultant Nina Platt Consulting, Inc.
  3. 3. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Agenda • Trends in Cost Recovery • Budget • Electronic Resource Management (ERM) Tools • Disbursement Management • Tracking Progress • Communicating to Firm Leaders
  4. 4. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Trends in Cost Recovery Movement towards not charging clients vs. Firm decision to continue charging
  5. 5. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Current Trends in Cost Recovery AmLaw 2008 Survey Recovery of online research costs increasing
  6. 6. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Current Trends in Cost Recovery AmLaw 2008 Survey 3% of firms do not recover online costs
  7. 7. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Trends in Cost Recovery – ABA Survey % of Lawyers Who Don't Know How Their Firm Recovers Online Research Expenses 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% Solo 2-9 lawyers 10-49 lawyers 50-99 lawyers 100+ lawyers Size of firm 39.7% 35% 21.4% 5.2% 2.1%
  8. 8. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Trends in Cost Recovery – Expert Interviews • No significant change in the near term • Movement to not charge for online services over time (10-20 years)
  9. 9. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Trends in Cost Recovery – The Value of Online Research • What contributes to the devaluing of information? – Lawyers aren’t taught to value research in law school – Lawyers want to be seen as experts who have the answer – A whole lot of waffling on the decision to charge clients
  10. 10. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Trends in Cost Recovery – The Value of Online Research • What contributes to the devaluing of information? – Law firms don’t communicate openly with clients about the value – Clients have no trust in how the research is being invoiced – Clients won’t pay for services they don’t value and invoices they don’t trust
  11. 11. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Trends in Cost Recovery – The Value of Online Research• How can lawyer behavior be changed? – Discussions with leadership – team with group leaders – Creation of transparent pricing policies – Individual discussions with lawyers – Presentations at practice group and team meetings – Lawyers providing message to clients
  12. 12. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Trends in Cost Recovery – The Value of Online Research• How can client behavior be changed? – Partners having the value discussions with their clients – Engagement letters that include transparent research pricing policies
  13. 13. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Budget • Face the responsibility w/o authority dilemma • Budget your projected recovery against expense to create the % of costs you hope to recover • Depending on individual firm needs and vendor bill groups, this budget may be split out by office, practice group, etc. • Set up accounts for each service where you plan to recover costs
  14. 14. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Budget Example GL for use in paying expense and another for dispersing costs
  15. 15. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Budget Example Percentage expected to recover
  16. 16. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Budget • Set up two accounts • The two accounts should be related to be able to report on the recovery against cost • Work with your accounting department may have alternative ways of setting this up depending on software and firm processes, policies, and procedures
  17. 17. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Budget • Work with Pro Bono to budget use of research services – Handled differently at each firm – ProBono team may have their own budget – Lexis vs. Westlaw
  18. 18. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar ERM Tools – The Players • Lookup Precision (Advanced Productivity Software - US) This is not a West product. • OneLog (Info Technology Supply, LTD – UK) • Research Monitor (Priory Solutions – UK) • Cost Recovery Manager (LexisNexis – US) • Research Agent (sold to nQueue and taken off the market)
  19. 19. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar ERM Tools – Market Penetration • Survey of NLJ 250 with 100 firms responding regarding the use of cost recovery tools – 37 out of 100 firms have purchased the software – 51 out of 100 firms plan to purchase in the near future – If other NLJ 250 firms follow suit, 88% of that population of law firms will be using this type of software.
  20. 20. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar ERM Tools - Market Distribution
  21. 21. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar ERM Tools – The Features and Functionality • Site tracking • Client/matter validation • User id and password management • Auto-population of user ids and passwords • License management • Reports – Usage reports – Cost recovery reports
  22. 22. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar ERM Tools – Past Issues • Difficult to set up • Limited reporting • Desktop plugins
  23. 23. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar ERM Tools – Use in Practice Functionality Implemented 0 5 10 15 20 25 30 35 40 Cost Recovery Site Tracking Password management License management Access Control Other NumberofFirms
  24. 24. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Disbursement Management – Vendor Tools • West Quickview + • Lexis Power Invoice • PACER • Dialog • Others?
  25. 25. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Resources • Westlaw Cost Recovery Solutions • Lexis – Lexis Power Invoice – Library Relations Article – LexisNexis Cost Recovery Manager
  26. 26. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Disbursement Management - Vendor Tools • Use of macros • Uploading files to Accounting • Cost recovery vendor solutions – e.g., Equitrac Online Services Module • Providing backup – Power Invoice – Enhanced report – Quickview + - Target options
  27. 27. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Tracking Progress – Reports, Reports and more Reports • Internal library reports – Maintain payment history in library system or spreadsheets – Report on how payments were broken out from month to month (e.g., out of contract vs. in contract) – Report predicted recovery based on billable vs. non-billable in usage reports
  28. 28. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Tracking Progress – Reports, Reports and more Reports • Internal accounting reports – Reports for each unit (office, group, etc) and resource being tracked - monthly – Clients who are not charged or where research has been discounted - quarterly – Write-offs and non-billable charges in spreadsheet format with clients, lawyers and practice groups included in report – quarterly – Exceptions report - monthly
  29. 29. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Tracking Progress – Reports, Reports and more Reports • Vendor reports – Quickview + and PowerInvoice reports – Outside of contract details – monthly, quarterly and annually – insist on spreadsheet format • Use to determine what resources to add to contract • Do not add outside contract content that can be passed on to client (e.g., briefs)
  30. 30. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Communicating Recovery to Firm Leaders • Don’t be surprised • Call leaders or accounting to discuss issues the reports unearth • Call group heads to discuss non-billables or exceptions • Treat write-offs with care
  31. 31. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Conclusion • Cost recovery is here to stay for now • If beliefs don’t change, we will continue to struggle in recovering costs • If we do change beliefs, we will be contributing to the firm’s bottom line
  32. 32. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar Questions? Need Help? Contact Us • Nina Platt, Owner, Principal Consultant • nplatt@ninaplatt.com • Carrie Long, Research Analyst • clong@ninaplatt.com • Emily Harder, Office Manager • eharder@ninaplatt.com
  33. 33. Cost Recovery: The Basics, a NPCI webinar Cost Recovery: The Basics, a NPCI webinar 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

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