HEALTH WARNING: This magazine contains comments that may ... · practice managers, and your...

C i r c u l a t e d F R E E t o B a r r i s t e r s ’ C l e r k s i n t h e U n i t e d K i n g d o m

HEALTH WARNING:This magazine contains comments that may disturb the bar

PAGE 2Future of Clerking

PAGE 10Wine Society

PAGE 18Mergers & The Bar

PAGE 24Ted & Alice

I S S U E 1 0 6 - S E P T E M B E R 2 0 1 0

H T T P : / / M AG A Z I N E . C L E R K S R O OM . C OM

E D I TO R ’ S PA G E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

ADVERTISING ENQUIRIES TO:[email protected]

EDITORIAL ENQUIRIES TO:[email protected]

This edition of the Clerksroom Magazine has been kindly supportedby the following companies:

Advantage Office Supply Systems LtdUnit 10, Poole Hall Industrial Estate,Ellesmere Port, Cheshire CH66 1ST.T: 0151 357 3500F: 0151 356 3459E: [email protected]

Corner House Design & Print LtdThe Old Chapel, Manchester Road,Carrington Village,Manchester M31 4BLT: 0161 777 6000F: 0161 777 6060E: [email protected]

This month sees the conclusion of the reports and articles from theIBC Conference at the end of June. There was so much ofimportance spoken about by the main speakers in this atmosphereof major change that we felt it was appropriate to include as muchas possible. If you want to go back over any of the articles, just goback to the magazine homepage and view the archives of eachedition.

If you are a fan of Leonard Cohen and / or his songs covered by many toprecording artists over many years then I recommend this month’s film review.Aimée Summers endured a muddy film festival to bring you her report on thefilm “Bird on a Wire”.

I had the following email a couple of weeks ago:

“I wonder if I may be added to your email [list]. By the way I have just readthe August addition be it for the first time even though I have been a firstjunior for 7 years and it really made me laugh and realise one barrister iscreated the same no matter what chambers they are at!!!... Many Thanksagain especially for a Friday afternoon and making me smile...”

I really appreciate the response at it makes all the effort worthwhile. Pleaseemail me if you are not on the email list at: [email protected].

Speaking on the 23rd September at an event hosted by the Law Society,Justice Mnister Jonathan Djanogly stressed the importance of alternativebusiness structures (ABS). The Ministry website says:

“ABS would enable lawyers to join forces with other non-legal professionals,like accountants or surveyors, to create 'one-stop shop' firms providing avariety of linked services. This a change from the current system which keepsthe legal profession separate.”

Mr Djanogly said: 'I believe that the changing legal landscape should lead toa reinvigorated and more competitive legal services sector. The introduction ofABS in particular will allow for greater flexibility of professional servicesprovision and businesses better equipped to respond to commercialpressures.'

He reminded the audience of legal practitioners that the move to ABS wasvoluntary for lawyers and firms, but highlighted their potential for bothefficiency savings and improved service to customers.

Now when you ask someone from another set what is going they are doing,you are likely to get an answer as clear and succinct as a civil servant’s replyin “Yes Minister”.

And yet if you believe the gossip, there is so much plotting behind closeddoors.

Clerksroom Magazine is produced under licence by JAR Holdings Limited, 9 Old Coach Road,Kelsall, Cheshire CW6 0QL. 07734 995 902

Bob Moss

1

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

So lastly I will turn to the future

of clerking. I think it’s

undoubtedly true that life is

going to become more complex

over the next few years. You’re

going to be operating ProcureCo

type vehicles, or partnership

vehicles, all sorts of commercial

ventures which will orbit round

the set of chambers that you

clerk. Contracts are going to

going to become of long

duration. They’re going to be

more complex.

There will be increasingly difficult issues of financial

management and different sources of revenue. There

will be more difficult and tense decisions to be taken

within chambers about how to distribute work between

ProcureCo people on panels and people not on panels.

There will be corporate structures to grapple with.

You may have to deal with

directors and external structures

which you have to think about

and liaise with. There may be

joint ventures with other sets,

particularly in the publicly funded

arena. Over the past 6 months,

as we’ve working on the new

business structures projects, I

must say I have had fantastic

assistance from clerks and

practice managers, and your

assistance has been far more

than the assistance I have had

from the Bar. I’ve regularly had e-mails from clerks and

practice managers on the draft documents we sent out

earlier this year, often saying how you would deal with

this problem, this is something I’ve come up with, have

you thought about that. That’s been tremendously

valuable, very informative. We’ve learnt a lot from the

assistance we’ve had from the clerking community.

The Future of ClerkingThe final extract from the keynote address to clerks by the Chairman of the Bar Nicholas Green QC

at the IBC Conference this year.

2 Continued on page 4...

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

4

To my mind, I think it’s time for chambers managers to

be made into a profession. I think clerking needs to be

given the recognition which it deserves and I think it

needs to be put in a position whereby you can

professionally and ably manage the chambers of the

future, and the Bar Council, both on our representative

and recreation sides, are starting to think long and hard

about this. How to bring the management of chambers

into a regulated and represented community, which we

are all moving in the same direction, and I going to be

taking these thoughts and issues up at the Bar Council

and with the IBC and the practice managers over the

next few months as we start to try and map out what

we can do to assist the clerking and management of

chambers, because you are absolutely at the heart of

the success of chambers in the future.

