LEGAL DEPARTMENT

Business Plan

LEGAL TEAM
 I.

TABLE OF CONTENTS

I. Table of Contents................................................................

II. General Description............................................................

a. Mission............................................................................
b. Vision..............................................................................

III. Services..............................................................................

IV. Inter-department correlation................................................

V. Problem Analysis.................................................................
a. Potential Problem............................................................
b. Applicable Remedies.......................................................

VI. Operational Plan.................................................................

VII. Budget.................................................................................

VIII. Executive Summary.............................................................

 II.
GENERAL DESCRIPTION

The Legal Department is primarily the troubleshooter of the company. It

embraces all legal concerns that require the use in any degree of legal knowledge or
skill, training and experience.

MISSION
The Department holds its mission to keep the company free from all form of
legal impediments in performing its business activity. Primarily to keep its flow smooth,
continuous and improving without hesitation in doing so.

PHILOSOPHY
Its philosophy, to work effectively and in humane manner for the interest of the
company shall be in the blood stream of every individual composing the department.

The Legal Department will keep its service open for all other departments
experiencing or facing matters which are legal in nature. Other departments may ask
for assistance provided after following the protocol laid by the Legal Department.
 III.
SERVICES

The Department shall render the following services to the company as a whole
and to other departments:

1. Filling of cases against those who commit an offense to the

company;
2. Answering cases filed against the company and its employees
being sued in official performance of its function- e.g. Criminal and
Civil cases, NLRC/Labor and HLURB cases, and others;
3. Answering legal correspondence and compliances;
4. Sending of Demand Letters;
5. Legal assistance to collection for delinquent buyers;
6. render legal advice, and
7. Provide all kinds of legal assistance relative to matters which
are legal in nature.
 IV.

DEPARTMENT CORRELATION

The Department, in the performance of its mission extends its services to

different departments of the company.

1. Credit and Collection – providing legal remedies to effectively collect amount

dues continuously failing to pay by some delinquent buyers;

Specific legal support:

a. Sending Demand letter signed by the Legal Assistant and/or Legal
Officer;
b. Sending Legal Demand signed by the Legal Counsel of the company;
c. Visitation of delinquent/problem buyers on their residence;
d.

The Importance of Communication Between

Different Departments in an Organization
by George N. Root III
Inter-departmental communication keeps your company running efficiently.

communication image by araraadt from Fotolia.com

• [Organizational Functions] What Is the Relationship Between Organizational Functions &

Organizational Structure?
• [Organizational Structure] The Importance of Communication in the Organizational Structure
• [Poor Communication] The Effects of Poor Communication in Business

• Related Articles
• [Effective Communication] What Are the Benefits of Effective Communication in the
Workplace?

Communication is one of the organizational functions that helps a company to stay efficient and
productive. One of the more important forms of organizational communication is inter-departmental
communication, the Institute for Public Relations notes. The importance of communication between
different departments in an organization becomes most evident when that communication breaks down.
Implementing policies to strengthen inter-departmental communication help to underscore its
importance and maintain an efficient flow of information.

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Trust
Accurate and efficient communication between departments builds trust within the organization. When
departments trust each other to deliver accurate information, this eliminates the extra fact-checking step
that can slow down productivity. Departments should ensure that the information they are giving to
other departments in the organization is reliable to help improve operational efficiency.

Customer Service
When inter-departmental communication is poor, customer service can suffer. For example, if a client
continues to receive a bill for an invoice that was already paid because the accounts receivable
department is not communicating properly with accounts payable, then there is the risk of losing repeat
business. To retain clients and insure the flow of repeat business, you need to maintain a high level of
customer service. When the departments in your company are efficiently sharing information, then
clients can be properly attended to, and customer service improves.

Efficiency
If your sales department loses business because the manufacturing group was unaware of an increase in
product demand, then your company suffers a loss of revenue. The accurate exchange of information
between departments improves the ability to meet sales projections, to get product to distribution points
and to have contracts and documents reviewed by the proper people. Information exchange allows for a
productive exchange between engineering and marketing about the release of a new product and gets
information on prospective employment candidates to the human resources department. Improving
communication between departments improves the efficiency of the overall operation of your
organization.

Conflict
A breakdown in communication at any point in the organization can result in conflict. If the shipping
department does not get notification of an important shipment in time to make next day delivery, then
that can cause a conflict among several departments in the organization. Finger-pointing and arguing
accompany a breakdown in inter-departmental communication. When departments engage in conflict,
the productivity of your entire organization is affected.

