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Budgeting Strategies in Era of Dramatic Cost Increases by Nathan Rosen

Nathan Rosen
Nathan Rosen

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Budgeting Strategies in This Era of Dramatic Cost Increases Nathan Aaron Rosen Manager of Research & Knowledge Services Herrick, Feinstein LLP Lindsey Carpino Legal Content Services Manager BakerHostetler
Learning Outcomes Discuss the large increases in vendor pricing and how to manage them Consider whether you have library products or licenses that could be eliminated to realize savings Evaluate what cuts can be reasonably made to keep your budget under control
Poll Question #1 How Do You Track Your Expenses? Excel Homegrown system Software tool Firm manages tracking expenses
What is driving this change? Inflation YOY increases going up Innovation costs GenAI tools Onboarding laterals who request resources New content being added Large Vendor Increases & How to Manage Them
What can legal information professionals do about it? Negotiate Multi-year agreements Bundling products Analyze usage Proactive budgeting Market trends Vendor relations Feedback and partnerships with vendors Large Vendor Increases & How to Manage Them
Guidepost Steps Before Firms primary goal - save money Librarys primary goal - best meet the firms critical current needs most effectively and efficiently Start from scratch aka Zero based database decision making Be open to all possibilities with no pre- conceptions about where we are going to end up Beginning Explain all potential costs and benefits along with risks for undertaking this project Get buy-in from most senior management of the overall plan without downplaying the risks Involve heavy end users, key decision makers, managers, and especially troublemakers Plan, plan, plan . plan, plan, plan Constantly explain end goal to everyone who has a stake in the ultimate outcome
Middle Gather data (as much as possible), slice and dice it in useful ways, and find ways to share as much as possible Document, document, document every step of the process Provide status reports and feedback to all the participants and other interested parties Solicit opinions and preferences - both from active participants and other possible users Ending Bring in best negotiator to hammer out the best financial deal Bring in contract review lawyer to fine tune the agreement to meets the firms needs Keep an open mind - aware of historic usage patterns & personal preferences so to ensure that they do not bias the results Take into account all known factors, historical trends, current literature and best practices Afterwards Recognize that life changes and unexpected things might happen Hope for the best but articulate that things might happen that require changes to the plan Continuously gather data Be open for making changes during the contract period Collect ideas for making adjustments after the initial year Guidepost Steps
Poll Question #2 How Many Online Products Did you Eliminate this Year None 1 2 3 4 5 More than 5
Decreasing Products/Licenses Start with the usage of your products User feedback Talk to Practice Group chairs Trials/pilot programs Annual evaluations Duplicative resources/compare similar products Cost benefit analysis Removing print contracts Eliminating Products/Licenses for Savings
Practice Group Usage Analysis
Elements in Vendor Database Pricing
Decreasing Print Cancelling or reducing print commitment contracts Moving users to all or mostly online content 2010 spend $3mil and now $300K 90% decrease Decreasing Print & Eliminating Contracts
Poll Question #3 How Many New Online Products Did you Purchase this Year None 1 2 3 4 5 More than 5
What are reasonable cuts? Cut licenses Be cautious in adding new content Train attorneys on current tools rather than purchasing new ones Identify core resources Specialized tools Reasonable Cuts to Keep Budget Under Control
Budget Snapshot
Final Stages Bring in best negotiator to hammer out the best financial deal Negotiate, negotiate, negotiate bring in best negotiators Bring in contract review lawyer to fine tune the agreement to meets the firms needs Keep an open mind and be aware of historic usage patterns & personal preferences so to ensure that they do not bias the results Take into account current literature and best practices Stay flexible keep open to alternatives dont force a decision based upon your own feeling Keep your eye on the end result needed not just the vendor but the information Plan for massive training & education effort Announce & explain the conclusions Pay special attention to possible problems with database selections
Afterwards Constantly monitor reactions Track problems Recognize that life changes and unexpected things might happen Hope for the best but articulate that things might happen that require changes to the plan Continuously gather data Be open for making changes during the contract period Collect ideas for making adjustments after the initial year
Questions?
Nathan Aaron Rosen Manager of Research & Knowledge Services Herrick, Feinstein LLP 212-498-5505 nrosen@herrick.com https://www.linkedin.com/in/nathanrosen/
Lindsey Carpino Legal Content Services Manager BakerHostetler 312-416-6213 lcarpino@bakerlaw.com https://www.linkedin.com/in/lindsey- carpino/
THANK YOU While we have selected our speakers based on their general knowledge and experience with the subject matter of the program, neither ARK nor the speakers are providing legal or compliance advice to you or your organization. You should consult your organizations legal or compliance advisor(s) regarding your unique circumstances. Any examples discussed in the program are hypothetical only. The presence of vendors or speakers at ARK events does not constitute an endorsement of the vendor or speaker or their views, products or services.

