The starting point is the operating plan emerging from and contributing to the
business plan. There is only a certain level of change we can cope with, and
what we have is a funnel of brilliant ideas and strategies, but they all end up in
the stores. So we only commit to a plan we can deliver, and we identify the
levels of change that we can manage and calculate how much time the stores
have to implement it. That is fed into the planning process so that it becomes
realistic. The human resource strategy is integral to the process; it’s not linked.At Mercia Systems integration was not an issue. As explained by the
marketing director:
We do not think of ourselves as having a human resource strategy per se. We
just see it as one aspect of the overall business strategy. From what I have
observed going on in the business I find it quite difficult to separate a strand of
activity which I would call HR strategy because it is so integral to everything
which is going on... HR strategy is effectively a part of the overall vision.He gave the example of the technical director, who is developing technical
route maps, and the personnel function, which is working with technical
management to produce forecasts as a basis for finding and developing the
right people with the right skills. His own role is to explain the nature of the
competences required in the business groups, including business
management, programme management and sales and marketing: ‘Only by
understanding these can we equip ourselves for the future.’
The director of finance for Welland Water pointed out that ‘The HR side is
a fundamental part of the business planning process, and it’s not something
you just bolt on somewhere along the way. There’s a lot of interaction, prior
to and during the top board discussion, which tends to be concerned with
culturally based issues and the way we manage people.’
On the basis of these comments integration is most likely to be achieved
when:
l there are well-articulated corporate or business strategies operating in the
context of a clear mission;l there is a powerful driving force in the shape of commitment to certain
values and overall strategies for change;l the chief executive or managing director recognizes the contribution that
people make to increasing added value and achieving competitive
advantage and ensures that people issues are fully taken into account at
the time corporate or business strategies are being prepared;l the other members of the top team generally share the views of their chief
executive on the added value that can be created by considering HR and
corporate/business issues simultaneously;Strategic HRM in action l 103