It’s the start of a new year and many HR professionals are building their HR plans and strategies for the year ahead. Often the question is posed; what are the Best Practices and should we implement them?
When we think of ‘best practice’ in HR we think of academically researched, industry benchmarked, and high profile case studies that promise success. Best Practice assumes that there is one ultimate practice better than the rest, a one size that fits all.
This one-size-fits-all approach presents a conundrum, on one hand we believe that Best Practice is a tried and tested recipe for business success and that comparing ourselves to metrics and others in our industry can result in increased competitiveness. On the other hand we also believe that creating and sustaining competitive advantage is the key to business success and growth. Yet achieving competitive advantage requires business to implement activities which are rare, and difficult to imitate – quite the opposite to Best Practice.
If we implement these ‘ultimate’ or ‘best practices’ and focus our energy on comparing ourselves to others in our industry, are we really doing the best for our own organisation – are we using our energy effectively?
A great example of the potential downfall of benchmarking within the same industry is illustrated by Southwest Airlines. Dallas-based Southwest Airlines benchmarked its refueling processes against other airlines, it found it was already one of the leaders in the industry. They realized that a quantum leap for improvement was needed, so they looked outside the airline industry for the most efficient refuelers in the world – Formula One racing. Adopting the turnaround processes used during pit stops, Southwest Airlines can now refuel their aircraft in 12 minutes.*
So should we fit our organisation to Best Practice? Or should we consider a tailored, bespoke or “best fit” approach that takes into account the unique organisations characteristics such as goals, culture and processes that can leverage relevant aspects of Best Practice. Should we benchmark our organisation to others in the industry? Or should we keep abreast of our competitors activities and strive for or own continuous improvement?
So what does this mean for how we develop our HR strategy and initiatives? How can we develop our HR strategy, programs and initiatives to “Best Fit” our organisation? In our experience, the most effective HR programs are those that are tailored to the organisation and fit the culture, practices and overall business strategy. In practice, this typically involves looking at the current programs or practices, evaluating the desired future state (gaining various opinions and considering Best Practice) and creating programs that form a pathway to the desired future state. Often Best Practices fall short when they are not able to be implemented as completely as the case studies suggest, this is typically due to the dramatic change required for the organisation.
Best Fit programs may not be the subject of management books or journals, but when shaped implemented to fit the organisation, has the potential to support, grow and enhance a sustainable competitive advantage.
Perhaps when embarking on the developing of our HR strategies and activities for the year, the question should be not what is Best Practice but rather what is the best practice to fit our organisation and how will we implement it?
Could you use some assistance to craft ‘best fit’ program to deliver outcomes for your business? Call deliberatepractice on 1300 deliberate for a complimentary evaluation.
*Lateral benchmarking or … what Formula One taught an airline. Murdoch, Adrian , Management Today, 11/01/1997