Are These Two Diseases Plaguing Your Organization
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The Myth of Best Practices By Anand Sanwal, Managing Director – Brilliont www.brilliont.com Please consider the following question – How many of you work for organizations that aspire to be their industry’s preeminent leader? Presumably, none of you answered that question with a yes (hopefully). And the reason for this is that there is no such thing as a world‐class follower. And people and organizations know this (or at least they should). Although leadership maybe defined differently amongst ns, being a “leading follower” is not a viable strategy for an organization looking to succeed and remain independent over the long‐term. Although people and organizations know that world‐class followership is not a means to achieving glory, surprisingly, many organizations and managers seem content to follow the lead of others when it comes to making key organizational decisions. One of the most pervasive and damaging follower afflictions which has increasingly infested corporate psychology and behavior is a disease known as Best Practicism. Let’s begin by understanding this disease a bit more. Best Practicism is the errant belief that there are certain practices that are truly “best” and that replicating another organization’s processes, strategies and ideas within your organization will somehow miraculously yield a better reality or even leadership status. Best practices are not all bad, and some may actually exist ...
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TheMythofBestPracticesByAnandSanwal,ManagingDirector–Brilliontwww.brilliont.comPleaseconsiderthefollowingquestion–Howmanyofyouworkfororganizationsthataspiretobetheirindustry’spreeminentleader?Presumably,noneofyouansweredthatquestionwithayes(hopefully).Andthereasonforthisisthatthereisnosuchthingasaworld‐classfollower.Andpeopleandorganizationsknowthis(oratleasttheyshould).Althoughleadershipmaybedefineddifferentlyamongstorganizations,beinga“leadingfollower”isnotaviablestrategyforanorganizationlookingtosucceedandremainindependentoverthelong‐term.Althoughpeopleandorganizationsknowthatworld‐classfollowershipisnotameanstoachievingglory,surprisingly,manyorganizationsandmanagersseemcontenttofollowtheleadofotherswhenitcomestomakingkeyorganizationaldecisions.OneofthemostpervasiveanddamagingfollowerafflictionswhichhasincreasinglyinfestedcorporatepsychologyandbehaviorisadiseaseknownasBestPracticism.Let’sbeginbyunderstandingthisdiseaseabitmore.BestPracticismistheerrantbeliefthattherearecertainpracticesthataretruly“best”andthatreplicatinganotherorganization’sprocesses,strategiesandideaswithinyourorganizationwillsomehowmiraculouslyyieldabetterrealityorevenleadershipstatus.Bestpracticesarenotallbad,andsomemayactuallyexist,butwhenbestpracticesbecomeacrutchthatreplacesindependentcriticalthoughtandinnovation,itcanhavedeleteriousimpactsonanorganization.Bestpracticismisafollower’sdiseaseandisoftenfoundinorganizationswhoarerisk‐averseandunimaginativeandwhohavelosttheabilitytobebold.Ironically,manyorganizationssufferingfrombestpracticismoncewereboldandrisk‐takingbutovertime,somehowthatformercompetitiveedgehasbeendulled.Bestpracticismgenerallysurfaceswhenpeopleandorganizationserrantlybelievethatmanagementandorganizationalperformanceareascience.Thetruth,however,isthatthereisnoformulathatguaranteescorporateleadershiporoutperformance.Althoughobvious,organizationsandmanagersenamoredwithbestpracticesseemtohaveforgottenthis.PhilRosenzweigcommentedonthisinhisoutstandingbook,TheHaloEffect,whenhewritesaboutthesocialscienceresearchdoneoncompanyperformanceandstates,“It’sjustnotveryappealingtoreadthatagivenactionhasameasurablebutsmallimpactoncompanysuccess.Managersdon’tusuallycaretowadethroughdiscussionsaboutdatavalidityandmethodologyandstatisticalmodelsandprobabilities.Wepreferexplanationsthataredefinitiveandofferclearimplicationsforaction.”ItisthisdesirethatissymptomaticofBestPracticismandwhichdrivesitsprevalence.HowWidespreadisBestPracticism?You’llquicklybeoverwhelmedbyallthebestpracticingorganizationsaredoingifyoudosomeinvestigating.Asisoftenthecase,GooglecanbeagoodbarometerforthepervasivenessofatrendsosimplyGooglingtheterm“bestpractices”isinterestingasityieldsover40millionresults.Manyofthesearepaidsearchlinkswhichofcoursemeansthatpeoplearewillingtopayforthisbecausebestpracticesareabigindustry.Thereareinstitutes,roundtablesandcouncilsdedicatedtobestpractices.Andtherearebestpracticesforeverypartoftheorganizationwhetheritissales,marketing,IT,finance,strategy,supplychain,procurement,etc.Nomatterwhatissueyourorganizationoryouisgrapplingwith,thereisabestpracticeouttherewhichsomeoneisprobablyreadytosellyou.
