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Leander LeSure

Chief People and Diversity Officer

Smarsh

Episode 231

HR's New Mandate: Strategic Courage to Shape Culture, Drive Business Outcomes

0:0013:13

Current chapter: Covering monthly expenses is the number one concern for employees in 2024

Built By PeopleBuilt By People
Podcast

April 15, 2025 · 13:13

HR LeadershipCulture TransformationTalent ManagementPerformance-Based Rewards

Thesis

HR must transcend administrative functions by deeply understanding the business and having the courage to make strategic talent decisions, thereby intentionally shaping culture and aligning rewards to drive sustainable organizational results.

Show notes

Title: TRANSFORM SPONSOR: Leander LeSure, Chief People and Diversity Officer at Smarsh Date: Tue, 15 Apr 2025 09:00:00 GMT Duration: 00:13:13 Link: https://podcasters.spotify.com/pod/show/previ/episodes/TRANSFORM-SPONSOR-Leander-LeSure--Chief-People-and-Diversity-Officer-at-Smarsh-e30ot84 GUID: 0dff36cb-ba01-45b8-812e-558d2628804e ────────────────────────────────────────────────────────────

"How can you grow my business if you don't know my business?" It's a question Leander LeSure asked himself early in a 30-year HR career spanning manufacturing, consulting, and financial services — and the answer has shaped every leadership decision since. The Chief People and Diversity Officer at Smarsh learned the hard way, early, that HR credibility is earned on the operations floor, not in the policy manual.

His defining lesson came during his time at Pizza Hut, where he spent time working in restaurants before trying to support them. That experience transformed how he thought about the people function: HR that doesn't understand how the business actually runs — the pressures, the tradeoffs, the daily operational reality — gives advice that doesn't land and recommendations that don't stick. It's not a seat at the table problem. It's a relevance problem. Leander has spent the rest of his career building HR functions that are deeply embedded in the business they serve, with the courage to make talent decisions that most HR teams avoid.

At Smarsh, that means HR leaders who act as strategic partners in real decisions — not advisors who show up after the fact to manage fallout. It means pay-for-performance structures that are rigorous enough to actually differentiate top performers, and a culture-talent-results framework he describes as a three-legged stool: weaken any leg and the whole thing wobbles. His retention numbers — 90% for highest performers — reflect what that rigor produces.

  • Learning the business before trying to change it — why embedded understanding is HR's most important credibility builder
  • Courage as a leadership competency — how HR can use its horizontal organizational view to make the talent calls others avoid
  • Culture is what you tolerate — how tolerance for low performance or misaligned behavior defines organizational culture in practice
  • Pay for performance with teeth — how rigorous differentiation drove 90% retention of top performers at Smarsh
  • The three-legged stool — why culture, talent, and business results are interdependent, and what happens when one weakens

This episode is in partnership with Transform — a community worth exploring at transform.us.

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What you'll take away

  1. 1HR must deeply embed itself in business operations to provide strategic value, moving beyond generic, procedural advice.
  2. 2Cultivate 'courage' within HR to leverage a holistic organizational view, make decisive talent assessments, and act on underperformance in critical roles.
  3. 3Define and shape culture actively by consciously choosing what behaviors and performance levels to tolerate within the organization.
  4. 4Implement a robust pay-for-performance philosophy to significantly boost motivation and retention among high-achievers.
  5. 5Recognize culture, talent, and business results as interdependent pillars; a weakness in one destabilizes the entire organization.

What most organizations get wrong

  • HR professionals often 'lack a bit of courage' in leveraging their comprehensive organizational insights to make and act on difficult talent assessments, which impedes business success.
  • Culture is succinctly defined as 'what you tolerate,' directly challenging abstract notions and emphasizing accountability for accepted behaviors.

In Leander's words

How can you grow my business if you don't know my business?

This quote profoundly highlights the essential need for HR to deeply understand operational business functions to be a true strategic partner.

The people function participants lack a bit of courage. We are one of the few functions that has a horizontal view of the organization structure and talent, a diagonal view of the organizational structure and talent, and we don't leverage that knowledge and understanding.

This points out a critical internal challenge for HR professionals, urging them to be more assertive and impactful with their unique insights.

culture is what you tolerate. If you think about that for a second, culture is what you tolerate. You can tolerate high performance and delivery, which is a good thing. You can tolerate the lack of performance and delivery. Which one do you want to choose?

This offers a stark, actionable definition of culture, emphasizing leadership's direct role in shaping it through their tolerances.

we have now retained our highest performers at about 90% retention. So pay for performance and having the right talent in the job, which is what I call talent uplift, are some meaningful things that I do to drive business results.

retention

This quote directly links a specific HR strategy (pay-for-performance) to a measurable, positive business outcome (high-performer retention).

Culture, talent, and business results. That's a three-legged stool. Any of those legs that are weak, it's gonna be a wobbly seating position.

This powerful analogy stresses the fundamental interdependence of these three pillars for organizational stability and sustained success.

The problems this episode addresses

  • HR teams delivering ineffective, generalized advice without truly understanding specific business unit operations or profit drivers.
  • Loss of motivation and retention among high-performing employees when compensation and rewards are not clearly linked to individual performance.
  • Organizational paralysis or suboptimal outcomes stemming from HR's reluctance to make courageous, objective assessments and decisions about talent capabilities in critical roles.
  • Instability and lack of sustainable results when the foundational elements of culture, talent, and business outcomes are not equally strong and aligned.

In this episode

Covering monthly expenses is the number one concern for employees in 2024

Built by People

Dave Zirin shares his career journey and perspective on leadership and culture

The 30-Year Career Journey

Early in your career at Pizza Hut, you learned the importance of truly understanding business

How Can You Grow My Business If You Don't Know My Business

Leander says HR needs to be at parity with other business functions

How to Build a Strategic Partner in the Business

Leander believes investing in people leaders is key to shaping workplace culture

Leander on People Leadership

You've structured your accomplishments into 3 areas: culture, uplifting talent and pay for performance

Culture, Talent Uplift and Pay-for-Performance

Leander offers advice on how to balance culture, talent and business results

Leander On Talent, Culture, and Business Results

Topics covered

Organizations and entities mentioned

Full transcript

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