Barristers are lousy at internal administration and

management. It’s not our job; we don’t get paid for it.

Yes, there are some in chambers who will help, but then

when they’re in a trial their energies are absorbed

elsewhere. In the future, a successful set will need a

range of business skills which may go beyond the skills

which we traditionally have at the moment. We may

need far greater skills in procurement and tendering

procedures, and speaking to clerks I know that many are

beginning to acquire those skills. There may be

advantages because if the management structure was

more professional as the commercial opportunities for

the Bar increases as we develop companies and

partnerships and other potentially profit making

organisations, there may be a greater scope for the

management to participate in those structures.

So I want you to think about this. How should we do it?

How do we bring you into the regulatory and

representative structures of the Bar? You need to start

thinking about CPD, what sort of training does the Bar

need, what sort of skill sets do you have at the moment

and do you need in the future?

So in conclusion, times are challenging, but I have no

doubt we will get through them and we will come out

stronger in the resolve. There is a very great deal of work

to be done over the next few years. At the moment I am

trying to devise with colleagues in the Bar Council a 3

year strategy plan so we can map out the precise steps

we have to take, and costings, and timelines, so we get

to where we want to be. And you are key to this. You

need to educate yourselves as to market developments.

You need to galvanise your sets into thinking about the

future, and you must not allow the ostriches and the

diplodocus QC tendencies of some barristers to drag

chambers backwards.

So all I can say to you is good luck.

...continued from page 2

Lower costs

Save on purchase price and

eliminate hidden costs.

Flexible ordering

Work with us to create an

effective, efficient ordering

system that’s perfect for you.

Dedicated service

One source, one solution

gives you more time to focus

on the success of your

business.

Superb choice

Choose from over 30,000

product lines, all available

from just one supplier.

Has your firm spoken to advantage yet

about joining The Professional

Purchasing Group and massively

reducing your office supplies overhead?

If not.. call us today to receive details

and information of how you can

introduce an innovative new supply

system that will reduce costs and save

time throughout the year.

Why choose

us as your

one supplier?

Tel: 0845 370 3500

www.advantageoss.comFax: 0845 370 3501

E-mail: [email protected]

Established

provider of

high quality

Creative Design,

Artwork & Print

to the legal

professions.

0161 777 6000

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

Clerks And The Cab Rank RuleHow will this affect you? Entities are likely to allow for

more direct access from lay clients to advocacy services.

Lay clients are less likely than solicitors to know about the

cab rank rule, and the great significance and difficult

management of this will lie in your hands. 63% of

respondents to the survey thought that maintaining the

cab rank rule was important and should apply in BSB

entities, but the effect is likely to be watered down by the

increased incidence of conflicts in entities. Clerks are at

the forefront of managing conflicts of interest for

members of their chambers. If barristers join entities in

significant numbers, the incidence of conflicts will increase

greatly and management of these conflicts will require

great attention and skill. In that case the BSB will work

with the IBC to ensure that clerks and barristers have the

necessary guidance, training and systems available to

manage conflicts.

The cab rank rule promotes access to justice and protects

the independence of advocates; it is popular amongst

consumers and the profession alike. If it applies to

entities, clerks will play a vital role in ensuring its effective

operation, and I know that IBC members are bound by

their own code of conduct to ensure that members of

their chambers adhere to the barristers’ code of conduct,

and ensuring compliance with the cab rank rule is one of

the most important aspects of this. We hope that clerks

will support the application of the cab rank rule to the

realm of entities.

The main difficulty is that the required acceptance of

some minor instructions will conflict all those working in

the entity from taking on more substantial work for the

other party in the case. This could be used as a tactic to

conflict out a particular advocate, or it could just be the

consequence of normal business. You must look out for

our consultation paper later this year in which we air

these issues because your response will be

overwhelmingly important. Clients should get appropriate

representation and get the barrister of their choice if

available. I know that the cab rank rule is not immutable

but it is an important ethical flagship of the Bar.

Embrace change & deliverIBC Conference 2010


Over 4 issues starting with the June edition we have reproduced the lecture given by Baroness RuthDeech, Chairman of the Bar Standards Board, entitled:

Embrace change & deliver

Edition in 2010 TopicsJune The changes we made

July Our survey

August Entity regulation

September Clerks & the Cab Rank Rule

Conclusions

What is involved?

� Identify where Chambers are not able to get the most out of the reports etc because the data is:

• Inadequate• Inaccurate• duplicated or• incomplete

� Provide a list of what could be improved upon, and why its worth doing anything about it

� Make recommendations for improving procedures

Health Checks by Butchard Associates

Just what are you missing out on because of the lack

ofinformation on the system?

Exactly what state is your data in?

Would you like Gill Butchard to carry out a Health Check

on the state of your Data?

