Legal Services BulletinMarch-April 2014

Jason AdderleyT: 0121 602 1445M: 07824 449 577E: j.adderley@erauk.net: @ERA_Legal

COMMENT FEATURES: see overleaf

ONSHORE THING

“Big Law” Looks North

CASE STUDY REVIEW

Susskind says that Case Studies

provide a justification for embracing change – we agree!

The Editor

Jason Adderley is a consultant Partner with ERAspecialising in managing programmes of work forlegal and professional services firms.

He has 19 years experience of working withsolicitors and other professional consultants as aclient and as a service provider.

SAVINGS REPORTWe’ve issued a rash of recommendations in early2014 across a range of cost areas; successful projectsinclude up to 40% for Archive Storage, up to 48% forOffice Supplies, up to 57% for Mobile Phones, up to66% for Secure Shredding and 30% for Tea &Biscuits!

POSTAGERoyal Mail prices are on the rise again and with theadvent of Online Business Accounts (OBA),downstream access providers and VAT issues ispostage a cost you can afford to ignore?

WARM RECEPTION TO OUTSOURCINGA recent survey found that 10% of law firms nowoutsource their reception function.

PRACTICE TIPS

networkpartner withFrom our perspective we’re concerned that medianspend on non-salary overheads per fee earner hasrisen by the largest sum for several years – up5.5% to £38,129.

This may be explained, at least in part, by theaccelerating use of outsourcing particularly in ITwhere 50% of the practices surveyed outsource ITinfrastructure, development and IT support -illustrated by the slight fall in the ratio of non-secretarial support staff per fee earner of 0.37.

The static ratio of secretaries per fee earner (0.61)also implies that firms are leveraging technologywhere they can rendering some secretarial tasksredundant – particularly as the ratio in 2008 wasas high as 0.77.

Nevertheless, the survey warns that with upwardpressure on salary costs for fee earners andincreasing overheads the income each fee earnerwill need to achieve before contributing a penny toprofit is £106,744.

That is, of course, where ERA can assist. In justthe first few months of 2014 we’ve reportedcumulative like for like savings of several hundredsof thousands of pounds for common law firmpurchases like archive storage, office supplies,mobile telephones, DX, business print andphotocopying.

So, as activity increases, our clients are able tolock-in higher margins or divert costs towards theemployment of fee earners to grow revenue.

As a barometer of thefinancial health of mid-sizedlaw firms the annual LawManagement SectionBenchmarking Surveyalways makes interestingreading.

On the positive frontpractice fee income (4.1%)and PEP (3.6%) have bothincreased reflecting thegeneral upturn in economicactivity.

Jason AdderleyT: 0121 602 1445M: 07824 449 577E: j.adderley@erauk.net: @ERA_Legal

STUDYCASE

REVIEW

The projects carried out for Eversheds, Matthew Arnold& Baldwin and Withers are projected to save over £1million cumulatively over the course of ERA’sinvolvement. Clearly, we’d be very keen to talkthrough a programme of work with your firm so pleasefeel free to contact us using the details below.

“ERA’s guidance and expertise was critical to thesuccessful overhaul of our printing, scanning anddocument production facilities.

With their help we now have a Managed Printinfrastructure and outsourced on-site Print Roomservice that delivers exactly what our business needsand that is exceptional value for money.”

Mike Smith Finance Director for Eversheds Ireland

“I was highly sceptical of Jason’s claims during ourinitial meetings, but I am happy to say that his teamhave managed to consistently outperform myexpectations, and their specialists know theirbusiness.”

David Abrahams, Finance Director, Matthew Arnold & Baldwin LLP

“What struck me was ERA’s patience, professionalismand thorough knowledge of the market.”

Michael Priestley, Head of Business Services Europe and Asia for Withers LLP

“What convinces lawyers most, is to learn in practicewhat the actual benefits are and to see concrete casestudies, because it seems to me that for any set ofexperiences or ideas, clever lawyers can always comeup with counter ideas or counter arguments.

But it is harder to deny the reality of successful casestudies.”

Prof. Richard Susskind OBE

ERA is Network Partner with theLegal LSN.

LSN Legal Practice Management Conference 2014

The Legal Practice Management conference 2014 is the only eventof its kind to specifically target practice managers and directors,heads of operations and heads of finance from small to mediumUK law firms.

The conference is in London on May 19

For more information visit: www.legalsupportnetwork.co.uk

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Berwin Leighton Paisner(BLP)and Hogan Lovells are the twolatest firms to launch low-costhubs outside London.

BLP will launch its Manchesteroffice in the summer, to bestaffed by paralegals, associates,business services personnel andsecretaries. Hogan Lovells hassettled on a Birmingham base tooffer less complex aspects ofwork emanating from London.

Moving less complex work orsupport services out of the Cityhas become something of trend inthe last few years. Allen &Overy benefitted from a £2.5mtaxpayer grant to move supportservices to Belfast, and Ashurstintends to boost its presence inGlasgow with the aim making itthe fourth largest office in thefirm’s network.

The motivations for the firms areclear; to obtain competitiveadvantage whilst retaining a levelof control and direction foroutlying offices, and to respond toclients’ demands for the costeffective delivery of suchservices.

How can regional mid-tier firmsrespond?

One way could be the adoption ofprocess improvementmethodology. West Midlandsfirms Higgs & Sons has drivenforward a 2-year KnowledgeTransfer Partnership with AstonBusiness School with remarkableresults.

Glyn Morris, Higgs’ FinanceDirector, has led the project andwill be appearing at the LSN LegalPractice Management conferencein May.

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