Survey of partners and attorneys in global law firms shows 81% of firms falling short on cross-selling and growing client accounts through collaboration.

Law firms are currently fueling growth through aggressive rate increases, but new data suggests this strategy may be reaching a breaking point. While 58% of firms rely on pricing as their primary revenue driver, 54% admit it is the leading cause of client churn, according to “The Collaboration Gap: Cross-Selling and Collaboration Report 2026” released today by Passle.

The report, conducted in partnership with Hayhurst Consultancy, surveyed 100 managing partners and attorneys with oversight of marketing and business development at firms with more than 100 lawyers across the U.S. and UK. The findings reveal a performance gap between firms that rely on culture and goodwill, and those building the digital infrastructure necessary for sustainable, multi-practice growth.

Data shows that firms that cross-sell grow revenue more effectively than those that don’t. 

Research from Dr. Heidi Gardner shows that involving five practice groups can generate nearly 18 times more revenue than a single-practice engagement. But the survey found that firms vary in their sophistication and approach to cross-practice collaboration. 

Among the Passle survey findings:

• Only 19% of firms strongly agree they are effective at cross-selling.
• 55% of respondents cite a lack of visibility into their colleagues' expertise as the No. 1 barrier to collaboration.
• 52% of respondents say they understand their firm’s capabilities, while just 41% believe other lawyers at the firm understand their expertise/capabilities.

“Growth built on rate increases is immediate and familiar, but it’s also fragile,” says James Barclay, CEO of Passle. “The data shows we’ve reached a tipping point where clients are resisting the ‘price lever.’ The firms that will win in the second half of 2026 are those that stop treating cross-selling as a transactional ‘would you like fries with that’ moment and start treating it as a visible, operational process.”

The survey also revealed trends related to other key law firm growth strategies, including mergers and lateral hiring. With mega-merger integration costs reaching up to $280 million, the stakes for successful cross-selling have never been higher.

51% of respondents say that cross-referrals are the best measure of lateral integration; if referrals are not flowing, integration has not happened effectively. However, few firms have truly taken an operational approach to fostering cross-referrals. 58% of firms measure lateral success simply by revenue brought in, but firms that are satisfied with their growth are more likely to look at leading indicators, specifically internal networking and referral flow. 

Marketing and BD leaders are now on the hook for these investments and tracking their payoff, with 80% saying their CMOs are involved in lateral integration.

“Marketing and business development leaders play a critical role in helping firms fully realize the value of their talent, whether through lateral integration or shaping culture following a merger,” said Ashley Horne, Chief Marketing and Business Development Officer at Womble Bond Dickinson (US) LLP. “The firms that are excelling are empowering their leaders to look beyond transactions and focus on activating the strengths that already exist within their organizations. When we prioritize visibility, connection, and collaboration across the firm, we surface growth opportunities earlier and more intentionally. Internal collaboration isn’t just a cultural advantage; it’s one of the most reliable and sustainable drivers of long‑term revenue.”

Download the full report for more insights.