For more info:See Gill’s website at www.butchards.co.uk

Email: [email protected] Tel: 0772 591 1320

www.butchards.co.uk

Gill ButchardPrincipal of Butchard Associates

She could also help you with Supplier review, Expenditure Analysis/Review,Management Reports, Database Management, Client Management,

Marketing, Debt Collection, Holiday/Sick cover, Job Training, Procedural review,Business Review, etc

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

9

As Erskine said on representing Tom Paine in 1792:

“From the moment that any advocate can be permitted

to say that he will or will not stand between the Crown

and the subject in the court where he daily sits to

practise, from that moment the liberties of England are

at an end.” In recent times, one is even more grateful

that one can count on the Bar to protect the citizen

against the government.

Discipline within entities might also be an issue for you

to ponder. In regulating entities, the BSB needs to

consider how non-barrister and non-lawyer managers

and employees would be regulated within those

entities. The forthcoming consultation will set out the

options for regulation of non-barristers; there are some

important issues of consumer protection to be

considered and we hope that clerks will engage with

this issue.

ConclusionTo conclude – we at the BSB have to combine the

regulatory objectives, the separate identity of the Bar,

and economic realities in designing new entities. We

should not go head to head with the SRA. The Bar

Council and the BSB sing from the same hymn sheet in

considering the future of the Bar, and of Procureco and

its development. The Legal Services Board ought to

accept that there is a need for different types of

regulation, niche regulation if you like, and it would be

contrary to the spirit of the LSA if it did not give free

rein to various models, including some apt for the Bar.

Let a thousand flowers bloom.

I hope the Bar and the Inns will be inclusive and that

the entire family of the Bar will go forward together

with the same identity and objectives. The flag of

regulation by the BSB will continue to be a signal of

integrity, honesty, commitment to the client and to the

court above all, advocacy and the rule of law. Its code

recognises duties above and beyond those demanded

by the government of the day or by employers, and

should provide a firm ethical shield, held up by you, for

barristers, were there ever demands on them, political

or financial, threatening the standards of the Bar as we

know it, and as you have created.

I used to chair the HFEA, which deals with IVF, all forms

of artificial reproduction and embryo research. I now

realise that my skills learned there do in fact transfer

over to the regulation of the Bar. I see the title of your

conference is Embrace, Change, and Deliver. We at the

BSB will embrace you, together we will create change,

and we will shortly deliver a brand new creature with

the best of the characteristics of the Bar and the clerks

in its DNA.


Serviced Office Facilities:� 218 Strand offers UK and overseas lawyers the opportunity to

share resources in a serviced office suite, directly opposite the Royal Courts of Justice in the Strand, London WC2.

� The reception is on the 3rd Floor and staffed 8am - 6pm.� Meeting Room available include Single rooms for 1-50 people

up to Mediation Suites.

Accommodation:� Fleet Street apartment available for short term rental to

professional people when in London.� Superbly located studio apartment situated just off Fleet Street.

Disaster Recovery Suite:� Suite with 24/7 availability of hot desk PC’s connected

to the Internet.

Contact Us:218 Strand, London, WC2R 1ATT: 0845 083 3000 F: 0845 083 3001DX: 232 London Chancery Lane E: [email protected]

www.218strand.com

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6


Over the past 12 months The Wine Society has filled this page with details on how to taste wine. If you arenot yet a member of The Society, a multi-award winning wine merchant, then here are some reasons to join.

The Wine Society

The Wine Society has been voted Direct Wine Merchant of

the year for 2010 by the International Wine Challenge.

Ewan Murray, who has written the articles for Clerksroom

Magazine for the last year, was presented with the award

recently. We thank him for his support.

Best Kept Secret

The Society does not advertise or send cold mailings to

the public, because it is not trying to grow rapidly or make

money. It’s therefore not surprising that only those “in

the know” have ever heard of them. To be part of it, go

to www.thewinesociety.com/join

One Simple Aim

Established in 1874, The Wine Society has always had the

simple aim of providing its members with the best quality,

most interesting and best value wines possible,

accompanied by customer service which is second to

none.

Becoming a member is straightforward

Becoming a member is really easy – it is not necessary to

be proposed and seconded. To become a member, one

buys a share, costing £40, giving one a share in the

business and its considerable assets as well as life-

membership (and even after-life, as membership can be

bequeathed!).

An all-encompassing, ever-evolving wine list

At any one time members have access to over 1,500

wines from every corner of the world which have been

personally sourced by the Society’s six buyers. The buyers

continually travel the world, discovering new producers

and exploring new regions so that members really can

have access to a lifetime’s supply of wine, with no chance

of getting bored.

Feel good about your wine purchases

The wines are ethically sourced; The Society aims for long-

term relationships with producers, rather than short-term

one-off purchases. It deals fairly with its suppliers and has

no other agenda for its members other than to provide

the best wines possible (there is therefore no bias to

particular producers for favourable margins, for example.)

LAWCARELawCare is an advisory and support

service to help lawyers, their staff and

their immediate families to deal with

health problems such as depression and

addiction, and related emotional

difficulties.

