The legal sector stands at a crossroads – with traditional business models under increasing pressure and firms facing mounting challenges from rising client expectations, cost pressures, and the rapid evolution of technology. To remain competitive and achieve sustainable growth, law firms must embrace transformation and innovation. Central to this journey is the role of the Chief Financial Officer (CFO), who not only steers the financial strategy but also ensures that the right investments are made to drive efficiency, profitability, and resilience.
The case for transformation
A shift in client expectations and demands for greater transparency, efficiency, and value has led to the introduction of alternative pricing structures. These fixed-fee models are now becoming standardised, leaving minimal tolerance for inefficiencies. Firms that resist innovation risk losing their competitive edge to those that can deliver faster, more cost-effective services powered by technology.
Simultaneously, cost pressures are rising, and the sector's cost-to-income ratio is narrowing. This makes it essential for firms to streamline operations and reduce overheads without compromising service quality. Tools such as automation, AI-driven workflows, and scalable IT solutions are no longer optional; they are vital for achieving these efficiencies.
The challenge of retaining top talent further complicates the landscape. Today’s professionals expect access to modern workplace tools and the flexibility to work efficiently from anywhere. Law firms that prioritise investments in cutting-edge technology are better equipped to attract and retain talented fee earners while fostering a culture of innovation.
Adding to these pressures is the growing threat of cyberattacks. A 36% increase in cyber breaches among UK law firms highlights the urgent need for robust cybersecurity measures. Beyond compliance, secure systems are critical to maintaining client trust and safeguarding sensitive data—both essential to long-term profitability.
Finally, competition from tech-enabled disruptors and alternative legal service providers is reshaping the market. These entities leverage streamlined, cost-efficient operations to attract clients, leaving traditional firms scrambling to differentiate themselves. To stay relevant, law firms must integrate modern technology that enables them to deliver exceptional client service while maintaining operational efficiency.
Creating and managing a transformation project plan
CFOs are uniquely positioned to lead their firms through transformation. Their role extends beyond managing budgets to driving strategic investments that enable sustainable growth. To achieve this, a robust project plan based on the following 6 fundamental steps is essential:
Step 1: Identify key goals: What does success look like? Define specific, measurable objectives, such as reducing operational costs, increasing fee earner productivity, or improving client satisfaction.
Step 2: Assess the current situation: Review existing systems and identify gaps, inefficiencies and identify manual workflows or bottlenecks that can benefit from automation or optimisation. Compare your firm’s metrics to industry standards to identify areas that will benefit the most from your chosen solution.
Step 3: Develop a comprehensive plan: Focus on high-impact changes that align with your goals and offer measurable ROI, breaking the plan into phases to build momentum and stakeholder confidence.
Step 4: Build the right team: Select a dedicated leader to oversee the implementation and ensure accountability. Include representatives from IT, finance, legal operations, and HR to ensure a holistic approach.
Step 5: Implement and monitor progress: Adopt a flexible approach that is tailored to your environment and allows for iterative improvements and adjustments. You will need to monitor key performance indicators such as cost savings, system uptime, and fee earner productivity to measure success, updating stakeholders to maintain transparency and support following implementation.
Step 6: Manage change effectively: Ensure all staff understand new systems and processes through tailored training programmes, celebrating key milestones and proactively managing concerns.
The CFO’s profitability playbook
OneAdvanced works alongside CFOs during transformation projects, offering a comprehensive suite of solutions specifically designed to help law firms streamline operations, improve decision-making, and enhance client service. With extensive legal-sector expertise, we support firms with:
Advanced technology: From practice and case management systems to document automation and AI-powered analytics, OneAdvanced provides tools that integrate seamlessly into your operations, enabling smarter workflows and faster delivery of legal services.
Enhanced profitability: With real-time financial insights and advanced reporting, CFOs can monitor firm performance, identify opportunities for cost reduction, and make data-driven decisions to boost profitability.
Scalable cloud solutions: Transitioning to a secure, scalable cloud infrastructure ensures business continuity, flexibility, and the ability to support hybrid working models—a critical factor in attracting and retaining top talent.
Cybersecurity and compliance: Our solutions are built with robust security measures and compliance frameworks, safeguarding sensitive data while meeting regulatory requirements.
Tailored implementation and support: Recognising the complexity of legal operations, OneAdvanced offers a consultative approach to implementation. This includes personalised project management, user training, and ongoing support to ensure your firm maximises its technology investment.
Start your transformation journey
The legal sector’s future belongs to firms that are willing to innovate and adapt. CFOs play a pivotal role in this transformation, ensuring that their firms invest wisely in technology that enhances efficiency, profitability, and growth.
Get in touch with OneAdvanced today and learn how we can help your firm achieve its goals and secure a competitive edge.