Best Practices: A Dangerous Delusion

In the realm of business process improvement, the allure of pre-packaged solutions is undeniable. Software companies, eager to market their products, often tout "best practices" as the panacea for organisational efficiency. While these templates can provide a starting point, relying solely on them can be a perilous strategy.

Best practices are typically derived from a generalised understanding of industry standards or the experiences of a limited number of successful companies. As such, they often lack the specificity required to address the unique challenges and opportunities of a particular organisation. This generic approach can lead to a misalignment between the implemented processes and the company's strategic goals.

Moreover, best practices rarely incorporate a deep understanding of the customer journey. While these templates may optimise internal operations, they often overlook the customer experience. Customers interact with businesses through a complex web of touchpoints, and processes should be designed to enhance these interactions. A one-size-fits-all approach can lead to a suboptimal customer experience and erode reputation.

Another critical oversight of best practices is the failure to distinguish between core business processes and support activities. Core processes are those that directly create value for customers and drive revenue. Support activities, while essential, are secondary to the core business. By focusing solely on efficiency gains through best practices, organisations may inadvertently automate or outsource core competencies, weakening their competitive position.

For example, a retail company might adopt a best practice for inventory management that focuses on minimising stockouts. While this is a valid objective, it might lead to excessive inventory levels and increased holding costs. A more strategic approach would involve analysing customer purchasing behaviour, identifying fast-moving and slow-moving items, and tailoring inventory levels accordingly. This would not only optimise inventory but also improve customer satisfaction through better product availability.

In conclusion, while best practices can offer valuable insights, they should not be treated as gospel. Organisations must take a critical and analytical approach to process improvement. By combining data-driven analysis, customer feedback, and a deep understanding of the business, companies can develop processes that are truly aligned with their strategic objectives. This requires a willingness to challenge conventional wisdom and explore innovative solutions. Ultimately, the goal should be to create processes that are not just efficient but also effective in driving business growth and customer satisfaction.

By focusing on their unique business context and customer needs, organisations can develop processes that are a true competitive advantage.