Monday, December 10, 2018

The Digital Leaders and Best Practices: The Goldilocks Kind of Thing

Whatever you think, do, or feel needs to be 'just right' for the situation, the strategy, the prioritization, or the dynamic business circumstances, etc. 

Generally speaking, the best practice is a recommended way of doing things. Whatever the activity, there is one best way of performing it; the way that uses the least resources or takes the least time and still meets quality standards. That method is the best practice. However, the best practice is contextual, Best Practice can mean different things in business, and how the “best practice” is used is important for running the business. Often the industry best practices shared with different companies are average workflow. If you work for “the best practice,” you will be at the average. Are the relationship of the digital leaders and best practices, the Goldilocks kind of things?

All best practices are industry-specific and evidence-based: It means that the best practices are based on data. More and more firms are learning and implementing best practices in digital transformation. The best practice is always a combination of people and how they are used to doing things. Keep in mind though, in many cases, the winners set the "best" practices and the laggards try to emulate them. There is a risk to just blindly follow the best practice because when you emulate your competitor, you start looking like them. You may cut their lead but also risk eroding what makes your organization special. It’s perhaps the better approach to strive for using good practices - good for a specific situation in a certain organization. With effective tools or methodologies, it can be used wisely and with the expertise to really add value or lead changes. The real challenge is to understand the priorities of your company, compared to others, and know where and how you can and should improve to amplify its effect.

One size doesn't fit all: The business environment is dynamic, complex and uncertain. Every organization is also at the different stage of the business growth cycle. Markets change and shift and for each company attempting to deal with these changes, there is a different path to follow. One size doesn’t fit all. Taking the best practice from one environment into another could turn out to be the worst practice, as so-called best is now out of its benchmarking context. The key is 'context.' If the best practice you want to adopt is to be implemented in the same context, it could work. It actually leads to a better solution for your environment, to improve efficiency and productivity. However, if the context is different, it is worth the effort to understand how that difference could impact so-called best practice. Thus, it’s important to learn from others’ experience or practice, but more importantly, you need to know how to transfer it into your own context. High-performance organizations explore "best practices" throughout their organization to scale and optimize. These practices might be different across organizations, across departments, divisions, and affiliates within an organization and can change over time. In fact, they should change and evolve over time.

The best practice is more about setting principles and standards: Best practices should get their claim from being the method that helps to deliver a product or service highly efficiently while still meeting acceptable quality standards. Best Practice can mean different things in business. It could be how a process is conducted or how a procedure is handled, speaking high-level only. More fundamentally, there needs to establish digital principles and set updated digital rules for guiding the digital transformation. By developing and following the digital principles and rules, the business lifecycle could be viewed as resulting in emergent means of reorganizing, refocusing, rebalancing resources, and redirecting people to understand the whole, to achieve the seamless digital flow and business optimization. Practices need to keep updated to reflect the change in the environment. Well-set digital principles are guidelines, not rigid rules. It is actually important to applying the digital principles to the problems in a consistent manner, guild daily business activities effectively, for improving business coherence.

There are principles, policies, and practices that a company could adopt from another. But if you want a competitive advantage or unique strength, you need to be different, you must be better than others, following best practices only simply won’t work. The digital leaders and best practices are the 'Goldilocks" kind of things – you don't want to be too hot, or too cold; too big, or too small, etc. Whatever you think, do, or feel needs to be 'just right' for the situation, the strategy, the prioritization, or the dynamic business circumstances, etc. And, don’t forget the common sense.


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