Is one year enough?
Should your law firm move to a “rolling” two-year business plan?
As autumn arrives, law firm leaders and practice group heads traditionally gear up for the annual business planning cycle. For decades, the one-year plan has served as a cornerstone of good law firm management, setting financial targets, defining strategic priorities, and guiding marketing initiatives for the year ahead. But as the legal services industry becomes more volatile and client demands more sophisticated, it’s time to rethink whether the one-year horizon is truly enough. Many firms are discovering significant benefits in shifting to a “rolling” two-year business plan—especially for those responsible for the firm’s growth and stability.
Why one year feels too short
The one-year plan has the virtue of simplicity. It forces the firm to focus on immediate priorities and aligns everyone’s efforts behind achievable goals. However, as client needs grow more complex, technology reshapes legal services, and global economic conditions fluctuate, a twelve-month horizon risks being too narrow. By the time lawyers adapt their practices or client development strategies, the plan may already feel outdated.
The result is often reactive rather than strategic decision-making. A longer planning cycle gives firms the breathing space to set aspirations that endure beyond next December.
Short-term simplicity at a long-term cost
The one-year business plan is easy to manage and quick to update, making it an attractive tool for keeping teams focused on short-term objectives. Yet, for managing partners and practice group heads, this compressed horizon often limits impact. Strategic initiatives—like launching a new practice area, overhauling technology platforms, or developing key client relationships—rarely conform to a single calendar year. Valuable momentum can be lost as priorities reset each year, leading to a cycle of reactive rather than proactive management.
What can a rolling two-year plan do for you?
A rolling two-year business plan extends your field of vision and supports a more strategic approach to leadership:
Strategic continuity: Embarking on major projects, whether it’s talent acquisition, lateral hiring, international expansion, or client segmentation, often requires more than twelve months to execute and measure success. A two-year format enables you to chart a clear course while maintaining the flexibility to fine-tune along the way.
Resource alignment: Longer planning cycles allow for a more deliberate allocation of budgets, personnel, and training resources. For practice group heads, this can mean the difference between merely reacting to market shifts and confidently pursuing targeted growth opportunities.
Performance metrics with substance: Many key metrics—such as realization rates, profitability by practice area, and client satisfaction—reveal true trends only over longer periods. A two-year outlook allows managing partners to spot and respond to emerging patterns more effectively, supporting evidence-based management decisions.
Agility with perspective: The rolling aspect doesn’t sacrifice responsiveness. Re-visiting and updating the plan every twelve months ensures you still react to policy shifts, economic events, or unexpected client needs—but always with an eye on your longer-term objectives.
Meeting client expectations: Corporate clients increasingly value firms with foresight and stability. Demonstrating that your leadership team is planning over a two-year horizon reassures clients that your recommendations, resource commitments, and investments are not just tactical, but strategic.
Practical steps for managing partners and group heads
Shifting to a rolling two-year plan doesn’t require discarding your current business planning process. Start by extending your established templates and strategic priorities to a 24‑month view. Engage practice group leaders in identifying projects and objectives that warrant multi-year execution. Establish regular check-ins between leadership, group heads, and key stakeholders to ensure the plan remains relevant and dynamic.
Sustaining momentum and vision
For firm decision-makers, the ambition should be to balance short-term adaptability with long-term growth. The annual plan alone risks narrowing your field of vision and undercutting the impact of major initiatives. Conversely, a rolling two-year business plan empowers managing partners and practice group heads to provide continuity, maximize resources, and respond to evolving market challenges—all while driving the firm toward durable, strategic success.
As you prepare your firm for 2026 and beyond, consider whether your planning process is ready for the challenges—and opportunities—of the next two years. At Walker Clark, we have been helping law firms worldwide for more than 23 years to develop well-informed business and marketing plans that get results. Contact us at the secure e-mail link at the bottom of this page to schedule a complimentary 30-minute consultation about how we might be able to help your firm make this transition in your business planning.