Confidence over future performance in last year’s survey has had mixed results - predicted fee income levels were generally achieved, but not profit. Given current political and economic uncertainty, firms are more cautious in their outlook this year. In the short term (2019/20), most firms expect modest fee income growth with profit improvement slightly lower.
Key future challenges include the looming Brexit deadline, with more firms seeing Brexit as integral to whether or not they will hit their predicted financial performance. Many (including 80% of Top 10 firms) also view technological change as an important challenge over the next 2-3 years. This is unsurprising for the larger firms, who continue to lead the way in using and developing emerging and digital technologies to improve efficiency and profitability.
Below we outline four key areas and questions law firms need to consider to remain resilient through change.