The influence in terms of strategic direction must always be based on the key
areas of marketing and operations.
(Director of finance)We have to help the business achieve its objectives, and the HR strategy has to
be very much tailored towards those objectives.
(Director of personnel)When questioned on his approach to the development of personnel
strategies the director of personnel replied:
I start with the top line, the four or five things that are the strategic platform for
the company. I get my managers together to look at the implications. We then
pull it together so that it is all derived from the original strategic platforms and
then work top down and bottom up to get the amalgam of what we can
achieve. This then feeds into the final operating plan so we can agree budgets.Mercia Systems
Background
Mercia Systems is engaged in the business of precision engineering,
including the development and manufacture of specialized optical,
mechanical, electrical and electronic equipment primarily for defence
purposes.
Two major factors have affected the company: first, the contraction in the
defence industry and, second, the change in government policy from cost-
plus contracting to competitive tendering. This compelled the company to
develop an entirely new business strategy and to carry out a comprehensive
re-engineering process.
Critical success factors
The managing director stated unequivocally that ‘The things that are
essential to an organization’s success, any organization, not just this one, are
the people. They are the common denominator throughout the organi-
zation.’
The critical success factors for Mercia Systems were defined as follows:
The one factor that drives us is technology know-how. This means we offer solu-
tions, not products. That is really what we have to sell and it depends on people
strength.
(Managing director)92 l The practice of strategic HRM