Inter departmental communication is largely a formal affair. Inter departmental communication will
be effective when it is supported by good infrastructural facilities. There are various documents used in
inter departmental communication, they are:[1]

• A memorandum is a note or record for future use. It is convenient and useful for informal
communication. Most interdepartmental communication is done over phone, but when the
information has to be communicated in writing then memorandums are used. Memos are also
issued in the cases of disciplinary actions to be taken against employees. The format of a memo
is almost the same.[2]
• Office circulars are used to convey the information to a large number of employees. It is used
for internal communication, so it is brief and formal.
• The format of office orders is similar to memorandum but the purpose for which it is issued will
differ. It is usually issued in matters affecting rights and privileges of employees. Office order
carry a number since it will be in force till revoked.[3]
• Suggestions are given by employees. Sometimes it is given by one department to another. It
helps in developing new ideas and policies. But its effectiveness depends on the attitude of the
management.[4]
• Complaints are a part of office routine. As the size of the organization increases, the number of
complaints also increases. In many cases complaints may relate to lack of proper infrastructure,
non observance of rules etc.
 V.

PROBLEM ANALYSIS

Can You Define The Problem?

1. Is it a question you must answer?

2. Is it an obstacle you must overcome?
3. Is it a person you must persuade?
4. Is it a decision you must make?
 5. Is it an opponent you must defeat?
6. Is it a goal you must achieve?
7. Is it a goal you must set?
8. Is it a problem you must define?
9. Has the problem been defined for you?

Action: State the problem as factually as possible!

II. Is The Problem Divisible?

1. Is the problem really several problems?

2. Can you divide the problem by defining the terms?
3. Are there any implicit terms to define?
4. Can abstract terms be restated in concrete terms?
5. Can the problem be solved in steps?
6. Are half-way solutions possible?
7. Can the problem be substantially solved?
8. Is a partial solution better than none?

Action: State the parts of the problem that can be solved separately!

III. Is the Problem Broader Than Stated?

1. Is the problem part of a larger one?

2. Is it geographically broader?
3. Is it an effect of a larger problem?
4. Is it only a sign or symptom?
5. Can concrete terms be restated in abstract terms?
6. Is a general solution possible?
7. Is a political solution possible?
8. Is a group solution possible?

Action: State the problem in the broadest terms!

IV. Is It Your Problem?

1. Was the problem presented to you?

2. Do you accept the challenge?
3. Should you volunteer to solve the problem?

Action: State your responsibility for solving the problem!

V. Is It Anyone Else's Problem?

1. Has it been presented to others?

2. Can you delegate the problem?
3. Can you delegate part of it?
4. Is it partly someone else's problem?
5. Who else is affected by the problem?
6. Who might be affected by the solution?
7. Should you seek the aid of others?
8. Should you call an expert?
9. Should you call a conference?
10. Is it a confidential problem?

Action: State the names and interests of others involved!

VI. Has The Problem Been Solved Before?

1. Is the problem similar to past problems?

2. What are the similarities?
3. What are the dissimilarities?
4. Can you research similar past problems?
5. Have similar past problems been solved?

Action: State the solution of similar past problems!

VII. Is The Problem A Real Problem?

1. Is the problem a test or trap?

 2. Are you a "guinea pig" or "stalking-horse"?
3. Are you "window dressing" or a "rubber stamp"?
4. Are you expected to "kill" or "table" it?
5. Is performance more important than result?
6. What do others gain or lose if you fail?
7. Have you been placed on horns of a dilemma?
8. Are you being set up for a later problem?
9. What do you gain or lose if you fail?
10. Is an apparent solution sufficient for you?

Action: State what your problem really is!

VIII. How Will Time Affect The Problem?

1. Will the problem grow worse in time?

2. Will the problem disappear in time?
3. Is there a deadline for the solution?
4. Can the deadline be postponed?
5. Can part of the solution be postponed?
6. Must preliminary steps be taken?
7. Must the problem be watched for change?

Action: State how time affects the problem!

IX. Is Additional Information Necessary?

1. What facts are vital to a solution?

2. Can you verify the vital facts?
3. Which facts are really only assumptions?
4. Can you test your assumptions?
5. Are the sources of information reliable?
6. Were they always reliable in the past?

Action: State what additional information is necessary and its probable source!
X. Is The Problem A Contest Or Game?

1. Do you have opponents?

2. What are your opponents' goals?
3. Can your opponents change the problem?
4. Can your opponents control your moves?
5. Can you change the problem?
6. Can you control your opponents' moves?
7. What are your opponents' tangible resources?
8. What are their intangible resources?
9. What are your resources?
10. Can your opponents obtain outside assistance?
11. Can you obtain outside assistance?
12. Is chance or luck an element in winning?
13. How would you solve your opponents' problem?