They offer the opportunity to discuss

health issues and problems which are

interfering with, or have the potential to

interfere with, work performance and/or

family life – and to seek help in resolving

the problem in its early stages. The

service is free and entirely confidential.

Helpline: 0800 279 68889 a.m. - 7.30 p.m. weekdays 10 a.m. - 4 p.m. weekends and Bank Holidays

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

13

Valuing the individual

The Wine Society acts as an independent merchant,

sourcing small parcels of intriguing wines from around

the world, which is impossible for the larger

chains and supermarkets to do. The Society provides a

personal service, guiding the member through the

process of learning about and buying wine.

Wines “from the little guy” – artisan producers - are

delivered directly to your door, a huge plus point for

those wine drinkers living out in the countryside

without easy access to a wine merchant.

Members are treated as individuals, with

knowledgeable staff on the end of the phone (there is

no “press 1, press 2 “here) who will take the time to

answer queries and provide a very pleasant buying

experience.

A company you really can trust

In this day and age, trust counts for a lot. When buying

from The Wine Society, you can trust that the wines you

buy are ethically sourced, excellent quality and the best

possible value. You can rely on honest and unbiased

advice -and that if things are not quite how you would

like them to be, you can call and talk to someone who

will help.

Events

The Wine Society holds over one hundred events around

the country throughout the year where members have

the opportunity to meet winemakers, Wine Society

buyers and staff, and each other. The events are an

interesting mix of themed tastings and winemaker

dinners held all year round.

The Wine Society in France

The Wine Society has an outpost in the lovely medieval

town of Montreuil-sur Mer, near Le Touquet. Members

can make substantial savings on the excise duty, which

is guaranteed to be at least £15 per case. A wonderful

weekend destination in itself, members will receive a

warm welcome at The Society’s shop in Montreuil.

Visit: www.thewinesociety.com


A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6


When did you start working in Chambers and in

what capacity?

1st January 1990 as Senior Clerk of the brand new

asylum otherwise known as No.1 High Pavement

chambers.

Why did you become a clerk?

I felt the need to escape from the then ample bosom of

the Crown Prosecution Service. [Editor: How times have

changed!]

How did you feel on the 1st January 1990

opening chambers door for the first time?

Sad – It was New Tears day and myself, senior counsel

and senior solicitor were in chambers for a 10.00am

conference on a murder case.

How would hindsight have changed what you

did then?

I would have provided more croissant to soak up the

coffee that was helping to overcome the previous

evenings celebrations.

Would you do anything differently now?

Yes – I would make sure the conference took place at

the solicitor’s office.

So far what has been your best moment in

Chambers?

This year our first ever pupil was appointed a Recorder

20 years after finishing his pupillage.

What has been your worst moment in

Chambers?

Discovering that the letter to Mr X advising him that he

had been appointed Queens Counsel had been sent to

the wrong Mr X after he had read it.

”What Makes A Clerk Tick?”There are not many clerks who are still at the chambers they helped to create, and even fewer who didso 20 years ago. However, it can be said of Senior Clerk, David Duric, at 1 High Pavement Nottinghamwho was part of the team responsible for setting up Chambers for its opening on 1st January 1990.

Prior to that David had worked for the Crown Prosecution Service in Derbyshire for 20 years.

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

16

What irritates you the most?

Histrionic Personality Disorder – particularly

egocentricity, self-indulgence and continuous longing

for appreciation. [Editor: Someone pass me the

dictionary please! Is he describing barristers?]

What is the best aspect of the job?

Celebrating success

What is the worst aspect of the job?

Sharing disappointment

What is your best characteristic, clerking or

otherwise?

Finding time to listen

Do you have any bad habits?

No – I have practised my bad habits until I have

achieved perfection

Your favourite film?

The Green Mile

What car do you drive?

V.W.Golf

What’s on your iPod?

Jack Johnson

How do you relax?

Horizontally

What event anywhere in the world would you

most like to witness?

Manchester United winning their 19th league title,

preferably at Anfield. [Editor: You are more likely to

have your “19th Nervous Breakdown”, which will be

shortly before Hell freezes over!]

Name one person you would like to have dinner

with and why?

Seve Ballesteros [the epitome of the Ryder Cup] to

apologise for casting a shadow over his back swing

near the 9th green at the Belfry in 1993

If you were stranded on a desert island, what 2

items would you take with you?

My sand wedge and a pencil [Editor: Pencil? To keep

your score or leave a message?]

If you had not gone into clerking, what would

you have become?

With the benefit of hindsight a manufacturer of red

tape. I would have made a fortune over the last few

years.

So what does make a clerk tick?

Hoping for the best but preparing for the worst.


A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

The tune has been called

and it’s time to face the

music!

In order to balance the

books, business has to take

some of the pain of the UK’s

financial recovery. The

imminent VAT increase is

one of a number of

measures that will have an

effect on businesses of all

shapes and sizes.

