Louie Lugo
Chief Human Resources Officer
North Range Behavioral Health
Episode 283
Unlock Growth: Why HR Leaders Must Master Business Strategy.
Current chapter: Built by People podcast features insights from world's top HR leaders
Built By PeopleMarch 5, 2025 · 15:34
Thesis
“Louie Lugo's core belief is that effective HR leadership hinges on understanding the business model to bridge people strategy with business strategy, fostering a culture of trust and strong relationships that enable both organizational success and individual authenticity.”
Show notes
Most CHROs arrived in HR through a predictable path — psychology, business school, a stint as an HR coordinator. Louie Lugo came through music. And that unconventional journey may be exactly why his perspective on people strategy is so refreshingly grounded: relationships aren't a soft benefit of good HR. They are the work output.
As CHRO at North Range Behavioral Health, Louie operates in one of the most demanding environments in the sector — a behavioral health organization where mission alignment is everything and turnover can be existential. His central conviction: "Ultimately what we're tasked with is bridging people strategy with business strategy. And to do that, you have to deeply understand your business model." That means HR leaders can't afford to be generalists floating above the operation. They have to know what the organization actually does, how it delivers value, and what threatens that delivery.
Louie draws a surprising parallel between solution-focused brief therapy — a clinical framework for helping people build on what's already working — and effective performance management. Instead of cataloging deficits, he helps employees connect their work to their authentic strengths. The result: higher engagement, fewer exits, and stronger internal success stories. He's also blunt about the danger of cynicism in HR careers: the field has a way of wearing people down, and maintaining a positive vision — leading with kindness and gratitude, owning your mistakes — isn't idealism. It's a professional survival strategy.
- Bridging people strategy and business strategy — why it starts with understanding your org's actual business model
- Strength-based performance management — adapting clinical frameworks to align employees with what they do best
- Relationships as measurable HR output — why trust and connection aren't soft metrics
- Building a high-trust HR function — turning difficult employee situations into internal success stories
- Measuring HR success authentically — going beyond activity metrics to track real organizational impact
- Avoiding jadedness in a demanding field — how to stay energized and values-driven over a long HR career
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What you'll take away
- 1CHROs must deeply understand their organization's business model to effectively align people strategy with business strategy across all sectors.
- 2Implement performance management approaches that align employee work with their strengths, potentially adapting clinical concepts like solution-focused brief therapy.
- 3Cultivate a high-trust environment where employees and managers feel comfortable engaging with HR, turning challenges into opportunities for success stories.
- 4Recognize strong relationships as a critical 'work output,' fostering collaboration, productivity, and psychological safety through transparent communication.
- 5HR leaders should actively resist becoming jaded, maintaining a positive vision for the HR function, leading with kindness, gratitude, and owning their mistakes.
What most organizations get wrong
- •Louie suggests that HR should not primarily alter job descriptions to fit individuals, but rather align job content with program needs, then fit the right qualified person.
- •He posits that 'relationships' are a 'key work output' for HR and managers, challenging a purely quantitative metric focus and highlighting the intrinsic value of connection.
In Louie's words
“Ultimately what we're tasked with is bridging people strategy with business strategy. And to do that, it really requires understanding the business model, regardless of what sector that is.”
This quote defines the fundamental strategic responsibility of CHROs in aligning human capital with organizational goals.
“If someone in a specific program might be struggling, but they what they do, you know, they're highly qualified, they might be a better fit for a different program.”
This highlights a strengths-based approach to performance issues, suggesting re-alignment rather than just corrective action.
“I have a lot of gratitude and value for is that our people feel demonstrably comfortable approaching HR for a number of different concerns, both at the employee and the manager level, which, you know, I think as we know is not true everywhere.”
This emphasizes the critical importance of building trust and psychological safety within the HR function.
“If you have good relationships with those around you, it is easier to get things done. There's a synergy, there's a productivity piece that is very real.”
This underlines the practical, tangible benefits of fostering positive workplace relationships beyond mere camaraderie.
“We help people who help people. We don't make widgets and there's nothing wrong with making widgets, but when we get to help people who are doing the work to help others who are really in need. And we're actually in these programs, seeing what's being done and knowing how our support helps others be their best to support others. That's incredibly fulfilling and motivating on an intrinsic level.”
This articulates the deep intrinsic motivation and purpose found in mission-driven HR roles, particularly in healthcare.
“We have to make a commitment to ourselves as HR leaders and professionals to not get jaded, to not be jaded, to think up, to assume up, to envision what we think the HR function or the people function should look like and kind of reverse engineer from there.”
This offers powerful advice for HR professionals to maintain optimism, vision, and proactive leadership despite potential challenges.
The problems this episode addresses
- •Employees are concerned about covering monthly expenses (e.g., cell phone services), indicating a need for financial well-being benefits.
- •Managers face intense challenges and may lack the necessary support to navigate complex employee situations effectively.
- •Employee work performance struggles require strategic intervention, potentially through re-alignment or specialized performance discussions.
- •A lack of psychological safety prevents many managers from having necessary hard, vulnerable, and transparent conversations, hindering resolution and relationship cultivation.
- •HR leaders and professionals risk becoming jaded by negative experiences or a lack of understanding/support from management, leading to a 'downward spiral.'
- •Some HR leaders struggle to articulate their needs and 'what to ask for' from their management teams, impeding HR's strategic influence.
In this episode
Built by People podcast features insights from world's top HR leaders
Built by People
Dave was a professional musician by trade before diving into human resources
The Career Journey of Human Resources
How can CHROs create internal success stories that showcase HR strategies
How can CHROs create internal success stories
What approaches do you use to help employees align their work with their strengths
How to Enhance Employee Job Satisfaction and Performance
Curious how you bridge people strategy with business strategy
Bridge People Strategy and Business Strategy
Louie says changing job descriptions can boost engagement and retention among employees
Employee Engagement and Retention
How do you measure the success of some of these HR initiatives
How to Measure the Success of HR Initiatives?
Relationships are a key work output at NorthRange Behavioral Health
Relationships are a key work output
Louie, what parting advice would you like to share with our audience
Louie's Last Words for HR
Topics covered
Organizations and entities mentioned
Full transcript
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