STRONG DEMAND IS DRIVING TOP-LINE GROWTH

of respondents indicate robust growth

“My salary has almost doubled since last year”

“Since 2007 we have almost doubled, growing from £3.7m to a £5.7m turnover business”

2016 NatWest Legal Benchmark Report

Q: How does your revenue compare with 12 months ago?

Q: Has the market and competitive environment changed over the last 12 months?

DESPITE GROWTH, LAWYERS ARE HAVING TO WORK HARDER TO DELIVER

Q: What best describes your firm’s current ambitions and aims?

2016 NatWest Legal Benchmark Report

CLEAR APPETITE FOR GROWTH, WITH DIFFERING APPROACHES

HOW A FIRM GROWS IS JUST AS IMPORTANT AS HOW MUCH

OVER

70%

DISPARITY IN FINANCIAL PERFORMANCE IS GROWING

INCREASING CLIENT AND COMPETITIVE PRESSURES

Q: Most pressing challenges you currently face as a firm? 2016 NatWest Legal Benchmark Report

Small & Medium Law Firms (SMLF):

challenges and opportunities

SMLF (1-50 fee earners) account for:

IN THE UK…

The Law Society

97%

of all law firms, 9.2K in total of all lawyers, 44.8k in total

of total billing52%

11% 34% 55%

£

25.5 %

It got easier It got tougher

There was no change

of firms are looking to grow rapidly

55%

By reducing time written off, SMLF are looking to increase profit in smarter ways

of firms see technology as a key part of strategy

Improved internal efficiency is the top benefit of adoption, with respondents saying:

make good use of technology and see the importance of it

cutting edge of tech

TECHNOLOGY ENABLES GROWTH AND EFFICIENCY

75%

65%

13%

Q: What best represents your firm’s attitude to technology?

We recognise the value of technology. Manual working methods are too time consuming – we really want to free up time to focus on clients

Attracting new valuable clients

Getting more value from existing clients

2

3

4

5

Recruiting talent

Managing cash flow

Serving matters/client profitability

1

PRACTICE MANAGEMENT SOFTWARE (PMS) IS KEY TO TECH STRATEGY

Q: Does your firm use specialist software to manage its MATTERS/PRACTICE?

Growth in recovered rates

Increase in Median Profits per Equity Partner

67%

of firms use specialist PMS

BY FEE–PER–FEE–EARNER

Demand translated to 6% increase in fees6 %

Median fee-per-fee-earner has risen by 4%4 %

£6.4bnin total annually

“”

We need to keep pace with others and deliver growth for our staff and enable investment in new platform

We will grow by improving our customer experience and operational standards

““

””

PM tools enable us to free up people from admin“

”

£

Upper Quartiles

Lower Quartiles

77%

MORE THAN LOWER QUARTILE

This gap has grown in the last 12 months

£113,000($163,000)

£200,000($288,000)

UPPER QUARTILE

8%

4%

Business development is a popular goal, amongst recruitment and the temptation of a merger.