Firms Under Pressure – The Data

Clients are raising the bar for law firms, demanding more value, greater transparency, and faster responses. According to BigHand’s latest report, 48% of firms see a growing demand for proof of value, while 34% report shrinking client panels. The result? Competition for top clients in 2025 is fiercer than ever. 

Meanwhile, 86% of firms plan to raise rates next year, yet 75% expect bigger discounts and write-offs to keep clients happy. This tension puts many firms at risk of falling into a ‘doom loop’—where rate increases are offset by discounts that erode profits. If clients don’t perceive added value behind higher rates, trust and loyalty take a hit, making it even harder to break the cycle. 

So, how can firms avoid the doom loop? The answer lies in focusing on what clients value most: transparency, responsiveness, and measurable results. Firms that rethink their client relationships and business development strategies will be the ones best positioned to grow sustainably in 2025. 

Aligning Incentives Beyond Billable Hours

To stay profitable in the long run, firms must look beyond the billable hour. While it remains a key metric, many firms are now exploring additional ways to measure success—ones that prioritize collaboration and client retention. For example, tracking client health scores provides a more holistic view of performance, complementing traditional financial metrics. 

Some firms are already making progress. According to BigHand’s research, 30% of firms plan to improve client communication by checking in more frequently during the matter lifecycle. These conversations not only strengthen client relationships but also underscore the growing need for client-facing stakeholders—lawyers included—to develop stronger commercial awareness. 

However, there’s still work to be done. While 64% of firms aim to train lawyers in commercial skills, only 34% have programs in place to support this goal. Bridging this gap starts with equipping lawyers with access to performance data and financial insights. This empowers them to combine legal expertise with business acumen, fostering a culture of accountability and strategic thinking. Over time, this approach positions the firm as a trusted partner, one that clients can rely on for value and transparency. 

Rethinking Business Development

Building commercial awareness goes beyond improving individual skills—it’s about shifting the entire firm’s approach to growth. To tackle the root causes of discounts and write-offs, firms need to rethink how they manage business development and client relationships. 

Time, however, remains a challenge. Lawyers are stretched thin, and finding enough hours for business development is difficult. According to BigHand research, nearly two-thirds (64%) of firms are prioritizing business development efforts, yet only 14% of lawyers spend three to four hours a week on these activities, and just 6% invest over five hours. To make progress, firm leaders must equip their teams to work smarter, not harder. 

Collaboration is one solution. Cross-practice referrals enable firms to tap into internal opportunities and present clients with a unified, strategic offering. Encouragingly, 40% of firms plan to double down on this approach in the next 12 months. 

On the client side, data can be transformative. A data-driven approach allows firms to tailor outreach, predict challenges, and deliver personalized solutions. With the right Business Intelligence (BI) tools, firms can track trends, uncover growth opportunities, and demonstrate a deep understanding of client priorities. 

The payoff is significant. Thomson Reuters research shows that collaborative, tech-enabled processes can help firms win up to 56% more of a client’s spend. In today’s competitive market, effective business development isn’t just a strategy for growth, it’s essential for staying ahead.

Technology as an Enabler

Staying competitive in 2025 means rethinking business development—and technology is central to that transformation. For lawyers, this shift brings new pressures to sharpen their commercial and financial skills. Breaking the ‘doom loop’ requires equipping teams with tools that enable them to balance these demands while still meeting billable hour targets. 

The good news? Technology makes it possible. Tools like BigHand Business Intelligence are already helping firms overcome key challenges in client management, communication, and billing: 

Integrating technology into daily operations isn’t just about efficiency, it’s about delivering the transparency and responsiveness clients expect. Firms that embrace these tools will be better equipped to meet client needs, retain top talent, and drive sustainable growth.