Spring 2020

Page 1

IN THIS ISSUE:

SHOEI FOODS: A VISION TO BE ICHIBAN BUILDING BLOGS Did you know Morrison publishes a weekly blog? Check out some of the insights our team has shared this past year.

ShoEi Foods (pronounced SHOW-ay) first

walnuts

opened its doors in 1904 when founder,

farm 12,000 acres in the Sacramento and

Tasuke Honda, started the Seikosha Milk

San Joaquin valleys. ShoEi Foods processes

Shop and a dairy cattle farm in what is now

approximately

Ota-ku, Tokyo, Japan. Brothers Shoichi and

and prunes annually. In addition to their

Eiji Honda took the growing business and

California-based facility, they operate nine

incorporated as ShoEi Foods Corporation

other international facilities.

in 1947. By 1985 they had expanded into the United States with their Oregon-based food ingredient subsidiary, ShoEi Foods (U.S.A.), Inc.

contracted

30,000

growers

tons

of

who

walnuts

ShoEi Foods is also involved in exporting goods such as pine nuts and pumpkin seeds from its overseas plants; processing and manufacturing raw materials for the

By late 1990, ShoEi Foods had concentrated

confectionery,

all US operations in California. Recognizing

industries; and dairy processing in Japan

the opportunity that the fertile Sacramento

and elsewhere.

Valley could provide, ShoEi Foods began

THE HUMAN RESOURCES AUDIT

from

growing and processing prunes, and in 2008 entered into a working partnership

Morrison Principal Shawn Miller breaks

with Sunsweet Growers. Soon after they

down various types, elements, and benefits

established a walnut processing facility in

of human resources audits.

Olivehurst, CA and planted several hundred acres of walnuts. This facility has allowed ShoEi Foods to process and sell walnuts for markets in both the United States and Japan. Today ShoEi Foods grows prunes and walnuts

on

1,000

Sacramento

Valley

acres, while also purchasing prunes and

bread,

and

food

service

By leaning on their long history of integrity in

business

dealings

and

exceptional

service, ShoEi Foods easily lives up to their mission of “contributing to society through the creation of a new food culture…with safe and reliable food from carefully selected sources”. ShoEi Foods is committed to living out their core values of trust, integrity, respect, and people. They strive to be “Ichiban” (Ichiban, or 一番, is Japanese for “number one”) by trusting their relationships, conducting themselves

honestly

and

ethically,

respecting all people and cultures, and supporting their employees. ShoEi Foods’ safety practices far exceed FDA standards and GPM guidelines. They are not only the world’s first British Retail Consortium

CLIENT CORNER

(BRC)—certified walnut processor, they

Our Morrison team members aren’t the only ones staying busy. See what’s new with some of our clients.

WWW.MORRISONCO.NET

Tasuke Honda, Founder

“California made my dreams come true.” —Eiji Honda

CONTINUED ON PAGE 4

NEWSLETTER | SPRING 2020


BUILDING BLOGS:

TIP S F RO M T H E M O R R I S O N T EA M The Morrison team strives to provide value-added resources to clients and colleagues, which includes the regularly posted Morrison blog. Each of our team members contribute, drawing on their own experiences and offering solutions to issues they’ve encountered. They choose their own topics, which have included business tips, work-life balance, organizational ideas, debt matching, cyber exposure, and more. A new post is added to our Morrison blog on our website every Thursday at morrisonco.net/blog or you can connect with us on LinkedIn or like our Facebook page to stay up to date. In the meantime here are a few examples of blogs and topics we’ve covered this past year:

CHOICES

THE DREADED “F” WORD

“It is our choices, Harry, that show what we truly are, far more than

I have participated in countless fraud discussions and it’s somewhat

our abilities.”

alarming to learn when members of management haven’t seriously

—J.K. Rowling, Harry Potter and the Chamber of Secrets

considered the possibility of fraud. Unfortunately many small

My oldest son loves the Harry Potter novels, and J.K. Rowling’s characters embody the above quote—it is their choices throughout the novels that poignantly reveal who they truly are. Similarly

businesses share this mentality, according to a CNBC/SurveyMonkey Small Business Survey. Only one percent identified the threat of crime or vandalism as the most critical issue facing their business.

