In 2025 the market remains uncertain, but one thing is clear: firms are still looking to grow. Our latest survey found that 41% of professional services firms today are laser focused on winning new clients and expanding their reach. However, a critical barrier stands in their way: inefficient internal processes. 

Far too often, firms chase growth without addressing the complex operational challenges behind the scenes: resource management, forecasting, and productivity tracking. These inefficiencies create a bottleneck, limiting their ability to scale sustainably and overburdening teams.

In this article we explore why inefficient processes are getting in the way of growth and dive into some of the ways leaders can address this issue effectively. If your firm is looking to scale sustainably in 2025, these findings will be crucial to your strategy.

Firms know how to deliver, but internal operations hold them back

Despite the high percentage of firms looking to grow their client base, 48% of the firms we surveyed identified key challenges around operational efficiency. Two key themes emerged:

  • 27% of firms are focused on implementing and standardizing operating processes to maximize productivity and profitability.
  • 21% are looking to improve how they measure and forecast revenue, profit margins, and capacity to better manage future business health.

These findings suggest that firms often struggle to balance their ambition for growth with the operational foundation required to support it. 

Interestingly, firms scored themselves highly (4 out of 5) in areas like client relationships and service execution, which reflects confidence in their ability to deliver quality work and build strong client partnerships. However, when respondents assessed their proficiency in finance, operations, and talent management, the scores suffered and the ratings were more spread out, reflecting a lack of confidence around internal processes. 

Sustainable growth doesn’t just depend on expanding your client base. It also demands that your internal operations be as efficient as the services you deliver. Struggles like resource management, mounting financial pressures, talent burnout and stagnant client growth are all too common among the firms we heard from.

Five ways you can start improving operational efficiency today

The good news? Firms that address inefficiencies head-on can free up resources, empower their team, and position themselves for significant, sustainable growth.

1. Standardize and automate processes

The first step is identifying the bottlenecks in your daily operations. Is your team spending too much time on certain tasks? A great way to gauge this is simply to have a conversation with your team. But having hard data can be incredibly helpful. Time tracking tools like Harvest are a good way to see where the time sinks are. 

2. Invest in reliable forecasting tools

Solid forecasting isn’t optional. It’s critical for understanding team capacity, anticipating revenue flow, and confidently knowing if you’re ready for new business. Invest in forecasting tools that align with your objectives, and make sure they integrate seamlessly with your existing systems to avoid adding more inefficiencies.

3. Improve client payment processes

Steady cashflow is your fuel for growth, and delayed payments can disrupt it. Our survey showed that 56% of firms are experiencing payment delays, so this is not a unique problem. To tackle this, refine your payment workflows and establish clear payment terms at the outset of each project.

4. Foster a culture of alignment and collaboration

Achieving operational efficiency isn’t just about tools and process. Make efficiency a shared responsibility across teams. Upskill employees to use tools effectively, and involve them in identifying ways to improve existing workflows.

5. Leverage AI to enhance productivity

One of our customers, Andrew Nelson from Silverback Strategies, recently highlighted how his firm Konsist has embraced AI to help eliminate the grunt work: “Routine tasks are faster and sharper, letting our team focus on high-impact strategy instead.” Look for ways to introduce AI into your processes, and empower your team to lean into tools that can make their day-to-day work more efficient.

AI eliminates the grunt work. Routine tasks are faster and sharper, letting our team focus on high-impact strategy instead.

Andrew Nelson – President, Silverback Strategies

 

Go beyond operational efficiency

Inefficient processes are one of the top concerns for firms this year. From resource planning and automation to payment workflows, tackling internal inefficiencies will help professional services firms protect their team, manage client expectations, and deliver on their promises.

Investing in operational efficiency is not just about improving internal performance; it’s about unlocking better client outcomes, greater profitability, and long-term resilience. 

But firms are facing pressure on many other fronts: increased competition, fewer hires, and evolving expectations are just some of them. For a deeper analysis of the challenges facing professional services firms (and actionable strategies for overcoming them), download our State of Professional Services report. Whether you’re an agency owner, a project manager, or an operations lead, this comprehensive report will provide valuable insights to help you navigate 2025 with confidence.

Download the report