Law firm libraries and information centers have new and better oppurtunities to track usage of online research, and participate in cost recovery endeavors. Software vendors, both new comers and old timers, help make better reporting possible. This article first appeared in Business Information Alert Volume 15, No. 8 September 2003.

by Catherine Sanders Reach

Introduction

Remember the "good ole days" when information professionals could look at reference desk statistics and check out cards to get an indication of what resources were being used, who was using what, and how often? Then along came the digital collection and surmising this information became a bit more complicated. Today’s challenge is to get the same reliable usage information for online services that are available directly from the user’s desktop. Usage statistics for acquisitions and collection management are a vital means of decision-making. Management looks to the information professional to justify the expense of high cost contracts with information vendors. Professional services firms, such as law firms, look for the ability to charge research directly to clients. The information center is often seen as a cost center, making high quality reporting of resource usage imperative. Cost recovery and reporting initiatives can help reveal usage statistics, billable costs, and training opportunities. Fortunately, there are software packages and vendor tools to make these processes easier.

Billing Back for Research Services

Many library and information centers are faced with the task of billing back for research services. Professional services firms, such as law firms, often bill actual usage for research services, in addition to an hourly rate, back to the client. The information center is likely responsible for managing the bills from vendors such as LexisNexis, Factiva, and Westlaw. These bills have to be matched to the user and client to send to accounting or the billing entity. Other librarians may be faced with a different bill back scheme. Some corporate libraries bill their internal clients, sending statements to particular department to have the research costs absorbed by their budgets. Still other research centers bill directly for the use of their services, charging a flat fee rate in combination with actual usage directly to the patron. All of these scenarios demand that an accurate, reliable and fast method for billing back be achieved. In order to achieve a near 100 percent bill back for research services, information specialists must learn to be savvy with tools such as client validation and reporting software.

Track Usage for Acquisitions

Collection development and acquisitions has become more of a challenge in the digital age. In addition to assessing new print titles, librarians must now determine whether a digital service is the right choice for the collection. Factors including ease of use, accessibility, and contract negotiation become part of the process that also includes assessing reliability, timeliness, and authority. Another decision that must be made as part of the collection development process is whether to renew or update a title. Statistics and check out cards help make this determination with a print title, but determining usage for online material is a different matter. Recent technologies have made these types of reports available to information specialists, making the tricky task of collection development a bit easier.

Negotiating Online Contracts

Negotiating contracts with online vendors, especially the large aggregators, is a tricky proposition. Often flat rate contracts are based on the previous year’s usage. Tools that allow librarians to closely monitor usage throughout the year provide a jumpstart on negotiations or can alert librarians to curb user behaviors. By running reports on a specific service, info pros can determine usage for a product that covers a specific subject area. This knowledge can help in negotiating with a vendor of a similar product for replacement or purchase. While librarians are often contractually unable to reveal what they pay for a specific service, usage statistics can help in negotiation with a competing vendor.

User Reports and Training Opportunities

Running reports on specific users, or for specific services by user, allows the information center to determine who is using what database , how often, and for how long. This information can help determine which resources are being used and which are not. It also alerts you to user abuses. All three determinations can help the information center plan for training and development opportunities. Training, whether one-on-one or in a classroom, is an excellent way for the information center to provide another valuable service to the company. Not only will the training strengthen the role of the library, it will enable librarians to evaluate new online products for acquisition with a knowledge of the users' current level of search sophistication.

Return on Investment

Calculating return on investment (ROI) is difficult when it comes to intangibles, such as information services. Available software reporting tools can determine how many people in the organization benefit from the money spent on information resources and how many are more productive because of the efforts of the information center. Justifying time spent on the development of an Intranet or portal that links to free information sources is possible when librarians can determine how many times users go to these sites. Usage statistics can also help justify requests for increase in budget, staff, or resources.

Cost Recovery and Reporting Software

There are software tools available to track usage, bill back, validate client numbers, and much more. Some of these tools are available free from some of the larger information providers. Other tools are being developed that stand alone, tracking paid and free online services. Still other opportunities are popping up in other software that can ease some of the processes involved in billing back to clients.

Software "Under Your Nose"

Some large information vendors, recognizing their customer’s needs for tracking, client validation, and bill back capabilities, have created tools to manage these tasks for their software. For example, LexisNexis and Factiva* provide client validation for their online products. Tied in to the companies’ client code system, a pop-up screen requests information from the user. Information such as client number or name, and a description of the research is captured before the user can begin a search. Any search done is then available in a report, showing the client, the user, the database used, the amount of time spent, and other relevant information. Users can change the client without having to log out and re-enter the system. Other features available from the vendors include reporting and cost management tools. LexisNexis PowerInvoice, for instance, allows browser access to tools to view, edit, and download billing reports. They also offer access to online invoices going back 24 months. Factiva allows administrators to view usage by user or client code for the entire account. Individual users can run reports on their own research, a useful function for librarians keeping track of their time. Contact vendor representatives for your largest contracts and ask about cost recovery features. As soon as vendors recognize that these features are imperative, more will start offering them.

Stand Alone Software

Recently companies have sprouted up that are touting stand-alone software to help recover and track online research. These products are not only allowing users to track usage on large systems, such as LexisNexis, but they are also offering stand alone client validation modules, website tracking, and more. Advanced Productivity’s software package, a bundled product called LookUp 2002, includes a module that interfaces with Internet Explorer to require client validation and logging for specified websites. Another new company, ResearchAgent, also validates or requires client codes for any or all research databases and set specific costs associated with individual subscriptions or URLs. It allows automatic upload of billable date to a time and billing system, and provides a powerful reporting module. Either of the tools allows the information center to track use of paid and free online resources that were previously considered unrecoverable costs.

Other Software Tools

Other software packages are starting to recognize the importance of cost recovery for online research. Recently, Elite announced Billback, a cost recovery and management solution for professional services firms. One feature of the software is a third party data import module that includes online search vendors. Likewise, Prolaw, a practice management software package for law firms, recently announced direct billing from Westlaw, taking advantage of their parent owner, Thomson. Be on the lookout for other software to become available to help with cost recovery and tracking. Communicating with vendors about existing and potential products is key to guiding the development of the newest offerings.

Partnering

In order to successfully create a plan for cost recovery and install software to help with the job, information specialists will need to develop partnerships with key groups. One department to incorporate into the process is Information Systems. As they will be an integral part of installing any new software, they should be advised of any projects as soon as possible. The accounting department and management should also be apprised. Close involvement of these groups provides an opportunity for teamwork in planning for the common goal of reduced overhead and expenditure. By establishing or strengthening relationships with these departments, it will also show the information center’s commitment to cost recovery and fiscal responsibility. Finally, vendors cannot only help work with IS staff, and teach information specialists how to expertly use the products.

Conclusion

Cost recovery and reporting has become a complex and important part of the librarians’ job. Online resources, digital collections, and portals have created new challenges for librarians. Collection development processes have become more challenging with the myriad options available. Contract negotiation and online research training are new hats worn by today’s information professional. Corporate and professional service settings stress the bottom line and information centers need to be able to produce return on investment for services offered. Firms that bill back for online research must be able to persuade users to submit client numbers. Investigate the options available from current vendors or third party software to establish cost recovery and tracking initiatives. Cost recovery and tracking software takes the library beyond the check out card.

* Companies, products, and services mentioned are examples. Their mention does not indicate endorsement or support by the American Bar Association or the author.

Catherine Sanders Reach has a masters degree in library and information studies and is a research specialist at the ABA Legal Technology Resource Center.