for us, each day is made up of hundreds of choices and, it is these

A 2018 Global Study on Occupational Fraud and Abuse produced by the

choices that show who we truly are. What do the little choices you

Association of Certified Fraud Examiners showed small businesses

make each day reveal to those in your workplace about who you are,

(<100 employees) lost almost twice as much per scheme compared

your values, and how you lead?

to larger companies. A single fraud scheme could cause significant

• What do my daily interactions with my colleagues reveal about

devastation, so what can be done to mitigate the risk?

my leadership and my values? Am I present and engaged or

There are three areas that must be present for fraud to be successfully

distracted and unaware? Am I pleasant or irritable?

carried out:

• What do my daily interactions with my direct reports say about

Opportunity can be found by exploiting weaknesses in internal controls.

my leadership and my values? Do they demonstrate that I value

Smaller businesses often do not have robust internal controls due to

and respect them? Do I listen to understand? Am I approachable

lack of resources and staffing requirements.

or arrogant? • What do my daily choices about my work product reflect? Do my choices reflect the value I place on my work and my company? If not, why? • Are there discrepancies between what I want to reveal and what my choices actually communicate about my values and leadership? • What are concrete ways I can practice making different choices to more accurately reflect the values I want to live out?

Reducing the pressure to commit fraud can be difficult for employers when it comes to employees’ personal lives. However, companies can help by maintaining an open door policy and recognizing red flag behavior. Rationalization can be difficult for businesses to control. Emphasizing clear expectations and consequences and continual ethics trainings can help employees understand the severity of committing fraud, in turn making justification more difficult. Opportunity for fraud is a key element under management’s control

May we approach our daily choices intentionally, seeking to grow in

and can be greatly reduced by investing in reviewing, identifying, and

alignment between what we want our lives to reflect and what our

addressing potential weaknesses in your company’s internal controls.

choices actually reveal about who we are and what we value.

It would be wise to reevaluate your internal controls before it is too late.

ABOUT THE AUTHOR

ABOUT THE AUTHOR

Hilary Tricerri is a consultant with Morrison’s Grants team. You can contact

Daniel Paulsen is a consultant with Morrison’s Business & Accounting Advisory

Hilary at htricerri@morrisonco.net or (530) 809-4681.

team. You can contact Daniel at dpaulsen@morrisonco.net or (530) 809-4677.


THE SILVER LINING: THOUGHTS ON LEADERSHIP IN UNCERTAIN TIMES “These are uncertain times.” This is a phrase we’re all hearing and

COMMUNICATION STYLES “Excellent communication skills, both verbal and written.” You’ll find this is a requirement in most job descriptions—as a member of the Morrison People Team, who is actively recruiting to fill positions at our Morrison clients, I see this often but what does it mean to have excellent communication skills? Most people probably understand

saying a lot in light of the COVID-19 pandemic. What else is there to say? The surreal events, cost of human life, and economic shutdown has left the most eloquent speechless and paralyzed. How do we proceed in our personal lives and in our places of employment (or lack thereof) in this time? Even further, if we find ourselves in a place of leadership, how do we lead our people, our organizations, and businesses when we quite literally don’t know what tomorrow will bring?

what it takes to have top notch communication skills, but in the grand

Patrick Lencioni, organizational health expert and prolific author,

scheme of things...styles vary! So, dare I say the term “excellent

offers invaluable counsel in the Chief Executive article, Patrick

communication skills” is quite subjective?

