Are These Two Diseases Plaguing Your Organization

The Crorepati

Description

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 ...

Sujets

• management
• risk management
• managers

Informations

• Publié par: Chaun
• Nombre de lectures: 63
• Langue: Español

Extrait

TheMythofBestPractices ByAnandSanwal,ManagingDirector–Brilliont www.brilliont.com Pleaseconsiderthefollowingquestion–Howmanyofyouworkfororganizationsthataspiretobetheir industry’spreeminentleader?Presumably,noneofyouansweredthatquestionwithayes(hopefully). Andthereasonforthisisthatthereisnosuchthingasaworld‐classfollower.Andpeopleand organizationsknowthis(oratleasttheyshould).Althoughleadershipmaybedefineddifferentlyamongst organizations,beinga“leadingfollower”isnotaviablestrategyforanorganizationlookingtosucceed andremainindependentoverthelong‐term. Althoughpeopleandorganizationsknowthatworld‐classfollowershipisnotameanstoachievingglory, surprisingly,manyorganizationsandmanagersseemcontenttofollowtheleadofotherswhenitcomes tomakingkeyorganizationaldecisions.Oneofthemostpervasiveanddamagingfollowerafflictions whichhasincreasinglyinfestedcorporatepsychologyandbehaviorisadiseaseknownasBestPracticism. Let’sbeginbyunderstandingthisdiseaseabitmore. BestPracticismistheerrantbeliefthattherearecertainpracticesthataretruly“best”andthat replicatinganotherorganization’sprocesses,strategiesandideaswithinyourorganizationwillsomehow miraculouslyyieldabetterrealityorevenleadershipstatus.Bestpracticesarenotallbad,andsomemay actuallyexist,butwhenbestpracticesbecomeacrutchthatreplacesindependentcriticalthoughtand innovation,itcanhavedeleteriousimpactsonanorganization.Bestpracticismisafollower’sdiseaseand isoftenfoundinorganizationswhoarerisk‐averseandunimaginativeandwhohavelosttheabilitytobe bold.Ironically,manyorganizationssufferingfrombestpracticismoncewereboldandrisk‐takingbut overtime,somehowthatformercompetitiveedgehasbeendulled. Bestpracticismgenerallysurfaceswhenpeopleandorganizationserrantlybelievethatmanagementand organizationalperformanceareascience.Thetruth,however,isthatthereisnoformulathatguarantees corporateleadershiporoutperformance.Althoughobvious,organizationsandmanagersenamoredwith bestpracticesseemtohaveforgottenthis.PhilRosenzweigcommentedonthisinhisoutstandingbook, TheHaloEffect,whenhewritesaboutthesocialscienceresearchdoneoncompanyperformanceand states,“It’sjustnotveryappealingtoreadthatagivenactionhasameasurablebutsmallimpacton companysuccess.Managersdon’tusuallycaretowadethroughdiscussionsaboutdatavalidityand methodologyandstatisticalmodelsandprobabilities.Wepreferexplanationsthataredefinitiveand offerclearimplicationsforaction.” ItisthisdesirethatissymptomaticofBestPracticismandwhichdrivesitsprevalence. HowWidespreadisBestPracticism? You’llquicklybeoverwhelmedbyallthebestpracticingorganizationsaredoingifyoudosome investigating.Asisoftenthecase,Googlecanbeagoodbarometerforthepervasivenessofatrendso simplyGooglingtheterm“bestpractices”isinterestingasityieldsover40millionresults.Manyofthese arepaidsearchlinkswhichofcoursemeansthatpeoplearewillingtopayforthisbecausebestpractices areabigindustry.Thereareinstitutes,roundtablesandcouncilsdedicatedtobestpractices.Andthere arebestpracticesforeverypartoftheorganizationwhetheritissales,marketing,IT,finance,strategy, supplychain,procurement,etc.Nomatterwhatissueyourorganizationoryouisgrapplingwith,thereis abestpracticeouttherewhichsomeoneisprobablyreadytosellyou.

