By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Wealth Beat NewsWealth Beat News
  • Home
  • News
  • Finance
  • Investing
  • Banks
  • Mortgage
  • Loans
  • Credit Cards
  • Small Business
  • Dept Management
Notification Show More
Aa
Wealth Beat NewsWealth Beat News
Aa
  • News
  • Finance
  • Investing
  • Banks
  • Mortgage
  • Loans
  • Credit Cards
  • Small Business
  • Dept Management
Follow US
Wealth Beat News > Small Business > Don’t Let Your HR Department Steer The Ship
Small Business

Don’t Let Your HR Department Steer The Ship

News
Last updated: 2023/05/03 at 7:06 PM
By News
Share
8 Min Read
SHARE

We love our human resources departments. They do a lot of good inside a business. They help with recruiting, training and onboarding. They help with setting benefits plans. They help with creating a strong company culture, and many other good things. But I have been involved with a lot of human resources managers that have crossed the line between supporting the business, and dictating the direction of the business. You as the CEO need to make sure you know when it is happening, and do your best to ensure it doesn’t happen, which could capsize your business plan. This post will help you do exactly that.

An HR Case Study—A Single Veto Vote Can Topple the Entire Apple Cart

I was once working with a client where we were setting a new organizational chart structure in the marketing department and recruiting a couple new employees to fill those holes. In that particular instance, the company also had a little bit of a “power struggle” and culture clash going on between a few of the department heads, which needed fixing. My role as the interim CMO was to fix that issue and put the company onto the proper course and growth trajectory, as dictated by the company’s business plan, as created by the team.

When I finalized the organization chart for the marketing department structure that I thought was the ideal solution to hitting the company’s goals and growth objectives, it ruffled a few feathers of the current middle managers in the department, as it would have meant giving up some control over departments they were currently overseeing. But that was part of this company’s problem: the middle managers were inexperienced and doing way too many tasks in one role. The new structure would lighten their load and make the company more efficient and focused. The current middle managers proceeded to defend their turf, and ran to the HR department for support.

At the same time, the new organizational structure, would result in a change of reporting assignments, with people potentially getting a new boss in the process. And, those middle managers, didn’t want to change who they were being managed by. Again, those staff members went running to the HR department for help.

And lastly, as we were recruiting new team members, we were trying to recruit really smart team members that could help move the company’s culture in a direction that was more entrepreneurial and nimble, as opposed to some of the entrenched processes that were slowing down the current thinking and operations. And when those new candidates were interviewed within the organization, again those same middle managers in the department felt threatened by the new people, as making them look stupid, impeding their ease of promotion, or forcing them to change the way they did their work. So, what did they do; they again went running to the HR department to help them.

Now comes the guts of this post. When I presented this organizational and hiring plan to the company’s CEO, he was 100% in alignment and gave me the green light to proceed on implementing it. But when I went to the head of the HR department to help me implement the restructuring and hiring, I was met with a lot of pushback. She had taken all the complaints of the middle managers, layered in her own opinions (as many of those middle managers were her personal friends), and proceeded to try to squash the agreed upon plan with the CEO. The CEO was not one for conflict, and backed down from the original direction, and let the HR department change the plan. The restructuring never happened, the new hires were not hired, and the culture of the department was never fixed. This collectively ruffled the feathers of the strong employees that I did not want to leave the company.

I just couldn’t believe what had happened: a couple disgruntled middle managers not happy with the new plan, just toppled the plan with the support of the HR department head that basically was given a “veto vote” on the company’s high level plans and direction. And, the CEO let it happen??!!

Well you can all guess what happened from there. The half of the marketing team that I did not want to quit, all left for new jobs. And, the company’s revenues dropped around 33% in the process, as the smartest talent in the company left and the newest ideas that would propel the company to new heights, intending to grow the revenues, were not implemented. What a mess!

What this Means for Your Business?

To all you CEOs out there saying this sounds familiar, you have to remember a few important things. First of all, the strategic plan is the strategic plan, and if you have a smart leadership team implementing that plan, you need to let the plan run its course—you don’t change direction on the whims and opinions of a single “veto voter” midstream. And, secondly, the HR department needs to know that they are there to support the business in executing its plans agreed upon by senior management, they don’t get to dictate direction . . . ever!! Yes, their opinions need to be heard, but if they get outvoted by the opinions of the collective management team, they need to back down. And if your HR department manager does not subscribe to that model, they need to be replaced by someone that is willing to march to the beat of the company drum, not their own beat.

This post is not intended to bash all human resources departments or managers, as most are very good. But this post was simply inspired by the one bad apple manager that was allowed to dictate her personal agenda, which ended up toppling the company’s efforts in fixing and growing their business. If any of you think your bad apples are going to spoil your bushel (and worse yet impede your business plan), don’t let it happen. Have conviction in your plan, and make sure all managers are beating to the same drum.

—

George Deeb is a Partner at Red Rocket Ventures and author of 101 Startup Lessons-An Entrepreneur’s Handbook.

Read the full article here

News May 3, 2023 May 3, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Fast Four Quiz: Precision Medicine in Cancer

How much do you know about precision medicine in cancer? Test your knowledge with this quick quiz.
Get Started
Excelerate Energy: Nearby Best Energy-Source Cap-Gain Prospect (NYSE:EE)

The primary focus of this article is Excelerate Energy, Inc. (NYSE:EE). Investment…

Penske Is Steady, But The Road Ahead May Be Bumpy (NYSE:PAG)

Investing Thesis On Wednesday, Penske Automotive Group (NYSE:PAG) released a superficially encouraging…

Top Financial – No, Stop It, This Is Silly (NASDAQ:TOP)

TOP Financial Moves, yes, but why? TOP Financial (NASDAQ:TOP) was quite the…

You Might Also Like

Small Business

Marketing Versus PR: What’s Really Different?

By News
Small Business

Fundraising Strategies For Businesses Scaling Beyond $100 Million

By News
Small Business

The Power Of Personalization In Marketing And Website Design

By News
Small Business

Brilliant Or Lucky? 4 Key Insights For Ventures & Angels

By News
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Contact US
More Info
  • Newsletter
  • Finance
  • Investing
  • Small Business
  • Dept Management

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions

Join Community

2025 © wealthbeatnews.com. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc.

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Lost your password?