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Ofcourse,notallofthesebestpracticesaretargetedatorganizationsassomeareontopicssuchaseBaysalesbestpractices,butalargemajorityaretargetedatcompaniesandthedecision‐makerswithinthem.Sowithliterallymillionsofbestpractices,itisawonderthatorganizationsstillfaceanyissuesatall?Itwouldseemthebestpracticeforvirtuallyanyissuewhetheritisaboutriskmanagement,retainingcustomers,recruitingemployees,productdevelopment,understandingthevalueofIT,etcwouldhavebeenansweredbynow,right?However,despiteorperhapsinspiteofthebestpractices,companiesstillgrapplewithhowtheyshouldmanagethemselvesandachievethebestperformance.Anothergreatwaytoseeandhearthetalkofbestpracticesisatindustryconferences.ConferencesareinfactawonderfulPetridishforbestpracticism.Virtually,fewifanypresentationsgobywithoutamentionofabestpracticeora‘best‐in‐class’disciplineadoptedbyanorganization(s).Oftentimes,thepresenterwhohappenstobeaconsultantorsoftwarevendoriscoincidentallysellingasolutionorideawhichyieldsthismiraculousbenefit.Howinteresting.Moreperplexingisthatoverthecourseofadayortwoataconference,youwillhearpeoplewhooftencontradicteachotherinpartsorinwholewithbothcallingwhattheydoabestpractice.Unfortunately,thelogicheredoesn’tquiteholdup.Beingthebestatsomethingimpliesbeing#1–akathebest.Andsotherecannotbemultiplebestpracticesontheexactsametopic.Thiseithermeansoneofthepracticesislikelyan“okaypractice”masqueradingasabestpracticeormorelikelythatbothofthespeakersare“sellingthispractice”andlabelingitabestpracticebecausethathelpssellit.WhatCausesBestPracticism?Thewidespreademergenceofbestpracticismhasbeencausedbyaconfluenceofnumerousfactors.Someoftheobservedcausesofbestpracticismincludethefollowing:Belief:Intoday’scomplex,uncertainworld,bestpracticeshelpusmakedecisionsquicklyOrganizationsandthemanagerswithinthem,bothmiddle‐andsenior‐managers,aredealingwithever‐ increasingchangeandcomplexity.Organizationsareincreasingly“matrixed”leadingtodifficultoruncertainrelationshipswithintheorganizationandevengreatercomplexity.Inparallel,theworldoutsideofthebusinessischangingatabreakneckpacewiththeintroductionofnewtechnologies,globalization,etc.Withallofthestimuliforchange,itisdifficultforanindividualoragroupofindividualstoseeandunderstandeverythingandsothesearchforbestpracticescanoftenhelpmakethingsmoreefficientandallowfordecisionstobemadequickerbasedontheexperiencesofotherorganizations.Belief:Bestpracticesareeasier&lessriskyRelatedtothecomplexityanduncertaintyelements,bestpracticesarealsoprevalentbecausetheyofferorganizationsaneasyandlessriskyalternativetodevelopingsomethingonone’sownbecausetheyarevettedandproven.Asaresult,the“timetomarket”andcostsarelesser.Belief:SeniormanagementwantstounderstandwhatotherorganizationsaredoingOrganizationsgenerallyadmirecertainorganizationswhetherwithintheirindustryoroutsideofit.Formany,itmaybeGEorP&GorGoogle,butifabestpracticecanbeshowntoseniormanagementassomethingthathasbeenadoptedbyorganizationsthatyourorganizationadmires,itoftengetssignificantandquickinterest.Belief:ThereareexpertswhotalkaboutthebestpracticesotheremustbesomevalueWhenatrendorideabecomeshot,manyexpertsandluminariesemergewiththeirbestpractices(usuallysomeassortmentofframeworks,softwaretoolsandslickPowerPointpresentations)tohelpsolvetheproblem.Inmostinstances,themarketisefficientfromtheperspectivethatifalotofconsultantsandvendorshavecrowdedintoanarea,thatprobablyisindicativeofthefactthatthereisarealorganizationalissuetheyaretryingtosolve.
