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By
Paul Deis, CEO, PROACTION
What IS a “Best Practice?” The most common
definition is that these are the practices used by
the most admired, most successful, or most
profitable corporations. Another is that a given
Best Practice is the “best way” that has been
developed thus far to do something.
There are various limitations with each of these and
other similar definitions, we have long since found.
Our view is the answer to the question of “what do
we need to do to insure sustained, consistent high
performance levels” – regardless of market or other
external forces.
How do we fix things so we are assured of “being in
the driver’s seat” of the company, not just a
passenger in the boat, subject to forces beyond our
effective control?
In reality, most companies are not in full control
of their destiny. This is why they are eventually
merged, absorbed, or otherwise disappear from the
landscape. Meanwhile, there seem to be some
companies that overcome all odds against them, and
continue to survive, thrive and grow consistently
over long periods of time. Why? How?
Merely having everyone involved in “improvement”
programs along doesn’t do it either. Example – A
large Litton division (remember them?) had gotten
everyone so involved in all kinds of improvement
projects that they lost control of several major
contracts, and as a result, of the business as a
whole, which was acquired by Northrop Grumman. Lots
of meetings, documents, but no substantial,
measurable performance improvements.
More recently, witness the simultaneous reports
earlier this year - “GM reports $9 Billion loss” and
“Toyota reports $9 Billion profit.”
Consider that 30 years ago Toyota’s US sales were
the rounding error in GM’s financial statements,
they were so small. Then there is Honda, which 35
years ago didn’t even make cars at all, yet is now
competition for even Toyota.
It is not so much the “what do they do” that we have
come to regard as Best Practices, although this is
vitally important also, but “how do they think” that
is so critical. Obviously, these companies, and
others, just look at things differently, set
different processes in motion inside their companies
than most others.
So what is this difference? How can the “rest of us”
get moving towards this goal of sustained, high
level performance?
We have identified four essential factors that MUST
be present in a highly effective way to generate
sustained, consistent high performance levels. These
are:
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Enterprise
systems and processes
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Continuous improvement process
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Education and training
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Leadership and culture
These we call the “Path to Best Practices” – which
is the path to consistently improving performance in
every area of the business, without end,
indefinitely, never stopping.
Our first point here is that in order to improve
something you must first know what it is. Stated in
business terms, this means that:
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All processes must be documented adequately.
This is the “DNA” of the company and keeps
everyone from re-solving problems previously
solved.
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Within a given area, such as sales management,
everyone must follow the established process.
Results can then, and only then, be consistently
and objectively measured without ambiguity. If
everyone is doing their own thing, no meaningful
information is possible.
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With a consistently followed, documented
process, it now becomes possible, and is an
imperative, to continuously improve that process
over time – without end. There is no “there”
there, so to speak. It is not a place one
arrives at more than temporarily.
In the meantime, though, one has, in that area, a
Best Practice – for now.
So, in conclusion, it is the relentless search for
better methods that creates a Best Practice for an
industry, somewhere within some company. The
question is, how can we improve our own companies,
starting from where we are now?
In subsequent PROACTION Best Practices e-Newsletters
we will continue this discussion, exploring each of
these 4 factors in more detail, and other closely
related topics.
Also, you can, at no charge, participate in a Get
Started Webinar, and receive free White Papers on
various topics of interest to you. We encourage you
to explore these paths today.
We welcome your feedback and comments. Send us your
questions and we’ll answer them in a future
Newsletter.
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