Between Animal and Angel: Alignment, Character, and the Formation of the Human Person

Alexander Pope, in An Essay on Man, places the human being in a distinctive position within the order of things: neither animal nor angel, but somewhere between the two. This idea has often been read as a static hierarchy, a reminder of human limitation and a warning against pride. We are not angels, and we should not pretend to be.

That reading is correct as far as it goes. But it is incomplete.

What Pope describes as a fixed position in the order of being can also be understood as a dynamic field of formation. We do not move up and down the chain in any literal sense. A human being remains a human being. But within that condition, there is considerable scope for development, degradation, and transformation.

The more useful question, then, is not whether we can become angels or fall into animality in essence, but how far our conduct and character come to resemble one or the other.

This is best understood by distinguishing between essence and formation.

Our essence is fixed. We are rational, social, self-aware beings. We are capable of reflection, judgement, and moral choice. These capacities define what it is to be human.

Formation, however, is variable. It is shaped over time through habit, environment, and repeated action. A person who consistently acts with restraint, clarity, and responsibility does not merely perform those actions in isolation. They become, in a meaningful sense, the kind of person for whom such conduct is natural. Conversely, a person who repeatedly acts from impulse, fear, or appetite becomes progressively less governed by judgement and more by reaction.

This is not a moral slogan. It is an observable reality.

A useful analogy can be drawn from the animal world: A domestic dog raised among humans becomes attuned, responsive, and relational. A feral dog, though of the same species, becomes reactive, survival-driven, and difficult to integrate. The essence of the animal has not changed, but its character and behaviour have been profoundly shaped by its environment and experience.

Something similar is true of human beings.

We all contain, in potential, both higher and lower tendencies. There are impulses towards appetite, fear, and immediate gratification. There are also capacities for reflection, proportion, and restraint. The moral life consists in the ordering of these elements, not in the elimination of one side or the pretence that we are something other than we are.

In this sense, the language of being “between animal and angel” can be made more precise.

To live in a way that is closer to the animal is to be governed primarily by immediacy: short time horizons, reactive behaviour, and the dominance of appetite or fear. To live in a way that approaches the angelic is to exhibit the ability to act with proportion, even under pressure. These are not metaphysical transformations. They are patterns of conduct that, over time, become embedded as character.

The critical point is that alignment shapes formation.

By alignment, we mean the repeated choice to act in accordance with what is judged to be right, proportionate, and appropriate to the situation. Each such choice reinforces certain patterns and weakens others. Over time, this produces a settled disposition. What begins as effort becomes habit; what is habitual becomes character; and character, in turn, determines how a person acts when it matters.

This is why the stakes are higher than they first appear. Individual decisions are not isolated events. They are formative acts.

Pope himself is cautious about any suggestion that human beings can ascend beyond their proper place. His concern is with pride and overreach, the attempt to transcend limitation rather than to live well within it. In this he is right. The danger is not that we become too ordered, but that we imagine ourselves exempt from the constraints that define us.

Yet if we hold on to his insight about limits while incorporating a more developed understanding of formation, a fuller picture emerges.

We cannot become angels. But we can become more or less capable of living in accordance with the higher aspects of our nature. We cannot cease to be human. But we can become better or worse examples of what a human being is.

This has practical implications that extend well beyond abstract philosophy.

In professional life, the difference between a reactive operator and a composed, judgement-led practitioner is not one of intelligence alone. It is the result of formation. In leadership, the ability to hold complexity, to resist impulsive action, and to act proportionately under pressure is not innate. It is cultivated. In culture, the norms that develop within an organisation reflect the accumulated patterns of behaviour that are permitted, encouraged, or enforced.

In each case, the same principle applies. People become what they repeatedly do.

The idea that human beings stand between animal and angel is therefore not merely a statement about metaphysical position. It is a description of a field of tension within which human life is lived. We are the beings in whom competing drives are conscious, and in whom the ordering of those drives is both possible and necessary.

The task is not to escape this condition, but to inhabit it well.

We do not change what we are. But we do, over time, profoundly change how we are. And in that difference lies the formation of character, the possibility of judgement, and the decisive distinction between a life governed by impulse and one governed by understanding.

There is, moreover, a growing body of empirical work that reflects this pattern at the level of culture. Cross-cultural studies have identified meaningful differences between societies in their orientation toward restraint, delayed gratification, and long-term coordination. Some place a greater emphasis on regulating impulse and sustaining effort over time; others give more weight to immediacy and expression.

At the individual level, research on delayed gratification suggests that the capacity to restrain impulse is not fixed but formed, and is closely associated with long-term outcomes. At the societal level, economists and sociologists have long observed that high-trust environments, those in which individuals reliably regulate their conduct without constant enforcement, are able to sustain more complex and stable institutions.

These findings do not establish a hierarchy of cultures in any simple sense. They do, however, reinforce a more modest but important point: that the formation of character, whether in individuals or in societies, has consequences. The habits that are encouraged, tolerated, or discouraged over time shape not only how people behave, but what they become capable of sustaining together.

What is Judgement?

