The 2022 Law Firm Profitability Survey from LawVision and Iridium Technology found that nine out of 10 firms were satisfied or very satisfied with their profits over the last three years, and more than a quarter of respondents reported double-digit profit growth during that span. Still, factors such as inflation and geopolitical tension are distorting firm leaders’ outlook.

Instead of firm leaders focusing on big projects to innovate or transform their firm, the report highlighted a strong move toward what they called “profit fundamentals” this year, with firms focusing on pricing, production, talent strategy and client initiatives.

When asked what major projects their firms would pursue to address profitability, 66% of leaders said “improving rate performance”—the top response, which saw an increase of 20% compared to the result in 2021. About 43% of respondents said they would pursue “laterals and diversity” to increase profitability, 32% said “improving utilization levels”, while 25% said “client feedback.”

The report highlighted the striking thing about those results was the “dramatic movement” away from cost-cutting and large transformational initiatives.