Lencioni: 3 Thoughts for Leaders In a Perilous Time of how to proceed as a

An article published by Forbes titled, 4 Ways To Combat Workplace

leader in such a time as this:

Communication Breakdowns addresses different communication styles

Thought #1: Be exceedingly human. Show compassion and care in

and how to leverage that diversity for the good of the organization:

light of all the challenges people are facing and the emotions they are

1. Pay attention to how people communicate – Learn how people give and receive information in order to promote a positive response. Understanding the communication style of your colleagues can generate more effective interactions. 2. Provide the right tools – “Just as different types of learners in the classroom are more receptive to certain teaching methods, different communication styles lend themselves to certain tools.” 3. Be transparent – Transparency invites honest conversation into the workplace. Sharing company goals with employees helps them understand their contribution to the bigger picture. 4. Provide the resources – Trainings provide individuals the

experiencing. Lencioni emphasizes that this concern needs to extend beyond the professional sphere, actively listening and empathizing with fears on a personal level. Even more critical, he claims, is to show vulnerability as a leader and to admit that we don’t have all the answers. We need to be relatable and available. Thought #2: Be persistent. This is the time for over-communication! Especially as most organizations have transitioned to working remotely, the need for clear and persistent communication is even more critical. One reason is to offset the negative impact that isolation can have on people as social beings. The other reason is that without face-to-face interactions the risk for miscommunication skyrockets. See more about the challenges of leading virtual teams with some

opportunity to use their communication style as well as observe

helpful tips in Lencioni’s article, Virtual Teams are Worse Than I Thought.

their coworkers’.

(Yes, the title is a bit dim, but the content is very constructive!)

Although excellent communication skills are essential for most jobs, it

Thought #3: Be creative. Creativity is a gift that even social isolation

is important to understand they may come in different styles.

can’t take away from us. As leaders, we need to leverage technology

“Because every style has its strengths, and it’s through building an inclusive environment where team members can effectively share and communicate their different perspectives that you’re able to create that powerful synergy that really gets things done.” To learn more about your communication style or the styles of others around you check out the communicator chart on our blog post: morrisonco.net/blog/communication-styles.

to creatively connect, motivate, and empower our people. Lencioni gives examples like semi-regular video conference meetings where employees can share experiences of how they are dealing with their current situations. Another helpful idea is to encourage people to share movies and games they are playing with their children while stuck at home. Yes, these are uncertain times. Let’s be leaders who seize the opportunity before us to be exceedingly human, persistent, and creative with our people.

ABOUT THE AUTHOR

ABOUT THE AUTHOR

Janae Swartz is a consultant with Morrison’s People Solutions team. You can

Jessica Vuk is a consultant with Morrison’s Grants team. You can contact

contact Janae at jswartz@morrisonco.net or (530) 809-4673.

Jessica at jvuk@morrisonco.net or (530) 809-4684.


SHOEI FOODS, CONTINUED are also a member of the London based global ethical trade service provider Sedex (Supplier Ethical Data Exchange). Sedex provides tools and auditing services to help companies work together toward bettering people and environmental protections worldwide. Morrison is honored to work with ShoEi Foods, having provided executive recruiting services and a human resources assessment. It is evident in their work and treatment of employees, customers, and vendors why ShoEi Foods has remained so successful these past 100+ years. ShoEi Foods seeks to make this world a better place as they engage in global sourcing, processing, and supplying quality products through ethical treatment of people and the earth’s resources. Their pursuit of excellence in everything they do and continuous improvement of processes and product quality primes their mission to be Ichiban.

Ichiro Honda, President and Representative Director

Hidemitsu Honda, VP and Representative Director

ON COVID-19 Like most businesses, Morrison is focused on the well-being of our team and clients during this time. Much of our work has always been done remotely, and almost all can be, enabling us to serve our clients with minimal disruption. And while we’re missing seeing people as much, we have the tools and experience to serve in this challenging time. Please feel free to reach out if you find yourself with questions, or just need a friendly voice to chat with. And no, you won’t get a bill just for a chat and sharing some thoughts. We want to stay close (figuratively, of course). Here’s how we can help in our major service lines. Also, check out morrisonco.net/blog, where we will post regular updates.