It poses a challenge and

requires us to take the time

for a little inward reflection

to ask ourselves how well

prepared our specific area of commerce is, to face the

coming change. Are you confident that your business

will be in a position to manage the increase in

outgoings without experiencing a temporary cash

shortfall shortly after the increase takes effect in

January next year?

Those with a VAT quarter ending 31st January 2011 will

need to account the new tax rate on sales made in

January in the January return. The VAT will need to be

paid by the end of February but will previous months

bills have all been paid by

then? Clearly, some will find

themselves with a cash

shortfall as a result of this

2.5per cent increase in

outgoings. The most

noticeable impact will be felt

by growing sets showing a

greater volume of sales in

January than in previous

months.

So what preparation should

be considered to lessen the

impact?

Primarily, a review of cash

forecasts to ensure that the

VAT increase has been

included in calculations should be undertaken. This

should be followed with an appropriate revision to

plans for the interim and for the period immediately

following the VAT rise, due to the potential for adversely

affecting cash flow. It should be remembered that all

businesses will experience the same pressure at the

same time. Deferred payments by your clients are likely

to be experienced as they attempt to manage their

finances.

VAT increase – Cash flow implicationsfor Barristers Chambers

17

By Julie Cave

The first of 2 articles on preparing for the cash flow impact of the VAT increase

Continued on page 19...

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

The changes in working practices required for the Bar to

meet the challenges of the LSA and forthcoming ABSs

have meant a significant increase in pace from the Bar

Council leading to more activity in chambers about

ProcureCos and other ways of benefiting from the

opportunities the future will provide.

Lately there has been talk that sets of less than 70

practitioners might find survival hard and that mergers

may be the way forward.

There are about 12000 self-employed barristers in the

330 or so chambers in England and Wales with an

average of about 36 members in each set. Clearly, there

is a wide range and, for every set of 100 plus, there are

those of less than a dozen. However, this spread doesn’t

mask the simple mathematical fact that a universal

membership of 70 would half the number of chambers.

In the fragmented and dispersed market for advocacy

and barristers’ services there have been relatively few

mergers. Few, that is compared with other like

professions where the last ten years has brought a

widespread consolidation of firms. There are reasons for

this and these will be explored shortly.

The first rule of mergers is that there is no such thing as

a merger. Despite the honeyed words and good

intentions at the start of the process one of the two firms

(three-way mergers are possible but, like playing the

bagpipes, are tricky and can be noisy) always ‘takes over’

the other. The stronger management, the healthier P&L

and balance sheet, the better brand will always prevail.

So, having come to terms with this here is a check list of

how to pull off a successful merger.

The courtship

This is the easiest part of a merger and should take no

longer than 60 days. A potential partner has been

identified and initial discussions between a few senior

members have shown enough common purpose and

matching of assets for the proposal to be taken to the

Management Committee or the whole of chambers. The

only criterion for continuing has to be the business case

so the ‘2+2=5’ scenario will have been worked up.

Many mergers fail at this point on, what the aftermath

shows were, inconsequential and laughable personal

considerations. “We can’t possibly merger with 69 as

Buggins doesn’t know what wine to drink with

shellfish”; or similar. The passage of time will also show

that those who objected most for non-business reasons

are often those who leave chambers and wouldn’t have

been part of the merged business anyway.

It’s only business; it isn’t personal.

Mergers and the Bar in England & Wales


Ian is the former Chief Executive at Peel Court Chambers Manchester. He now runs his ownProcureCo advising chambers on a range of topics including those he refers to in this article.

By Ian Dodd

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

19

It’s important to ensure that personnel throughout thebusiness are informed of the situation and thatplanning commences now to reduce the impact of theincreased outgoings. Some members may be affectedmore than others, based on their work profile and ageddebt position. They need to be made aware of what canbe done and how they can help to manage theirforward cash position.

Whilst increasing the volume of sales might help financesgenerally, an increase in sales in the month of January itselfwill in fact exacerbate the problem as the VAT payable onthose sales will be higher and unless the fees recoveryprocess has been accelerated in preparation, cash in-flowwill remain unchanged.

Other options to offset a cash shortfall, include increasingprices could be considered but will clients stand such amove at present? This could lead to a reduction in salesvolume which would worsen the effect over time.

A team effort of action encompassing sales, marketing andcash flow management techniques is the most effectiveapproach.Let’s take a closer look at what preparatory steps can betaken to improve cash flow management.

Cash flow Forecasts Begin by revising cash flow forecasts and then put togethera plan based on what you find. It should include thefollowing areas where changes can be made to acceleratecash flow:

• Payment terms • Credit Risk • Billing• Work in progress • Fees recovery• Performance Management • External finance

Reporting

Consideration should be given to informing staff receivingfinancial reports which include monthly, quarterly or annual

comparisons that some trend variances will emerge, if thefigures used are VAT inclusive. When making suchcomparisons, for the first month or quarter in which thechange occurs, accompanying notes explaining the variancewill prevent incorrect interpretation of the data.

When calculating Days Sales Outstanding, be aware of theimpact of the increase when using VAT inclusive figures.Separating the sales value and VAT shows an accuratetrend. Failure to do so will show a worsening DSO. See theexample below.

