Law firm client finds way to battle cost recovery shortfalls
Business need: Reduce costs and control budget for information resources
With EIR (electronic information resource) costs rising and client cost recovery rates plummeting, an Am Law 50 legal client was in need of relief from a rapid escalation in research expenses. The firm turned to LAC Group to find ways to lower its information and legal research expenses and gain more control over its annual resource budget.
Business solution: Assessment and monitoring of significant expense categories
As with all LAC Group projects, the client engagement began with a kick-off meeting to establish goals and expectations. LAC Group’s spend consultants conducted a thorough resource review, providing a line-by-line analysis of the firm’s print collection and digital information subscriptions to identify ways to save without sacrificing attorney access to resources. In-depth usage analysis was performed, including attorney surveys to understand their needs and preferences.
In an extensive report on findings and recommendations, LAC Group presented six strategic options from which the firm chose a strategy to implement over a several-month period prior to contract renewal, working in partnership with the library.
Content that was lightly used and/or redundant was removed from a fixed rate contract and a less costly option was identified to reduce the firm’s monthly guarantee. Users of the content that was being removed were contacted to make sure they knew where it could be accessed and how to minimize excluded charges.
Business outcome: Significant cost reductions to offset recovery losses
Initial savings were 20% of the firm’s overall resource budget, with savings from legal research renegotiation alone in the seven-figures annually. The firm’s savings on the fixed rate contract, including the as-needed replacement of removed content, was 25%.
In the following years, LAC Group’s spend management team kept the resource budget flat, despite the addition of new products and services from numerous vendors. The team remained engaged when new contracts were signed to ensure they were implemented effectively, savings were actualized and attorney access remained unhindered.
In addition, LAC Group worked with various firm decision makers to select information resources to renew, cancel, renegotiate or purchase anew for further savings opportunities.