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Belief:BestpracticescanbetransformationalByutilizingtheknowledgeandexperienceofothercompanies,wearebetterequippedtotransformelementsofourorganizationwhichmaynotbeperformingatanacceptablelevel.TheProblemswithBestPracticism?Nowthatwe’veunderstoodthereasonswhypeopleandorganizationsadoptbestpractices,itisworthunderstandingwhysomeofthesebeliefsareerrantatleastinpartorinwhole.Belief:Intoday’scomplexuncertainworld,bestpracticeshelpusmakedecisionsquicklyThereissomevaliditytothisbelief.Tryingtocomeupwitheverythingonone’sownwouldbefoolishespeciallygiventhesuccessesandfailuresofotherswhichcanbelearnedfrom.Thekeyisinunderstandingwhichbestpracticesareworthfollowingandwhicharenot.Thisrequiresturningacriticaleyetowardsanypurportedbestpracticetoensureitcandeliveronitsoftenloftyclaims.Thereare,infact,manymediocreorevenharmfulpracticesbeingdressedupasbestpracticesandsoitpaystobecarefulanddiligent.Belief:Bestpracticesareeasier&lessriskyYes,itseemseasiertocopysomeoneelseorbelievetheresearchofasupposedlyobjectiveconsultantorvendorthantoinnovateonone’sown.Exacerbatingtheissueisthatpromotinganewideayou’ddevelopedcouldbemuchriskierasitssuccesswillallrestonyourshoulders.Butarebestpracticesreallylessriskyandeasier?Theclaimthatitiseasieroftenmeansthattheorganizationcanachievetheresultsquicker,butifthebestpracticeisreallynot‘best’,doesgettingtothewrongplacequickerreallybenefitanyone?Alltoooften,organizationsmoveforwardtoadoptabestpracticewithoutknowingitsvalueandthemeasurableendresultandsotheyunknowinglymistakeactivityforprogress.Intermsofbestpracticesbeinglessrisky,doesn’ttheexpenditureoftime,moneyandefforttopotentiallygettothewrongplaceopentheorganizationuptoincreasedrisk?Also,thereareoftenmanycooksintheproverbialkitchenwhenitcomestodeployingabestpracticeandthisaddstothecomplexityoftheeffortimpairingtheeaseandincreasingtheriskoftheeffort.Belief:SeniormanagementwantstounderstandwhatotherorganizationsaredoingTheideathatsomethingthathasworkedatGE,Google,Apple,etcwillworkinanotherorganizationisflawedonmultiplelevels.1.Weliveinamulti‐dimensionalworld–Oftentimes,peoplewillpointtothefactthatwhentheyadoptedsomebestpractice,theirsharepriceorrevenueorprofitperformancewentupafterwards.Whiletheremaybesomecorrelationbetweenthebestpracticeandperformancemetric,itdoesn’tmeanthereisacausalrelationshipbetweenthetwo.Oftentimes,peoplemistakecorrelationforcausation,andofcourse,promotersofsuchdisciplinewantyoutomakethismistake.Theotherproblemisthatorganizationsarenotcontrolledexperimentslikethosedoneinalab.Youcannotholdtherestofthebusinessstaticwhileyouimplementabestpracticeandthenmeasureitsimpactindependentofanyotherchanges.Inreality,theorganizationwaslikelymakingchangestoproducts,pricing,marketingandotherdimensionsalongwithimplementingthebestpractice.Andsoultimately,itisdifficultifnotimpossibletoknowwhichoneoftheseactionsledtotheoutperformancewithanycertainty.2.Don’tbefooledbythepowerofstory–Thebeststrategiesarewrittenafterthefactsothatapracticethatworkedatanotherorganizationoftenbecomespartof‘corporatelegend’becausestoriesworkwellwithinorganizationstoconveyideas.Itisdangeroustomistakeagoodstoryforscience.Theremaybeusefullessonswhichemerge,butyourorganization’scircumstancesareundoubtedlydifferentandsocopyingwhattheyhavedoneisnotadvisable.3.Practicesareorganization‐specific–Thethoughtthatanorganizationcantakeelementsfromanotherorganizationisalsoflawedbecausethisoftenfailstounderstandthecultural,processandsystemselementsthatmayhaveexistedwithinthatotherorganizationwhichenabledsuccessalong
