This month we will focus on defining and understanding what is right for our own businesses, as what is best practice for one entity might not be the best practice for another.
What does the term best practice mean? From Wikipedia: “best practice is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark” (Contributors, 2015). There are many ‘best practice’ approaches and formats to help improve standardization, governance and company bottom-line performance. Unfortunately, less importance is placed on the integrative approach to blending this methodology with logic and relevance to one’s own entity.
Removing the cookie cutter approach:
Some best practice examples are:
Best practice for our own business needs to adhere to two fundamental principles – statutory requirements and ethical considerations.
Statutory requirements – Law is law and the formats and processes which provide the framework for adherence to statutory parameters are also the initial governance (management) frameworks providing the backbone to our company structures.
Ethical considerations – In today’s connected world, we also need an integrated look at our business’s impact on our environments and stakeholders as this affects our own best practice. Secondly, South African law provides a utilitarian approach to the business in which the directors, members or agents are legally bound to act in “the best interests of the company”.
The big variable is what are the best interests?
What benchmark does a best practice for one company have that can be the best practice of another?
I don’t think there is a carbon-copy generic best practice that will serve different company’s best interests. That said, best practices can provide templates on which to grow from.
To create your own best practice – research other best practices and invite perspectives and an integrated thinking approach.
Again, the more holistic and informed the approach, the more prepared you will be to choose and tailor make what is best practice for your business, your statutory requirements and your ethical considerations.
This way you can eliminate unnecessary and time-wasting formats and processes which enhances sustainability and gives you the confidence to continually evolve and improve your own practices over time, to best serve your company’s own best interests – both current and future.
So to have the right practice, create your company’s own best practice to best serve the company’s best interest.