Billable Utilization Hit a Record Low of 66.4% in 2025

By Amara Osei

Billable utilization at professional services firms fell to a record low of 66.4% in 2025, well below the 75% target, according to SPR Research. The figure is the sharpest signal yet that adding headcount without fixing workflows makes scaling harder, not easier.

The finding anchors a blunt argument now circulating among growth-stage operators: rapid expansion doesn't create problems, it exposes them. "If your system was poorly built, this will only become more evident as you scale," the analysis states. "Growth amplifies preexisting systems."

Why hiring more people backfires

Entrepreneurs respond to growth in predictable ways. They hire more staff, spend more on marketing and work longer hours. Onboarding new people takes time and costs money, and does not equal more growth, the piece argues.

The law firm is the cautionary example. A practice dependent on its founding partners' acumen takes on more clients, hires junior lawyers who are less adroit at making decisions, and soon can't keep up. Quality nosedives. The founders, who once did their jobs splendidly, burn out.

The pattern spirals until founders stop asking, "How do we get more clients?" and start asking, "How can we manage what we have without breaking everything?" That shift, the analysis argues, marks the move from rapid growth to sustainable growth.

What's actually breaking the systems?

Tool fragmentation ranks as the top culprit. Consilio's 2026 Global Survey Report found 41% of respondents cited fragmented tools that didn't integrate well as their primary systems issue. Another 39% reported relying on manual workarounds between systems.

The prescribed fix rests on four pillars:

• Identify bottlenecks through data. Track where work stalls — which cases take the longest, which team members stay overloaded, what clients complain about. Case intake itself can be the bottleneck; one firm eliminated delays and revenue fall-off by standardizing intake forms and setting turnaround times.
• Assign clear ownership. Every process needs an owner who can be called on to improve it or tackle problems as they arise.
• Make processes repeatable. Document how work gets done — client onboarding, case file organization, court deadline tracking, billing cycles — with employees documenting procedure as they go.
• Use technology without losing accountability. Software can automate repetitive tasks, but it can't replace human judgment. Employees, not case management programs, must prioritize cases and handle sensitive conversations.

Notably, the analysis claims more accountability actually improves uptake of new tools — a counterpoint to firms racing to implement AI at every level of operations.

Where does trust fit in?

Efficient systems alone don't close deals. In high-stakes industries like law, healthcare or financial services, client trust can give a firm the edge over a competitor with similar systems.

Automation feeds that trust indirectly. When deadlines are tracked automatically, employees focus on strategy instead of calendars. When roles are clearly established, there's less gray area. Clients feel heard, cases hum along, team members avoid burnout, and founders can focus on longer-term goals.

Where should firms start?

Not with a teardown. Most entrepreneurs struggling with growth try to reengineer faulty systems wholesale, but the recommended path is rebuilding piece by piece. Start with one recurring process — client onboarding, say, or weekly meetings. Document it, assign ownership, collect metrics, refine on the data. Then apply the same approach elsewhere.

The stakes are structural. A young company can improvise on its founder's talents. Over time, the analysis concludes, a strong foundation becomes essential — and it's the only way a company can successfully scale.