BUSINESS & ACCOUNTING ADVISORY

PEOPLE SOLUTIONS

GRANTS

It is challenging to know how to navigate

Though

Business

challenges

the uncertainty that has come with the

programs will be launched in the immediate

are taking many forms. Fluctuations in

pandemic and the impacts of stay-in-

future specifically to address coronavirus

sales, receivables, accounting staffing,

place orders, business closures, a lack

impacts, granting agencies like USDA, CDFA,

and other critical matters are impacting

of childcare, and others. We’re here if

CalRecycle, the California Energy Commission

liquidity, working capital, loan covenant

you have any questions or need help

and others are continuing to release and

compliance, working with lenders, and

understanding new regulations such as

administer regular grant programs, which

other areas. And it is more critical than

the Families First Coronavirus Response

we are continuing to prepare applications for.

ever to model and plan for a variety of

Act (FFCRA), the impact on compliance

Many of these programs may be able to fund

scenarios so as to not be caught short.

with the Family Medical Leave Act, or

initiatives that you might otherwise have to

We are happy to share ideas on meeting

how to best manage people related issues.

put on hold as a result of the coronavirus. If

these challenges and others we have

Please see our blog on navigating the

you have any questions on prospective grants

helped with. Please feel free to reach out

FFCRA and a link to a required poster at

or help putting together grant reimbursement

to Brent Morrison, Managing Principal,

morrisonco.net/blog/FFCRA. Also, feel free

requests or other reports for grants in progress,

at bmorrison@morrisonco.net with any

to reach out to Shawn Miller, Principal, at

feel free to reach out to Toni Scott, Principal, at

questions.

smiller@morrisonco.net with any questions.

tscott@morrisonco.net with any questions.

and

accounting

it

is

unlikely

that

new

grant


THE WHYS AND WISDOM OF A HUMAN RESOURCES AUDIT The word “audit” isn’t typically one that is associated with joy. When most people hear “audit” they shudder thinking of painful

1 LEGAL COMPLIANCE The scope of an HR legal compliance audit ranges from conformity with laws and regulations, such as adherence to minimum wage standards, to complex liability and litigation risk avoidance. Basic compliance with laws and regulations is often overlooked due to its complexity, changes in the law, or just the sheer number that an employer must consider. If neglected, though, this can result in significant legal and civil exposure. Fortunately, such matters can be readily uncovered during an audit. Common areas of noncompliance include wage and hour violations, improper recordkeeping, and misclassification of employees. And as Walmart learned, things as simple as omissions on paystubs. Legal compliance also involves the more complex issues surrounding the subjective nature of human resource law. These include laws concerning discrimination, harassment, wrongful termination, or privacy issues. This may take more detailed review, but the risk can be enormous and should not be overlooked.

IRS audits and envision high costs and little reward to their organization. Business-related audits though, such as those reviewing safety practices, quality control measures, and human resources procedures, can be beneficial to a business, ultimately saving time and money. There are two ways to discover risks and problems in human resource practices: look for them or wait for things to happen. Even

2 BEST PRACTICES Human resource best practices are a set of principles that lead to optimal business performance. While “best practices” are considered universal regardless of an organization’s size, industry, etc., the principle of best fit is also critical—that is the alignment of HR goals with the overall goals of an organization and its business strategy. Compliance oriented best practices can be defined as activities and policies that organizations develop to mitigate risk under the broader HR legal framework. These include: • Hiring practices: Employ proven techniques to assess technical, performance, and

the big guys can blow this one. In May 2019,

cultural fit of candidates. The tendency can be to focus mostly on technical experience

Walmart was ordered to pay over $100 million

and related education, but the right fit requires a deeper look.

in penalties and damages for failing to include basic information on pay stubs for thousands of its California employees. Ouch.

policies

and

practices

that

were

appropriate a year ago might be out of date today. Best practices change with both time and the circumstances of the employer, while HR and organizational strategies can and must evolve to ensure the best long-term direction. A thorough human resources audit is designed to evaluate legal and regulatory compliance, best practices, and strategies to address problems

and

opportunities,

with a focus on skill-specific programs. This improves your workforce and is attractive to many employees—especially the ones you most likely to want to keep.

