What will be most important to your business in 2026?
What should drive your law firm’s business plan for 2026?
For the past thirty years, as I have advised law firms around the world, one consistent lesson has emerged: Too many firms try to do too many things at once—and accomplish far less than they could if they focused on just two or three high‑impact strategic priorities.
As 2026 approaches, small and midsize law firms face an environment that demands a sharper sense of direction than ever before. Markets are shifting. Client expectations are evolving. Technology, regulation, and competition have blurred traditional boundaries of size and geography. Amid all this, clarity of purpose—expressed through a few well‑chosen strategic priorities—is not simply good management practice; it is an essential survival strategy.
The cost of trying to do it all
Most law firm business plans read more like wish lists than roadmaps. They often include a dozen or more goals: develop new practice areas, implement AI tools, expand geographically, improve client service, enhance diversity, strengthen governance, increase partner profitability, and so on. Each goal is worthy, yet collectively they scatter a firm’s limited energy and resources.
It is not surprising that they accomplish few of them.
Smaller firms, in particular, encounter three recurring problems when they overload their plan:
Diluted execution. With no clear consensus on what matters most, projects compete for time and budget, and none reach full potential.
Decision fatigue. Leadership spends too much time debating priorities rather than delivering results.
Invisible progress. When everything is a priority, nothing stands out as a victory, which erodes motivation and confidence.
A focused firm, by contrast, channels its energy toward a short list of measurable objectives that directly advance its strategic position. This disciplined focus produces momentum, coherence, and stronger financial performance.
Fewer priorities for better results
In the legal profession, agility is often misunderstood as moving faster. In practice, agility means the ability to pivot intelligently—to adapt decisions to new information without losing strategic alignment. A firm that concentrates on two or three priorities can adapt faster because everyone understands the destination, even if the path changes.
For example, a midsize law firm we recently advised set a strategic priority of deepening client relationships with regional corporations rather than chasing every new cross‑border opportunity. When market conditions shifted, the firm adjusted seamlessly — offering integrated compliance and digital governance solutions to those same clients — because its strategic focus had already positioned it close to the source of demand.
Contrast that with firms chasing multiple simultaneous priorities: they often lack the focused market intelligence or alert insights needed to pivot or even recognize where real opportunity lies.
This is why we strongly recommend that small and midsize law firms limit themselves to a very small set of strategic priorities to drive their business plans. In some instances, such as a startup law firm or a firm that has suffered losses from the departure of partners and their clients, one or two strategic priorities might be all that the firm can handle. However, going beyond three priorities increases the risk of a dilution of focus, attention, and resources. Three seems to be the “magic number” for most small and midsize law firms, at least as a starting point.
Strategic priorities vs. operational objectives
It’s important to distinguish between strategic priorities and operational objectives. Strategic priorities define what will move the firm forward over the next three years — the few initiatives that will reshape competitive advantage. Operational objectives, such as updating software or hiring staff, are necessary actions but not really strategic unless they directly advance a chosen priority.
For example, enhancing recurring revenue through long-term client relationships is an important strategic priority. Implement client-feedback systems, train partners in consultative selling, and revise pricing models to respond more accurately to client expectations of value are operational objectives — actions and initiatives to achieve the strategic priority.
Firms that confuse these priorities with objectives often find themselves very busy but not very strategic — efficiently doing what doesn’t matter most.
Choosing the best priorities for 2026
Selecting two or three strategic priorities is not an academic exercise. It requires both informed analysis and honesty.
At Walker Clark, we often start with a simple but challenging question:
“If your firm continues exactly as it is for the next three years, will it be closer to or farther from the kind of firm you want to become?”
That question helps leadership teams separate what is urgent from what is truly transformative. (The most frequent answer — and probably a very honest one — is “we don’t know.”)
Here are four criteria that can guide the selection process:
Client relevance. Does this priority enhance your firm’s value to its most important current and future clients?
Competitive distinctiveness. Will it create visible differentiation or strengthen a core capability that rivals cannot easily replicate?
Feasibility. Does the firm have the talent, time, and financing to execute meaningfully within the next 18 to 36 months? (In other words, is it a priority to start work on it now, even though we might not see results for many months?)
Alignment. Are partners emotionally and financially invested in its success?
If an initiative fails more than one of these tests, it may belong on the “good ideas, but not yet” list rather than become one of the priorities that will drive the business plan for the new year.
