Posted By John P. Palen, CEO & Founder of Allied Executives
A lot of companies claim to have a family atmosphere. I assume that's supposed to be a good thing: caring people, working together, sharing dreams? Well, not every family culture is like that. Some are competitive. Some are disconnected. Some are plain annoying. Before a company claims to have a family atmosphere or any other culture, leaders need to define and claim it. Then they must share and develop it throughout the organization.
Three brothers at a second-generation Plymouth firm did exactly that. In the process of acquiring equity from their father, brothers Troy, Justin and Matt Hanratty realized that they needed to agree on a clear future for Hanratty & Associates, an employee benefits consulting and brokerage firm.
They sat down and mapped out their definition of a successful company, who they were as leaders and how they would work together to achieve their goals in the business. They also wanted business goals to match their personal goals of building families. Their first priority was to invest in the company culture. They approached their father and CEO, Tim Hanratty, with a plan. He agreed.
"We chose the acronym CERVICE as a focus, with the C meaning Clients first," said Justin, who serves as president and has been with Hanratty for six years. "We wanted the spotlight to be on clients and how we would serve them." The other letters stand for Excellence, Relationships, Value, Integrity, Community and Empowerment.
The brothers communicated their goal to the approximately 50 employees. "We told them that we wanted to create a brand that was known as family-focused and that gives back to the community. And we wanted clients who valued their employees and valued our relationship with them," said Troy, vice president of operations who has been with Hanratty for eight years.
Justin focused on sales (with Matt, as part of the sales team). He set up weekly TOT meetings, which stands for "Tree of Trust," the acronym reminding staff to act with maturity. The goals of the meetings include helping each employee stay accountable, understand his or her role at Hanratty and align personal goals with those of the firm. Sales and service teams were set up with a focus on scheduling lunches and other interactions with clients beyond sales.
Troy focused on internal service to the staff and operations, sharing the brothers' goals and determining with employees how to accomplish them. One of the first employee-driven projects was the "Hanratty community crew," which determined several ways that employees could reach out to their communities. Some of their favorite causes include Feed My Starving Children, blood drives and emergency food shelves.
Employees also identified technology investments that would help them serve customers better and do their jobs more efficiently. Following these and other internal changes, Hanratty has succeeded in realizing zero turnover of staff since early 2010. "Relationships are stronger than ever internally and externally," Troy said.
Hanratty focused on clients by defining who they wanted as clients, the values that clients should share with them and what it meant for Hanratty to be a partner and friend with clients. Their marketing message became, "It's Personal."
Making some difficult choices, the brothers realized that clients who didn’t match the culture they were creating would probably find another service provider. They used the "It's Personal" benchmark to locate and attract clients who were interested in relationships and service, not just low rates.
Troy notes that relationships with insurance carriers have also changed for the better. "We explained our new core values to our carriers and our clients. We asked to be held accountable to them. We actually do something with the feedback they give us."
Response has been "magnetic," Troy adds. In 2011, Hanratty expects sales to double. After 35 years of running the firm, Tim Hanratty is stepping back from operations, while his sons continue to pursue a family-focused culture.
"We are excited to create something with our employees that is bigger than sales growth and profits, something we can be proud of as brothers and with our own families someday," Justin said. There are times when the brothers don’t agree on everything, but focusing on CERVICE has helped them reach their goals.
What values and culture drive your company? Define your culture and client experience - then follow through. It’s a proven model for success in business - and family.
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