The word “judgement” is often used loosely. It is treated as if it were interchangeable with intelligence, experience, or even instinct. In practice, however, these are distinct things. A person may be intelligent and yet exercise poor judgement. Another may be experienced and still act disproportionately. Instinct may prompt action, but it does not necessarily guide it well.

If the term is to be useful, it requires greater precision.

Judgement is best understood as the capacity to act proportionately in conditions of uncertainty.

This definition has three elements, each of which matters.

First, judgement is a capacity for action. It is not merely the ability to analyse, nor to describe a situation accurately, nor to generate options. Many people can do these things. Judgement is concerned with what follows. It culminates in a decision, and more importantly, in a decision that is carried into effect.

Second, judgement operates under conditions of uncertainty. In situations where all variables are known and outcomes are predictable, judgement is largely unnecessary. One can follow a rule or apply a formula. Most real situations do not present themselves in this way. Information is incomplete, time is limited, and consequences are uncertain. It is precisely here that judgement becomes decisive.

Third, and most importantly, judgement is concerned with proportion. It is not enough to act. One must act in a way that fits the situation. Overreaction and underreaction are equally failures of judgement. To respond to a minor issue with excessive force, or to treat a serious matter lightly, is to misread the situation and misapply one’s response.

Proportion, in this sense, is not mathematical. It is relational. It requires an appreciation of context, of stakes, of timing, and of likely consequences. It involves holding multiple factors in view and resisting the tendency to fixate on a single element to the exclusion of others.

This distinguishes judgement from intelligence.

Intelligence is concerned with processing information: identifying patterns, drawing inferences, constructing arguments. It is analytic in nature. Judgement, by contrast, is synthetic. It brings together analysis, experience, and perception, and resolves them into a course of action.

It also distinguishes judgement from rule-following.

Rules are indispensable. They provide consistency, reduce arbitrariness, and enable coordination. But rules are necessarily general. They cannot anticipate every circumstance. There are always edge cases, exceptions, and situations in which strict application of a rule would produce an undesirable result. Judgement is required to determine when to follow a rule, when to interpret it, and when to depart from it.

This is why judgement is central to law, but not reducible to it.

A legal system consists of rules, precedents, and procedures. Yet the practice of law depends on the ability to interpret, apply, and, where necessary, distinguish those rules in particular cases. Two practitioners may have access to the same body of law and yet arrive at different outcomes. The difference lies not in the rules themselves, but in the exercise of judgement.

The same is true in other domains.

In business, the difference between success and failure is often not the availability of information, but the quality of decisions made under pressure. In public life, the stability of institutions depends not only on formal structures, but on the judgement of those who operate them. In personal life, relationships are sustained or damaged less by what is known than by how situations are handled.

Judgement, then, is a practical virtue.

It is not innate in any complete sense, nor is it acquired simply by instruction. It is formed over time through a combination of experience, reflection, and constraint. Experience provides exposure to varied situations. Reflection allows patterns to be recognised and understood. Constraint, whether imposed by rules, institutions, or mentors, prevents early errors from becoming catastrophic and helps shape responses within acceptable bounds.

Over time, this process produces a settled disposition: a tendency to see situations more clearly, to resist impulsive reactions, and to act with greater proportion.

This account also clarifies the limits of artificial intelligence.

Systems that process vast quantities of information and generate plausible outputs may exhibit high levels of apparent intelligence. They can analyse, summarise, and propose. But they do not bear responsibility for outcomes, nor do they act in the world. They lack the integration of perception, consequence, and accountability that characterises judgement. For this reason, they can assist, but not replace, it.

The distinction is not merely technical, it is practical.

In an environment where cognitive tasks are increasingly automated, the relative importance of judgement increases. The ability to discern what matters, to weigh competing considerations, and to act proportionately becomes the limiting factor in effective decision-making.

This returns us to the question of formation.

If judgement is the capacity to act proportionately under uncertainty, then it follows that it must be cultivated. It is strengthened by practice and weakened by neglect. Habits of overreaction, avoidance, or impulsivity erode it. Habits of reflection, restraint, and measured action develop it.

The earlier observation that human beings stand between animal and angel can be restated in these terms. The distinction lies not in what we are, but in how we act. Where impulse dominates, judgement is diminished. Where proportion governs, judgement is present. My friend Peter refers to this as being calibrated.

The task, therefore, is not to acquire more information alone, nor to rely entirely on rules, but to develop the capacity to act well when neither information nor rules are sufficient.

That capacity is judgement.

Judgement and Process

In most modern systems, process is treated as the primary means of achieving reliable outcomes. Procedures are defined and decisions are structured in advance so that they can be reproduced consistently. This has the clear advantages of allowing work to be defined, priced, delegated, scaled and audited. It reduces dependence on individual discretion and makes outcomes more predictable.

But it also creates a particular risk.

Where process becomes dominant, judgement tends to recede. Decisions are made by following steps rather than by seeing what is required for the situation at hand. Responsibility is displaced from the person to the system, and the quality of the outcome becomes increasingly dependent on the adequacy of the procedure rather than the discernment of the individual.

