In this episode of Behavioral Profit, Debbie Longo speaks with Hanna Bauer about a leadership lesson that transformed her business.
After receiving a resignation letter from a valued employee shortly after her company received industry recognition, Hanna was forced to confront a difficult reality: strong processes and systems alone were not enough to retain talented people. Through self-reflection, employee feedback, and a deeper understanding of human behavior, she discovered that the real issue was not compensation—it was connection, communication, and leadership.
Hanna shares how focusing solely on operational excellence caused her to overlook the human side of business and how learning the goals, motivations, and aspirations of her employees changed the culture of her organization. The conversation explores employee retention, leadership accountability, communication, alignment, psychological safety, and why businesses must put people before processes if they want sustainable growth.
This episode is for business owners, executives, and leaders who want to build stronger teams, reduce turnover, improve engagement, and create a workplace where people and profits grow together.
Contact Information
Debbie Longo Email: debbie@lifeinbloomny.net Website: DebbieLongo.com LinkedIn: https://www.linkedin.com/in/debbie-longo-life-in-bloom-ny/
Hanna Bauer Website: https://hannadbauer.com
Hi i'm debbie longo transformational coach and
welcome to the behavioral profit show this show
is about one thing why businesses don't perform
the way they should. Most leaders think they
have a strategy problem, but they don't. It's
behavioral. And it's how decisions are made,
how pressure is handled, and how people operate
inside the business day to day. On this show,
we break down what's really driving missing targets,
stalled growth, and poor execution, and what
shifts when behavior changes. Because when behavior
changes, performance improves, and that's where
profit comes from. We have a very special guest
today, Hannah Bauer, and we're going to take
a closer look at what's really going on inside
her business, what's working, what's not. where
behavior may be impacting performance. Let's
get into it. Good afternoon, Hannah. Welcome
to the show. Hello. Good afternoon. Thanks for
having me, Debbie. I mean, it's been amazing
just being able to zoom in this chat with you
and really, behavior really does drive performance.
So I'm all in to have a wonderful conversation.
Perfect and thank you for being here. So I'm
going to ask you today to give an example of
a situation or scenario that you've experienced
at some point in your life where something happened
in your business and the process of how you got
through it and the end result. And the end result
should always be positive. Now I do the show
for a few different reasons. And one main reason
is because every business is not perfect. There's
always things going on. There's always issues.
And the ultimate goal here, whatever we try to
do, whatever we talk about, the ultimate goal
is for the businesses to increase sales and profits.
Because if the business doesn't make money, then
it can't function. I'm going to ask the listeners
if they could identify with anything, any part
of your example in business that you're giving,
or the process, any part at all, if they could
identify with that, then they could listen to
what we have to say, to what our process is,
and how you got through this, and how you got
over the hump. And this might... educate a business
owner, executive or whoever, maybe that's going
through a similar change to this that doesn't
really know how to get through it. Or maybe they
think that this is just the way that it's going
to be. I'm just a failure in my business and
that's it. This is not the way that it should
be because there's no such thing as a negative
because anything negative, especially in business,
can always be turned around. It could always
come into a positive. So what is a failing business
could be a successful business in a very short
period of time, nine times out of 10. This is
really the bottom line of just a small piece
of what we're trying to accomplish here. So if
you could do that for me, I would appreciate
it. Thank you. Oh, yeah. So for me, actually,
it had come shortly after we had just won an
award for finalist as a manufacturer of the year,
which at that point I was like, hey, on cloud
nine. I'm like, oh, my gosh. We actually did
the thing of a few months, actually, not even
a full two years before that. I had just had
to let go of 60 % of my workforce because of
the disruption that was happening in the marketplace.
So to say that we got this award and we were
at essentially like, oh, we were on the other
side. And of course I was getting myself a good
pat in the back. We're all good. And we get back
in and what do I get? I have a resignation letter.
Definitely not what I wanted, the resignation.
