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Revenue Cycle Improvement the New Frontier for Law Firm Profitability, Harbor Survey Shows
Billing, collections, and outside counsel guidelines compliance emerge as top priorities as firms modernize processes and embrace technology
October 22, 2025 (Chicago, IL) – Harbor, the preeminent provider of consulting and technology services to the legal industry, today released findings from its 2025 Revenue Cycle Survey, revealing that law firms are prioritizing revenue cycle improvements at unprecedented levels. The survey highlights a shift toward viewing financial operations, from billing to collections, as central to profitability, competitive differentiation, and lawyer and client experience.
The survey, which captured data from firms across the Global 200, found that billing process improvement (73%), collections process improvement (60%), and outside counsel guidelines (OCG) compliance (78%) rank as the top focus areas for firms over the next two years.
“Firms that automate, specialize, and enforce across the revenue cycle will outperform their peers,” said Christine Indiano, Director of Strategy + Transformation at Harbor. “This year’s survey shows that financial operations are a key frontier for law firm transformation.”
Among the key findings:
- AI adoption is accelerating but fragmented: While 74% of law firm technology leaders report progress on AI model development, only a small percentage of firms currently use predictive analytics in revenue cycle processes such as billing (7%) or collections (11%). However, the majority plan to implement these tools within the next 1-2 years.
- OCG management remains a weak spot: Despite most firms citing OCG compliance as a high priority, only 27% have automated these processes. Manual management continues to expose firms to write-downs and client dissatisfaction.
- New roles are reshaping the revenue cycle: Nearly half (49%) of firms have added new finance roles such as client or revenue analysts to coordinate billing, monitor AR, and support billing attorneys.
- Cycle times are improving modestly: The median revenue cycle time across firms is now 98 days, reflecting slight progress in accelerating billing and collections.
- Cloud and system modernization are on the horizon: Most (67%) firms plan to migrate their practice management and finance systems to the cloud within the next 2-5 years.
The survey identifies three pillars of successful transformation:
- Process improvement and technology enablement – Aligning workflows with tools like AI, automation, and advanced analytics.
- Resource optimization – Introducing specialized finance roles and redefining ownership across billing and collections.
- Policy enforcement – Standardizing time entry, billing, collections, and short-pay handling to reduce leakage and improve cash flow.
“We’re seeing a fundamental mindset shift,” said Jaime Woltjen, Senior Director of Strategy + Transformation at Harbor. “Revenue cycle management is no longer viewed as back-office administration. Firms that treat these functions as strategic levers, supported by technology, specialized talent, and consistent policy enforcement, are achieving improved results and client satisfaction.”
About Harbor
Harbor is the preeminent provider of professional services to the legal industry encompassing strategy, technology, operations, and intelligence. Our 800-strong team of strategists, technologists, and specialists navigates alongside our clients – leading law firms, corporations, and their law departments – to provide essential resources and invaluable insights.
Anchored in a rich heritage of deep knowledge, steadfast relationships, and mutual respect, our unwavering dedication lies in shaping the future of the legal industry and fostering enduring partnerships within our community and ecosystem. www.harborglobal.com