“People Strategy” Important for Businesses, Business Plans

By Kevin Kennemer

While I was attending a Great Place to Work Institute conference, an organizational consultant spoke about a client that displayed posters throughout its offices with the message “Our valued employees are always treated with trust and respect,” yet the employees underwent security searches before entering each day. This was an unusual practice for a civilian organization with only “normal” security concerns. The consultant questioned the leaders about the conflicting messages. The organization discontinued the searches.

Avoid Conflicting Messages

The leader of this company was oblivious to the conflicting messages his employees were receiving. Smart and successful business managers are more careful. They pay closer attention to the messages given. This is because company culture matters. You want to build a winning culture, a unique yet healthy one that breeds teamwork, loyalty and productivity.

People Strategy Is Mission Critical

When writing and executing your business plan, don’t forget the people strategy. People strategy is as important as your marketing plan and cash flow projection.

To be sure, many CEOs boast, “Our people are our most important asset,” but judging by the vast numbers of unhappy, unfulfilled and burned-out workers across this great nation, more times than not, it’s little more than lip service. When developing your business plan, address the following:

Culture. What type of company culture do you have? Keep in mind that the culture typically mirrors the personality of the leader. Be true to it and bring out its most admirable qualities. Define it and adhere to it. Build your brand and your internal and external messages around it.

Merit-Based Promotions. Do you evaluate, compensate and promote based on objective performance and results, or stick with the old “who looks the best” or “who has the pedigree” or “who sucks up to me in the most skillful manner?”

Integrity. Are you a “by hook or by crook” organization or “we succeed and win with honesty and integrity”? Organizations that seek success by the former route tend to implode eventually.

Identity. Does your organization have shared values? Shared beliefs? Guiding principles? If so, are they real or just handbook material/wall fodder?

Hiring. Do you hire impulsively and make selections yourself based on recommendations, tests or other subjective criteria, or do you place high on the list the candidates who fit with your culture and the recommendations of your existing employees?

Jerks Welcome? Do you employ jerks? Allow people to act like jerks? Or do you require manners? Ladies and gentlemen? Kindness and cooperation?

Employee Work Flexibility? Are you innovative, trusting and understanding, or strict and traditional when it comes to employee work arrangements? Keep in mind that employers who are creative in how they accommodate the work needs of talented individuals tend to be more productive and profitable.

You’re the business owner. You can build your company any way you wish. But my experience is that company cultures often are left to develop on their own. The result is often “yuk, how did we get here.” So here’s my plea: Your culture is too important to be left to develop on its own. It should be part of your carefully crafted business plan, regularly monitored and tweaked. Do this and you’ll be proud of what you create. It’ll be a place where people want to work.

Kennemer is president of The People Group ThePeopleGroupLLC.com.