#law-firm-finances

#law-firm-finances

I'm incredibly proud of the firm and what we've accomplished in the last year. We had certainly, the year before, a historic year financially, and this year was also historic in being one of our best financial years in history.

Most employer 401(k) plans allow mid-year changes to the deferral election percentage. Before the bonus pay period, raise the deferral rate high enough to funnel as much of the bonus as possible into the 401(k), up to the annual limit.

Legal tech is entering its consolidation era. In recent years, investors have poured billions of dollars into startups trying to win over law firms as customers. Firms are now coming out of those software pressure tests and are beginning to choose long-term vendors. Not all of the tools will survive the transition, and some are looking for buyers with distribution and balance sheets strong enough to carry them.

He was always tired. Not the kind of tired you fix with a weekend off, but the kind that settles into your bones. Conversations with him felt rushed, as if he were always somewhere else mentally.

Costa's then-manager told him that ServiceNow would not pay this commission because the Sales Compensation Department had concluded that Costa had 'overachieved to a degree that was outside normal' in relation to his sales quota. In other words, ServiceNow believed Costa had made too much money, notwithstanding that his commission was only a small percentage of the revenue recognized and received by ServiceNow.

Market forces such as rising attorney salaries, persistent inflation, and unrelenting demand in premium practices are giving firms the confidence to push hourly rates beyond historical norms.

This may be the last year that law firms can expect billing rate increases to drive financial stability, according to a new survey of more than 800 senior finance and legal professionals in large firms across North America, the United Kingdom and Ireland. Technology company BigHand's 2026 finance report suggests that firms can no longer rely on traditional measures of profitability, as clients are demanding more efficiency and predictability amid the increased adoption of artificial intelligence across the legal profession, according to Law.com.

Leading legal departments are shifting from reactive negotiation to proactive pricing design, setting guardrails before rates are proposed rather than responding after the fact. This approach enables departments to establish parameters and expectations upfront, fundamentally changing the negotiation dynamic and improving outcomes.

The single biggest need I see is for firms to focus on nurturing, valuing and hiring meaningful trial talent. There is a growing generational divide in the profession. When I came of age as a litigator, my mentors were seasoned trial lawyers who had come through the ranks trying dozens of cases a year. The industry has changed and those opportunities have dwindled.

From law firms to in-house legal teams, the rules of value are being rewritten. The question is: Who's ready to lead the change? In the first episode of 2026 for the UpLevel View podcast, Stephanie Corey and Ken Callander sit down with Rita Gunther McGrath, Columbia Business School professor and Wall Street Journal columnist, to talk about how AI is forcing professional services to price outcomes instead of hours.

With so many options out there, it's easy to feel overwhelmed and confused about where to begin. To help you make sense of it all, "Adventures in Legal Tech" welcomed Jess Birkin, a solo attorney who gets a heck of a lot done in her unique practice niche by leveraging AI and business planning. Goals Versus Themes It's been a decade of upheaval. For lawyers, this reality complicates setting specific goals, because they are likely to be upended by outside events.