This document discusses alternative approaches to library budgeting. It suggests that budgets should be strategic and living documents rather than annual exercises. Effective budgeting requires analyzing goals, market needs, and opportunities for the coming year. The budgeting process should involve brainstorming scenarios and aligning expenditures with strategic objectives. This will help libraries adapt to changing needs and ensure resources are allocated efficiently.
3. ALTERNATIVE BILLING
ROBERT HALF LEGAL SURVEY
3
0% 10% 20% 30% 40% 50% 60%
Flat or fixed project fees
Volume discounts and
discounted fees
Blended hourly rates
Capped fees
2011
4. TRENDS FROM THE 2012 LAW LIBRARY SURVEY
BAD NEWS / GOOD NEWS
Only 29% of firms in the survey reported recovering
more than 60% of their online costs through
chargeback.
For the second year in a row there was a double-
digit increase in the number of libraries reporting an
increase in their budgets.
4
5. TRENDS FROM THE 2012 LAW LIBRARY SURVEY
BAD NEWS / GOOD NEWS
2009
2010
2011
0%
10%
20%
30%
40%
50%
60%
5
6. BLOOMBERG LAW 2012 LAW FIRM COST
RECOVERY RESEARCH SURVEY FINDINGS
Law firms are recovering less of the research costs
they incurred two years ago.
The downward trend in the amount of research
costs is most dramatic at medium and small law
firms.
The cost of legal research and client
expectation/demand is what typically drives cost
recovery policies, regardless of law firm size.
6
7. BLOOMBERG LAW 2012 LAW FIRM COST
RECOVERY RESEARCH SURVEY FINDINGS
0%
10%
20%
30%
40%
50%
60%
%
Decrease
Large
Medium
Small
7
9. PREPARING THE BUSINESS PLAN & BUDGET
“…budgets are prepared annually and not reviewed
until the next budget cycle. This annual look at the
budget is very ineffective in helping you reach your
financial goals.”
Budgeting
Strategieshttp://www.entrepreneurship.org/en/resource-
center/budgeting-strategies.aspx
9
10. BUSINESS PLAN AND BUDGET PREPARATION
Business Plan and Budget Preparation
Analysis of current year financial results
SWOT Analysis - strengths, weaknesses, opportunities
and threats
Balanced scorecard - analysis of the impact of
achieving objectives from a financial perspective, a
customer perspective and an internal perspective, and
on innovation and learning, together with identification of
critical success factors and performance measures
Brainstorming - for alternative
scenarios, opportunities, strategies
10
11. “THE DIFFERENCE BETWEEN A TRADITIONAL BUDGET AND A STRATEGIC ONE IS THE
PROCESS SURROUNDING HOW THESE PROJECTIONS ARE DERIVED”. STRATEGIC
BUDGETING FOR LAW FIRMS,HTTP://WWW.RBZ.COM/NEWS-CATEGORY/THE-BOTTOM-
LINE/STRATEGIC-BUDGETING-FOR-LAW-FIRMS/
Strategic Budgeting
Projected Revenue
Projected Expenses
Salaries
Bonuses
Marketing
Capital Expenditures
library automation systems
Operating Expenditures
Library Collection
Fee-based Databases
Projected Profit and Cash Flow 11
12. “MANAGING IN A TIME OF CHANGE REQUIRES THAT LIBRARY DIRECTORS THINK
STRATEGICALLY AND CHALLENGE ASSUMPTIONS ABOUT TRADITIONAL ROLES LIBRARIES
HAVE PLAYED IN THE PAST.” STRATEGIC PLANNING AND PROGRAM BUDGETING FOR
LIBRARIES, LIBRARY TRENDS, VOL. 42, NO. 3, PP. 420-47 (1994)
Library Collections
Technology
Library Services
Training
Strategic Budgeting Questions
12
14. BUSINESS PLAN SECTIONS
Executive Summary: Write this last.
Services: Describe what library services will be in
the coming year. Focus on customer benefits.
Market Analysis: You need to know your
market, customer needs, where they are, how to
reach them, etc.
14
15. BUSINESS PLAN SECTIONS
Strategy and Implementation: List the library
improvements. Be specific. If you can track results.
Management Team: Describe the current library
team and any requests for additional team
members.
Financial Analysis: Budget
15
16. STRATEGIC BUSINESS PLAN SAMPLE
EXECUTIVE SUMMARY
MISSION STATEMENT
MARKET ANALYSIS
GOALS AND OBJECTIVES
Customer Service
Quality Research and Reference Service
Collection Maintenance and Space Planning
Electronic Resources
Interlibrary Loans
Electronic Access – Sharepoint, Library Catalog
Staff Training
Technical Services
16
17. STRATEGIC BUSINESS PLAN SAMPLE (CONT.)
ACTION PLAN TO ACHIEVE THE STATED GOALS & OBJECTIVES
Customer Service
Quality Research and Reference Service
Collection Maintenance and Space Planning
Electronic Resources
Interlibrary Loans
Electronic Access - Sharepoint
Staff Training
Technical Services
MANAGEMENT TEAM
17
18. GOAL & OBJECTIVES SAMPLE
Electronic Access
Whenever appropriate, print subscriptions will be
converted to electronic sources.
