As law firms reflect on the impact of the Autumn Budget and look to the year ahead, the pressures on profitability and capacity continue to intensify. Amy Bruce, Marketing Director from Osprey Approach, draws on insights from law firm leaders and industry data, this article explores how better systems, habits and processes are helping firms build capacity and resilience.
Rising operating costs, wage inflation, professional indemnity increases and incremental regulatory demands are squeezing margins, while fixed-fee expectations place further strain on traditional billing models. At the same time, recruitment remains tight, limiting firms’ ability to grow by increasing headcount alone.
In this environment, many firms are being forced to reassess where growth will come from. Increasingly, the answer lies in operational excellence: creating capacity from existing teams through better habits, clearer data, more effective systems and disciplined processes.
To help firms achieve this, Osprey Approach has gathered insights from episodes of its Empowering Law Firm Leaders podcast. Across these conversations, law firm leaders and experts explore how firms that focus on operational fundamentals are better positioned to navigate economic pressure and build long-term resilience. Recent industry survey findings reinforce this view, revealing a sector actively looking for smarter ways to work and deliver consistent client outcomes.
Embedding operational habits to unlock capacity
Podcast guest Kate Burt, founder and CEO of Hive Risk, emphasises that sustainable growth depends on disciplined, repeatable processes rather than reactive initiatives. “Growth doesn’t come from doing more, it comes from doing better,” she says, adding:
“Firms that embed consistent operational habits around finance, compliance and client service outperform those relying on ad-hoc change.
“Understanding your cash flow, utilisation rates and matter progress in detail means you can act quickly and proactively, rather than waiting for issues to escalate.”
This focus on data and systems is echoed by findings from a recent survey conducted by Osprey Approach among delegates attending a LawNet event, drawing responses from over 30 law firms. When asked why they might consider switching systems, the most common reasons cited were a lack of key features or integrations, poor support and rising costs, followed closely by poor user experience and system unreliability. The results suggest that many firms recognise their existing systems are limiting efficiency and resilience in a more pressured operating environment.
Dan Warburton, law firm growth consultant and author of Delegate Now to Supercharge Your Profits, notes on the podcast that operational weaknesses often constrain growth. He explains:
“Many firms want to grow, but they don’t have the systems in place to do so efficiently. Even small micro-changes, consistently applied – whether improving billing cycles, delegating more effectively or reviewing client processes weekly – compound into significant performance improvements over time.”
Automation, pricing and the client experience
The LawNet survey also highlights where firms are actively seeking improvement. Automation tools emerged as the leading area of interest, followed by improving client experience and gaining better insight from data and reporting. When asked which tasks they most wanted to improve or automate, firms prioritised document and correspondence management, time recording and billing, and drafting documents and letters. Reviewing and summarising correspondence and improving client onboarding were also cited, reflecting a desire to reduce manual effort and inconsistency in high-volume, time-intensive activities.
These operational priorities closely align with firms’ stated goals for the next 12 months: improving efficiency through automation, enhancing client experience, replacing outdated systems and improving reporting and insight. Together, they underline how operational capability is now viewed as a strategic growth lever rather than a back-office concern.
Pricing pressure further reinforces this link. Polling conducted during Osprey Approach’s Build Better Habits pricing webinar found that while billable hours remain common, only 40% of respondents rely on them exclusively. Half use a hybrid pricing model, and 50% are considering changing their approach altogether. Challenges such as time tracking, communicating value, client pushback and administrative burden all point back to the need for stronger operational foundations.
Tom Blandford, owner of Sursum Advisory and another podcast guest, highlights the importance of alignment:
“Operational excellence is about more than efficiency… When workflows, reporting and team behaviours are aligned with growth goals, firms remove friction, reduce risk and create the capacity to seize opportunities. It’s not about reporting everything; it’s about reporting the right things and acting on them consistently.”
Compliance, culture and consistency
Compliance remains a central part of this operational picture. During the podcast, Eloise Butterworth, head of risk and compliance at Hive Risk, argues that firms often underestimate its role in supporting growth. “When compliance is embedded into everyday processes, it becomes part of how a firm delivers services reliably,” she explains, adding:
“It’s not about rules for rules’ sake; it’s about protecting the firm and the client and building trust that supports long-term growth.”
Client experience is equally strategic. Robert Flint, practising corporate lawyer and CEO of Adviserly, notes that operational consistency directly influences client perception. Robert says:
“Clients notice consistency and responsiveness. Firms that standardise workflows, invest in clear communication and track client satisfaction are better positioned to retain clients and win referrals, which fuels sustainable growth.”
Kate also stresses the cultural dimension:
“Staff engagement and accountability are critical. If people understand how their role contributes to protecting the firm and serving clients, operational improvements are far more likely to stick.”
A sustainable path forward
As firms assess the post-Budget landscape, it is becoming increasingly clear that sustainable growth will be driven by operational discipline rather than expansion. With recruitment pressures unlikely to ease, firms that can create capacity, improve efficiency and deliver consistent client experiences will be best positioned to thrive.
For more Practice Management and Legal Tech insights for law firms from Osprey Approach – including the Empowering Law Firm Leaders Podcast, click here.
