January is often a time of planning, strategizing, and envisioning after a season of reflection. You might be wondering what it will take to get to the next level of growth with your consulting firm… especially in a time where AI can rather fuel your dreams, or overcomplicate and slow you down.

Projectworks recently partnered with TSIA, the leading technology research institute, to better understand what it truly takes to scale a services business to $100M, and what most often gets in the way.

In 2025, only 3% of professional services firms have mature AI capabilities. At the same time, just 52% of firms have strong alignment between leadership and their professional services arm around future strategy. Layer on the reality that each stage of growth ($5M, $25M, $100M) requires different tactics, mindsets, and skillsets, and it becomes clear why so many firms stall before they scale.

So what does this mean?

Consulting Firms Need To Slow Down Before Growth Will Speed Up

Technology is moving faster than ever. Competition is intensifying. Teams are distracted, experimenting with AI in silos, and clients are already expecting more. In this environment, success doesn’t come from doing everything - it comes from being clear on priorities, executing quickly, failing quickly, and learning deliberately.

Whether you’re working toward your first $5M or pushing past $100M, there are foundational principles that apply across every stage of growth. Below are some key takeaways from our conversation with TSIA to help you navigate what’s next.

👉 Download the whitepaper for a clear framework you can apply at every stage of growth

👉 Watch the whole webinar below... or skim below for our key takeaways

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Client Expectations Are Changing Fast

One of the strongest themes from the webinar was the widening gap between client expectations and firm readiness.

Firms are increasingly being asked to cut bids by 30–50% because “AI should make delivery faster.” The challenge? Most firms haven’t fully mastered AI yet, but their clients are already assuming they have because competitors are accepting the offers.

AI feels like a race, but the real opportunity in 2026 is not about rushing blindly. It’s about:

• Identifying where work actually slows you down
• Applying AI intentionally to high-friction workflows
• Improving efficiency before trying to reinvent your entire business

The firms that win won’t be the ones that adopt AI everywhere, they’ll be the ones that apply it where it matters most.

PSA Software Is One Of The Keys To Scalable Growth In Professional Services

One of the most overlooked enablers of scalable growth is Professional Services Automation (PSA) Software. As firms grow, complexity compounds fast. More projects, more people, more pricing models, more client expectations.

Without a single system connecting delivery, resourcing, and financials, leaders are forced to make big decisions on partial data. PSA software creates a shared source of truth across the business, giving teams real-time visibility into margins, utilisation, capacity, and risk. It replaces spreadsheets and disconnected tools with disciplined execution, so AI can be applied on top of a strong operational foundation, not used to paper over cracks.

Firms that scale sustainably do not add PSA Software because they are big. They get big because they put the right operational backbone in place early.

Scaling To $5M: Build Ahead of the Curve

Early-stage growth is less about systems and more about people and focus.

To reach your first $5M, your client-facing team needs to operate ahead of the curve. By definition, if you’re ahead of your customers, they won’t always know what to ask for—so your team must be able to sell insight, not just deliver work.

A few principles stand out:

• Find the “unicorns”: experienced practitioners who are also comfortable selling
• Founder involvement matters: customer acquisition costs are high, and founders’ expertise, credibility, and relationships are often the difference
• Stay hands-on longer than you think: shaping the offering, checking delivery quality, and staying close to customers builds trust and momentum

At this stage, growth comes from deep customer understanding and tight feedback loops

👉 PS: If you are looking to WIN more work, it starts with a strong proposal. Interested in how yours stacks up? You can check out our new proposal grader here

Scaling to $25M: Shift from Expertise to Growth Mindset

Traditionally, firms need 50–250 people to reach $25M, but AI may change that equation. What doesn’t change, however, is the need for a growth-oriented culture.

At this stage, the biggest limiter is no longer demand, it’s the organization’s ability to adapt.

Key shifts include:

• Hiring for learning ability, not just experience
• Creating a culture of experimentation and resilience
• Being intentional about where your team invests time (and where AI can help)

Selling also changes. Train your team to value sell (where conversations shift to outcomes and business impact… even where your clients can’t see it yet): As practitioners advance, they should be encouraged to:

• Identify where clients need more help
• Surface opportunities naturally through delivery
• Partner with senior leaders to close deals

This builds trust, develops commercial skills, and creates a stronger, more scalable firm.

Scaling to $100M and Beyond: Decide What You’re Building

By the time firms approach $100M, processes should be consistent, repeatable, and improving margins should be the norm—not the exception. This is where many firms hit a crossroads.

Key questions become unavoidable:

• Is your market large enough to support continued growth?
• Is your team structure truly scalable?
• Is AI a tailwind… or a threat, to your core offering?

Only a small percentage of firms push from $100M toward $1B. Many choose to sell. Others continue, but only if leadership has the energy, conviction, and clarity to keep going.

At this stage, growth is as much a personal decision as it is a business one.

Build Your Growth Foundations – Beginning With PSA Software That's Made For Consulting Firms

AI is reshaping professional services, but it doesn’t eliminate the fundamentals. Alignment, focus, disciplined execution, and intentional growth still matter. Perhaps now more than ever.

If you’re navigating what 2026 should look like for your firm, we dive much deeper into these topics in our recent conversation with TSIA. Check out the recording above to hear all the key nuggets.

And if your firm is yet to put purpose-built PSA Software in place, book a Projectworks Demo today and build your foundations for growth in 2026.