I mean, I had like, what? We are in the middle
of actually on our way up. Look how far we've
come. Obviously, I had made a lot of changes.
Obviously, I hadn't been devoted for transformation
to even be at this place where we were about
to close our doors two years. But what I had
not realized was the leakage of the talent that
was happening in my workplace. And this letter
has not only slapped in the face what I thought.
It took it so personal. I did what most people
do with any CEO executive at that point, which
was to call a meeting. Because how could this
be happening? What in the world is going on?
And come to find out even that the person was
leaving me, not because of even a higher paying
job. Actually, he was taking a lower payment,
but in a place come to find out that was considered
less stressful. in a sense, somewhere where he
would belong and not felt like an outsider or
someone who was failing. And at that point is
where I, of course, took it very personal. Of
course, took it like, hey, I just invested all
this training in you. We just went through the
hardest part. We came on the other side. We're
not saying it. Even outsiders are saying it.
How can this not be the place you want to be
at? And even like, I couldn't pay him enough
to stay. And that was a harsh reality for me
when I started looking at the people around and
when we started talking, I realized I had not
noticed that there had been this leakage in the
changeover. How many people we were even having
coming in or coming out, I took it more like,
hey, they just kind of, it wasn't a good fit.
It didn't quite really. know what we were doing,
but I did not see it as really what it was. And
that really was from my Six Sigma learning is
the loss of human potential. I was not capturing
what the potential was in my people because honestly,
I didn't know my people. And it wasn't until
I started, I made that change. I mean, in all
honesty, I had gotten so much into processes
and systems. through Six Sigma, which was great.
I mean, it did its job. It did what it needed
to do, except it was not sustainable. And it
wasn't sustainable because, again, it is the
processes are for the people. They run by people.
It's great, this theory that we have input, output,
input, output, and it works great until you put
a human in there. And the human is not linear.
A human is a complex being. And I had left this
complex, beautiful being out of my everyday process.
And I had to make that change. And the change
was for me to go learn the human behavior. I
needed to learn how to communicate with my people
because obviously what I was calling communication
was not communication for them. And that's where
I became certified in this, got to learn not
only how I communicated, but how it was. people
receive my communication, but better yet, how
can I communicate and connect with them better?
It was a process. Again, it was a lot of learning.
But the first thing I had to understand is not
only who was I doing work with, but why were
we even working together? And in that why working
together, I started learning their dreams. I
started learning why was my salesperson there.
One of the things I remember the first time I
really asked, okay, why are you here? especially
as we were just making it up from coming from
a very tragic place. He shared with me that he
was really working there because he just had
had a baby. Well, first of all, mistake number
one, I didn't know that. I should have known
that my employee had just had a baby. Somebody
should have told me so. That was the first one.
It's like, oh, this is what I learned when I
started becoming intentional to learn who my
people were. Even more he wanted to see that
be his little baby's toes inside the sand and
he wanted to make that memory with his child
because he didn't have that opportunity with
his father and he wanted to make a change for
his family and it started with that and Suddenly
that vision for him became my vision, but then
it wasn't just that I started doing the same
thing with my person in the front desk now she
was in one of my elder employees, and this was
actually her last job, what she would consider,
this is my last job. She was getting ready to
then retire. And I even asked her, well, why
are you here? She didn't have to be, she was
choosing to be here. And she told me it's because
she wanted to end and she wanted to end well.
And at that point I was finding out what would
make her end well. What was it? She believed
in the vision and the purpose of the company.
It was what she was living for. It was what she
wanted to retire. That to her, working in a place,
in a vision, in a mission that she could believe
in would end well a long life career. The burning
question for me at that point was, what type
of business, what type of organization did we
have to become so that these dreams not only
were supported, but these dreams would become.
facts, they become reality. But I understood
that now, at that point, it wasn't only the bottom
line. The bottom line was necessary, but it was
even so much more than that. And I would have
totally missed that moment. I would have totally
missed what we were able to do even better than
getting an award or recognition from out there
because we're so efficient. But I would have
missed that moment of becoming an organization
that valued our people, but even becoming an
organization that, as we kept on going later
on, helped be innovative in a time where disruption
was happening all over us. And that's what we
did. Yeah. That makes a lot of sense. And that
was a very good example. Thank you for that.