1

Ofcourse,notallofthesebestpracticesaretargetedatorganizationsassomeareontopicssuchaseBay salesbestpractices,butalargemajorityaretargetedatcompaniesandthedecision‐makerswithinthem. Sowithliterallymillionsofbestpractices,itisawonderthatorganizationsstillfaceanyissuesatall?It wouldseemthebestpracticeforvirtuallyanyissuewhetheritisaboutriskmanagement,retaining customers,recruitingemployees,productdevelopment,understandingthevalueofIT,etcwouldhave beenansweredbynow,right?However,despiteorperhapsinspiteofthebestpractices,companiesstill grapplewithhowtheyshouldmanagethemselvesandachievethebestperformance. Anothergreatwaytoseeandhearthetalkofbestpracticesisatindustryconferences.Conferencesare infactawonderfulPetridishforbestpracticism.Virtually,fewifanypresentationsgobywithouta mentionofabestpracticeora‘best‐in‐class’disciplineadoptedbyanorganization(s).Oftentimes,the presenterwhohappenstobeaconsultantorsoftwarevendoriscoincidentallysellingasolutionoridea whichyieldsthismiraculousbenefit.Howinteresting. Moreperplexingisthatoverthecourseofadayortwoataconference,youwillhearpeoplewhooften contradicteachotherinpartsorinwholewithbothcallingwhattheydoabestpractice.Unfortunately, thelogicheredoesn’tquiteholdup.Beingthebestatsomethingimpliesbeing#1–akathebest.Andso therecannotbemultiplebestpracticesontheexactsametopic.Thiseithermeansoneofthepracticesis likelyan“okaypractice”masqueradingasabestpracticeormorelikelythatbothofthespeakersare “sellingthispractice”andlabelingitabestpracticebecausethathelpssellit. WhatCausesBestPracticism? Thewidespreademergenceofbestpracticismhasbeencausedbyaconfluenceofnumerousfactors. Someoftheobservedcausesofbestpracticismincludethefollowing: Belief:Intoday’scomplex,uncertainworld,bestpracticeshelpusmakedecisionsquickly Organizationsandthemanagerswithinthem,bothmiddle‐andsenior‐managers,aredealingwithever‐ increasingchangeandcomplexity.Organizationsareincreasingly“matrixed”leadingtodifficultor uncertainrelationshipswithintheorganizationandevengreatercomplexity.Inparallel,theworld outsideofthebusinessischangingatabreakneckpacewiththeintroductionofnewtechnologies, globalization,etc.Withallofthestimuliforchange,itisdifficultforanindividualoragroupofindividuals toseeandunderstandeverythingandsothesearchforbestpracticescanoftenhelpmakethingsmore efficientandallowfordecisionstobemadequickerbasedontheexperiencesofotherorganizations. Belief:Bestpracticesareeasier&lessrisky Relatedtothecomplexityanduncertaintyelements,bestpracticesarealsoprevalentbecausetheyoffer organizationsaneasyandlessriskyalternativetodevelopingsomethingonone’sownbecausetheyare vettedandproven.Asaresult,the“timetomarket”andcostsarelesser. Belief:Seniormanagementwantstounderstandwhatotherorganizationsaredoing Organizationsgenerallyadmirecertainorganizationswhetherwithintheirindustryoroutsideofit.For many,itmaybeGEorP&GorGoogle,butifabestpracticecanbeshowntoseniormanagementas somethingthathasbeenadoptedbyorganizationsthatyourorganizationadmires,itoftengetssignificant andquickinterest. Belief:Thereareexpertswhotalkaboutthebestpracticesotheremustbesomevalue Whenatrendorideabecomeshot,manyexpertsandluminariesemergewiththeirbestpractices(usually someassortmentofframeworks,softwaretoolsandslickPowerPointpresentations)tohelpsolvethe problem.Inmostinstances,themarketisefficientfromtheperspectivethatifalotofconsultantsand vendorshavecrowdedintoanarea,thatprobablyisindicativeofthefactthatthereisareal organizationalissuetheyaretryingtosolve.

