SME law firms are feeling the pressure to work smarter, leveraging technology to boost productivity, enhance client service and improve profitability. However, while digital transformation is high on the agenda, many firms struggle to turn ambition into action.
The real challenge is not just adopting new technology: it’s knowing where to invest for the biggest (positive) impact. Two-thirds of firms plan to increase technology spend, yet nearly half admit they have trouble measuring ROI. Without clear metrics identified from the beginning, firms risk underinvesting in the very solutions that can help them to drive real gains.
Practical metrics set around billable hours, client satisfaction (NPS) and staff retention can offer valuable insights into whether these investments are paying off. This is where practice management technology — like Actionstep — that automates routine tasks, improves workflow visibility, and provides real-time data, gives firms the tools they need to measure ROI effectively and make informed decisions about their business.
Staying ahead means strengthening client relationships
The competitive threat from larger firms adds further urgency. Larger firms continue to raise the bar. For SME firms, retaining clients is more critical than ever. Yet, according to Actionstep’s 2025 UK Midsize Law Firm Priorities report, only 33% prioritise client satisfaction as a strategic goal to drive and protect revenue. Leaders acknowledge that change is needed, but improving client experience through technology, especially digital tools, remains a hurdle. By using practice management technology, with client portals and other digital capabilities to streamline client intake, improve communication, and automate follow-ups, firms can truly improve the client journey while freeing up lawyer and admin focus for high-value work. The good news is many are beginning to recognise this gap and planning investments that will directly enhance the client journey. In a service-driven industry, those who hesitate risk being left behind.
Cybersecurity, compliance, and an overconfidence blind spot
Actionstep’s priorities report found that, while 85% of firm leaders feel confident in their cyber resilience, 72% point to human behaviour as the biggest vulnerability. Confidence alone isn’t enough. True resilience requires ongoing investment in staff training, compliance automation, proactive risk management, and secure technology. Modern practice management platforms help firms to stay compliant by automating processes, maintaining audit trails, and ensuring data is handled securely. Encouragingly, the LPM Frontiers 2025 report suggests SME firms are taking steps in this direction, recognising these efforts are critical to protection from advancing cyber threats.
The bottom line is technology isn’t just a cost: it’s a strategic enabler that can reduce workload pressures, improve decision-making and strengthen relationships. Firms that approach technology with a thoughtful, client-centric mindset won’t just compete: they’ll lead.