What was the process when you got the resignation
letter all the way until this person quit and
resigned? That process like the process first
of all for me was to calm down Taking out what
it was but exit interviews. I mean I did I had
learned the value of exit interviews I needed
to get feedback So that was one of the things
and that's what I realized not down the grapevine
Not like you like somebody telling me somebody
heard somebody heard but actually had value I
needed to know what the exit interview and I
did value him That much that I needed to know
what it was. So that was the first process and
then really understanding because of course I
wanted to keep them I need to know like hey is
there an opportunity for us to continue working
and I really that's when I understood I could
not pay him enough There was it wasn't a paycheck.
It wasn't the amount in the paycheck. It was
the environment So that process was there for
us being able to capture that the second process
is hey listening Because somebody can tell you
that, say, well, that's their problem. We still
got people here going. And no, I mean, for me,
I really took that to heart. And that was, again,
coming up because I didn't want to let go 60
% of my employees. I mean, I had done everything
so that we would prevent exactly that. And that's
what we have become, Transform Over Two Years,
so that now we can... hire everybody back and
make sure everybody's gonna get a paycheck. And
of course me as an owner is they call them not
going to jail because I can't pay my employees.
So that was definitely part of it. So to hear
that now it wasn't because lack of work, but
this person was choosing to leave me. It brought
back to what my mentor John Maxwell says that
people don't leave organizations, people leave
people. And realizing that okay it wasn't just
your it wasn't really an organization but really
it had become a leadership problem. And something
that i definitely had to also the process for
that is also becoming aware of where's the root
problem at and the root problem was right here.
It started with me. It started with the leadership.
It started with what our leadership, the entire
structure of leadership, what was the support
that he was getting from not just me, but from
the other leaders that were there. That we have
structure in the way that we were providing that
support to the leaders, especially to the middle
line managers. What was that support? What was
that feedback loop? Then I did start looking.
The process was one, acknowledging for me, the
other ones start asking questions. I couldn't
do anything else for him. I mean, he went on
and had his own separate life, which was great.
It was this award for him. But I still had a
responsibility, again, to not only be able to
care for the ones that were with me, but also
understand how I can prevent that. At that point
with Six Sigma, And both of my previous, I just
wanted to care. I mean, I wanted to care. I just
was caring in a different way. I was caring with
processes and systems, and I didn't understand
that I had to put in just as much time, if not
even more, to the human aspect so that these
processes and systems could amplify what the
humans were already doing, not the other way
around. So that was part of what the process
became. Yeah so thank you for that and that was
very good very detailed and it really gave an
enormous amount of information because you touched
on a lot of different areas of what you went
through and what your process was and they were
all different we didn't just focus on one thing.
which is good because when you combine all these
different ideas and processes and things that
happened into one example one scenario then we
can see that multiple things are happening it's
just not one problem one issue no no there was
a few things that i was thinking of when you
were. Speaking and one thing was that I always
want to pay attention to the people first If
I'm a business owner or an executive, I don't
want to pay attention to the business first So
if I pay attention to the people first I'll get
more out of my people and then the business will
increase in sales and profits but if I pay attention
to the business first to the numbers and the
sales and the profits and how am i running my
business and i'm not paying attention to the
people first then the people will leave. What
the people will be unhappy or the business owner
winds up controlling and manipulating their employees
and we don't know what's gonna happen after that.
This is just one thing that i'm getting out of
this and also like i mentioned about all the
different things now i wanna ask the listener.
to rewind this, because there's a lot of information
here, and we made a lot of different points about,
I'm not gonna repeat every one that you said,
but we gave a lot of different examples of multiple
things that could happen with one situation,
one scenario. So I'm gonna ask the listener to
rewind this and listen to each one. and see if
they could identify with that and employee resigning.
