Contact: Kristi Stanbery
Law Firms Haven’t Built The Wrong Business: They May Have Outgrown The Way They Run It
Recent studies show law firms are increasing revenue but require modernization for profitability
(October 20, 2026) — U.S. law firms are achieving strong financial performance, but sustaining growth requires more than increasing revenue according to research published in 2026. As firms expand, the systems, leadership structures, and business processes that once supported success may no longer meet the demands of a more complex organization.
The 2026 Report on the State of the US Legal Market1, published by Georgetown Law’s Center on Ethics and the Legal Profession and the Thomson Reuters Institute, reported record-breaking law firm performance in 2025, with average profits growing 13%, driven by exceptionally strong demand and rising billing rates. However, the report cautioned that escalating technology and talent costs, changing client expectations, competitive pressures, and technological disruption are challenging the sustainability of that growth. It calls on law firm leaders to rethink traditional business models and modernize their approach to pricing, technology, and client value
The report reiterates the previous year’s findings that “underlying factors… clearly point to the need for law firm leaders to rethink how their firm conducts business” as client expectations, competition, and technology reshape the market.” Other published studies2, such as American Bar Association’s The Legal Industry Report 2025 demonstrate uneven firm-wide technology adoption and growing interest in using data to inform financial and operational decisions. Together, these findings underscore the importance of aligning a law firm’s leadership, systems, and operations with its growth objectives.
A practical starting point for growth and profitability
For law firm owners and managing partners, the challenge is translating growth into a stronger, more sustainable business with the infrastructure, leadership, and processes to support it.
To help law firms assess their operational readiness and identify opportunities for improvement, Consult b3 has launched the complimentary b3 Growth Readiness Assessment.
The five-minute assessment provides an actionable snapshot of a firm’s operating foundations, including:
- An overall Growth Readiness score
- The firm’s strongest and weakest operating foundations
- Three priority gaps
- A focused 90-day action plan
“You haven’t built the wrong business, you’ve outgrown the way you’ve been running it,” said Kristi Stanbery, CEO and Managing Partner of Consult b3. “Growth exposes gaps in strategy, marketing, operations, and leadership that can limit profitability and create unnecessary dependence on the owner. Most firms don’t need to fix everything; they need to fix the right things first.”
Recognizing the signs
A firm may have outgrown its current operating model when:
- Decisions, large and small, still bottleneck at the owner
- Recurring problems remain unresolved
- Teams work in different directions
- Revenue grows faster than the firm’s systems
- Leaders rely on instinct rather than reliable data
- Critical knowledge rests with one person
- The firm cannot operate, grow, or transition without the owner
The b3 Growth Readiness Assessment is complimentary and carries no obligation to pursue additional services. Firms can use their results to identify priorities and inform next steps, including one-on-one advisory services, group coaching, or fractional support.
Take the assessment: assessment.consultb3.com. In five minutes, identify operational gaps and gain a clearer picture of what your firm needs to support its next stage of growth.
About Consult b3
Consult b3 helps law firms and healthcare practices build stronger, more profitable, and sustainable businesses through integrated strategy, operations, marketing, business development, leadership, and technology solutions. The firm helps organizations identify opportunities, strengthen their infrastructure and leadership teams, and build businesses that can thrive without constant founder involvement.
Consult b3 is part of Hope Wagner Companies, a family of businesses focused on three connected forces that drive business performance: strategy and processes, technology, and people. Its affiliated companies include ARO Effect Marketing, a law firm marketing agency built exclusively for attorneys, that delivers best-in-class SEO, paid search, content marketing, website strategy, social media, and conversion optimization). Hope Wagner Companies is rounded out by Meet Gabbi, an AI-powered legal intake built for law firms, helping turn more inquiries into qualified consultations and The three companies operate independently or can work together to provide comprehensive solutions.
1Thomson Reuters Institute and Georgetown Law, 2026 Report on the State of the US Legal Market: Peak Prosperity and the Fault Lines Below (January 7, 2026). Read the report.
2American Bar Association, The Legal Industry Report 2025. Read report
2American Bar Association, 2024 Legal Technology Survey Report, released March 2025. Read survey announcement
Contact: Kristi Stanbery
support@Consultb3.com