Yet, despite its potential, we’ve observed that technology remains an under-leveraged opportunity for many firms. Our latest benchmarking study revealed a surprising hesitancy to adopt new tools, particularly amongst smaller firms. This is often due to overwhelming choices, the perceived costs to implement new tools, or a lack of urgency, as firms are operating profitably without them. However, with the efficiency gains from investing in technology tools, firms should see increased productivity, scalability, risk mitigation, and improved experiences for all.
The technology you implement doesn’t have to be complicated, or expensive. At Macquarie Business Banking, many of our clients are seeing their firms become more efficient simply by integrating their day-to-day financial operations with their practice management software. They can do this through Macquarie’s online banking app, Macquarie Business Online, which integrates with most major practice management software providers. We’ve seen some of our largest clients simplify complex and time-consuming financial processes like billing, payments and reconciliation with this functionality.
Firms can focus less on manual tasks and more on client service when they harness technology to simplify operations and administration, boosting productivity, reducing costs and improving cash flow.
Are you getting the most out of your existing platform and software investments? How can you leverage them to optimise your business efficiency?
Investing in client experience
In 2025, clients expect more from their billable hours, or even fixed fees. They’re no longer willing to pay to wait, nor are they satisfied with outdated practices. Law firms need to adapt to this reality. We can already see the beginnings of the legal business model evolving to accommodate these changing expectations.
Technology is at the heart of the transformation. The introduction of new technologies, like generative AI, workflow tools, document management and e-discovery have changed the practice of law, driving higher efficiency and productivity within law firms, but also clients’ perception of value. The paradox of choice – that there is a trade-off between access, affordability and effectiveness – is being dismantled, and firms are instead increasingly enabled to deliver advice at high quality, high speed and lower cost.
In this environment, clients value firms that can navigate the paradox of choice and deliver clear, actionable solutions. Firms that embrace the possibility of high-quality advice and service, at speed, at a cost clients will pay for and value, are investing in their future growth and business sustainability.
How are your clients’ expectations evolving? Are you evolving your business in line with their experience?
People drive purpose
People are the driving force behind every successful law firm.
Engaged employees:
Deliver higher work performance and productivity
Offer greater discretionary effort
Improve client experience and loyalty, which drives up the likelihood of advocacy and referral
Are less likely to leave, reducing costs and knowledge capital loss, and drives stability in firms.
But in 2025, attracting, retaining, and rewarding talent continues to challenge firms. There is a fine balancing act between investing in talented people and managing rising remuneration costs in an extremely competitive market. Retention is equally critical, as recruitment and training divert partners from value-generating work. The key is to focus on retention through both financial and non-financial benefits, to avoid driving costs up further while still rewarding staff. This is especially critical in the legal industry, where up to 60% of firm expenses are allocated to staff salaries each year.
The good news is that remuneration is not always the sole, or even the most important, reason employees join and remain with a firm. Some of the key drivers of engagement include effective leadership, strategic focus and alignment, and image, formed around a clear employee value proposition for teams to align themselves with.
How appealing is your employee value proposition? What reason beyond their salary do employees have to join and remain at your firm?
Embracing opportunity in 2025
A focus on innovation, efficiency, client experience and people will help firms to chart a profitable growth trajectory into the future. As the landscape of the legal industry evolves in 2025, how will your firm harness these emerging business drivers to continue delivering value for clients, people, and owners?