Maybe that is not your situation, but maybe one
of the things that went wrong in the example
that we just gave here, maybe the business owner
or the executive is going through this same type
of problem or things that went wrong. Because
believe it or not, human beings have behavior
and they follow each other. and we copy each
other and things just go down the line. So what
you're saying, there's a very, very, very good
chance that there's got to be at least one person
listening to this that has experienced something
of what you said. And this is why your story
and the way that you told it and the examples
that you gave and the problems that you had is
extremely valuable. There was a mismatch in perspective.
I thought I was caring for them and I thought
it would show because of my commitment and my
processes and my things, basically relentless.
However, the way it was perceived was not that.
It was perceived more like another cold thing
by management, somebody who's just trying to
get things done. It really left them on the side.
So really, I think a lot of times it's just that.
And I think everybody may have felt that at some
point where you do something and it's misinterpreted,
that wasn't your motivation or your intention
at all. On the contrary, my whole goal had become
to make sure that I would never have to lay off
anybody. That was, I wanted to preserve. I wanted
them to be able to provide for their families.
I wanted them to do great things through this
work, but they didn't come across that way. It
came across as somebody that was being called
that was relying into things that we needed at
the time. It wasn't the right decision, but you
cannot rely on processes and systems and leaving
the person behind. And that was really where
the perspective gap was at. And that gap easily
could have been closed again with keeping first
what is first, and that is people. That was very
good. Thank you. But there are multiple things
going on and you recognize all of them in your
business. And you were able to turn this around,
right? Where you're not struggling anymore. And
this is what it is. This is the best way that
I want to be able to look at myself and say this.
And sometimes something triggers something else.
If I see a problem or an issue or something that
I need to correct. Then I say, OK, I'm going
to do that. Then I say, oh, wow. And now I see
something else. Of course. And I didn't I didn't
realize that until I saw this one thing. Then
I fix this other thing. Then something else comes
up. And so each time I recognize something and
I do something about it, I don't just recognize
that there's an issue or a problem. And then
I leave it alone and I say. It'll correct itself.
It's not happening. So this is what I don't want
to do. And I want to be able to see, because
most people have like more than one issue, that's
really the bottom line here. But if you can see
one and you're able to correct one, then that's
fine. No, I love what you just said there, because
I think it's true. It's like you want to see
like, oh, everything I need to do. No, just take
that one. Just take that first step, because
after you take that first step, then you're going
to be able to see the next step. And I would
say that's true with everything. I mean, you
don't know. Yeah, like my case, I did fail. We
did have success in one thing, but then I failed
at the very thing that I knew was going to be
needed for my business to make it through. But
nonetheless, you know, everything was with one
step, everything we had to fix certain things.
There's decisions that are right for that time.
I think the mistake comes in is when we get stuck
in believing that whatever fixed it last time
is going to fix it again, when we know that everything
is changing. So taking that one step and being
able to get through, but also being open enough
to understand that there's still more things
and that this is not the one and all solution
for everything. Being that humble enough and
also being open. in every step, but just take
that first step because you really won't know
what the next step is going to be until you've
taken that one. And it may work, it may not work,
but that's a good thing. That's a good thing
about being alive. We have always have opportunity
and really our greatest lessons come from our
greatest failures. It's always baby steps, but
I don't want to be in denial where I think there's
not a problem when I know that there's multiple
problems. And that's a big thing that I find
also. Any business owner, it doesn't matter who
you are or executive or whoever you are, can
get through anything. They can get through the
other side as long as they trust the process,
as long as they create the willingness to say,
I think there might be something wrong. That's
it. Nobody's asking for... to want to do it,
you know, and have the problem solved and everything
is going to be perfect in two seconds. Because
it sounded like the way that you explained your
story and everything, that it was a process for
you, too. And obviously you explained how it
was. If I just can say that I think something
is wrong or I might want to maybe do a little
better in my business, my business. did not do
good as good last year as it did the year before,
or it's not on the right track this year, or
something like that, before it gets to the point
where your situation, where people quit and this
and that, and that is, like I said, this is what
you were talking about, which this is what I'm
saying, the way that you said it, the way that
you said the process and everything. was just
very, very good because you just laid it out
in a very, very, like, organized kind of way.
