Smaller law firms are being advised to prioritise long-term growth over immediate profits by investing in technology. This recommendation comes from Toby Harper, the chief executive of a rapidly expanding commercial law firm.
Harper James, based in Birmingham, is collaborating on a knowledge transfer partnership (KTP) with Aston University, receiving significant funding from Innovate UK. Harper emphasised that many small firms enjoy profitability but face the dilemma of choosing between current financial gains and future advancement.
Mr Harper stated, “A lot of small firms are very profitable, but if traditional partnerships extract all the profit, they won’t have it for future development.” He highlighted the firm’s conscious decision to prioritise technology investments, stating that it is an investment in their people.
Furthermore, Mr Harper noted that support for integrating legal technology is available to small law firms, through initiatives such as KTPs. “It’s more of an internal challenge. Change is happening. You can’t bury your head in the sand. You’ve got to be proactive,” he asserted.
The funding for the KTP, totalling nearly £238,000, is aimed at enhancing data management within Harper James, thus enabling more efficient use of their data resources. The collaboration with Prof. Abdul Sadka from Aston University focuses on improving AI capabilities to automate tasks like sales and paralegal work.
Currently, Harper James is recruiting an academic from Aston University to work on the KTP, bringing industry experience into their operations. The firm operates with a hybrid model, with teams spread across multiple cities including Sheffield, Birmingham, London, Manchester, and Cardiff.
Harper James expects a significant rise in staff numbers, from over 140 currently to more than 160 by the end of the financial year in September 2025. This growth aligns with their financial goals, as turnover is projected to increase from £12.2 million in September 2024 to more than £15 million.
While the firm continues to grow organically, Mr Harper maintains full ownership and has consistently reinvested profits into technological advancements over the past two years to secure their competitive position for the future.
Mr Harper’s approach highlights the strategic importance of technology investment for smaller firms aiming for future growth. His insights point to a broader trend in the legal industry, where embracing technology can facilitate more efficient operations and sustained success.