This is not a failure of the process, it is a misunderstanding of its role.

Process is most effective when it supports judgement, not when it replaces it. It provides structure, consistency, and a baseline of competence. It ensures that certain things are done, and done in the right sequence. But it cannot determine what matters most in a given case, or how competing considerations should be weighed. Those are matters of judgement.

The distinction becomes clearer in practice. In legal work, for example, it is possible to follow a correct process and still produce a poor outcome, because the underlying issue has not been properly understood. Equally, a good result can sometimes be achieved with an imperfect process, where the person involved has seen clearly what is required and acted accordingly.

This is because judgement operates at a different level; it is concerned with relevance, proportion, and timing. It involves recognising what is significant, what can be ignored, and what must be done now rather than later. It cannot be fully specified in advance, because it depends on the particularities of the situation. (I know this because I spent ten years writing software to automate legal processes and helping law firms to implement those processes.)

When systems are designed without this distinction in mind, they tend to drift in one of two directions. Either process becomes increasingly detailed, in an attempt to anticipate every possible scenario, or it becomes more rigid, in order to ensure consistency. In both cases, the result is the same: the system becomes harder to use intelligently, and those within it become less inclined to exercise judgement, even where it is required.

This has consequences beyond efficiency. It affects how people are formed.

Where individuals are primarily asked to follow procedures, they become skilled in compliance but less confident in decision-making. Over time, this can produce a reluctance to take responsibility for outcomes that fall outside the expected pattern. Conversely, where judgement is expected and supported, individuals develop a clearer sense of responsibility, and a more stable capacity to act under uncertainty.

The aim, therefore, is not to eliminate process, but to place it in its proper relation to judgement.

A well-designed system does three things. It provides enough structure to ensure reliability. It leaves sufficient space for judgement where it is needed. And it makes clear where responsibility lies. This is as true in law and business as it is in any other domain.

In this sense, the question is not whether to rely on process or judgement, but how to integrate them. Process should handle what can be standardised. Judgement should govern what cannot. The difficulty lies in recognising the boundary between the two, and in designing systems that respect it.

This becomes increasingly important as systems grow more complex, and as the use of automation and AI expands. The temptation will be to extend process further, to capture more of what was previously left to human discretion. In some areas, this will be both possible and desirable. But there will remain a core set of decisions that cannot be reduced in this way without loss.

The task is to identify that core, and to ensure that it remains the responsibility of those capable of exercising judgement.

When This Tradition Is Lost

It is often easier to see the character of a tradition by observing what happens in its absence.

Where imagination, moral realism, and practical judgement are no longer held together, a number of familiar patterns begin to emerge. These are not usually experienced as dramatic failures. More often, they appear gradually, as a thinning out of meaning and a weakening of coherence in both individual and institutional life.

The first sign is a narrowing of reality. When the imaginative dimension is set aside, the world comes to be understood primarily in terms of mechanism and measurement. What cannot be quantified becomes difficult to recognise, and eventually difficult even to speak about. Human beings are then treated less as participants in a meaningful order and more as units within a system.

At the same time, the idea of moral order becomes unstable. If reality is no longer understood as intelligible in a deeper sense, then the basis for objective judgement begins to erode. Questions of right action are displaced by questions of preference, consensus, or procedure. In such a setting, responsibility becomes harder to locate. It is either diffused across systems or reduced to compliance with rules.

This has direct consequences for institutions. When structure is no longer aligned with a coherent account of human nature, systems tend to become either rigid or arbitrary. In some cases, process expands to fill the space left by the absence of judgement. In others, decision-making becomes increasingly personalised and unstable, as there is no shared framework within which to exercise discretion.

The result is not usually disorder in any obvious sense. On the contrary, many such systems continue to function, and may even appear efficient. But they do so at the cost of intelligibility. Those within them often experience a growing sense that things are happening without clear purpose, or that the connection between action and outcome has become obscure.

At the level of individual life, a similar pattern can be observed. Without a stable sense of participation in a meaningful order, experience tends to fragment. Attention shifts from understanding to management: managing risk, managing perception, managing outcomes. The question of what is true or right is replaced, more quietly, by the question of what works.

None of this occurs all at once, and it is rarely the result of deliberate choice. It is more often the cumulative effect of small shifts: the gradual preference for what is measurable over what is meaningful, for process over judgement, and for abstraction over responsibility.

The point is not to suggest that these developments can be reversed by argument alone. Nor is it to idealise any earlier period. The conditions described here arise naturally whenever the deeper coherence of a tradition is no longer actively maintained.

If my previous post described a convergence of imagination, moral order, and practical judgement, then what is described here is its dispersal. Each element may remain in some form, but they no longer reinforce one another. Imagination becomes detached from truth, moral language from reality, and systems from the people they are intended to serve.

The task, therefore, is not primarily one of critique, but of re-integration. It is to restore, in concrete settings, the alignment between how we understand the world, how we act within it, and the structures through which that action is carried forward.

That task is necessarily practical. It takes place in the design of systems, in the exercise of judgement, and in the habits of responsibility that are formed over time. It does not require a return to the past, but it does depend on recovering what is sound within it.

