Legal Services Bulletin Nov2013
- 1. Legal Services Bulletin November-December 2013 COMMENT As we went to press the SRA was announcing that more than 150 firms could face closure by Christmas after failing to obtain PII on the open market. It could have been much worse of course following the exit of Berliner from the market. PII problems are hitting smaller firms disproportionately, particularly those with fewer than 10 Partners. According to the SRA, the number of practising firms declined by 400 in the year to September, partly due to the continual consolidation in the sector but often by firms simply closing. Many of firms we speak to wonder how they can make significant inroads into their costs. Our approach is to cease talking about how much? And instead ask - why? With huge advances in the technology available to law firms a cost and behavioural review has greater merit than a simple review of expenditure. For instance: Why does your firm use so much paper? Why does your firm store records the way it does? Why does your firm have different contract end dates for similar types of expenditure? FEATURES: see overleaf MERGERS - EARLY WINS Make Savings From The Moment The Deal Completes BIG WINS FOR SMALL FIRMS Size Isnt Everything When It Comes To Controlling Costs networkpartner with PRACTICE TIPS 2020 VISION According to Addleshaw Goddard The legal market of 2020 will have 25% fewer lawyers & 20% fewer firms. Fixed fees will replace billing hours. ON THE OTHER HAND There are 40% more practicing lawyers than 10 years ago a total in excess of 160,000. IN DENIAL Bennett Jones Insolvency suggests that personal injury lawyers in small and medium-sized firms are akin to climate change deniers by not recognising how their market has changed or planning for the future The Editor Is DX still a necessity for your firm? Silo-based reviews have their place but its only by taking a strategic review of expenditure and behaviour that a firm can truly understand the opportunities available to them. Most firms dont have the time or the expertise. We have both. Jason Adderley is a consultant Partner with ERA specialising in managing programmes of work for legal and professional services firms. He has 18 years experience of working with solicitors and other professional consultants as a client and as a service provider. Jason Adderley T: 0121 602 1445 M: 07824 449 577 E: j.adderley@erauk.net : @ERA_Legal
- 2. BIG IDEA HOW TO GENERATE SAVINGS FROM THE MINUTE YOU MERGE ERA is being consulted more and more after a firm has merged or made an acquisition of another practice. Of course one of the very reasons for firms merging is to drive operational efficiencies and reduce overhead spend - which is our raison d棚tre. Increasingly were asking the question would an earlier engagement have helped even more? For firms contemplating a merger or acquisition ERA can confidentially review existing contracts, service level agreements and tariffs to provide a clear illustration of where savings can be made quickly, and often where contingent liabilities may be hidden. Thus, rather than being a more tactical after-the-event engagement ERA can make a contribution to getting the deal right in the first place, providing more certainty about the savings opportunities available and helping to manage risks. Advance warning can also assist enormously in simplifying the process of merging different back-office cultures and working practices. We can also help you to predict and manage the repercussions of change for the newly merged entity so that you can concentrate on the strategic issues of growth and cultural fit. If youre involved in discussions to merge or takeover a firm then please call us for a chat on 0121 602 1445. BIG WINS for small firms Weve been continually refining our offer to smaller firms during 2013 with some startling results: Average Saving Photocopiers Mobiles Office Supplies Landlines DX 39% 31% 30% 24% 16% For expenditure on products or services less than 贈25,000 per annum were adopting a simpler methodology to deliver results quickly on a fixed fee basis. Why ERA? #6 LOOKING AT THE BIG PICTURE Over time law firms may develop a tendency to procure on a silo basis. IT may specify and buy hardware, software, print and telecommunications equipment and services. Practice Management staff may deal with office supplies, postage, archiving and printed stationery. LSN Law Firm Forum November 2013 ERA takes an overview of all procurement functions, drilling down to understand the implications of changes across the silos. LSN Law Firm Forums provide a unique opportunity for you to gather under one roof with others working in law firm management, operational and support roles. Well help you to identify where small adjustments can have huge impacts. The next Forum is in London on November 11. For more information visit: www.legalsupportnetwork.co.uk Jason Adderley T: 0121 602 1445 M: 07824 449 577 E: j.adderley@erauk.net : @ERA_Legal