1 Managing your L&D Budget LETG Conference 14 November 2008 Robert Mowbray MacIntyre Hudson LLP

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Managing your L&D Budget

LETG Conference

14 November 2008

Robert Mowbray

MacIntyre Hudson LLP

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The “Perfect Storm”

Falling Demand

Rampant Inflation

Credit Crunch

N.B. Has this happened before?

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Economic Impact on Profit…. With 5% cost Inflation

Last 10% 20%

Year Fee Drop Fee Drop

£’000 £’000 £’000

Fees 560 504 448

Expenses (420) (441) (441)

Profit 140 63 7

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Training: Strategic Investment or Annual Cost?

More Time For Training……

But

Training Budget Cut!!

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Are you spending the right amount?

LETG Survey LETG Survey 2000-2005 2008

Spendable budget as % ageof annual fees 0.63% 0.76%

Spendable training budget per fee earner £1,083

Spendable budget and salariesof training staff per fee earner £1,635

Spendable budget and salariesof training staff as % age of annual fees 0.95% 1.12% N.B. LMS Survey 0.8%

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Other Measures of cost

Per fee earner

Per CPD hour

Per support staff

Per support staff hour

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Controlling Expenses: Short term

Discretionary v Fixed

Rephasing of Budget?

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Other short term strategies ….cost savings

Better attendance Larger class sizes More “in house” use Videos and “replay” Renegotiate with suppliers Defer training to later period

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Longer term cost control

List of expenses v List of services

Cost of each service

Outsource/control cost

Reduce service in consultation with fee earners

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Budgeting for servicesService Cost £ Outsourced Profit Compulsory

Value added £ loss/£

PSC 10 14 4 Yes

Support staff 15 17 2 No

Money Laundering 8 6 (2) Yes

33 37 4

Which service does the fee earner want to be cut?

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Training “Return” possible measures other than “happy

sheets”Type of training Possible Measure

Legal knowledge Test pre, post & post postAccounts Test pre, post & post postComplaints Number of complaints receivedTime Recording Number of missing time

sheetsActual hours – pre, post &

post post

Time Management Appraisals?Leadership Appraisals?

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Training: Incentivise the trainer!

“If it can be done for fee earners why not trainers!!”

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Pricing Legal Services

Time Spent

Fixed Price

Value Based

So, what about training services?

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ANY QUESTIONS?

Do you want to do the LETG survey again?

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