Strategic priorities for smaller law firms
Every firm is different, but several themes have been observed to consistently produce, if well managed, substantial measurable competitive gains among small and midsize firms. If your firm needs a place to start the discussion, consider one of these four issues.
1. Deepening client relationships
Many smaller firms grow fastest when they invest in deep, trust‑based client partnerships rather than continually searching for new ones. Examples include establishing structured key‑client programs, adopting formal client feedback processes, and developing industry‑focused teams that anticipate sector‑specific needs.
2. Leveraging technology intelligently
Digital transformation is no longer optional, but its execution must be strategic. Instead of buying every new platform, firms should identify one or two technologies that directly support their client or profitability objectives—such as collaboration tools for hybrid teams, automated document assembly for high‑volume practices, or data analytics to inform pricing decisions. Technology is a powerful toolbox for managing profitability, but it becomes strategic only when it also amplifies human expertise and improves client outcomes.
3. Strengthening leadership and succession
For many small firms, one of the biggest strategic risks is not market disruption but leadership transition. Prioritizing leadership development — through mentoring, governance reform, or structured succession planning — can safeguard institutional stability and client continuity.
4. Profitability through continuous process improvement and quality assurance
Applying principles of quality management can improve productivity, professional quality, and client satisfaction. For firms under pressure from flat fee arrangements, process optimization can boost margins and free up resources for innovation. The key is to treat process improvement not as housekeeping but as a high-return competitive strategy.
Building focus into your 2026 business plan
Once the strategic priorities are selected, they must be woven into the business plan — not as inspirational slogans but as measurable commitments.
Here’s a practical framework that our firm often recommends:
Clarify the outcome. Define what success looks like in tangible business terms (market share, client retention rate, revenue per lawyer, etc.).
Assign accountable leadership. Every strategic priority should have a clear owner—typically a partner or team leader—with authority and responsibility to deliver results.
Set realistic milestones. Break down each priority into quarterly checkpoints that measure progress and identify and diagnose obstacles.
Align resources. Budget, staffing, and technology decisions should explicitly support these few chosen priorities.
Communicate relentlessly. Keep all partners and staff informed of progress. Transparency builds trust and engagement.
When done correctly, this focused approach converts aspiration into intellectual commitment and discipline—and discipline into measurable performance gains.
Why focus works
Strategy is as much about behavioral design as it is about analysis. Lawyers, by temperament and training, are problem-solvers who naturally prefer keeping multiple options open. That trait—valuable in legal work—can hinder decisive strategic execution.
Focusing on only two or three priorities creates a positive constraint. It forces leadership to debate tradeoffs, articulate purpose, and measure what truly matters. It also introduces shared language for accountability. When team members know precisely what the firm is trying to achieve, they can align daily decisions accordingly.
Moreover, focus fosters morale. Teams feel momentum when progress is visible. Success in one priority generates confidence to tackle the next. This virtuous cycle strengthens culture and retention—particularly crucial in smaller firms, where cohesion is such an important asset.
Pitfalls to avoid
Even firms that understand the need for focus can stumble into predictable traps. Among the most common:
Setting vague priorities: “Improve client service” means little until defined by solid metrics.
Overestimating capacity: Ambition must match bandwidth; otherwise, execution fatigue sets in early.
Ignoring early wins: Celebrate milestones publicly—visible progress keeps motivation alive.
Sunk-cost bias: “We’ve invested so much time and money into this initiative; if only we try a little harder…”. Know when to cut your losses.
Failing to sunset initiatives. A firm that never abandons outdated or impossible projects quickly loses focus.
Sometimes the discipline — indeed, the courage — to say no is just as strategic as choosing what to pursue.
As 2026 begins
As 2026 begins, small and midsize firms will once again confront economic uncertainty, talent mobility, and technological change. The best response is not to chase every trend but to prioritize intelligently—to identify where disciplined focus will yield exponential advantage.
Ultimately, a business plan should be less about predicting the future and more about preparing the firm to shape it. Two or three well‑chosen strategic priorities do precisely that: they turn intention into direction, and direction into results.
And if you don’t yet have a business plan — or if your current one looks more like a marketing brochure than a roadmap — Walker Clark can help you develop a plan that focuses your firm’s energy, accelerates growth, and clarifies purpose — all to lead your firm to the best results in 2026 and beyond.
It’s not too late. Use the secure e-mail link at the top of this page to request a complimentary 30-minute consultation — not a sales pitch! — to discuss how we can help your firm achieve what is most important for your business in 2026.