The format for conversions will include:
ebooks, databases, Lexis Advance and/or
BloombergLaw.
When deemed appropriate the library will maintain
duplicate subscriptions to titles in print and their
electronic version while the conversion is in process.
18
19. ACTION PLAN TO ACHIEVE THE STATED GOALS &
OBJECTIVES SAMPLE
Electronic Resources
In substituting an electronic source for a print
subscription, the Director of the Library will make the
decision with impute from the attorneys and the department
head.
When making decisions the following parameters should
be taken into account:
Ease of use of the electronic version.
Is the coverage the same as the print?
What is the demand of the print? Is the print continually off the
shelf because of high usage?
Will it be more convenient to the practitioner to have access to
an electronic version vs. the print?
In conversion discussions with the vendors, LexisNexis and
BloombergLaw, a „free‟ period of use for the titles will be
included in the contract or a print discount will be
negotiated for the remaining period of the print
subscription. 19
20. WHEN AND HOW DO CORPORATIONS
PLAN THEIR BUDGETS?
Budget discussions begin in August.
Every budget must start at zero (Zero-based
budgeting).
Each and every cost is added until the total budget
needed is identified.
Last, paring down begins.
Budget is signed off in November.
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22. REASONS FOR ZERO BASED BUDGETING VS.
TRADITIONAL BUDGETING
Zero based budgeting allows resources to be used
based on needs rather than the traditional model.
Managers will become more efficient and search for
ways to improve their operating procedures instead
of relying on funding based on previous
performance.
It can aid in finding areas that are expensive and
indicate more cost effective ways of dealing with
the problem.
22
23. USE OF ZERO BASED BUDGETING VS.
TRADITIONAL BUDGETING
Identify which „Fixed‟ costs will be in the budget.
Print Collection
Electronic Resources
Fixed Fee Databases
Online Databases
Library Supplies
Professional Memberships for Staff
Professional Development / Training for Staff
23
24. USE OF ZERO BASED BUDGETING:
BREAKDOWN
Expense Categories by Department
New Titles or Monographs
Print Titles
Electronic Titles
Continuations / Looseleafs
Reporters, Statutes & Regulations
Print Titles
Electronic Titles
Journals
Print Titles
Electronic Titles
Fee-based Database (examples)
Knowledge Mosaic
D&B
Pacer
Intelliconnect
HeinOnline
Fastcase
Online Databases
Lexis.com / Lexis Advance
Westlaw.com /WestlawNext 24
25. ACCOUNTING
PARENT / CHILD CATEGORIES
Library – Parent
Tax – Child
New Titles or Monographs
Print Titles
Electronic Titles, i.e. ebooks
Continuations / Looseleafs
Reporters, Statutes & Regulations
These can be depreciated.
Journals
Print Titles
Electronic Titles
Electronic Resources
RIA Checkpoint
Intelliconnect – Standard Federal Tax Reporter
eBooks
25
28. USING A PROJECT MANAGEMENT APPROACH, LAW FIRMS ARE BEING MORE TRANSPARENT ABOUT
THEIR COSTS WITH CLIENTS. AT THE SAME TIME, BY ORGANIZING ALL THE COMPONENTS OF A
SINGLE CASE INTO ONE PLACE, LAW FIRMS SAY THE STRATEGY IS HELPING THEM BECOME MORE
EFFICIENT. NASHVILLE BUSINESS JOURNAL
HTTPS://MARKETCENTER.BAKERDONELSON.COM/FILES/UPLOADS/DOCUMENTS/NBJ%20BAKER%
20MANAGE%2009-28-12.PDF
Project Management results in:
more effective planning,
cost control,
resource allocation and
appropriate risk management throughout the duration of
a case/project, giving project team members the
structured tools to make deliberate, fact-based
decisions.
[ACC PRIMER – Legal Project Management
http://www.acc.com/advocacy/valuechallenge/toolkit/loader.cfm?csModu
le=security/getfile&pageid=1293786&page=/index.cfm&qstring=&title=A
CC%20Legal%20Project%20Management%20Primer]
28
29. Start the budget process early.
Seek out those individuals who know the direction
the organization will take in the coming year.
Review and track the budget monthly.
Develop month‐by‐month charts of expenditures (%
for total) for each category.
Track expenditures at a finer level.
29