The Tradition This Work Draws From

Over time, I have come to see that the questions I am interested in do not arise in isolation. They sit within a particular intellectual tradition, one that is distinctively English in character, and which holds together imagination, moral realism, and practical judgement. I feel extremely fortunate that I have been unconsciously exposed to profound ideas, from the age of four, but only now as a lawyer, applying these ideas, do I see the significance of that early education, and I want to make my contribution, however small, to the preservation of these insights.

At one end of this tradition stands William Blake, who recognised that reality is not exhausted by mechanism or measurement, but is fundamentally imaginative. For Blake, human beings do not stand outside the world as neutral observers; we participate in it through perception. When that imaginative dimension is reduced or denied, both individual psychology and civilisation itself become distorted. His doctrine of contraries suggests that growth arises not from the elimination of tension, but from its disciplined integration.

Alongside this, T. H. Green gave philosophical and institutional form to a related intuition. He understood the person as essentially self-realising within a moral order, and freedom not as mere choice, but as participation in the common good. In his work, law, ethics, and civic life are not separate domains, but expressions of a deeper account of human flourishing.

These strands are brought into a more accessible unity in C. S. Lewis, who re-presented moral realism and the reality of the transcendent in terms intelligible to the modern world. Lewis showed that reason, imagination, and faith are not competing faculties, but mutually reinforcing ways of apprehending truth. In his writing, the moral law is both objective and experientially known, and the symbolic and the rational are held together rather than set apart.

This work is best understood as an attempt to continue that convergence, but with a particular emphasis on application. Its concern is not only to understand these principles, but to embody them in functioning systems; in law, in business, and in civic life.

It proceeds on a number of working assumptions:

  • that reality is intelligible because it is grounded in a deeper, mind-like order
  • that human beings are formed through responsibility rather than abstraction
  • that institutions succeed when their structures align with moral and psychological truth
  • and that judgement, rather than mere process, is the central human function in any enduring system

In this sense, the project is not theoretical so much as practical. It is concerned with building structures that are technically competent, morally serious, and humanly intelligible, on the basis that civilisation is sustained not by ideas alone, but by the quality of the systems through which those ideas are lived.

As a young man, I took for granted the existence of these traditions and institutions, but now I realise they are constructed and maintained by people who observe, think and act. Following my move back to England, two years before covid, I have had time to think, and now I want to put my shoulder to the wheel of action.

What this blog is now for

I started writing here some years ago, at a time when my focus was largely on the changing tools of legal practice; technology, branding, and the early movement toward cloud-based systems. Those questions interested me then, and they still do. But they sit at a lower level than the questions that now, more than a decade later, seem to me to be more important.

This blog is being restarted for a different purpose.

It is not intended as a marketing channel, nor as a stream of commentary on current events. There are already more than enough places for both. It is also not a personal diary. What I want to do here is something more deliberate and, I hope, more durable.

This is a place to think about judgement, structure, and continuity.

In my work as a solicitor, and in building software systems for clients and lawyers, I am increasingly struck by how much depends not on technical knowledge alone, but on the quality of judgement applied to particular situations. Most legal problems are not solved by information; they are resolved by seeing clearly what matters, what does not, and what should be done next. That is a skill, but it is also a discipline, and it is not reliably taught.

At the same time, I am concerned with how systems – legal, commercial, and increasingly technological – either support or undermine that discipline. Many modern systems are efficient, but they are not always aligned with how people actually think and behave. They can obscure responsibility, fragment decision-making, and encourage activity without direction. The question that interests me is not simply how to make systems work, but how to make them support sound judgement and responsible action over time.

There is also a wider context. The institutions and habits that have historically sustained a stable and civilised society, especially law, local life, shared norms of conduct, are not self-maintaining. They require attention, use, and renewal. They are carried forward not by theory alone, but by people who are capable of exercising judgement within them. That, in turn, depends on formation: how people are trained, what they see modelled, and what is expected of them.

So the scope of this blog is intentionally broad, but it is not unfocused. It will touch on:

  • how decisions are made, and how they can be improved
  • how legal and commercial structures succeed or fail
  • how systems should be designed to align with human responsibility
  • how continuity is maintained across generations, in families, firms, and communities

Some of this will be drawn directly from practice. Some from observation. Some from older sources, including writers such as Blake, Green, and Lewis, who addressed these questions in a different idiom, but often with greater clarity than we manage now.

The aim is to build a small body of writing that is coherent, practical, and capable of being used. If it is useful, it should be readable more than once. If it is not, it is probably not worth writing.

Why lawyers are “asleep at the switch” – comments on Jordan Furlong’s article & the real source of law firm success

Jordan Furlong has written a very insightful article (http://www.law21.ca/2013/05/design-your-own-law-firm-a-law21-survey/) that is well worth reading because he summarises quantitative evidence that too many lawyers are ignoring the new realities of their markets, to their cost.

My experience of working in law firms over 20 years and subsequently running three law firms has given me some insights into why this is the case.  Why do many partners pay only lip service to the need for client service when the future success of their firm relies on real action being taken?  

