The Road to Mediocrity is Paved with Best Practices.

by adam

No matter which industry you have spent time in, you have undoubtedly heard repeated references to “best practices”. This term is an oxymoron, since if everyone is following so-called “best practices”, they cannot be possibly be best, in fact the “best” that they can be is average.

The simple fact that there are a single set of practices that have been universally agreed upon as being ‘best’ should send out a giant red flag. Once an idea or methodology is held in such widespread esteem, you can bet that it has reached it’s zenith in terms of effectiveness.

As an example, in Khrushchev’s Russia, best practices for running a centrally planned economy spelled disastrous. Source: The centralized road to mediocrity – Financial Times, 28 February, 2006

Yet the common-sense belief that central co-ordination and direction, and the uniform implementation of best practice, are bound to improve performance remains ingrained despite the contrary evidence derived from the failures of planning in both government and business organisations around the globe.

In an uncertain, changing world, most decisions are wrong, and success comes not from the inspired visions of exceptional leaders, or prescience achieved through sophisticated analysis, but through small-scale experimentation that rapidly imitates success and acknowledges failure. This disciplined pluralism is the true genius of the market economy.

In the same way that centralized economic planning leads to mediocrity, implementing best practices across an organization will inevitably lead to the same fate. This isn’t to say of course that there isn’t ever a place for so called best practices. Any organization that is objectively behind the curve could hold to benefit a great deal from adopting practices that have been tested at the expense of someone else’s time and effort. To expect to gain any sort of competitive advantage based on implementing such practices would be foolish. However, ignoring them completely would be a similar folly, since they were once meaningful and your competitors are aware of them.

Update: Of course there is no sense in re-inventing the wheel for each and every remedial task. In these cases adopting best practices allows for cheap improvement. Only when it comes to key processes and decisions am I advocating throwing best practices out the window.