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The Culture King Speaks

Culture is King

The importance of culture seems to be axiomatic lately.  I hear how important culture is everywhere from HR conferences to broadcasts of NFL games.  Everybody seems to understand the idea that culture is important.  Is it really? First, let’s define what is meant by culture.  Culture is the sum of all interactions within an organization.  OK… that’s easy to say, but what does that look like in practice?  If most communication with employees is managers giving dictates and not asking for input from front line employees, it means that part of the company culture is a top down command structure where employees don’t have input into decisions.  Think of it as the graphic showing your volume on your phone.  It’s not all on or all off, it’s usually somewhere in between.  How much influence that one particular aspect of your company culture has on the outcome of your business is relative to the other aspects of your culture.    Then let’s define “good company culture”.  This gets a little more difficult because not all organizations play in the same arena.  For example, a “good” culture working at Minky Couture is probably very different from a “good” culture at the Chicago Bears.  Therefore, a “good company culture” has to be defined as the culture that produces the best results for the organization over time.   It’s important to note however, as Jim Collins points out in his landmark book Good to Great, that cultures can sometimes produce incredible results over a period of time, but not be able to sustain them.  For the purpose of this article, we’ll note that a “good culture” is one that facilitates the successful achievement of the company’s objectives over a long period of time.    Of course, all of this points out the nuanced nature of culture and how difficult it is to quickly assess it until you’ve lived it.  It is possible, however, after some study, to find commonalities between successful cultures that seem generalized across industry and time.  If that is done, we begin to see how important culture can be.    Examples of this abound.  According to a research study published by the Society for Human Resource Management (SHRM) in December of 2024, 57% of employees who rated their culture as poor said that “they are actively or soon will be looking for another job.”  While the study didn’t mention who those employees were, I think we can reasonably assume they are the employees who are most likely to get another job.  In other words, they are better performers over all.    SHRM also noted that more than a quarter of employees who found their company culture lacking, said they were “burned out.”      In the light of this, an argument could be made that Jim Collin’s work, more than anything, underlined this one fact: all success is downwind of culture.    Employees who are “engaged” are more productive, more efficient, and solve problems on their own instead of taking it to leadership for a solution.  They are, in short, focused on their jobs and giving it their full attention with the goal of improving it.  They look to build the organization and take personal satisfaction from doing so.  As Sunnie Giles notes in her book, The New Science of Radical Innovation, this is a fundamental component of companies that radically transform their industries.  It can’t be done without engaged human capital revolutionizing processes to produce a better result.    If all of this is true, the natural response from managers should be to make culture their highest priority.  Do nothing to damage it, do anything to enhance it, and then nurture its growth.    In short, culture is king.

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Why Do HR Correctly?

Not sure if you need HR yet?  You do.  As a matter of fact, you’re probably late.    Do you have HR on your payroll but aren’t seeing anything from it but red tape and expenses?  Maybe you’re not sure what HR contributes to your bottom line other than a reduction of liability (compliance).    Human Resources is the art of management.  Your company’s future is only as bright as the people working for it.  Does the future of your company, then, only rest on how good you are at identifying good employees in the interview process or is there more to do?    If you buy a machine that is rated to make 100 widgets an hour, do you accept it when you only get 80 an hour?  Do you get rid of the machine and buy a new one?  Of course not, you have too much invested in the purchase of the machine to simply toss all of that aside and get a new one.  By my calculation the cost of hiring an employee is, at a minimum, half of the annual salary associated with the position you’re filling.     Then why is that the approach that so many businesses take when they hire people?  It’s because they don’t understand the power of engaged employees who actively solve problems, find new ways to accomplish company goals, and grow more efficient over time.     That is the role of Human Resources.  You can’t change the oil, reset the gears, or reprogram employees like you can machines, but you can develop their talents and increase their productivity over time.  Human Resource professionals in your organization are there to help managers do that.      All of the areas that HR manages such as benefits, perks, policies, and pay are only tools that HR uses to ensure your employees become more productive over time.  I’m famous for starting speeches with the phrase “most HR people suck”.  If your HR team isn’t actively improving the efficiency of your human capital, you need to reexamine HR’s role in your company.  …And that’s why The Grange is here.  

