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Cost Recovery:
Creating a Policy &
Plan
A 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

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Cost recovery policy and plan

  • 1. Cost Recovery: Creating a Policy & Plan A NPCI Webinar September 30, 2009
  • 2. Cost Recovery: Creating a Policy & Plan Today’s Speaker Nina Platt Principal Consultant Nina Platt Consulting, Inc.
  • 3. 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
  • 4. Cost Recovery: Creating a Policy & Plan First Course of Action Quit waffling Decide
  • 5. 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
  • 6. 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]
  • 7. 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
  • 8. 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.
  • 9. 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?
  • 10. 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?
  • 11. 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
  • 12. Cost Recovery: Creating a Policy & Plan Roles • List individual positions taking part in the process • Describe each role • Note any special task for each
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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?
  • 18. Cost Recovery: Creating a Policy & Plan Communication Plan • Use the 4 P’s of Communication – Purpose - Why – Picture - What – Plan - How – Part - Who
  • 19. 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)
  • 20. 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
  • 21. 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
  • 22. 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
  • 23. Cost Recovery: Creating a Policy & Plan Talking Points • Discounts • Free resources • Exceptions
  • 24. 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?
  • 25. 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
  • 26. 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
  • 27. 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