I recently dusted off Jim Collins’ book Good to Great. For those who have forgotten, the book compiles a list of companies that have achieved ‘greatness’ over a period of 15 years and then analyzes them in order to “discover the essential and distinguishing factors at work”. The resulting best practices of these best companies has been a bestseller since 2001.
‘Best practices’ is itself a bestseller, a management technique/tool kit that has become a staple in disciplines such as leadership, education, quality, change management, government, project management and scores of others. Its popularity lies in its promise to take the processes, systems, and approaches that have worked for the successful and distil them into guidelines, rules or dare I say ‘universal truths’ for the benefit of successful wannabes. And given our unquenchable thirst for quick, easy answers to complex questions we gobble it up. Amazon lists over 2500 books alone on ‘best practices’.
Unfortunately like most man-made attempts at unearthing universal truths, the truths embedded in best practices struggle with universality. A few examples illustrate the problems and risks.
The U.S. was once a leader in producing world-class marathoners. The seventies and eighties produced a string of such notable runners as Steve Prefontaine, Frank Shorter, Alberto Salazar and Joan Benoit Samuelson the sum of whom led many to believe that the US would be a long-term distance-running powerhouse. This optimism gave birth to an industry of authors, coaches and publications trading on the diet and training best-practices of these and other champions. Long-distance running became a science and a generation of runners turned to the Runners Handbook for instruction. But instead of breeding even more great marathoners the US subsequently plummeted as an elite distance-running nation. Meanwhile countries from Africa came out of nowhere to dominate the sport. Though theories abound (training regimen, genetics, motivation etc etc) there is no consensus on exactly what went wrong. But then a few weeks ago an article profiled the recent success of American marathoner Kara Goucher. In attributing her meteoric rise the article made the observation that, “Ms Gaucher has taken all of the tactics generated by US running experts in the last 20 years – the charts, the mileage recommendations and high tech motion-sensing computer readouts – and stuffed them in a dumpster”. Ms. Gaucher has shunned the best-practices in favor of a more ‘free-wheeling’ training regimen based on how she ‘feels’. That’s right, she trains based on how she feels on that particular day. No systems, no interval regimens, no best practices, just running as hard as she can for as long as she can when she feels like it.
Also in the world of running, Usain Bolt’s obliteration of track and field’s speed records is prompting many experts to dissect his training and diet regimen in preparation for what will surely be tomorrow’s best practices. Among the tidbits that caught the attention of many was his admission that on the day he broke one of his recent world records, he: “woke around 11am, watched some TV and had some chicken nuggets”. This new breakfast of champions will undoubtedly draw many young volunteers, much to the chagrin of nutritionists, coaches and best-practice advocates everywhere.
In business, a recent article profiled the fate of EMI pursuant to its acquisition by private equity firm Terra Firma Capital. Upon acquiring the storied record company, the private equity firm applied the buyout industry best practice, “of cutting costs aggressively with an eye toward selling the streamlined business at a big profit”. This illustrates the one-size-fits-all, or in this case one hubris-fits-all, thinking of best practices. Unfortunately in this instance the result has been an unmitigated disaster as the ‘hard-assed’ private equity firm has been unable to extract the targeted efficiency levels from the business. One reason is that EMI’s products, rather than being widgets, are the ‘talent’ itself who are accustomed to being coddled rather than treated as financial line items. A number of these performers (including such acts as the Rolling Stones and Radiohead) showed their displeasure with the buyout firm by moving to other labels, leaving the efficiency experts with no products to make efficient. A similar article appeared the very next day questioning the fate of MGM which is also getting the private equity best practices treatment.
Best practices are often presented as contextually neutral. But as the recent diminished states of several Good to Great organizations attests context matters. Fannie Mae was described by Mr. Collins as a symbol of excellence on par with General Electric and Coca Cola. It is now a symbol of the financial crisis, and was nationalized by the US government. Wells Fargo has similarly been shaken to its core and as for Circuit City, the electronics retailer filed for bankruptcy earlier this year.
Best practices also promise universal applicability. But just because company ‘A’ had success with a certain approach does not mean that company ‘B’ can plug-and-play the same approach to similar effect. One need only ask the private equity hotshots at EMI or the army of GE executives who have deployed the GE playbook to mixed effect in organizations into which they were parachuted to rescue.
Finally, while focusing adherents on practices that have proven effective for others best practices can narrow the range of creative possibilities in solving problems. This sets up the inevitable fascination with the success of outliers who challenge, stretch or ignore altogether the practices of those who traveled before them. They are the innovators.
Former politician John Manley recently told the Globe and Mail that “One thing I learned in my years in government – and I think that has really been borne out in the last 18 months – is that there are no simple, general statements that apply to every situation”.
While best practices can be helpful they must never be viewed as anything more than data which must then be kneaded along with experience, discernment, discretion, subject matter expertise, intellect, creativity and wisdom before being baked and consumed.
Robert Hebert is Managing Partner of Toronto-based executive search firm StoneWood Group (www.stonewoodgroup.com). He can be reached @ rhebert@stonewoodgroup.com or at 416.365.9494x777
Looking for a dynamic HR role? Stay away from the entrepreneurial tech sector.