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The Role of Human Resources in Modern American Business - The Grange LLC

The Role of Human Resources in Modern American Business

“I like the way your predecessor did parties, I like how you do HR.”     One of the greatest compliments I’ve ever received was when my COO said this to me after my predecessor visited her office.  It was just over a year after I started working for the company and, I have to admit, I was a little insecure about what my COO thought of the dramatically different way I ran the company’s HR department.  The statement came with a lot of relief and, more importantly, validation for what many people would see as a very unorthodox style of Human Resources.    One of my favorite quotes, from the TV show The Office, is a quote by Michael Scott, “If I had a gun with two bullets and was in a room with Bin Laden, Hitler, and Toby, I’d shoot Toby twice.”  It exemplifies the way Human Resources is largely perceived in the United States.  HR is perceived as a “rent taker” (somebody who makes money from the process, as opposed to somebody that generates money by creating value).  I was reminded at several companies I worked for, some very supportive of employees and some not, that the HR function was a cost center.  I was told that it was a necessary and important cost center, but still a cost center.  I was reminded that HR didn’t generate any revenue, create a product, or improve the intellectual property of the company.  “The true role of Human Resources, however, has very little to do with the notion of providing customer service to either employees or management.” Shockingly a lot of HR professionals see the function the same way.  In their minds, the department provides a buffer between itself and ever increasingly complex regulation that can damage the company seemingly without warning.    This was exemplified when I saw a Vice President of HR talking to a group of employees and reassuringly telling them that they could count on the HR department because “We see you as our customers.  Just like the company has customers, you’re our customers.  We’re here to help you.”  The sentiment is well meaning but, like most broad, generalized statements, it betrays the underlying assumptions associated with it.    In this case, the underlying assumption is that “we perform transactional work that makes your work easier or supports you as an individual.”  Stop and think about that for a moment.  The HR department takes a burden off of you, so that you can perform your work.  We get you benefits, perks, and ensure that the company complies with laws that protect you from the company.  We process paperwork like payroll and help you resolve issues when they arise.  A companion statement to leadership is that we’ll protect you from your employees and take care of all of the paperwork associated with them.  With that kind of mentality, it’s easy to understand why senior leadership at the C-suite level doesn’t feel the need to involve Human Resources in large scale executive, strategic, decision making.  It’s easy to see why Fast Company covered its magazine with the headline “Why We Hate HR” above a drawing of a small girl cutting up her dollies.  The message is visceral, “you’re strange, threatening, and don’t provide anything substantial.”    The true role of Human Resources, however, has very little to do with the notion of providing customer service to either employees or management.  HR does provide services to employees and managers alike, but that isn’t its core function.  Does your accountant just pay your bills and count where your money went?  Of course not.  While accounting does pay the bills, tracks money, and files taxes, it also helps you find efficiencies in your operations, organizes resources for growth, strategically recommends ways for the company to grow, and provides a window into what the future may hold for the company.   If accounting didn’t do all of those things, you wouldn’t want them in senior leadership because they wouldn’t provide any value outside of reporting.  HR is no different.  HR is the art of management.  It should provide executive leadership with insight into the company’s greatest asset and largest cost, human capital.  It should provide forecasts and explanations for why employees produce what they produce, should develop leadership to better facilitate productivity and efficiency, and train leadership at all levels on how to maximize the company’s largest asset.    It is becoming increasingly clear that companies who understand the strategic role of HR outperform those who do not.  It is increasingly obvious that culture is king, the org chart is queen, and becoming a vision driven company are the underpinnings of success in the modern economy.  Ironically, that is the role of HR in modern American business.  Yes, parties are a part of that (one that I probably need to be better at), but they aren’t the central function of HR.   

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The Grange - STRATEGIC HR SOLUTIONS

I Have a Vision!

