Hints & Tips from Expense Reduction Analysts for UK law firms seeking to reduce costs and improve processes.

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 Isn’t 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 it’s
only by taking a strategic review of
expenditure and behaviour that a firm can
truly understand the opportunities available
to them. Most firms don’t 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’être.
Increasingly we’re 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 you’re 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
We’ve 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 £25,000 per
annum we’re 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.
We’ll 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