Finding the right board software in any organization is important to make the governance process easier and collaboration smoother. However, when organizations are considering a piece of software, usually they look only at up-front costs, which can easily go over hand if not budgeted properly. Such an understanding of these hidden costs will eventually equip an organization with the ability to avoid financial surprises and make appropriate decisions. This article will outline the hidden costs for board software and give some budgeting tips that can help an organization manage their resources in the right manner.
When you look at board software pricing, it’s important to go beyond the initial price tag. Besides subscription fees or one-time license costs, which are most transparent, training fees, support costs, and integrations with other tools come at extra costs. Other examples include paying more for onboarding services with some vendors or requiring premium plans to access advanced features. Having weighed these very factors carefully from the outset, any organization can avoid purchasing an inadequate solution for long-term needs and budget, possibly having additional, unforeseen expenses later on.
Hidden Costs of Board Software
A common line item that is concealed in board software pertains to training and onboarding. Most vendors provide an introductory or basic training session for the initial purchase of the software. However, more thorough or continuous training is often considered additional training costs. If your board members are not as tech-savvy or need constant updates regarding how to use newly added features, these kinds of training expenses will add up quite quickly.
Yet another hidden cost is that of support and customer service. While most software packages can accommodate minimal support, these types of upgraded plans are usually required when premium support is needed, such as 24/7 access to a dedicated account manager for priority service. Where there is a greater need for governance within organizations, additional costs may well be involved to avail themselves of such a higher degree of support-that which would ensure the software runs smoothly, issues are resolved with minimal delay, and any problems are promptly resolved.
Third-party integrations with a variety of tools and systems can also have their own surprises when it comes to added cost. If your organization currently uses third-party tools for document management, calendars, and communication, you’ll want to make sure the board software will play nicely with them. Some vendors charge for those integrations or cap the total number of integrations included in the base plan.
How to Budget for Board Software
To really wrap your head around board software costs, it’s critical that an integrated budgeting approach be put in place, sometimes accounting for both visible and hidden costs. First, consider the pricing structure the vendor has in place. Ask for a detailed breakdown of all possible onboarding costs, support, and integrations. Such transparency will let your organization dive in and understand the better cost of ownership.
Another way to budget is to think of the future needs of your board: Will the organization be adding more and more members in the future? Will it need access to advanced features or premium support? You can look ahead to the future needs and choose a pricing plan now that allows for that growth without requiring a costly upgrade later.
You can negotiate prices with vendors to hedge, or obtain concessions on training and support. Most vendors have flexible pricing with specific features, depending on the needs of a given organization, so don’t be afraid to ask for the best conditions possible in order for you to keep more money for the long run. Another good approach will be periodic review of the usage of software within your team in order not to pay for the functionality that is no longer in use or needed.
Making Savvy Decisions Based on Board Software Pricing
When assessing board software, one has to think more holistically about board software pricing. In addition to the subscription fee, an organization will have to incur other hidden costs, such as training, support, and integrations. A company should now carefully estimate all the possible out-of-pocket expenses with the observance of the best budgeting practices in order to choose the right board software solution, matching both operational needs and financial capability.