Contact Us Support
Search

1. Profitability-first approach


As firms find ways to drive towards ambitious financial growth targets, switching the focus from fees to profitability across the firm will be a key focus in 2025.

Firm leaders will drive the prioritization of profitability in pricing legal work at the outset to ensure long-term financial sustainability, and allow for reinvestment in innovation, talent, and client services. Moreover, as clients increasingly demand transparency and value-based pricing, a focus on profitability enables firms to meet these expectations without eroding their bottom line. Ultimately, profitability provides the resilience needed to navigate economic uncertainties and stay competitive in the legal market.

The adoption of legal technology is a critical step in the process and only set to grow in 2025 (our latest research found 19% of firms are planning to implement legal pricing and budgeting tech this year). Tools for better budgeting and tracking, coupled with data analytics provide insights into client and matter profitability, enabling firms to identify inefficiencies and adjust their approach. Budget tracking software that provides real-time updates can also prevent overruns and support accurate cost estimation for fixed-fee or alternative fee arrangements.

Law firms that can transition to a profitability-first approach and balance financial health with client satisfaction, will be in the best place for sustainable growth in 2025.

George Egford
George Egford  

Solutions Manager - Financial Productivity

2. AFAs that work for all


Fixed-fee arrangements have increased in prevalence in the industry over the last few years, but with an ever-increasing focus of transparency and predictability from clients, coupled with the enhanced efficiencies being driven by GenAI, the need to offer these will only increase. This continued pressure from clients presents an opportunity to strengthen relationships through transparent and predictable pricing models. However, flexibility is crucial to accommodate unforeseen complexities and maintain client trust.

Leveraging technology is essential for successfully offering fixed-fee arrangements. While providing an attractive fixed price to clients is important, ensuring that the fee remains both realistic and profitable for the business is far more challenging. This is where advanced solutions and analytical tools become invaluable. By examining historical case data and optimizing resource allocation, these tools help firms refine their pricing strategies, enhance accuracy, and proactively manage budgets. Combined with the expertise of fee earners who understand the complexities of today’s market, technology enables firms to offer competitive, fair, and sustainable fixed-fee arrangements—strengthening client trust and fostering long-term relationships. 

Jack Heron
Jack Heron  

Product Manager

3. Expanding pricing team impact


Matters with budgets often achieve a 6–10% increase in realization, and pricing teams have proven to be a crucial lever for driving these improvements. In 2025, I expect firms will not only continue to deploy these talented professionals with greater impact, but their roles will also expand.

This expanded remit will be a key opportunity for firms in 2025. Enabling business professionals to work more holistically across departments will be a driver for financial success. For example, integrating pricing teams with client relationship management efforts could foster deeper insights into client needs and priorities, enhancing satisfaction and retention.

Imagine a pricing team collaborating with client managers to design tailored alternative fee arrangements (AFAs) based on a client’s unique business goals. Aligning pricing teams with client managers can lead to tailored solutions that improve client outcomes and foster partnerships rooted in mutual success.  Additionally, business professionals armed with the right data can help firms identify and target the most profitable clients and practice areas, ensuring resources are allocated where they will have the greatest impact.

Rob Stote
Rob Stote  

Chief Product Officer

Dive Deeper at the BigHand Virtual Conference
Intelligence-Led Decision-Making

Hear from BigHand clients on how they have utilized our financial solutions to maximize profitability and financial awareness.

Product Preview: Matter Pricing

Join us for a demonstration of our Matter Pricing solution at the BigHand Virtual Conference

Product Preview: Budgeting & Forecasting

Join us for a demonstration of our Budgeting & Forecasting solution at the BigHand Virtual Conference