Action: State the probable moves and countermoves of each side!

XI. Can You Restate The Problem?

1. Is the problem the same as originally stated?

2. Do you really want to solve the problem?
3. Is anyone helping you solve it?
4. What have you learned from past problems?
5. How does the problem affect you in particular?
6. Is the problem broader or narrower that originally stated?
7. Does the include an element of time?
8. Are you seeking additional information?
9. Does the problem include anticipating opposition?

Action: State the problem in terms of specific objectives, persons, times, places, and acts!

XII. What Is Your Proposed Solution?

 1. What must be done?
2. Who must do it?
3. When must it be done?
4. Are alternative or partial solutions possible?
5. What can be done if all solutions fail?
6. Does the solution require feed-back and progress reports?

Action: State a blueprint and timetable for your solution!

XIII. Is The Proposed Solution Feasible?

1. Will the solution create worse problems?

2. Will the solution "paint you into a corner"?
3. Will the solution "open Pandora's box"?
4. Is the solution beyond your financial, moral, or intellectual means?
5. Is the solution morally and legally acceptable?
6. What sacrifice does the solution require?

Action: State all of the moral, legal, and practical objections to your solution!

XIX.

• STATE YOUR SOLUTION!

• PRESENT PROBLEM AND SOLUTION TO ALL CONCERNED!
• CONFER WITH OTHERS!
• SLEEP ON IT!
• STATE YOUR REVISED SOLUTION!
• ACTION!

You can use problem analysis to gather information that helps you determine the nature of a problem
encountered on your system.
The problem analysis information is used to:
• Determine if you can resolve the problem yourself.
• Gather sufficient information to communicate with a service provider and quickly determine the
service action that needs to be taken.
The method of finding and collecting error information depends on the state of the hardware at the time
of the failure. This procedure directs you to one of the following places to find error information:
• Hardware Management Console (HMC) error logs
• The operating system's error log
• The control panel
• Advanced System Management Interface (ASMI) error logs
Type problem analysis in Google search for more websites
OK.

1. Finding Solutions

A problem tree analysis is a pictorial

representation of a problem, its causes and its
consequences. This analysis tool helps the
project team get a quick glance of how a range
of complex issues contribute toward a problem
and how this problem branches out into a set of
consequences. Both causes and consequences
are fitted into the diagram on a hierarchical
preference basis.

slide 2 of 4

Performing the Analysis

Like any other problem analysis technique, this

technique requires a collaborative effort from the
entire project team.
 1. Begin with a brainstorming session to
identify the major problems affecting the project.
For each problem you will have to carry out a
separate problem tree analysis.
2. Divide your board or the paper you’re
using to record the analysis into three vertical
sections, and write the problem in the middle
section. The left side can be reserved for the
causes and the right side for the consequences.

3.

4. Discuss with the team the possible causes that can be held responsible for the problem
situation. From this, list and identify the ones which have a direct relationship with the
problem. These direct causes can be listed on the extreme right hand side of the section
reserved for the causes. The causes which lead to these direct causes can be listed to the
left of this list. Relational arrows can also be used to demonstrate the cause and effect
relationship among the causes (Refer to the Image).
5. When you’re done with the causes, move
on to the consequences. When listing the
consequences, list the direct ones on the extreme
left of the consequences section. The
consequences that result from these causes can
be listed to right of this list.
 6. Finally when a comprehensive list of
causes and consequences have been developed
and the related causes and consequences have
been linked respectively, you’re ready to display
the information pictorially. For this you can use
a sketch of a tree (like shown in the image
above) and write down the problem on the tree
trunk, the causes along the roots and the
consequences along the branches. Alternatively,
a bock diagram, like the one shown in the image
below, can be used to present the problem tree
analysis in a more organized and professional

manner.

• slide 3 of 4

1. Advantages

2. Provides in-depth information on the

problem in question, leading to a better
understanding of all the interconnected issues,
and providing a solid platform for strategizing
and initiating problem solving measures.
3. The analysis helps closely examine the
problem by dissecting it into manageable pieces
and establishing links between these pieces.
With a clear idea of how and how much each
cause contributes toward the problem and what
and how severe will be the consequences, the
project team is in a better capacity to organize
and prioritize the remedial actions.
4. It can help in developing a multi-pronged
strategy to deal with the different aspects of the
problem and thus ensure absolute success.
5. The shared technique, used to generate
information during a problem tree analysis,
ensures that every aspect of the problem is taken
into consideration, irrespective of its relative
importance. This means the chances of the
problem solving plan falling back are nearly
negligible.
 VI.