2

Belief:Bestpracticescanbetransformational Byutilizingtheknowledgeandexperienceofothercompanies,wearebetterequippedtotransform elementsofourorganizationwhichmaynotbeperformingatanacceptablelevel. TheProblemswithBestPracticism? Nowthatwe’veunderstoodthereasonswhypeopleandorganizationsadoptbestpractices,itisworth understandingwhysomeofthesebeliefsareerrantatleastinpartorinwhole. Belief:Intoday’scomplexuncertainworld,bestpracticeshelpusmakedecisionsquickly Thereissomevaliditytothisbelief.Tryingtocomeupwitheverythingonone’sownwouldbefoolish especiallygiventhesuccessesandfailuresofotherswhichcanbelearnedfrom.Thekeyisin understandingwhichbestpracticesareworthfollowingandwhicharenot.Thisrequiresturningacritical eyetowardsanypurportedbestpracticetoensureitcandeliveronitsoftenloftyclaims.Thereare,in fact,manymediocreorevenharmfulpracticesbeingdressedupasbestpracticesandsoitpaystobe carefulanddiligent. Belief:Bestpracticesareeasier&lessrisky Yes,itseemseasiertocopysomeoneelseorbelievetheresearchofasupposedlyobjectiveconsultantor vendorthantoinnovateonone’sown.Exacerbatingtheissueisthatpromotinganewideayou’d developedcouldbemuchriskierasitssuccesswillallrestonyourshoulders.Butarebestpracticesreally lessriskyandeasier?Theclaimthatitiseasieroftenmeansthattheorganizationcanachievetheresults quicker,butifthebestpracticeisreallynot‘best’,doesgettingtothewrongplacequickerreallybenefit anyone?Alltoooften,organizationsmoveforwardtoadoptabestpracticewithoutknowingitsvalue andthemeasurableendresultandsotheyunknowinglymistakeactivityforprogress.Intermsofbest practicesbeinglessrisky,doesn’ttheexpenditureoftime,moneyandefforttopotentiallygettothe wrongplaceopentheorganizationuptoincreasedrisk? Also,thereareoftenmanycooksintheproverbialkitchenwhenitcomestodeployingabestpracticeand thisaddstothecomplexityoftheeffortimpairingtheeaseandincreasingtheriskoftheeffort. Belief:Seniormanagementwantstounderstandwhatotherorganizationsaredoing TheideathatsomethingthathasworkedatGE,Google,Apple,etcwillworkinanotherorganizationis flawedonmultiplelevels. 1.Weliveinamulti‐dimensionalworld–Oftentimes,peoplewillpointtothefactthatwhenthey adoptedsomebestpractice,theirsharepriceorrevenueorprofitperformancewentupafterwards. Whiletheremaybesomecorrelationbetweenthebestpracticeandperformancemetric,itdoesn’t meanthereisacausalrelationshipbetweenthetwo.Oftentimes,peoplemistakecorrelationfor causation,andofcourse,promotersofsuchdisciplinewantyoutomakethismistake.Theother problemisthatorganizationsarenotcontrolledexperimentslikethosedoneinalab.Youcannot holdtherestofthebusinessstaticwhileyouimplementabestpracticeandthenmeasureitsimpact independentofanyotherchanges.Inreality,theorganizationwaslikelymakingchangestoproducts, pricing,marketingandotherdimensionsalongwithimplementingthebestpractice.Andso ultimately,itisdifficultifnotimpossibletoknowwhichoneoftheseactionsledtothe outperformancewithanycertainty. 2.Don’tbefooledbythepowerofstory–Thebeststrategiesarewrittenafterthefactsothatapractice thatworkedatanotherorganizationoftenbecomespartof‘corporatelegend’becausestorieswork wellwithinorganizationstoconveyideas.Itisdangeroustomistakeagoodstoryforscience.There maybeusefullessonswhichemerge,butyourorganization’scircumstancesareundoubtedlydifferent andsocopyingwhattheyhavedoneisnotadvisable. 3.Practicesareorganization‐specific–Thethoughtthatanorganizationcantakeelementsfrom anotherorganizationisalsoflawedbecausethisoftenfailstounderstandthecultural,processand systemselementsthatmayhaveexistedwithinthatotherorganizationwhichenabledsuccessalong