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withmacrofactorssuchastheeconomy,competitivedynamics,industrytrends,etcthatwereinplayatthattime.4.Ifyoucatchuponthebestpractice,theleaderhasalreadymovedon–Evenifadoptingthepracticeofanadmiredcompanyworks,youarealwaysplayingagameofcatchupasleadingadmiredcompaniesarecontinuingthepushfurtherahead.AnarticlethatappearedinanissueoftheWallStreetJournalinFebruary2008describedthisphenomenon,“Inditex(theparentcompanyofZara)isrespondingtoapredicamentsharedbyothercompaniesthatcomeupwithgame‐changingformulas:Eventuallycompetitorscatchup,forcingthepioneerstodoevenbettertokeeptheiredge.Low‐costcarrierSouthwestAirlinesCo.ismakingbigchangestofendoffrivalsthathavecopieditsefficientoperatingmodel.Inventory‐controlmethodsatWal‐MartStoresInc.arebeingmimickedaroundtheworld,andGoogleInc.isupdatingitssearchenginetokeepusersloyal.”Ultimately,whileyouarecopyinganother’sbestpractices,theyarecontinuingtomovefurtheraheadandlikelyexpandingthegapbetweenyouandthem.Belief:ThereareexpertswhotalkaboutthebestpracticesotheremustbesomevalueTheproblemhereliesindeterminingwhichofthenumerousexpertsreallyknowssomethingtohelpyousolvetheproblem‐at‐handandwhichexpertsareidiots.Theretendstobealotofsizzleandnotalotofsteakoncertaintopicsasitiseasytohangone’sshingleoutthereclaimingtoofferexpertiseinwhicheverareaishot.ItisalsoeasytogivepeopleloftytitlessuchasChiefProductEvangelistandhavethemissueresearchwhitepaperstogivethemanairofcredibilityandlegitimacy,butthesearemarketingtactics–notdemonstrationsofexpertise.Infact,thereareentirecompaniesbuiltonthisideaofchasingtrendssothatwhenacustomerasksforanything,theycanbethereeventhoughtheirexpertiseisdubiousatbest.Insomeinstances,thereareexpertswhoactuallyactivelymisguideyou.Belief:BestpracticescanbetransformationalSoyou’vecomeacrossabestpracticewhichadvocatesmajorchangestoacompanystrategy,processorpractice,andyou’redevelopingthecaseandvisionforwhythecompanyshouldadoptit.Armedwithevidencefromresearchorganizations,consultants,academicsandotherecosystemplayers,you’vecreatedawonderfullycompellingcaseforwhytheorganizationshouldtransformitsexistingwayofdoingthingsandtheresultingbenefitsyouexpect.Ifyoucangetapprovalforthisinitiative,thiscouldbeasignificantstepindistinguishingyourselfandgettingvisibilityamongstseniormanagers.Ifthereisatechnologycomponenttothebestpractice,thatmay,insomeinstances,lookevenbettersincebeingassociatedwithatechnologyinitiativecanmakeoneseemevenmoreprogressive.Ultimately,allofthesegoodthingscanleadtoincreasedresponsibilities,promotions,etc.Thisoccursquiteoften,anditisnotallbad.Evenattemptingtofollowabestpracticerequirestakingsomepersonalinitiativeandsothepeoplewhoproposesuchinitiativesareambitiousandentrepreneurialandshouldbeencouraged.Buttheirvisionandbusinesscaseshouldbetestedbecausetheyareworkingtowardssomethingwheretheyhavean“enlightenedself‐interest”.Itisimportanttofeelcomfortablethattheirindividualself‐interestcloselymirrorstheinterestsoftheorganizationaswell.Thisisnotalwaysthecase.TheSkepticsGuidetoBestPracticesDespiteallyou’vejustread,bestpracticesarenotallbadallofthetime.Somedoactuallyexistwhichareusefuliffornothingelsebuttoexpandyourworldviewandmakeyouamoreinformedbusinessperson.Thekeyistohaveaframeworktoevaluatewhichbestpracticesareworthconsidering.Utilizingasimpleframework(seegraphic),youcanevaluatebestpracticesthatyourorganizationmaybeconsidering.Inessence,theframeworkadvocatesthatthemoreimportantorcriticalsomeissueisto
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