OPERATIONAL PLAN

Explain the daily operation of the firm, its location, equipment, people, processes, and
surrounding environment.
Production How and where your services generated?
Explain your methods of:
 Service generation techniques and costs
 Quality control
 Client service
 Cost control
 Service development
Location What qualities do you need in a location? Describe the type of location you’ll
have.
Physical requirements:
 Amount of space
 Type of building
 Zoning
 Power and other utilities
Access:
Is it important that your location be convenient to transportation or to a type of
consumer?
Do you need easy walk-in access?
What are your requirements for parking and proximity to freeway, airports, railroads,
and shipping centers?
Include a drawing or layout of your proposed facility if it is important.
District of Columbia Bar / Practice Management Advisory Service / PMAS@DCBar.org
1101 K Street NW, Suite 200, Washington, D.C. 20005 / 202-626-1312

Construction? Most new firms should not sink capital into construction, but if you are
planning to build, costs and specifications will be a big part of your plan.
Cost: Estimate your occupation expenses, including rent, but also including
maintenance, utilities, insurance, and initial remodeling costs to make the space suit
your needs. These numbers will become part of your financial plan.
What will be your business hours?
Legal Environment Describe the following:
 Licensing and bonding requirements
 Permits
 Health, workplace, or environmental regulations
 Special regulations covering your profession
 Zoning or building code requirements
 Insurance coverage
 Trademarks, copyrights, or patents (pending, existing, or purchased)
Personnel  Number of employees
 Type of labor (skilled, unskilled, and professional)
 Where and how will you find the right employees?
 Quality of existing staff
 Pay structure
 Training methods and requirements
 Who does which tasks?
 Do you have schedules and written procedures prepared?
District of Columbia Bar / Practice Management Advisory Service / PMAS@DCBar.org
1101 K Street NW, Suite 200, Washington, D.C. 20005 / 202-626-1312

 Have you drafted job descriptions for employees? If not, take time to write some.
They really help internal communications with employees.
 For certain functions, will you use contract workers in addition to employees?
Suppliers Identify key suppliers:
 Names and addresses
 Type and amount of supplies furnished
 Credit and delivery policies
 History and reliability
Should you have more than one supplier for critical items (as a backup)?
Do you expect shortages or short-term delivery problems?
Are supply costs steady or fluctuating? If fluctuating, how would you deal with
changing costs?
Credit Policies  Do you plan to sell services on credit?
 Do you really need to sell on credit? Is it customary in your practice area and
expected by your clientele?
 If yes, what policies will you have about who gets credit and how much?
 How will you check the creditworthiness of new clients?
 What terms will you offer your clients; that is, how much credit and when is payment
due?
 Will you offer prompt payment discounts? (Hint: Do this only if it is usual and
customary in your practice area.)
 Do you know what it will cost you to extend credit? Have you built the costs into your
prices?
District of Columbia Bar / Practice Management Advisory Service / PMAS@DCBar.org
1101 K Street NW, Suite 200, Washington, D.C. 20005 / 202-626-1312

Managing Your Accounts Receivable

If you do extend credit, you should do an aging at least monthly to track how much of
your money is tied up in credit given to clients and to alert you to slow payment
problems. A receivables aging looks like the following table:
Total Current 30 Days 60 Days 90 Days Over 90 Days
Accounts Receivable Aging

You will need a policy for dealing with slow-paying clients:

 When do you make a phone call?
 When do you send a letter?
 Do you hire counsel to collect or collect yourself?
 Does your professional liability carrier get concerned if you file suit to collect?
Managing Your Accounts Payable
You should also age your accounts payable, what you owe to your suppliers. This
helps you plan whom to pay and when. Paying too early depletes your cash, but
paying late can cost you valuable discounts and can damage your credit. (Hint: If you
know you will be late making a payment, call the creditor before the due date.)
Do your proposed vendors offer prompt payment discounts?
A payables aging looks like the following table.
Total Current 30 Days 60 Days 90 Days Over 90 Days
Accounts Payable Aging
 VII.

