How the CFO role is evolving in law firms

The CFO role in law firms has changed significantly.

The traditional focus on financial reporting, controls and historical performance is still important, but it is no longer enough. Increasingly, firms are looking for CFOs who can look beyond the numbers and play a much more active role in how the business is run. The CFO is becoming much more of a business leader.

From finance leader to strategic business partner

CFOs are increasingly involved in firmwide decision-making, rather than simply providing the financial information behind those decisions.

That means understanding:

Where the growth opportunities are across the firm
What is happening within individual practice groups
How client expectations are changing
Where pricing pressure is coming from
How people costs are affecting margins
Where investment is needed
And, ultimately, what is driving profitability

The conversation has moved beyond “What happened?” to “What does this tell us, and what should we do about it?” That requires a very different skill set.

Financial expertise remains the foundation, but commercial judgement, influencing skills and the ability to work effectively with partners are becoming just as important.

The people side of the role is becoming more important

There is also a clear shift in what firms expect from CFOs as leaders.

Finance functions are becoming more complex, with firms investing in commercial finance, pricing, business partnering, transformation and data capability.

That means CFOs are managing increasingly diverse teams and need to create an environment where different areas of expertise work together effectively.

The best CFOs are not just technically strong. They are good people leaders. They know how to build trust, develop talent and, importantly, influence stakeholders outside of their immediate function.

In a partnership environment, that ability to influence is particularly important. You can have the right numbers and the right strategy, but if you cannot bring partners and other senior stakeholders with you, it is much harder to make change happen.

Profitability is driving change across the finance function

With a growing focus on firms' profitability, there is greater investment in specialist commercial finance and pricing capability, as firms look more closely at the relationship between revenue, client value and margin.

Pricing is a good example.

It is becoming much more sophisticated, with firms investing in specialist pricing teams and using technology and AI to support decision-making. But the interesting change is that pricing is increasingly moving beyond analysis.

Pricing professionals are becoming more involved in client conversations, helping firms think about value, scope and commercial terms rather than simply producing a pricing proposal.

Finance business partnering is becoming much more embedded

We are continuing to see far more finance business partners working directly with practice groups. Rather than finance providing information retrospectively, business partners are increasingly there to help partners understand what is happening in their business in real time.

A strong finance business partner can help answer questions such as:

What is driving performance?
Where are margins being squeezed?
Where is there an opportunity to grow?
And what needs to change?

That requires more than accounting expertise. It requires someone who is commercially curious, confident enough to challenge senior stakeholders and able to turn financial information into something useful.

Revenue roles are becoming more commercial

Revenue controller roles, for example, are becoming much more advisory.

These individuals are often developing much closer relationships with partners and becoming trusted advisers to practice groups.

That reflects a wider change across finance: the closer finance gets to the business, the more value it can add.

The CFO has become critical in times of uncertainty

We saw the importance of the CFO role particularly clearly during the pandemic.

Law firms had to make rapid decisions around cash, costs, staffing, investment and future growth, often with very little certainty about what was coming next. CFOs were central to those conversations and that expectation has continued.

The economic environment remains challenging, clients are becoming more commercially demanding and firms are having to make decisions around technology, AI, investment and people while continuing to protect profitability.

The CFO is often the person bringing those different considerations together.

The role is therefore increasingly about helping the firm understand not just its financial position, but the potential consequences of the choices it makes.

Is the CFO becoming a natural route into wider leadership?

As the role becomes broader, I think it is inevitable that we will see more CFOs move into wider executive leadership positions.

A senior law firm CFO can have a broad understanding of the business. They see the economics of the firm, understand the performance of different practice areas, have visibility of client and pricing pressures and are often involved in major strategic initiatives.

They may also have responsibility for areas such as transformation, technology, investment and operational change. That gives them a strong foundation for a broader leadership role.

It won't be the right career path for every CFO, but the traditional distinction between the finance leader and the wider business leader is becoming less clear.

What does this mean for law firms?

For law firms, this evolution means that hiring a CFO purely on technical financial capability is unlikely to be enough.

The key question is: what does the firm actually need its CFO to achieve?

If the expectation is for the CFO to be a genuine strategic partner to the managing partner and wider leadership team, then commercial judgement, stakeholder management and leadership capability need to be considered alongside financial expertise.

The same applies to the wider finance team.

If firms want a more commercially minded finance function, they need to give people opportunities to develop those skills.

Investing in business partnering, pricing and commercial finance is not just about improving today's performance. It is about developing the finance leaders the firm will need in the future.

About the author

Olivia Kelly is an experienced Associate Director at Ambition, specialising in the recruitment of high‑calibre senior finance leaders within top‑tier UK and US law firms, who play a critical role in the strategic and operational success of their firms.

Olivia is known for building trusted, long‑standing relationships with clients and candidates alike, investing time to develop a deep understanding of business priorities, firm culture, and long‑term objectives.

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