I believe there are at least three reasons:

  • The short term focus on revenues
  • The structure of law firms
  • Competition

The focus on Revenues

Few law firm managers would disagree that the reality for most partners and most teams is that their primary goal is increased revenues. That may seem harsh, but an observation of individuals is backed up by what is presented at legal conferences the world over: it’s all about the money. Even the idea that the billable hour is the wrong way to charge clients is sold to lawyers on the basis that firms that ‘value bill’ will generate increased revenues.  

The old professionalism of being a trusted adviser, part of the fabric of a civil society, has almost been lost.  I can think of a handful of lawyers who practice with the interests of their clients as their central calling, but they are the exceptions. Most lawyers have succumbed to the siren call of the modern world – make money – and it is hard to criticise this decision in a cynical world where our skills are often called upon to help others make money, oppress their relatives and exaggerate claims. 

Further, in the “old days”, remembered by those who were partners in the eighties, in many jurisdictions the legal monopoly on conveyancing, and the extraordinarily high fees for conveyancing work, gave lawyers a subsidy that enabled them to pursue justice on behalf of clients and still make seriously high incomes.  Thus property owners, not litigants, subsidised legal incomes and the notion of a civil society guarded by lawyers.  The reforms, to what were perhaps rightly perceived as legal “rorts”, have had unintended consequences.

The structure of law firms

One problem facing those who wish to focus on client service and bring about change in their firms is that it is difficult to be a lawyer and to simultaneously run a firm, and yet most firms are run by practicing lawyers.

The law firm CEO/GM job is known to be a challenging one because your board of directors and your shareholders are also your department heads.  If you are a managing partner, your predecessor is often there to help, but most changes are not what he or she would have done…The lines of authority are insufficiently clear and so leadership, a prerequisite for change, is diluted to the point of impotence.  Hence most law firms are managed rather than led.

Even at a micro level, for example when a managing partner seeks to assist another partner who has dropped the ball on a client or a matter, it can be a source of embarrassment to all concerned, with a grave risk that relationships will be damaged.  Client service is therefore left to the professionalism of individuals rather than being a firm wide issue that can be the foundation of a brand promise.

Until recently the water has been very warm and comfortable for most senior lawyers, but the struggle for senior partnership or to build a profitable practice has been so gruelling that many of those who get there have run out of energy. In larger firms they lack the training, the experience and the time for either management or leadership.  In smaller firms they have the experience of management, often learning the hard way as they built their firms,  but with so much competition it is difficult to become sufficiently profitable to work on the business rather than just in it.

The fact that there are some brilliant law firm leaders is more a testament to their intellect and capacity for hard work than it is a confirmation that the right attitudes and business structures are present. To have those capabilities and also to be a leader capable of inspiring tired senior partners to make potentially expensive changes to work practices before they retire is, in almost all cases, a bridge too far. Hence the appearance of rigidity in the profession and the risk of the warm bath of partnership turning into a cooking pot.

It is easy to criticize senior lawyers, but most large businesses have a momentum and an access to capital that make it easier for senior management to concentrate on management and leadership. Momentum is more difficult to achieve in law firms because we are engaged in piece-work, paid per job.

Lawyers necessarily have a job by job focus, and most jobs are hard work.  Our reputation with our client often depends on how well we managed their last case, and in litigation and negotiation we are in direct conflict with the other side, usually another very smart hard-working person.  On average, we lose fifty percent of the time, which is draining, and of course rather than getting sympathy from our clients, we are usually called upon to empathise with them, if not defend our own performance and our right to be paid.  It’s not surprising that eventually money becomes the main compensation for many lawyers.

Competition

Competition doesn’t just drive prices down; it makes marketing and growth more difficult, expensive and risky. Those who succeed are either very exceptional or they have sacrificed other important areas of their life.

Where there is the potential for momentum, such as in conveyancing and defendant insurance work, price competition is genuine and margins are much lower than in commercial work, again making it difficult to achieve or sustain momentum and to think beyond the next tender.  Extracting profits every year, as drawings, with minimal reinvestment is also a contributor to poor financial performance in subsequent years.

Very successful firms have often created some kind of reputational or brand advantage, such that either price or volume are much higher than competitors’, and this gives them the momentum, profits and energy to manage better. Many exhibit discipline over drawings, a task made easier when salaried partners are paid to do legal work, rather than to bring in clients, because this keeps salaried partners remuneration down.   It’s a benevolent cycle that contrasts with the vicious cycle that so many firms are now finding themselves in.

I think this is a major difference between law firms and accounting firms; accounting firms enjoy repeating instructions as they manage compliance year after year for the same clients. Small law firms are small businesses, and suffer from the same problems as other small businesses: Undercapitalisation, distracted management and proportionately expensive marketing. But let’s not forget that most small business fail. So far few law firms have failed, but very many partners in small firms are seriously underpaid compared to the effort they put in on many fronts. Hence the focus on revenues.

Solutions?