BUDGET

The financial plan consists of a 12-month profit and loss projection, a four-year profit
and loss projection (optional), a cash-flow projection, a projected balance sheet, and a
break-even calculation. Together they constitute a reasonable estimate of your firm's
financial future. More important, the process of thinking through the financial plan will
improve your insight into the inner financial workings of your firm.
12-Month Profit and Loss Projection Many firm owners think of the 12 month profit and
loss projection as the centerpiece of their plan. This is where you put it all together in
numbers and get an idea of what it will take to make a profit and be successful.
Your revenue projections will come from a revenue forecast in which you forecast
revenue, cost of services provided, expenses, and profit month-by-month for one year.
Profit projections should be accompanied by a narrative explaining the major
assumptions used to estimate firm income and expenses.
Research Notes: Keep careful notes on your research and assumptions, so that you
can explain them later if necessary, and also so that you can go back to your sources
when it’s time to revise your plan.
Four-Year Profit Projection (Optional) The 12-month projection is the heart of your
financial plan. The Four-Year Profit Projection is for those who want to carry their
forecasts beyond the first year.
Of course, keep notes of your key assumptions, especially about things that you
expect will change dramatically after the first year.
Projected Cash Flow If the profit projection is the heart of your business plan, cash
flow is the blood. Firms fail because they cannot pay their bills. Every part of your
business plan is important, but none of it means a thing if you run out of cash.
The point of this worksheet is to plan how much you need before startup, for
preliminary expenses, operating expenses, and reserves. You should keep updating it
and using it afterward. It will enable you to foresee shortages in time to do something
about them—perhaps cut expenses, or perhaps negotiate a loan. But foremost, you
shouldn’t be taken by surprise.
There is no great trick to preparing it: The cash-flow projection is just a forward look at
your checking account.
District of Columbia Bar / Practice Management Advisory Service / PMAS@DCBar.org
1101 K Street NW, Suite 200, Washington, D.C. 20005 / 202-626-1312

For each item, determine when you actually expect to receive cash (for services) or
when you will actually have to write a check (for expense items).
You should track essential operating data, which is not necessarily part of cash flow
but allows you to track items that have a heavy impact on cash flow, such as revenues
and operating expenses.
You should also track cash outlays prior to opening in a pre-startup column. You
should have already researched those for your startup expenses plan.
Your cash flow will show you whether your working capital is adequate. Clearly, if your
projected cash balance ever goes negative, you will need more start-up capital. This
plan will also predict just when and how much you will need to borrow.
Explain your major assumptions, especially those that make the cash flow differ from
the Profit and Loss Projection. For example, if you provide services in month one,
when do you actually collect the cash? When you buy equipment or supplies, do you
pay in advance, upon delivery, or much later? How will this affect cash flow?
Are some expenses payable in advance? When?
Are there irregular expenses, such as quarterly tax payments, maintenance and
repairs, or seasonal expenses, that should be budgeted?
Loan payments, equipment purchases, and owner's draws usually do not show on
profit and loss statements but definitely do take cash out. Be sure to include them.
And of course, depreciation does not appear in the cash flow at all because you never
write a check for it.
Opening Day Balance Sheet A balance sheet is one of the fundamental financial
reports that any firm needs for reporting and financial management. A balance sheet
shows what items of value are held by the firm (assets), and what its debts are
(liabilities). When liabilities are subtracted from assets, the remainder is owners’
equity.
Use a startup expenses and capitalization spreadsheet as a guide to preparing a
balance sheet as of opening day. Then detail how you calculated the account balances
on your opening day balance sheet.
Optional: Some people want to add a projected balance sheet showing the estimated
financial position of the firm at the end of the first year. This is especially useful when
presenting your proposal to a lender.
District of Columbia Bar / Practice Management Advisory Service / PMAS@DCBar.org
1101 K Street NW, Suite 200, Washington, D.C. 20005 / 202-626-1312

Break-Even Analysis A break-even analysis predicts the revenue volume, at a given

price, required to recover total costs. In other words, it’s the revenue level that is the
dividing line between operating at a loss and operating at a profit.
Expressed as a formula, break-even is:

Break-Even Revenues = Fixed Costs

1- Variable Costs

(Where fixed costs are expressed in dollars, but variable costs are expressed as a
percent of total revenues.)
Include all assumptions upon which your break-even calculation is based
 VIII.

EXECUTIVE SUMMARY

Write this section last.

We suggest that you make it two pages or fewer.
Include everything that you would cover in a five-minute interview.
Explain the fundamentals of the proposed firm: What will your service be? Who will
your clients be? Who are the owners? What do you think the future holds for your firm
and this practice area in general?
Make it enthusiastic, professional, complete, and concise.
If applying for a loan, state clearly how much you want, precisely how you are going to
use it, and how the money will make your firm more profitable, thereby ensuring
repayment.