Building financial resilience: how law firms can strengthen stability and growth
For episode 21 of its Empowering Law Firm Leaders podcast, Osprey Approach’s marketing director Amy Bruce speaks to Tom Blandford, owner of Sursum Advisory, about how firms can build financial strength and resilience — offering a clear roadmap for navigating the financial realities of modern legal practice
In a climate where costs continue to rise and competition remains fierce, strong financial management has become a cornerstone of long-term success for modern law firms. Yet many still struggle to translate financial data into meaningful strategy.
To help firms prepare for the year ahead, Osprey Approach has drawn on insights from episode 21 of its Empowering Law Firm Leaders podcast, where Tom Blandford, owner of Sursum Advisory, shared practical advice on how firms can build financial strength and resilience, and offers a clear roadmap for navigating the financial realities of modern legal practice.
Understanding your firm’s financial data
Tom begins with a fundamental point: financial resilience starts with awareness. Many firms collect extensive data, but few focus on the numbers that truly matter.
“Just pick one or two numbers,” Tom advises. “Let’s just focus on those and build from there.”
He recommends identifying a handful of key performance indicators — lockup, profit per partner, or cost per fee earner — and tracking them over time to identify trends. This disciplined focus helps leaders make informed decisions without being overwhelmed by data noise.
Improving lockup and cashflow
A firm’s ability to manage lockup — the total value of work in progress and unpaid invoices — is one of the strongest indicators of financial health.
“Knowing what that number is, why that number is what it is, and how it has changed is really important for firms,” Tom explains.
The Law Society’s Financial Benchmarking Survey 2025 found that year-end lockup days have increased slightly from 143 to 146. That means the average firm is waiting nearly five months to turn work into cash — a figure that highlights how vital it is to manage billing processes effectively.
Tom urges firms to address cashflow issues early in the client journey. “What have we said about billing on account with the client? What does it say in our client care letter about milestone payments?” he asks. Setting expectations clearly at the outset reduces friction later.
He also stresses the value of using technology to automate billing, manage invoices and monitor payments. Legal practice management software can give firms real-time insight into their cash position — helping leaders identify where money is tied up and where processes need tightening.
Using resources efficiently
When it comes to growth, Tom recommends focusing on both organic growth and operational efficiency: firms should prioritise getting more from the people, tools, and systems they already have.
“Take all of your existing people, tools and other things you’ve got in the firm and just find a way to squeeze another couple of percent out of them,” he advises.
The Financial Benchmarking Survey shows that while 71% of firms achieved fee growth in 2024, the fee earner break-even point rose due to increased overheads. To protect profitability, firms must focus on operational efficiency, ensuring that teams have the right technology, administrative support and streamlined workflows.
Increasing fee earner profitability
A key challenge identified in the survey is declining productivity, with the average fee earner recording just 773 chargeable hours against a target of 1,100. Tom believes firms must examine how time is spent and reported.
“There’s so much time that isn’t contributing to the matter, and just isn’t billable,” he says.
He points to “moral editing” — when fee earners underreport their time because they feel certain tasks shouldn’t be charged — as a hidden cause of lost revenue. “There is a really important distinction between matter-related time and billable time,” Tom explains. Encouraging accurate time recording, even when tasks take longer than expected, helps firms understand where inefficiencies lie.
Leaders should take responsibility for addressing these inefficiencies. “If you have put down two hours, and it should have been one, that is my fault as the managing partner,” Tom notes. “That means I’ve got something wrong in our processes or templates.”
By promoting transparency and reviewing workflows, firms can close the gap between chargeable targets and actual hours worked — boosting both profitability and morale.
Looking ahead with forward-facing metrics
While understanding historical data is crucial, Tom encourages firms to also look forward. “You need something that’s a little bit forward-looking,” he says. “A matter that I open today is an invoice six weeks from now, and it’s cash ten weeks from now.”
Tracking metrics like matter openings or pipeline value helps firms anticipate future revenue and make informed planning decisions.
Tom also recommends implementing a 13-week rolling cashflow forecast, a tool that gives firms visibility into short-term liquidity and enables quick corrective action. “It’s a very, very useful tool,” he says. “It helps you spot issues well before they become serious.”
A blueprint for financial resilience
Tom’s insights provide a practical framework for firms aiming to strengthen their financial foundations, with some key takeaways:
- Focus on the financial metrics that matter most; don’t get lost in data overload.
• Tackle lockup proactively to improve cash flow and liquidity.
• Use technology to track performance and automate billing.
• Drive efficiency by maximising existing resources before hiring.
• Encourage honest time recording to identify process inefficiencies.
• Adopt forward-looking metrics and rolling forecasts to remain agile.
Financial resilience isn’t achieved overnight and requires consistent focus, smart systems, and a culture of continuous improvement. By applying these principles, SME law firms can weather economic shifts, invest confidently in growth, and secure long-term stability.
Watch the full interview with Tom Blandford now to discover more advice and guidance on building a financially resilient law firm. You’ll also hear Tom’s exclusive advice on the questions leaders should be asking of the FD or CFO.
