What’s topping the agenda for mid-sized firms in 2026

Rather than chasing sweeping transformations that have dominated many firms in recent years, Actionstep’s 2026 Australia Midsize Law Firm Priorities Report identified how these firms are turning their attention to delivering “proven commercial levers” this year.

The findings, produced in partnership with Agile Market Intelligence, are based on responses from 400 professionals working in Australian mid-sized firms employing between 20 and 300 staff.

With this focus front of mind for 2026, client satisfaction has surged to the top of firms’ priorities, overtaking growth initiatives and cost control to become the sector’s most important strategic focus.

For the third year in a row, client satisfaction has emerged as the top strategic priority for mid-sized law firms, with 61 per cent of respondents naming it their primary focus for 2026 – an 11-percentage-point drop from 71 per cent in 2025.

Although this figure marks a decline from last year’s peak, Actionstep noted that client satisfaction continues to be the most consistently selected priority, reflecting how firms now view it not just as a “growth accelerator”, but as a “stabilising force” in an increasingly competitive and capacity-constrained market.

While client satisfaction claims the top spot, the report shows that recruiting and retaining talent is a close second (59 per cent), followed by digital transformation and technology at (56 per cent), managing the cost of doing business (45 per cent) and protecting the firm from cyber security threats (41 per cent).

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However, despite the strong client-centric focus highlighted by Actionstep’s data, talent shortages continue to constrain firms, with 44 per cent of respondents citing recruiting and retaining skilled staff as their most significant operational challenge, directly affecting their ability to deliver on this goal.

These findings mirror previous years’ reports, which Actionstep argued suggest that talent pressure is “structural rather than cyclical” and unlikely to be eased through incremental hiring or short-term retention measures alone.

As mid-sized firms focus on client satisfaction amid ongoing recruitment challenges, the report reveals a “clear strategic imbalance”, with client satisfaction shifting from an abstract goal to an “operational outcome” that hinges on staffing levels, workflow efficiency, and clearly defined roles across the firm.

Beyond recruiting and retaining talent, respondents also flagged digital transformation and technology (27 per cent), managing the cost of doing business (19 per cent), and safeguarding the firm against cyber security threats (15 per cent) as key challenges they will need to navigate in 2026.

Zahn Nel, regional vice president, ANZ, at Actionstep, emphasised that in a time of shifting priorities, law firms achieve success by aligning people, strategy, and technology to deliver client value through steady, practical improvements rather than chasing disruptive change.

“As law firms adapt to changing client expectations and grapple with the fast pace of technology advancements, our research highlights the importance of understanding what truly drives success – whether it’s leveraging the right talent, optimising processes, or utilising technology in ways that align with the firm’s goals,” Nel said.

“The 2026 results further underscore the importance of aligning strategy, technology, and people to deliver client-centric value, while making practical, incremental improvements rather than pursuing disruptive change.”