3

withmacrofactorssuchastheeconomy,competitivedynamics,industrytrends,etcthatwereinplay atthattime. 4.Ifyoucatchuponthebestpractice,theleaderhasalreadymovedon–Evenifadoptingthepractice ofanadmiredcompanyworks,youarealwaysplayingagameofcatchupasleadingadmired companiesarecontinuingthepushfurtherahead.AnarticlethatappearedinanissueoftheWall StreetJournalinFebruary2008describedthisphenomenon,“Inditex(theparentcompanyofZara)is respondingtoapredicamentsharedbyothercompaniesthatcomeupwithgame‐changingformulas: Eventuallycompetitorscatchup,forcingthepioneerstodoevenbettertokeeptheiredge.Low‐cost carrierSouthwestAirlinesCo.ismakingbigchangestofendoffrivalsthathavecopieditsefficient operatingmodel.Inventory‐controlmethodsatWal‐MartStoresInc.arebeingmimickedaroundthe world,andGoogleInc.isupdatingitssearchenginetokeepusersloyal.”Ultimately,whileyouare copyinganother’sbestpractices,theyarecontinuingtomovefurtheraheadandlikelyexpandingthe gapbetweenyouandthem. Belief:Thereareexpertswhotalkaboutthebestpracticesotheremustbesomevalue Theproblemhereliesindeterminingwhichofthenumerousexpertsreallyknowssomethingtohelpyou solvetheproblem‐at‐handandwhichexpertsareidiots.Theretendstobealotofsizzleandnotalotof steakoncertaintopicsasitiseasytohangone’sshingleoutthereclaimingtoofferexpertiseinwhichever areaishot.ItisalsoeasytogivepeopleloftytitlessuchasChiefProductEvangelistandhavethemissue researchwhitepaperstogivethemanairofcredibilityandlegitimacy,butthesearemarketingtactics– notdemonstrationsofexpertise.Infact,thereareentirecompaniesbuiltonthisideaofchasingtrendsso thatwhenacustomerasksforanything,theycanbethereeventhoughtheirexpertiseisdubiousatbest. Insomeinstances,thereareexpertswhoactuallyactivelymisguideyou. Belief:Bestpracticescanbetransformational Soyou’vecomeacrossabestpracticewhichadvocatesmajorchangestoacompanystrategy,processor practice,andyou’redevelopingthecaseandvisionforwhythecompanyshouldadoptit.Armedwith evidencefromresearchorganizations,consultants,academicsandotherecosystemplayers,you’ve createdawonderfullycompellingcaseforwhytheorganizationshouldtransformitsexistingwayofdoing thingsandtheresultingbenefitsyouexpect.Ifyoucangetapprovalforthisinitiative,thiscouldbea significantstepindistinguishingyourselfandgettingvisibilityamongstseniormanagers.Ifthereisa technologycomponenttothebestpractice,thatmay,insomeinstances,lookevenbettersincebeing associatedwithatechnologyinitiativecanmakeoneseemevenmoreprogressive.Ultimately,allofthese goodthingscanleadtoincreasedresponsibilities,promotions,etc. Thisoccursquiteoften,anditisnotallbad.Evenattemptingtofollowabestpracticerequirestaking somepersonalinitiativeandsothepeoplewhoproposesuchinitiativesareambitiousand entrepreneurialandshouldbeencouraged.Buttheirvisionandbusinesscaseshouldbetestedbecause theyareworkingtowardssomethingwheretheyhavean“enlightenedself‐interest”.Itisimportantto feelcomfortablethattheirindividualself‐interestcloselymirrorstheinterestsoftheorganizationaswell. Thisisnotalwaysthecase. TheSkepticsGuidetoBestPractices Despiteallyou’vejustread,bestpracticesarenotallbadallofthetime.Somedoactuallyexistwhichare usefuliffornothingelsebuttoexpandyourworldviewandmakeyouamoreinformedbusinessperson. Thekeyistohaveaframeworktoevaluatewhichbestpracticesareworthconsidering. Utilizingasimpleframework(seegraphic),youcanevaluatebestpracticesthatyourorganizationmaybe considering.Inessence,theframeworkadvocatesthatthemoreimportantorcriticalsomeissueisto

4