I have a vision for small business: All small businesses will start with a human resources strategy in mind and a policy platform to work from before they hire their first employee.  They’ll design their cultures instead of letting it grow on its own while they’re distracted.  Businesses will start with the understanding that the most valuable asset they’ll have is their employees.  Most of all, however, I have a vision of a world where somebody is there to help them in a way they can afford, doesn’t require huge commitments of time, and supports them while they grow.   That’s why I started The Grange, to make high end, strategic Human Resource services available to small companies from their inception.   Once they have 15 employees, companies begin to be subject to laws that govern employee relationships.  By the time businesses have 50 employees actively working, they are subject to almost every law applicable to a private company.  Here are a couple of examples of the types of things that can trip anyone up, even at this early stage:   The ADAAA (Americans with Disability Act Amendments Act): You catch an employee taking medication that endangers their own safety and that of their co-workers.  When you talk to them about it, they tell you a doctor prescribed the medication and it doesn’t affect their performance or ability to safely accomplish their job, but you know it does.  They also tell you the prescription is a permanent part of their health care and demand to continue to do their job.  There’s no way to do their job and so you terminate them.  You might be in trouble. The Fair Labor Standards Act (FLSA): You have a dedicated part-time receptionist that is incredibly dedicated. On his days off, he checks his email and forwards anything to you of interest.  You’re not in trouble right now, but you could be soon.   There are two things every HR Professional tells a small business owner when asked about these kinds of situations:  1. “It depends” (they’ll have to dig into the specifics before they know if the company is in trouble right now) and 2. You’re only one lawsuit away from being out of business.   But, how do small companies afford the kind of support I’m talking about?  Businesses with 50 employees can’t afford to pay somebody six figures to keep an eye on these kinds of things.  An owner could hire somebody who knows how to do HR but has very little experience.  They could sell their employees to a Professional Employer Organization (PEO) who will do all of that for them at a pretty high price, but are they really working for the company at that point?  What if the PEO does something that generates liability for the business?  It happens.  An owner can call an attorney when needed and spend the whole time looking at their watches because the attorney’s paid by the hour while the attorney says “it all depends” and wants to discuss three or four different ways of handling the situation.   Small business needs a six figure professional that doesn’t cost that much, that is available when needed but doesn’t charge more when they work a lot verses just a little.  Companies need somebody to help them understand how much vacation they should offer, how it should be structured, and how that can help or hinder the company meeting its goals.  They need somebody to tell them if they’re paying too much or not enough when they hire people.  When should they begin to offer benefits?  What benefits should be offered? What kind of benefits do competitors offer?  Should the company match that or beat it?   Companies should be designing their cultures to best meet their goals.  Do employees need to be innovators and free thinkers that disrupt competitors’ business models, or does slow and steady win the race?  How do companies design a hiring process that ensures they’re hiring the kind of employees to do that?  What needs to happen on a daily basis that ensures those results?  Large companies can afford that kind of support and I want to make it so that small companies can too.   This is my vision; That somebody is there for all of these situations and more.  Its why I offer it at a flat rate with no limit on the amount of hours I’m willing to spend working for you.  This is what I do in The Grange.  This is what I’ll do for you.

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What to Expect

The Method The Grange offers its services on a retainer basis.  For a negotiated amount, The Grange will provide your company with Twenty-Four hour human resources support seven days a week.  Shorter term arrangements can be made on a project or hourly basis. Success by Design Successful companies design their culture, policies, and practices instead of hoping it happens by accident.  We’ll begin by identifying your current policies and practices, strategically crafting a path forward that enhances your company vision and its goals.  We’ll develop a plan the company can follow as it grows.  The plan will keep you more than just compliant, it will give you a competitive advantage and help you design a world class culture where employees truly are your best and most valuable resource. Once the plan is in place we’ll implement it by creating the documents, handbooks, and necessary policies to make it happen.  We’ll help you roll it out to employees, train supervisors, managers, and executives in best practices ensuring that the culture you create will be sustainable over time. Stand With You No matter how well crafted, nothing operates indefinitely without the proper maintenance and management.   The Grange will help you design and manage your benefit offering, conduct open enrollment, help you design annual reviews that won’t be a waste of time, message annual increases, and, when necessary, help you resolve “employee relations” that could land you in court if not handled correctly. We’ll recommend products and services best suited to your company’s size, culture and capabilities.  The Grange partners with companies that provide Payroll, Human Resources, and Benefit Management software as well as others that can help you manage 401k benefits, outplacement, and recruiting. Legal Advice: The Grange also partners with Haymore Law to provide you with customized employment agreements, liability release agreements, and other HR related documents that protect you now and in the future.  This partnership can provide you with affordable services and advice when things go beyond human resources. All these services are offered to you at a cost you can afford.  Lay the foundation of success today by partnering with The Grange, Strategic HR Services today.