January 1, 2012
In a recent survey of HR graduate students, the technology sector rated among the most coveted destinations to ply their trade. It is viewed as a world of innovative people, technologies and approaches where progressive talent management, OB/OD and related HR work awaits.
The Cry to Replace RIM's CEOs – A Truly Dumb Idea
October 13, 2011
Leaving aside the recent service outages, the shellacking of RIM in the press is a tad surreal to behold.
For the few Luddites not familiar with the firm, Research in Motion is the successful Canadian smart phone pioneer with revenues of $20bb per year, no debt and cash in the bank. They manufacture products that remain popular around the world and continue to boast technological innovations unmatched by any competitor. Their most recently launched smart phone devices have been well reviewed and appear to be selling well. And though the company's first version of its new tablet, the Playbook, has room for improvement, it is a promising piece of technology.
Context: When Companies Confuse Start-up Experience for Start-up Experience
October 7, 2011
I had the occasion this week to chat with an entrepreneur still licking his wounds from a stalled startup venture. His tale is a reminder of how easily companies misunderstand organizational context when hiring. For startups, such a misunderstanding can be fatal.
The CEO Hiring Practices at HP
October 3, 2011
The press tells us that Hewlett Packard is the largest technology company in the world with revenues of $126bb. Impressive as those numbers may appear, they do not seem to impress HP's Board of Directors. You see they do not believe that any of the firm's 324,600 employees are capable of leading it. Not one person. Not this year or last year when CEO changes were made. In fact they were apparently not capable six years ago or even eleven years ago when CEO changes were also made. But before summarily indicting the firm's succession planning/leadership development programs, it is useful to consider the track record of the external candidates who were considered better choices than the firm's internal candidates. This analysis decidedly shifts the spotlight to the competence of Hewlett Packard's Board of Directors.
The Folly of Believing What You Read
September 19, 2011
Some time ago we posted a blog titled ‘So you REALLY want to be a CEO?' which looked at the human costs of climbing the upper rungs of the management ladder. The blog was based on a series of articles immediately following the ‘resignation' of Pfizer CEO Jeff Kindler. All of these articles presented a cautionary tale of life in the fast lane, the long hours, the extensive global travel, and the shareholder pressures that accompany an uncooperative stock price. They also spoke poignantly of the physical and emotional toll that such unrelenting pressure took on the Pfizer CEO who eventually resigned in order to attend to his family and health. As it turns out however, much of this narrative may not have been true
Before sending us your resume (and then getting frustrated with us) ask who we work for
July 25, 2011
A friend of mine is a trustee in bankruptcy. As his title suggests, he and his firm serves those contemplating the ‘cleansing' process of personal bankruptcy. Potential customers compare service providers, select one, and then pay the chosen firm a fee to initiate and manage the ensuing process on their behalf. However, as soon as the relief-seeking customer signs on the dotted line, the trustee's allegiance shifts to the creditors for whom they then seek to maximize debt recovery. This shift in who works for whom must be a tad unsettling for people who already have a heap of problems and stress on their hands.
What Dating Services Can Teach Companies About Hiring
June 1, 2011
Executive-level hiring is a decidedly aspirational endeavor. Organizations idealize their workplace cultures, select for attributes that will fit into those romanticized environments, and then immerse unsuspecting hires into their ice-cold reality of their works-in-progress.
How to Survive a Startup - by Jill Ram
April 20, 2011
If you're an executive and you're thinking of joining a start-up, know what stage of a start-up to join. If the company is in its first year or so, don't expect to make significant changes. If you join after the company is somewhat established and mistakes have been made and learned from, you'll likely be more successful from the outset. If the founder has stepped aside, well, by then, the company is likely not considered a start-up anymore. It won't be functioning like a big company yet, and it won't have all the structure in place that it needs, but it will be run with more practicality and with less emotion. Timing is everything so choose it well.
Good News for the Old, Overqualified and Overlooked
March 18, 2011
It is expected that a significant percentage of the baby boomer generation will drive right past the Freedom 55 highway exit. For many the goal of early retirement will have proven to be unattainable hype, while for others the ups and downs of working will appear more attractive than the prospects of working up and down the local lawn bowling leadership board.
Pressed for time? Blame those Benedictine Monks.
February 24, 2011
It is among the principal reasons candidates tell us they are open to consider a change in employers. They are tethered to it, yet somehow it still flees. It is time, the most precious of resources, and for many harried executives they want some of it back.
Though their relationship with time may be strained, it is worth pointing out that it was not always this way. In his fascinating book Time Wars, Jeremy Rifkin chronicles the evolution of our modern relationship with time. He points out that in traditional agrarian and pastoral cultures, time was a very naturalistic notion maintained in cyclical, repetitive, biological and even sacred terms. The ‘passing of time' was cued via the changing seasons, biological lifecycles and lunar patterns and thus, the cadence and tempo of those societies were finely tuned to the cyclical rhythms of their physical environments. As he states, "Our early ancestors coveted the circle, perceiving time as eternal return, a ceaseless repetition of an endless cycle of birth, life, death, and rebirth". Since these cyclical rhythms could neither be accelerated, nor altered, the cadence of these societies' was natural and harmonious.
Why Best Practices Can Be So Dangerous
September 10, 2009