Good strategy is the only way forward

by Ian Anderson on September 27, 2012

strategy

There are three key priorities for every organisation

  • Satisfied customers
  • Happy, committed and productive employees
  • Financial returns for all stakeholders

It is like a three legged stool; get one part wrong and the stool falls over. Similarly if you do not get the overall purpose and direction of the organisation straight then no-one will know where they are going, or be able to plan how they are going to get there.

Michael Porter argued that there are three ways to achieve sustainable competitive advantage:

  • A cost leadership strategy
  • Differentiation strategy
  • Focus strategy

He argued that too many organisations do not make the choice. Instead they either make strategy somewhere in the middle, or deliver a compromise strategy, a bit of everything.

The problem is with this approach is that it leaves employees not knowing what they are trying to do, customers not knowing what you are about, and therefore stakeholders not getting what they have bought into.

Relating this to the recruitment industry, currently there is a price war in many parts of the industry. This has been brought about by poor strategy on the part of many business leaders in the industry, and also lifestyle businesses being able to enter the market fairly easily. This has also led to client organisations relooking at their own human resource strategies as the temporary recruitment business can only make money if it puts more people, or hours, into a client organisation, thus effectively helping to make the clients that they are supposedly helping, become less cost effective themselves.

We at Stafforce are committed to helping organisations become more profitable, sustainable or better, through good strategic means and great customer service. This means that we always sit down with our customers and our employees and work out the strategy before we start.

 

Ian Anderson

Ian Anderson became Chief Executive at Stafforce Personnel in 2007 and since then he has led the company through a period of ambitious strategic growth and acquisition. Today Stafforce is a recruitment business committed to improving client profitability through people, processes and technology by delivering cutting edge recruitment solutions and specialist business consultancy and support. Follow Ian Anderson and StafforceNews on Twitter and follow Stafforce via LinkedIn.

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