Best Practices: Where are they?
The term Best Practices is used widely. This is an area of concern. Is a Best Practice a minimum requirement? Or an average? Or is it a benchmark?
I belong to the Global Benchmarking Network, founded by Dr Robert Camp, the Benchmarking Guru. For us, Best Practices have a context; they are aligned with Performance Excellence models.
Search for Best Practices
An organization is similar to an orchestra….a classic European orchestra.
Organizations perform through value creation processes, support processes, and supplier processes. Much like an orchestra, that combines instruments from different families, for a super performance.
The audience for organizations, consists of customers, employees, suppliers, investors, society, and Mother Earth. Each segment expects a super performance.
In order to accomplish a super performance we need to continuously improve the individual performance of each process. In a balanced way. We need to benchmark our performance against similar processes, internally and externally.
In so doing, we will ultimately reach a plateau. We will be similar to all other super performing organizations.
So how can we differentiate ourselves?
The answer is through continuous innovation of key processes, leading to sterling breakthrough performance.
How? By indulging in cross-industry benchmarking. Understanding the Best Practices in processes that lead to breakthrough results.
Generic Practices
It should be noted that over 80% of managerial practices that drive an organization are generic in character. However we tend to only worry about the 20% that are proprietary.
The big opportunity lies in cross-industry benchmarking of generic practices.
In World War 1, European Generals benchmarked an American Circus for the logistics process. An army and a circus have similar characteristics.
McDonalds inspired the Aravind Eye Hospital in Madurai, Tamil Nadu, for improving the throughput of cataract procedures. Much like producing perfect burgers.
Random Thoughts
- Ratio Analysis is a form of benchmarking in Financial Management.
- Benchmarking direct competition will guarantee you are a “follower”.
- For leadership, indulge in cross-industry benchmarking.
- Performance Excellence models are populated with generic managerial practices.
Marketing @ Sanmarg Steel | Brand Management | Kaizen | Demand Generation | Market Relation Building | Manufacturer | Iron and Steel | North India | Customer Relation
4 年Your Point is 100% correct , But sir dont you think benchmarking is a task How and Howmuch how to do the analysis of performance and reward accordingly
Embracing the new world challenges with a growth mindset through Learning, Unlearning and Relearning | Agility and Future Focus
4 年Thank you for sharing Suresh Lulla sincerely, a very interesting read.
Academician, Consultant, & Entrepreneur | Family Managed Businesses & Retail Professional
4 年A vital point that merits attention is that a best practice in an organization cannot be claimed best unless processes are discussed and assessed within the organisation. Similarly a process cannot be claimed a Industry Best Practice unless processes are discussed , assessed and benchmarked at an industry level. Sharing and benchmarking is a form of self disruption and essential to Performance Excellence.
Metallurgical Engineering; Total Sustainability Assurance. Technical Director- Business Assurance, Intertek
4 年“The big opportunity lies in cross-industry benchmarking of generic practices”. Well said Mr. Lulla. A great post! Thanks a lot!
Quality Director, Alstom Digital Mobility India
4 年Lulla Sir, There are also different types of benchmarking. Process Benchmarking, Internal Benchmarking, Product Benchmarking, competitive benchmarking , functional benchmarking etc. Each has different focus and result is to learn new practices within and across industries. Very powerful technique if used properly.