I used to think the solution lay with technology, and there are many case studies in which law firms have vigorously adopted technology and have generated substantial momentum and profits. However, I would now argue that the real source of these firms’ successes is that they had the leadership, acumen and discipline to adopt and implement a well thought out business plan, and that their successful use of technology is a result of those attributes rather than of the technology itself.

I also used to think that access to capital would be a differentiator that would allow a firm to grow and prosper, but experience has shown that the cultural attributes of senior lawyers are almost always too ingrained to allow a different approach to their business: capital invested is extracted as drawings at the earliest opportunity and spent on lifestyle, property and/or children.  Few lawyers have enough faith in their business to invest in it. Most want to get as much cash out as possible. 

Few lawyers understand that high hourly rates and a compliant public are a diminishing resource.  The social capital of lawyers is like Australia’s mineral wealth – indubitably a blessing, but also breeder of complacence and structural weakness.  That complacence is undermining our fitness to occupy the civic leadership roles we all value and, whether we recognize it or not, are paid to fulfill.   

In the long run, unless we can rediscover our role as guardians of civil society, by acting more honorably than other business people, by providing some advice at no cost, by making simple services available at a fair price and by treating our staff as fellow professionals rather than as billing machines, we will not retain our privileges. Of course many lawyers know and act on this. But it is rarely reflected in the culture of our law firms because they are subject to the economic imperatives of competition and the prevailing culture of “more”.

Two images from pop culture come to mind. One, in the movie Troy, Menelaus complains to Hector when Paris cowers at his feet, avoiding death: “This is not royalty!”, he exclaims. Over charging, whether by “value” billing or exaggerated time sheets is not professionalism. Clients know, even when they say nothing. Two, Jerry Maquire is fired when he proposes fewer clients, better service. How many smart young lawyers have left the profession because they are not prepared to adopt the distorting and depressing culture of the billable time budget? How costly, to families and to firms, has the depression of the remainder been?

I know the difficulties of trying change law firm culture. Even from the top it is almost impossible: I have seen the economic imperatives force decisions that no partner wanted to make, but which most partners felt they had to support.

Every law firm is different, and each needs to spend time looking at its business through prisms other than per partner profitability. Each and every firm needs to support the higher aspirations most lawyers have deep in their souls, and to ensure their firm contributes to the standing of lawyers as professionals.

The transition from profession to business has long hurt small firms and has now gone so far that it is starting to hurt the businesses even of “big law”.  We are being eaten by our own greed and blindness. Let’s open our eyes and think about what is enough.

At the same time, both lawyers and legal regulators need to recognise that professionalism is not compatible with unrestrained competition: in a dog eat dog world it is the meanest dog that prospers, but only for a while. Teaching law cannot continue to be a cash cow for universities and entry to the profession needs to be restricted to those who can demonstrate their suitability as professionals. To some extent the market will drive this reform, as seen by the recent decision of Allens to reduce the number of graduates it is willing to take on and train.

All of these elements need to come together in a reinvention of what it means to be a lawyer.  We need to regain the support of the public by behaving honourably, we need to reduce the number of law students being trained, and we need to reclaim the idea that law is a calling for a public purpose.

ABA Legal Tech Conference – Chicago – April 2013

ABA Legal Tech Conference – Chicago – April 2013

Introduction

Two themes dominated this year’s conference: cloud computing and disruption of the legal profession.

Cloud computing

There were about 111 exhibitors at the conference, of which at least 61 overtly represented themselves as having a cloud-based or Internet component. Cloud was central to the differentiation message of most legal IT businesses, indicating that it is now mainstream.

Most of the interest seemed to centre on the smaller and more innovative IT product and service providers, especially those focussed on Workflow, Document Automation and Document Management.  The major sponsors of the show, Lexis Nexis and Thomson Reuters received much less interest despite the size and central location of their stands.

Interestingly, one area we expected would be popular, on-line marketing, did not garner much attention either. Our business, BHL Software, has been experimenting with on-line legal marketing via the GoodLawyers initiative, but the large US businesses in this area, Avvo and Lawyer.com, did not appear to be very popular. This echoes our experience with GoodLawyers: while we put a lot of time into it and generated interest and referrals, we could not find a business model that paid.

The on-line practice management systems, Amicus, Action Step, Clio, My Case, Rocket Matter (not to be confused with Rocket Lawyer) and Tabs3 were interesting because they generally offered simpler interfaces and less functionality than their “land based” counterparts. This simplicity is an appealing advantage compared to current systems, although the weakness of pure cloud-based systems seems to be a lack of consulting and integration services, as seen in the Salesforce.com experience.

For new firms, it makes sense to begin with an on-line PMS, noting that the low cost of about $40 per user per month will multiply as the firm grows, and that in the US, “practice management system” often means just time and billing or just matter management, with accounting software being a separate purchase. In Australia we tend to provide a complete system, in our opinion a better solution, although Leap has done well in smaller firms with its combination of matter management and MYOB accounting.

In our view, a hybrid system is the ideal solution as it permits simplicity in on-line components, including smartphone and tablet access, combined with required complexity in Windows-based components. In this model, data can be stored in a private cloud or on local servers, controlled by a firm’s contract or in-house IT staff. This is the BHL offering and some other land-based vendors are taking the same approach.

