Page 46 - Law Society of Hong Kong MPMC Manual v8 - With checklists (1 March 2018)

Practice Management Course | Unit 5
Business Planning

• Shrinking financial returns.
• Poor internal data about sources of work.
• Overdependence on fee-earners for fee generation.

14. Opportunities and threats refer to marketplace issues that are likely to have a
strategic impact on how the practice performs in the marketplace, e.g.,
governmental, technological and environmental factors. Whilst these are not readily
manipulable, it is important for practices to identify them so that they can manage
around them and avoid surprises. It is only by knowing your environment that you
can develop a logical strategy.

15. Some opportunities might be:

• Acquire/merge with a competitor or enter into a strategic alliance.
• Exploit special knowledge of a new piece of legislation or research.
• Develop relationships with accountants and financial advisers.
• Offer group legal services to members of a club or special interest group.

Where do we want to be?

What business do we want to be in?
16. The information contained in the practice audit or analysis is very useful for reality
testing. As a result, the practice should have sufficient data to write its Mission and
Vision Statements to guide and drive the practice for the next three years and a
Values Statement that will underpin implementation.

Preparing a Mission Statement
17. The Mission Statement is a broad statement of what the practice is in business to
do. It usually reflects:

• The services to be provided.
• The target market.
• The manner of delivery.
• Some success indicators such as profitability, reputation, or growth.

18. There should also be an element covering the development and sponsorship of the
practice's people.

19. It is best to limit the statement to four or five paragraphs. The statement should
identify:

• The practice's principal objectives.
• The practice's broad substantive practice areas and the market it wishes to
serve.
• What it is about the practice that makes it unique.

20. It is usual for a Mission Statement to reflect aspirations such as:

• Delivering high quality legal services to businesses and individual clients.

© The Law Society of Hong Kong (2018) Page 42