Offering Best Practices - A Business Opportunity

The most efficient way of promulgating effective change is by learning from the positive experience of others. Learning takes place when another’s knowledge and experience are communicated to you.  You learn because another learned first and was willing and able to share that knowledge with you.  That’s what benchmarking is all about.

However, there are two old truths that typify the problem of determining what to benchmark.  The first is, “Measures are over emphasized and processes are overlooked”, and the second is, “What without how is an empty statement.” It is unknown whom to attribute the sayings to.  They are symptomatic of the trap into which many beginning benchmarking efforts fall. Concentrating on the benchmark, the measure, is really an empty statement until it is traced back to the practice- the best practice - in the process that achieved the performance.

The IMC Ramkrishna Bajaj National Quality Award criteria, which are very similar to those of the American Malcolm Baldrige National Quality Award criteria, have sensitized organizations that there is still a need to get back to the basics of running efficient and effective organizations; that the approach must be to improve business processes; and that this is the main route to planned, disciplined, and successful continuous improvement.  Companies like IBM, Ford, Motorola, AT&T, Xerox and Johnson & Johnson have arrived at that understanding. Closer home, Vikram Cement, HDFC and Tata Steel have concluded the same.  It is only by finding best practices through benchmarking and incorporating them in the work processes that the desired results can be achieved.

Frequently, an organization knows what to benchmark more clearly than whom to benchmark.  What to benchmark is based on one of  two things: known information driven by internal priorities, such as improving processes, shrinking the cost base, or reducing cycle time; or known external pressures such as from customers or competitors. Whom to benchmark, however, is primarily based on external information and is unknown.

ne option available to organizations for addressing the latter is to pursue a world class management model, such as that embodied in the IMC R B N Q A criteria, using an implementation tool known as the IQRS.  The IQRS addresses all processes and practices (800 + in number) appropriate for achieving world class statue as articulated in the MB Criteria.  Companies that license for the IQRS have access to best practices of bout 20 companies in India and, through an international database, to over 400 successful global companies.

The ultimate test of a best practice is if it is preferred by others and they are willing to pay for it.  This circumstance occurs when an organization has a best practice process that is distinguished and second to none.  The organization is so confident of its abilities that it offers the process for use at a price that compensates the organization plus earns a profit.  In parallel, others actively seek to use the process and pay for it.  In this instance the organization is acting as a service bureau. With a rapid increase in outsourcing this is becoming an accepted approach.

There are organizations that are proficient enough to start offering processes to others.  They may have a cost base and processing cycle that is preferred to others.  The advantages to the providing organization are that its expenses are lowered by spreading fixed costs over a larger activity,  and that providing the activity does not interfere with the mainline business activity.  Offering best practices for sale to others is an excellent way for an organization to keep its process on the leading edge through the test of market competitiveness.