Disruption

Technology appears to be a driver of change in the legal profession. A technology conference naturally attributes changes in the profession to the development of new technologies and the refinement of established systems, but as lawyers we should understand the distinction between correlation and causation.  In our view, the reasons for the apparent changes to the profession are deeper than the automation of tasks, they reach into the significant social changes technology (including the Internet, social media and smartphones) and the deregulation of tertiary education are bringing about.

Since about 2008 there has been a lot of fear entering the legal profession, echoing some of the attitudes of the recession of 1992, when conveyancing was first deregulated.  That fear naturally centres on several pivots:

  • the preference most firms have for lawyers in their thirties and forties, and the difficulties lawyers younger or older than that have in finding good jobs
  • the difficulties many larger firms have in maintaining growth in fee rates and indeed in fees
  • the difficulties many smaller firms face in finding sufficient work and in getting paid
  • the alleged oversupply of lawyers
  • the concern that on-line, do-it-yourself lawyering will take away bread and butter work
  • the reduction of personal injury work because of regulatory changes and the concentration of work in specialist firms, for example Slater & Gordon and Maurice Blackburn
  • the rise of other well-funded specialist firms offering fixed fee or specialist services

All of this feeds the sense that law is ceasing to be the preserve of an educated, ethical elite and is instead becoming an industrialised business like any other, in which service providers are the employees of professionally run and externally funded corporations.

Conclusion

In the past, law has attracted conservatives, people who prefer the status quo and who want to be pillars of their communities. And that has been a good thing.

Increasingly law is attracting and rewarding entrepreneurs, depriving conservatives of control and pushing them into jobs.

Those now in their forties may be the last generation of lawyers who will inherit rather than buy the dominant brands, although the large pool of young talent may enable the largest firms (in American parlance “Big Law”), to continue to recruit the most privileged and the most connected, if not the best and the brightest.

The problem for smaller firms is that the large remaining pool of talent is their competition, not their source of potential recruits. Large corporates will continue to use Big Law, but small firms must usually service small businesses and individuals, facing competition from DIY websites, “Tesco-law” (in fact Co-op law), and a very large number of other small law firms.

The good news is that both small businesses and individuals will continue to require Trusted Advisors. Once you have acquired a law degree and a practising certificate, there are an increasing number of services available to reduce the barriers to private practice. Web-based marketing is increasingly difficult to game, and transparent social marketing will make it easier for clients to find the best lawyer for their budget and needs. If you are that lawyer, if you are a valued advisor, then it is likely you will do well; the cream usually rises to the top. And there are still opportunities for entrepreneurial lawyers who want to use innovation to create the new future.

Christopher Eddison-Cogan is a partner of Barringer Leather Lawyers, a director of BHL Software Pty Ltd and a member of the IT Committee of the Law Society of NSW.

Welcome for The Hon KR Handley to GoodLawyers Meeting

It is a great pleasure to welcome this evening the Honourable K R Handley AO QC to address us on Developments in Proprietary and Promissory Estoppel.

His Honour has had a distinguished career, first as a barrister in NSW, for thirty years, then as a judge of the NSW Court of Appeal , for twenty three years.

In 2001 His Honour sat, in the face of significant physical risk, as one of the judges of the Fiji Court of Appeal which determined that the 1997 Constitution of Fiji remained in force following the coup d’état in that country.

His Honour spent some of his youth in Fiji, was educated at Beecroft Grammar School, at Cranbrook School and at the University of Sydney, and has had a lifelong association with the Anglican Church.  He has been a president of the Council of Cranbrook School and a Chancellor of the Anglican Diocese of Sydney.

I don’t just mention these achievements  as a way of paying tribute to a distinguished guest, but also as an observation that His Honour worked hard as a young man to make the most of the opportunities created by previous generations of distinguished men and women, and then in his turn excelled, continued working very hard, and contributed to the continuation and development of the institutions he knew and valued:  The schoolboy became a school board member and president, the congregant became a Chancellor, and the law student became a lawyer and a senior judge.

This is an inspiring story, one that must encourage all of us to examine our own lives and to see how we can better contribute to the institutions, communities and families that have nourished us.

I hope that His Honour’s presence here this evening is a confirmation of the worth of the aims of this fledgling association, as we seek to promote the practice of law as a profession and not just a business, and as we seek to support each other as part of a community of professionals.

Ladies and gentlemen, please welcome the Honourable Ken Handley.

GoodLawyers – Branding for Lawyers and the Internet – 14 March 2012

Thank you all for coming this evening, and a special thank you to those Partner Members who have understood our vision and who are supporting us while we build a membership, build a profile and start to refer some additional legal work into the group.

In a moment I’ll introduce our guest speaker for this evening, Ian Chipchase, but first I’d like to say a few words on how we believe GoodLawyers can help build members practices and what we are doing to achieve that.
Last month I talked about brands and what I think is the opportunity for GoodLawyers both in the on-line world and in the real world.