The calculation for the Days sales outstanding(DSO) is: Trade debtors (VAT inclusive at 17.5% & 20% x 365 days = DSO in daysCredit sales x (1.175 or 1.20)

Examples showing the effect of the VAT increase

Debtors (17.5% VAT inclusive)1,000,000 x 365 = 365,000,000.00 60.91 DSO

Total sales YTD at 17.5% VAT only5,100,000 x 1.175 = 5,992,500.00

Debtors (17.5% & 20% VAT inclusive) 1,010,638 x 365 = 368,882,870.00 61.45 DSO

Total sales YTD at 17.5% and 20% VAT rates5,100,000 X (1/12x 1.2 + 11/12 x 1.175) =6,003,125.00

Next month we will look in more detail at each of the areasto be reviewed as part of the preparatory action plan.

Contact details: Julie Cave Managing Director, Credit Management (Law) Ltdwww.cmlawltd.comTel 07501 769 563


The annual tennis match between the Bar & Clerks was

held on the 6th September 2010 at the usual venue of

the Bank of England club, Roehampton.

I played with Paul Martenstyn of Fountain Court and

our first team pair were Stuart Pringle of 3 Papers

Buildings (Winchester) and Trevor Austin of 9 Bedford

Row. The Bar were represented by Charles John Jules

(Captain) and Charles Turnbull. Their second pair were

Michael Laxton and Claude Wallace.

Weather again was good for us and we were fortunate

enough to be able to play on the Bank’s grass courts.

Paul and I having finished the result was all hanging on

the last set and it looked as if we were going to lose as

Stuart and Trevor were 2-5 down but with some gutsy

determination they turned it round and won 7-5.

The result finished all square as it did last year.

The Bar continue to retain the cup.

By David Goddard

Just TennisA R T I C L E

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

20

• Communication is the key. All clients, suppliers,staff, members and anyone else associated witheach set will have been told what is happeningand must be communicated with openly andregularly before and after the merger. Clients willbe approached, informed and reassured that thechanges will only benefit them. Potential andlapsed clients will also be contacted as the newarrangements may hold attractions to them whichare unknown to the new business. Suppliers will beinvited to consider their pricing structures. Noteveryone will be as misty-eyed as you with visionsof the bright new future and some may moveoutside the tent.

• Avoid ‘them’ and ‘us’. Try ‘we’ as often as possible.

• Sort out or have a firm future plan for everythingas you go along. “We’ll leave that for later/afterthe merger” never works.

• Savings will and must be made in every area ofexpenditure and the most contentious of these willbe staff. The correct staff level needed to provideadequate support will have been painstakinglyworked out. Inevitably, some staff will face theprospects of losing their job as numbers are cut.There are clear and specific procedures to addressthis and the merger will neglect these at theirperil. Selection for redundancy, consultationperiods, TUPE, severance payments and assistancewith finding a new job are only some of the issues.Staff must be treated properly, as generously aspossible and with care and dignity. Getting thiswrong has wrecked many a perfectly good merger.

• The number of people managing the merger mustbe limited and might only be one in each set. Thebuzz of the proposed merger and the excitementabout the bright future easily diverts attention

from the grind of the daily work and failure toattend to the core business can quickly affect theP&L. Indeed, a suitably qualified and experiencedthird party might be engaged to manage, withadequate internal supervision and reporting, thewhole process. It will take six months to a year todo properly.

Remember; this stage ought to be tied up in less than60 days. Much longer and it probably isn’t going tohappen. The determined aim of self-employment whichmembers of the Bar cherish in the pursuit of laudableindependence of thought and action in matters ofadvocacy often obfuscates the need for corporateendeavour for the collective good that other businesseshave. The two have to be separated during a merger.

The mergerThe big day has arrived. Everything is in place; all themarketing and promotion has been done, everybody hasbeen told, the premises are great, the Post Office isforwarding mail from the old place, the broadband isup, the new server is working and the diary/casemanagement software has had all records and datatransferred and the drinks party is tonight. The hardwork is over and we can relax. Not a chance – this iswhere the work really begins.

Both sets now begin the process of integration and, asbefore, this should take no more than 60 days tocomplete. All trace of the previous sets needs to beextinguished and the new entity given all the space andoxygen it must have to succeed.

Enjoy the drinks party; tomorrow is when you all see ifyou can make this new thing work.



64 Bridge Street: Manchester Legal Centre64 Bridge Street, Manchester M3 3BNT: 0161 839 1002 F: 0161 819 5205DX: 14349 Manchester E: [email protected]

www.64bridgestreet.com

Contact our Regional Manager: Bob MossT: 0161 839 1002

Manchester’s Administrative Court Opened in January 2009

London set 39 Essex Street launched a Manchester branch in June 2009.Chambers director Michael Meeson: “Manchester is a hive of activity.” [The Lawyer]

Doughty Street Chambers opened in August 2009 in Manchester. Chambers director Robin Jackson: “Manchester is a strategically important site.” [The Lawyer]

Can we help?Our facilities are:• Non-brandedoffices

• At the heart ofManchester’slegal community

• Located just offDeansgate

• Newly refurbishedto a highstandard

Designed for:• Meeting & TrialPreparationRooms

• Video ConferenceSuite facility

• Seminar, Training& Lecture rooms

• Mediation,Arbitration

We also offer:• Copying Printingfaxing & Wi-Fi

• Hot desking or aquiet corner

• DX exchange inthe building

• As much tea &coffee as youneed!