To me, it sounds like somebody could really understand
that, and it was also simple. So this is the
thing. So the business owner maybe wants to think.
Just think. Nobody's saying that you have to
do anything right this second. Take action. You
don't have to be Superman or Superwoman. You
don't have to be. Just think. Is there anything
here that you can relate to, the listener, as
a business owner or an executive? And maybe if
there is... Maybe you want to think about correcting
that or think about if there's something that
you can do about that. And maybe that will help
your business. If you don't think it will, then
that's fine. And this is really one of the main
goals of this. What is the result of that and
how do you feel today based on all of that? Sure.
So what it really taught me was the value of
alignment, because there was a misalignment between
what I said and what I was keeping track of.
As I mentioned, I didn't realize the leakage
that was happening in my business. Had I had
the metrics, had I had the measurements in place
what to look at, I could have seen this before.
So it wasn't like a hidden thing like surprise.
No, it was basically if we keep going this way,
this is what's going to happen. But if I didn't
have my pulse of where my organization was and
really measured those things that were important
to my business, I was going to miss it every
time. So what I would say is, are those things
that you say are important to your business?
How do you know? And how are you keeping track
of that? Because in that case, and that's what
I had to learn, it wasn't just what people were
not going to understand my motivation or the
things, or even me, the decision -making process.
I mean, if I'm trusting my leaders to decide.
how would they decide if I'm not giving them
the right framework or the right priorities to
make the decisions with? And that all goes back
again to alignment. So really what came out out
of all this is understanding is, am I really
keeping track of those things, the measurements
of what we say are important to us as an organization,
are important to the vision, and are important
to the mission? And I would tell that that's
what really the audience needs to know that.
Are the measurements, it's what you're tracking,
really supporting and letting you know those
very things that you value, your people, if it's
your product, your client experience, your customer
experience, what is it that you say in your values?
How do you know that indeed your organization
is being a champion for that and also everybody
in your company knows that this is how? we value
it, it's how we measure it, it's how we not only
behave this way, but this is what we reward,
this is what we want to see of. So that's what
I would say in DLM and that's really what I learned,
understanding to be able to communicate that
across entire business and then going back to
the psychological safety because then that meant
that my leaders were specifically, I gave them
the perspective, I gave them the lens. to what
support, to what motivate more of, to what is
it that we really wanted to see alive in our
business. In our business, I wanted to become
that business that made those dreams happen,
that allowed for people to take vacations, enjoy
their kids, finish well, be with us for a long
time, because they were working with us for years,
that we were the place that they wanted to end
well with. Perfect. That's a great ending. And
that's a fantastic closing. And I thank you for
that. And in closing, I would like to say that
anybody Any business owner can get through any
problem or issue or anything that they have because
there's no such thing as a negative, because
anything that's any negative situation can always
be turned to a positive, providing that I create
some type of willingness or something to see
that there might be something going on. And then
I want to think about whether I'm going to take
action on that. If you could relate to anything
that was said here, I appreciate. to rewind this
and listen again. Before we wrap up, I want to
leave you with this. That's what behavioral profit
is all about, understanding what's really driving
performance inside a business. If something isn't
working, it's easy to assume it's strategy, the
market. or external factors, but more often than
not, it's how the business is operating day to
day. Once that shifts, everything else follows.
If your business isn't performing the way it
should, there's a reason, and it's not random.
If you want to identify what's driving your results
and fix it, connect with me directly. Thank you
for listening to this episode, and thank you,
Hannah, for being on the show. I appreciate it.
Thanks. Thanks for having me.