As I said last month, we have always thought that a brand name is missing in law, especially in the SME sector. The large firms deal with the top 500 companies, but where do the owners and managers of small and medium enterprises go? How do they find a good lawyer? The answer, according to lawyers, is word of mouth, but clients have often said ‘trial and error’.

It is the difference between those two perspectives, between word of mouth and trial and error which goes to the very heart of what a brand is all about. A brand appears to be about advertising and logos, but in fact it is a signal that denotes a connection between expectations and results. If we want to be successful as lawyers, our signals must consistently match our performance. The main purpose of GoodLawyers is to match clients to quality legal services so that each transaction, each relationship, fulfils the brand promise.

I think that most lawyers are only correct in nominating word of mouth as more important to their marketing efforts than branded law because there is no branded law firm in their space.

But that is changing, and a big driver of change, is Google, and Google is not only important for Family Lawyers, Personal Injury, Crime and Estate work (what we call personal law), it is important for corporate lawyers as well because following any kind of word of mouth recommendation or response to a tender, potential clients will Google you.

As you know, GoodLawyers has a three pronged strategy for helping to build members practices:
1. Encouraging inter-member referrals so that you get more of the work you like in exchange for the work you don’t like. The currency model to replace the barter model most firms use.
2. Raising the profile of members on the Internet so that the increasing proportion of work being researched via the web is captured.
3. Inviting corporate counsel and senior business people into our groups and to these meetings so that we are a source of legal expertise for them.

It is number two I want to talk about this evening because inter-member referrals are now a matter for you, you are here meeting each other now, I expect most of you will meet each other another three or four times this year, and you are free to bring guests to these meetings, so that ball is very much in your court. We are aware that there is some risk for you in bringing colleagues and clients to these meetings because they might meet someone and send work to them that they might have sent to you, but that is why we are restricting membership within specialisations, and we think that for confident members with strong relationships there is much more to gain than there is to lose. But of course that is a matter for each of you.

In relation to the Internet, and especially Google, I will just throw some statistics at you before showing you on screen what we are aiming to achieve.

Let me give you four numbers:

It is said that 90% of people locate internet resources via search and that Google has a 75% share of that.
84% of searchers look no further than the second page, and 65% of people never click on sponsored links.

Being on the first page of the organic search results is therefore what we are aiming for, and we believe that will become increasingly important for lawyers, especially those practicing in what we might call personal law.

Two more numbers:

Around 15% of all sales are now said to be completed online, and internet sales are slated to be 40% of all purchases by 2020.

In our view some of these numbers can be deceptive because they depend on factors such as on-line grocery shopping, banking and loan arranging, travel purchases and the like, but I think we all agree that Internet based research has become very important to most purchasing decisions and legal services either are, or will be, no different.
Nevertheless it is not easy to gain a page one listing on Google, and it is expensive to run sponsored links and on-line advertising. We have experimented with advertising on LinkedIn, but our goal is to gain a high Google ranking without ‘gaming’ Google, that is without any kind of cheating.

Google’s agenda is to provide quality search results so that people keep using Google and advertisers keep paying for sponsored links. Advertisers compete with each other in an on-line bidding war for effective search terms, while websites seek to create sites that rank on Google.

Ultimately, Google is refining the effectiveness of its search algorithms so that it displays the websites users are looking for. It can be gamed, but not for long. Therefore, our strategy has to be to create the website, and therefore the service, that end-users are looking for. We believe that legal clients want and need experienced and ethical lawyers, and in important matters they need specialists. To be effective, our website has to reflect who you are, what you know and how we work.

Key words are part of this, and so are external links, so we are starting to build content, and we are starting to ask members and sponsors for links from their personal profile pages.

The content we have built looks like this, and it has been moderately effective, but we have now commissioned an SEO company to write 25 articles for us each month, orientated around planned key words, specifically in the areas of personal law and employment law. It would be a great help if members can suggest the titles of articles, write articles on their expertise and suggest changes to the existing articles. We realise that this could be a big time commitment, but we don’t want to be a burden on any one member, we want to leverage the benefits of a large community so that by each member making a small contribution, perhaps an article or suggestion every month or two, the whole site will gain the ranking we need.

Our SEO team will research and identify keywords for us, but any anecdotes you have about how people have found you would be appreciated.

Remember, every time we gain a referral we are gaining a following and building a brand. Every time a member get an external matter, they are that much more likely to refer another matter to a member. Securing personal law work helps the corporate lawyers as much as the personal lawyers because the personal lawyers are less likely to try to do the corporate work themselves.

In relation to links, we would be pleased if every member displays the GoodLawyers logo on their personal profile pages, on their own site and elsewhere if possible, such that there is a link from the logo back to the GoodLawyers site. That will greatly assist our rankings as well, leading to more work. Please let me know if you would like to help with this and I will have our technical people liaise with your technical people.

Next month I will talk about corporate law and traditional advertising designed to create a profile in the business communities, but now let me introduce Ian Chipchase to you. Ian is a respected partner with Stacks Goudkamp, he practices personal injury law in Martin Place and he is going to give us a case study so that he talk about the interdisciplinary nature of his practice.