Human resource law is constantly changing, and

• Training and development: Develop and provide ongoing training and development

and

should

include the three elements listed to the right.

Organizations that are willing to open

• Compensation: The right compensation and benefits package rewards results and shows your team they are appreciated. Be reasonably transparent about your intent; a 2017 survey by Pay Scale found that 77% of the respondents who thought they were underpaid were actually at market—and another 12% were above the market rate. • Communication and transparency: How open are you in sharing the plans, successes, and failures of your organization? There are limits, of course, but an open environment for feedback and communication makes employees feel respected and valued. And if you don’t communicate, the rumor mill will. • Progressive discipline: A properly designed progressive discipline program addresses performance and behavior that falls short of communicated standards. Its purpose is to help the employee understand the issues and work toward improvement. Properly done, the process helps develop a high performing team, a win for everyone.

3 HR STRATEGY

themselves to a third party HR auditor and

The final piece of an effective HR audit is the evaluation of human resource activities

make needed improvements will avoid

and practices that create a high performing organization. These are people strategies

much of the risk and the high cost of non-

and practices to make the most of an organization’s greatest resource, with a focus on

compliance and poor planning. Those

performance planning, strategy implementation, succession planning, total compensation

open to greater scrutiny in their overall

and rewards planning, team and leadership development, and other critical factors.

utilization of people will better position themselves to compete, live out their mission, and succeed by more effectively maximizing their greatest resource.

An HR strategy assessment takes time and involves analysis of the organization and the environment it operates in. Strategies implemented should result in more efficient use and allocation of time, money, and people and result in targeted changes in organization, culture, and operations. Once in place it should be reviewed and revised annually. Things change, and as we’re seeing now, sometimes rapidly.


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5 3 0 . 8 9 3 . 4 7 6 4 • W W W. M O R R I S O N CO. N E T

BUSINESS & ACCOUNTING ADVISORY • PEOPLE SOLUTIONS • GRANTS FOLLOW US

C L I E N T CORN E R The Morrison Client Corner is a regular feature of our newsletter.

If you’re a client of ours, we’d love to stay up to date with what is going

Here, you’ll find updates on what a number of our clients are up to,

on within your organization and invite you to share your highlights

their achievements and milestones, and the generally great things

in this space. Feel free to send any press releases, newsletters, or

happening in their companies or organizations.

happenings to Michelle at mgenova@morrisonco.net.

Things are hoppin’ at Farmers Brewing

Associated

of

The California Center for Cooperative

Company. They put the finishing touches

California (AGC) celebrates 100 years!

Development (CCCD) recently hosted

on their production facility in early

Kicking off their centennial celebration

their annual Agricultural Cooperative

2020 and just launched canned beer into

at their first Installation & Awards

Directors

regional grocery stores! If you just can’t

Gala, held at the historic Fairmont

Training

wait to “Put Your Lips On A Farmer”, head

San Francisco on January 31st, AGC

Morrison and Shawn Miller presented on

over to their new website at farmersbrewing.

announced the induction of Mike Blach

the benefits and methods of developing

com and check out their new beer locator.

as the 2020 President in addition to

and managing a succession planning

You can now search through Glenn, Butte,

presenting over ten different awards.

program. With several Morrison clients

Colusa, Sutter, Yuba, and Sacramento

Morrison is thrilled to work with AGC,

in attendance and a long standing history

counties

beers.

and looks forward to our continued

of collaboration with CCCD, Morrison

Morrison has had the opportunity to work

partnership. To learn more about AGC

was honored to participate. Other tracks

with Farmers Brewing Co. on several

and what they do check out this video:

included Evaluating and Planning for

different projects and we raise a glass to

www.youtube.com/watch?v=9tuE5ouoJMk

Mergers and Acquisitions and a case

for

Farmers

Brewing

their success. Cheers!

General

Contractors

and

Executives

where

Leadership

Principals

Brent

study of three well known cooperatives. To learn more visit www.cccd.coop.

WELCOME NEW CLIENTS

WWW.MORRISONCO.NET

NEWSLETTER | SPRING 2020


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