• Membership forindividuals andchambers

Serving the legal community in Manchester “the second legal city”

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

23

Integration

The honeymoon is soon over. The daily grind reclaims

everyone’s attention and many of the resolutions made

before the merger might lapse. However, attention is

required on;

• Communication. The need to keep everyone

informed hasn’t gone away now you’re together.

Good news is needed to keep the new

enthusiasms going.

• Logos, branding, letterheads, websites etc need to

reflect the new entity. There’s little more

discouraging and guaranteed to feed the

gainsayers’ twitters and emails than the tattered

remnants of one of the previous incarnations still

obvious – inside or outside the business. This

requires diligence and will still be costing money. It

was all in the budget though, wasn’t it?

• The budget will have also contained targets for

cost savings, new business, improved cash

collections etc and these will be monitored

regularly with remedial action if there are negative

variations from the budget.

• There’s a great story to be told. If there isn’t

perhaps you shouldn’t have done it in the first

place. Clients, existing, potential and lapsed will be

visited and entertained in an appropriate fashion

to ensure that business is secure and new

possibilities are followed up.

• The pre-planned campaign for recruiting new

members will be in full swing.

All this will be completed no more than 60 days after

the go-live day.

Sometime in the future. Has it worked?

At the start of the merger there will have been an

agreed date at which a full evaluation of the process, its

success, the lessons learned and what to do next was

to take place. Of course, all through the intervening

time progress monitoring will have taken place and the

course adjusted if required.

Sometime within a year of the merger a full review will

take place. It’s often about the first anniversary. The

aims and objectives of the merger, the planned increase

in turnover, reduction in costs and the resultant

improvement in profit will all be held up to the light

and minutely examined. The growth of the business, the

improvement in the client base and the general forward

direction of the enterprise will be debated and, if all is

well, all targets will have been met and everyone will

be happy.

However, not all will have gone well and there will have

been surprising turns on the way. Without a doubt there

will have been an wholly unexpected churn of staff and

practitioners and other unforeseen, but not

unpredictable, events will have overtaken the merger...

Unforeseen, that is, unless there was a contingency

plan, a Plan B, which was written right at the start of

the journey. Do not forget to do that as a lot of the

promises made, expectations desired and unruffled path

to the promised land will not have materialised.

As de-merging is even harder, and very embarrassing,

than merging you’re just going to have to make it work.


A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

24

Dear Ted & Alice,It is bad enough when you cannot get hold of

the governors after 5.00pm because they are in

the Witness Box or a wine bar on Chancery lane,

but I seem to have a problem with several

members of my so called “clerking colleagues”.

They have started to disappear as well, leaving

me to hold the fort. I do not mind occasionally,

but now I think they are taking the Michael. I

don’t want to play whistleblower as that will

ruin the atmosphere, and we get on well the

rest of the time. Any suggestions?

Ted: Next time say it is your turn and get your coat on.

Then someone else will have to stay behind.

Alice: That only works if you want to go drinking which

I suspect this clerk does not want. Perhaps it is

time for a quiet word with the senior clerk. May

be you could have time off in lieu, or they take it

in turns.

Dear Ted & Alice,It will be Christmas before long and we will

soon be buying presents. But with the credit

crunch I suspect there will be a move towards

cutting back. It would be a shame not to have a

small party and exchange gifts

Ted: Whatever happened to getting several doses of

“Dutch courage” down at lunchtime on

Christmas Eve, drowning a few Christmas carols,

and hitting the shops with the other male

headless chickens? This is way too early and all

too sensible for me. Over to you Alice!

Alice: Typical! How about setting a budget of say £10 -

£20 for one present only? Put everyone’s name

into a hat and you just buy for the one you pick.

Of course you might not want to buy for the one

you get, or may not like the idea of a present

from the one who picks you. But at least you

have a budget, and a present!

Dear Ted & Alice,Do you know of anyone who runs training

courses for the Bar in the use of office

equipment? Short lesson on how to use the

photocopier would be great. I know 65 counsel

who would benefit from the course.

Ted: Is this designed to make your life easier? And

have you ever heard the legal expression: In one

ear and out the other. You would have to have

regular updates on the basics which should be

compulsory and carry CPD points.

Alice: There could be an advanced course on how to

take staples out of documents, remove paper

clips, and clear paper jams.

- a problem shared!!Some more of your printable offerings!

MAILPAC IS THE TRADING NAME OF JAR HOLDINGS LIMITED, THE TECHNOLOGY CENTRE ELLESMERE PORT CHESHIRE CH65 3EN

Email Mailpac:

[email protected]

Telephone:

07734 995902

� Sending out more than 20 bundles a day?