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Budgeting Strategies in Era of Dramatic Cost Increases by Nathan Rosen

  • 1. Budgeting Strategies in This Era of Dramatic Cost Increases Nathan Aaron Rosen Manager of Research & Knowledge Services Herrick, Feinstein LLP Lindsey Carpino Legal Content Services Manager BakerHostetler
  • 2. Learning Outcomes Discuss the large increases in vendor pricing and how to manage them Consider whether you have library products or licenses that could be eliminated to realize savings Evaluate what cuts can be reasonably made to keep your budget under control
  • 3. Poll Question #1 How Do You Track Your Expenses? Excel Homegrown system Software tool Firm manages tracking expenses
  • 4. What is driving this change? Inflation YOY increases going up Innovation costs GenAI tools Onboarding laterals who request resources New content being added Large Vendor Increases & How to Manage Them
  • 5. What can legal information professionals do about it? Negotiate Multi-year agreements Bundling products Analyze usage Proactive budgeting Market trends Vendor relations Feedback and partnerships with vendors Large Vendor Increases & How to Manage Them
  • 6. Guidepost Steps Before Firms primary goal - save money Librarys primary goal - best meet the firms critical current needs most effectively and efficiently Start from scratch aka Zero based database decision making Be open to all possibilities with no pre- conceptions about where we are going to end up Beginning Explain all potential costs and benefits along with risks for undertaking this project Get buy-in from most senior management of the overall plan without downplaying the risks Involve heavy end users, key decision makers, managers, and especially troublemakers Plan, plan, plan . plan, plan, plan Constantly explain end goal to everyone who has a stake in the ultimate outcome
  • 7. Middle Gather data (as much as possible), slice and dice it in useful ways, and find ways to share as much as possible Document, document, document every step of the process Provide status reports and feedback to all the participants and other interested parties Solicit opinions and preferences - both from active participants and other possible users Ending Bring in best negotiator to hammer out the best financial deal Bring in contract review lawyer to fine tune the agreement to meets the firms needs Keep an open mind - aware of historic usage patterns & personal preferences so to ensure that they do not bias the results Take into account all known factors, historical trends, current literature and best practices Afterwards Recognize that life changes and unexpected things might happen Hope for the best but articulate that things might happen that require changes to the plan Continuously gather data Be open for making changes during the contract period Collect ideas for making adjustments after the initial year Guidepost Steps
  • 8. Poll Question #2 How Many Online Products Did you Eliminate this Year None 1 2 3 4 5 More than 5
  • 9. Decreasing Products/Licenses Start with the usage of your products User feedback Talk to Practice Group chairs Trials/pilot programs Annual evaluations Duplicative resources/compare similar products Cost benefit analysis Removing print contracts Eliminating Products/Licenses for Savings
  • 11. Elements in Vendor Database Pricing
  • 12. Decreasing Print Cancelling or reducing print commitment contracts Moving users to all or mostly online content 2010 spend $3mil and now $300K 90% decrease Decreasing Print & Eliminating Contracts
  • 13. Poll Question #3 How Many New Online Products Did you Purchase this Year None 1 2 3 4 5 More than 5
  • 14. What are reasonable cuts? Cut licenses Be cautious in adding new content Train attorneys on current tools rather than purchasing new ones Identify core resources Specialized tools Reasonable Cuts to Keep Budget Under Control
  • 16. Final Stages Bring in best negotiator to hammer out the best financial deal Negotiate, negotiate, negotiate bring in best negotiators Bring in contract review lawyer to fine tune the agreement to meets the firms needs Keep an open mind and be aware of historic usage patterns & personal preferences so to ensure that they do not bias the results Take into account current literature and best practices Stay flexible keep open to alternatives dont force a decision based upon your own feeling Keep your eye on the end result needed not just the vendor but the information Plan for massive training & education effort Announce & explain the conclusions Pay special attention to possible problems with database selections
  • 17. Afterwards Constantly monitor reactions Track problems Recognize that life changes and unexpected things might happen Hope for the best but articulate that things might happen that require changes to the plan Continuously gather data Be open for making changes during the contract period Collect ideas for making adjustments after the initial year
  • 19. Nathan Aaron Rosen Manager of Research & Knowledge Services Herrick, Feinstein LLP 212-498-5505 nrosen@herrick.com https://www.linkedin.com/in/nathanrosen/
  • 20. Lindsey Carpino Legal Content Services Manager BakerHostetler 312-416-6213 lcarpino@bakerlaw.com https://www.linkedin.com/in/lindsey- carpino/
  • 21. THANK YOU While we have selected our speakers based on their general knowledge and experience with the subject matter of the program, neither ARK nor the speakers are providing legal or compliance advice to you or your organization. You should consult your organizations legal or compliance advisor(s) regarding your unique circumstances. Any examples discussed in the program are hypothetical only. The presence of vendors or speakers at ARK events does not constitute an endorsement of the vendor or speaker or their views, products or services.