How to Define a

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How to Define a Best Practice

• Michael J. Spendolini, Ph.D.
• President, MJS Associates
• KM World 2000
• September 13, 2000

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The Issue Include a Best Practices Element in
the Knowledge Base

• Typical Client requestors
• Benchmarking applications
• KM database element
• Professional Associations
• Strategic planners

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Why Should We Care?

• The best-practice (BP) objective defines the
  exact nature of the information selected for
  inclusion
• The BP perspective suggests a level of
  investigation to identify qualified information
• The nature of information provided by
  contributors will be influenced by your
  definition of a BP
• How an organization defines a successful
  information product will depend on its BP
  perspective

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The Challenge To Identify a Meaningful Set of
Dimensions That Define a Best Practice

• Research objective
• Review existing formal definitions
• Consult with topic experts regarding their
  perspective
• Methodology
• Literature review (on-line hits 000s)
• On-line survey of benchmarking experts and
  experienced practitioners (n 428)
• Telephone and on-line interviews with 40 KM
  experts
• Special emphasis on consultants who sell or
  promote a best practices product

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Initial Impressions

• There is nothing resembling a consistent and/or
  uniform BP definition or perspective
• Several definitive definitions are being
  promoted, but they seem limited
• The implications of the use of the term best
  practices are often ignored or not fully
  understood
• An expedient answer is often desired and/or
  accepted
• Consultants and subject matter experts exert a
  tremendous amount of influence on their clients
  perspective
• Many clients are not very demanding of their
  consultants (lack of client savvy)

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Project Direction

• Identify meaningful dimensions that could be used
  to define a best practice
• Attempt to reflect levels of consistency and
  creativity
• Assume that the majority of BP applications will
  not require or demand a consideration of all
  identified dimensions

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Process Guided by a Basic Belief

• That the identification and documentation of a
  set of BP dimensions can support several
  desirable outcomes
• Provide a common platform for discussion for data
  requestors and service providers
• Help define the exact nature of a BP-related data
  set (input sources and data users)
• Stimulate a more aggressive BP perspective in the
  marketplace
• Support the notion of a dynamic database that
  is multi-dimensional and evolving

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Progress to date 5 Core Dimensions are Proposed

• 1. Type of information
• 2. Level of Validation / Verification
• 3. Geographical reach
• Systems Impact
• Environmental Considerations

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1. Type of Information

• Quantitative
• Performance levels, costs, revenue, staffing
  levels, resource requirements, various ratios,
  etc.
• Process
• processes, technologies, org. structure,
  customer-supplier relationships, strategic
  decision-making approach, etc.
• Strategic
• Macro (org.-level) and micro (process level), the
  strategic planning process itself, environmental
  analyses, forecasting, growth projections, key
  business assumptions
• Qualitative
• Personal opinions, reactions, preferences

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2. Level of Validation / Verification

• Evidence that information represents anything of
  a special nature
• Often linked with special research effort to
  provide evidence of relative performance
• Position of information on a continuum of
  performance
• Practices
• Working practices
• Generally accepted practices
• Recommended practices
• Practices reflecting expert opinion
• Practices reflecting absolute performance
  standards

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3. Partner or Source Relationship

• Refers to the locus of information inward vs
  outward looking, level of out-of-the-box
  information represented.
• Low level the usual suspects internal,
  competitive, members of existing networks, etc.
  No research required
• Medium non-traditional partners, but from
  similar types of environments (still a lot in
  common). Attempts to discriminate and seek high
  performers
• High Information from non-traditional sources.
  Selection is process focused as opposed to output
  focused.

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4. Geographical Reach

• Location in relation to ones organization.
• Low Best-in-class or Best-in-Cleveland. In
  U.S. by region. In Europe, Asia, Middle East by
  country
• Medium Outside of ones immediate geographical
  area. For U.S., majority of sources are
  typically U.S. based. Outside of U.S., by region
  (e.g., Europe)
• High True global outlook. Proactive search.
  U.S. generally more conservative

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5. Systems Impact

• Reasonable cost-benefit analysis
• Consideration of actual costs of practices
  transition costs, training, information systems,
  staffing, consultant, maintenance..
• Inter-relationship of cost, quality, time, etc.
  is considered
• Long-term implications of cost-benefit
• Consideration of internal/external
  customer-supplier effects

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6. Environmental Considerations

• Special considerations that effect whether
  certain information is included or excluded for
  consideration
• An effort is made to insure that processes are
  transferable in different organizational
  settings
• Examples of environmental items
• Organization size, structure, global diversity
• Regulatory environment
• Market position
• Union presence
• Profit / non-profit status
• Public vs. private
• Supply chain factors
• Customer relationships
• Competitors
• Technology use and applications