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Services Found in the Grange

Together, We’ve got this! The Grange offers the following services: Employee Handbook Company Policies Benefit Evaluation and Selection Procedures Annual Open Enrollment Federal/State Compliance 401k Administration Compliance Training EEO Training Harassment Training Supervisor/Manager Training Coaching Training Disciplinary Actions Employee Relations Harassment Investigations Strategic Planning Annual Evaluations Recruiting Training Recruiting Planning Recruiting Cultural Evaluations/Planning Employee Surveys Monthly Metrics

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An HR Consultant that Doesn’t Say No

An HR Consultant that Doesn’t Say No HR has a reputation of saying no more often than it finds solutions to problems.  HR employees are like any other professional employee, they are educated in “best practices,” taught the “legal” way to do things, and are drilled with the consequences of what happens when you’re out of compliance.  Some of them are even educated in how to read a financial. Most HR employees aren’t taught risk assessment.  What is the likelihood of the consequences you’ve been taught about in all your recertification classes?  What will be the real impact if those consequences come about verses the cost of compliance? Executives ask these questions all the time, but a lot of entry level to midlevel HR employees rarely think this way. At The Grange, we never tell an executive no.  We council, we advise, we educate, and we explain the risks, but we don’t say no.  You need an HR partner that that finds solutions, not barriers to success. When you have questions with real impact, we’ll be there with real answers that strategically move you towards your goals.

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Human Capital

Human Capital Are employees your most important resource or not? Employees are your most expensive capital investment.  Just like any other capital investment they have production limits, specifications, installation costs, and, most importantly, maintenance costs. If you’re a manufacturer and you purchase a piece of equipment that is supposed to produce 100 widgets an hour, you’ll do whatever you need to do to ensure it produces 100 widgets an hour or more. Human capital is no different. When you hire an employee, you purchase the equipment.  Employees need to be on-boarded, trained, integrated into your operations, coached, and guided properly.  Some employers think they don’t need to do things that keep employees happy.  Happy employees are productive employees, productive employees are efficient employees, and productive and happy employees make you money. Do you know the following about your most productive capital investment? ·       How long do your employees work each week? ·       What are the advantages of having each employee? ·       Each employee is rated to produce a certain amount of production each week.  What does each employee produce for you? ·       If you changed how you utilized an employee would he or she be more productive?  How much more productive? ·       What incentives exist within the company and what behavior do they produce? ·       Are your employees self-motivated and looking for ways to improve the business or do they just do their job and go home?  Why? If your employees really are your most valuable asset, do you treat them that way?  What would you sacrifice to ensure they are at their productive peak? Do your actions match your words?  It’s easier than you think. The Grange is packed with ways of ensuring your most valuable capital investment gives you the best possible return.  It’s time to improve your ROI.

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Why An HR Consultant?

Why an HR Consultant? Laying the foundation of a business isn’t easy. Doing it wrong can put you in court or worse, trapped with an ineffective team and culture that continually holds back the growth of your company.   How do you get real HR support without breaking the bank? The Grange assists you in laying that foundation carefully and deliberately. 1.   The right processes and procedures to ensure you’re compliant. 2.   The right policies that facilitate growth and create trust between management and employees (handbooks etc). 3.   The right benefits to help you keep the best employees. 4.   The right culture to keep you on top and take care of your customers. 5.   The right plan.  Planning ahead to stay ahead. 6.   The right way to resolve issues, open, honest, and geared to get the best from your most valuable resource, Human Resources.

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