� How about your logo and details printed on yourplastic mail bags?

� Ask for details: It is cheaper then you think!

Personalised Plastic Mail Bags for Chambers

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

According to The Daily Telegraph there are 177 taxpayer-funded bodies are to be abolished under Coalition plansrecently drawn up. 16 of these are linked to the work oflawyers, but the plans do not include the new LeO.

Based in Birmingham, the new body is still recruiting forstaff and may not be entirely ready for launch day.

There are a variety of issued raised by the new claimsprocedure, not least of which is whether awards againstmembers of the Bar are covered by Bar Mutual.Compensation can be up to £30,000.

The Bar Standards Board [BSB] has not issued anyguidance as yet as they are clarification from the LegalOmbudsman first. The Leo will deal with consumercomplaints whilst the BSB will continue to deal withmatters of professional misconduct.

The LeO’s website confirms: “We are a new organisation that will have formalpowers to resolve complaints about lawyers. It will be afree service. Our job will be to look at legal complaintsin a fair and independent way – we will not take sides.

If you have a problem with the service provided by yourlawyer, you should first complain directly to them. But ifyou are still not satisfied then we may be able to help.

Our service will be open to all members of the public,very small businesses, charities, clubs and trusts.”

The Leo has produced a “Guide to Good ComplaintHandling” which explains the sorts of things the LegalOmbudsman will expect to see from lawyers in dealingwith complaints. You can order a hard copy from theirwebsite, or download at:http://www.legalombudsman.org.uk/wp-content/uploads/2010/09/LeO_GGCH_for_web1.pdf

They will concentrate on service and redress for client,return of fees, an apology and / or compensation. There isno right of appeal, but you can expect lawyers to at leastconsider judicial review where they feel the Ombudsmanhas overstepped the mark.

LeO Starts This Month

27

The new Legal Ombudsman (LeO) will be open on Wednesday 6 October 2010 to replace the LegalServices Ombudsman and the Legal Complaints Service in October. The Bar Standards Board will nolonger deal with complaints by clients about the services of barristers, but will continue to deal with

professional misconduct and disciplinary matters.

Film Reviews by Aimée Summers

A R T I C L E

S E P T E M B E R 2 0 1 0 ~ I S S U E 1 0 6

26

UK Premiere & DVD – Bird on a Wire

Reporting direct from the summer festival season, this

month’s choice is a film shown at the Welsh Green Man

Festival. In the crowded 2000 capacity cinema tent on

the opening day of the festival in the Brecon Beacons,

sitting cross-legged on a hessian sheet (thankfully clean

despite the torrential downpour and accompanying

muddiness outside!), I was privileged to watch the UK

premiere of the film about Leonard Cohen’s 1972 20

city European tour, Bird on a Wire.

Originally released by director Tony Palmer in 1972, the

rough cut was bought by the BBC on the spot. It was

then subjected to massive editorial hacking and re-

released two years later, shown publicly for one night

only, rejected by the BBC. The film then vanished, to be

found and extricated from a Hollywood warehouse just

18 months ago.

Tony Palmer’s film-making task began all over again – a

daunting one considering the footage was contained in

294 rusted-up cans. Patiently pieced back together

from 3000 bits of film, it’s been restored in all its

original glory, giving a fascinating portrait of a

brooding, troubled, passionate, sensitive artist in his

prime.

We’re introduced to every intimate aspect of Cohen’s

life on the tour – we see him rehearsing, performing

onstage, in hotels and travelling, in the bath and

shower, swimming naked, reading poems, being

interviewed and propositioned by female fans

backstage.

The film is an attempt to understand the man himself,

rather than being just a concert film, but in reality it’s

successful on both levels. It’s an insightful view into

Cohen’s personality – a quiet man, modest about his

talents despite his impressive song-writing and

performing abilities, religious and very honest. One

particularly memorable and refreshing scene was seeing

Cohen offering refunds at concerts where the band was

not “getting off the ground” – a rare occurrence in the

music industry.

Clerksroom Magazine Film Review


A R T I C L E

In spite of its claims of not being a concert film, it does

contain performances of 17 popular Cohen tracks and

accurately depicts the challenges and difficulties of the

touring lifestyle such as audience ambush, criticism and

sound system problems of which the 1972 tour was

badly plagued.

Showing Cohen in such completeness, nothing hidden,

warts and all, and with unprecedented permission

granted by the Picasso Estate for use of the Picasso

Dove of Peace as the logo and DVD cover, this is a

special film. It’s the film that almost never was – nearly

40 years after first production.

From September you can buy the DVD online (currently

on pre-order from Amazon) to enjoy in the warm

cosiness of your own home, avoiding the customary

festival mud bath and general camping discomforts!

��


Key

�� - Don’t bother

�� - Consider seeing

�� - Recommended viewing

�� - Definitely worth seeing

�� - A must see

HEALTH WARNING: This magazine contains comments that may ... · practice managers, and your...

Documents

Transcript of HEALTH WARNING: This magazine contains comments that may ... · practice managers, and your...