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best practice

 
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best practice

The term "best practice" refers to those practices that have produced outstanding results in another situation and that could be adapted for our situation.

Last updated: September 26, 2004.

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Hoover's Company Profiles:

Best Practices Benchmarking and Consulting, LLC

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Contact Information
Best Practices Benchmarking and Consulting, LLC
6350 Quadrangle Dr., Ste. 200
Chapel Hill, NC 27517
NC Tel. 919-403-0251
Fax 919-403-0144

Type: Private
On the web: http://www3.best-in-class.com

Best Practices Benchmarking and Consulting lets its clients know how they stack up against the very best. Doing business simply as Best Practices, the management consulting firm specializes in best practices benchmarking, in which companies can see how their own business processes compare to the "best practices" of industry-leading companies. The company provides customized research and consulting services; it also sells access to its business intelligence databases and has other membership-based services. Best Practices was founded in 1992 by CEO Christopher Bogan and serves companies in the financial services, manufacturing, pharmaceuticals, technology, and telecommunications industries.

Officers:
President and CEO: Consulting Services

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A.T. Kearney
Corporate Executive Board
Towers Watson

TechEncyclopedia:

best practices

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Formulas and procedures that have proven successful in practice. In the IT world, best practices often refers to software development methodologies. See XP, RUP and Scrum.

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The process of searching for new and better procedures by comparing your own procedures to that of the very best. The objective is to measure the key outputs of a business process or function against the best and to analyze the reasons for the performance difference. Benchmarking applies to services and practices as well as to products and is an ongoing systematic process. It entails both quantitative and qualitative measurements that allow both an internal and an external assessment . Process benchmarking is the process of assessing the quality of key internal processes by comparing them with those of other firms. In results benchmarking, a firm examines the end product or service of another company, focusing on product/service specifications and performance results.

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Service and manufacturing firms often evaluate their performance in relation to the performance of industry competitors. The term "benchmarking" is often used to describe this process of comparing practices or strategies to other companies. The benchmarking process sometimes helps a firm find documented strategies and tactics employed by highly admired companies. Such practices are often referred to as "best practices."

According to the consulting firm Best Practices LLC, companies exhibiting a best practice may not be best-in-class in every area. But due to industry forces or the firm's goal of excellence, practices have been implemented and developed that have brought the firm recognition in a certain area. Typically the best practices result in a higher profit for the firm, and these more competitive business practices ensure a firm's survival or limit entry by new competitors.

Identifying Best Practices

Some firms are so well known for best practices in certain areas that it is not necessary to consult books, magazines, libraries, or the Internet to find the information. For example, Federal Express is often cited as having best practices among competitors in the expedited small package industry for their on-time delivery and package tracking services. Microsoft, the computer software developer, is cited as being innovative and creative, while the L.L. Bean outdoor products and clothing company is frequently lauded for their customer service practices and return policy guarantees.

When a firm is benchmarking to learn about the best practices of others, often these superior methods are found in companies outside the firm's key industry segment. Thus it is important to research and observe companies in a wide variety of settings, countries, industries, and even in the not-for-profit arena to learn better ways to continuously improve.

Information on best practices and innovative technologies can also be found on the Best Manufacturing Practices (BMP) web site. This site has as its goal to increase the quality, reliability, and maintainability of goods produced by American firms. One way BMP accomplishes this goal is to identify best practices, document them, and share the information across industry segments. They believe that by sharing best practices, they allow companies to learn from others'attempts and to avoid costly and time-consuming duplication of efforts. Companies profiled have submitted abstracts of what their organization does well and they include previous practices, changes to new processes, and information on implementation as well as quantitative details and lessons learned.

Learning from Award Winners

Other ways to identify best practices include observing businesses as a consumer or a mystery shopper. It is also possible to identify best practices by examining professional journals and business periodicals. Companies that win various awards often exhibit best practices to emulate. The Malcolm Baldrige National Quality Award winners are a good group of companies to benchmark for best practices. They have met the rigorous award criteria and have had success that allowed them to win this prestigious award. The Malcolm Baldrige National Quality Award is given to U.S. organizations that have shown achievements and improvements in seven areas: leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results.

Winners of this national quality award have documented practices in the areas of quality and productivity as well as increased profits. The award highlights best practices by recognizing the achievements of those companies that improve the quality of their goods and services. Whether companies apply for the award or not, the criteria can be used by business, industrial, governmental, and other organizations in evaluating their own quality improvement efforts.

Industry Week, a publication aimed at manufacturers, has since 1990 set out to find and share stories of America's best plants. They later extended their coverage to include Europe's best plants. They have set out to define the best practices of world-class competition and highlight quality approaches, lean manufacturing, and employee empowerment. The publication stresses the fact that these practices can be implemented in a wide range of industries to improve competitiveness and productivity.

Learning about the best practices of others is a valuable way for firms to gather fresh insights into possible methods of improving a myriad of aspects of their operations. It should be an important part of an organization's strategic planning activities.

Further Reading:

Panchak, Patricia. "The Never-Ending Search for Excellence." Industry Week. October 16, 2000.

Patton, Susannah. "By the Numbers." CIO. October 1, 2000.

See also: Benchmarking

A set of guidelines, ethics or ideas that represent the most efficient or prudent course of action. Best practices are often set forth by an authority, such as a governing body or management, depending on the circumstances. While best practices generally dictate the recommended course of action, some situations require that such practices be followed.

Investopedia Says:
Best practices serve as a general outline for a variety of situations. For instance, in the production process, a list of best practices may be given to employees, highlighting the most efficient way to complete their tasks. For accountants, the Generally Accepted Accounting Principles represent best practices for the profession. An investment manager may follow best practices when managing a client's money by prudently investing in a well-diversified portfolio.

Related Links:
Find out how this regulatory body protects the rights of investors. Policing The Securities Market: An Overview Of The SEC
Find out how and why these rules can help companies "come clean" in post-Enron Wall Street. Lady Godiva Accounting Principles
Finding your perfect advisor is as simple as shopping for a car. Read on to learn more. Shopping For A Financial Advisor
These guiding principles will help you avoid common folly during the decision-making process. 10 Tips For The Successful Long-Term Investor


Wikipedia on Answers.com:

Best practice

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A 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. In addition, a "best" practice can evolve to become better as improvements are discovered. Best practice is considered by some as a business buzzword, used to describe the process of developing and following a standard way of doing things that multiple organizations can use.

Best practices are used to maintain quality as an alternative to mandatory legislated standards and can be based on self-assessment or benchmarking.[1] Best practice is a feature of accredited management standards such as ISO 9000 and ISO 14001.[2]

Documenting and charting procedures and practices is a complicated and time-consuming process often skipped by companies, even though they may practice the proper processes consistently. Some consulting firms specialize in the area of Best Practice and offer pre-made 'templates' to standardize business process documentation. Sometimes a "best practice" is not applicable or is inappropriate for a particular organization's needs. A key strategic talent required when applying best practice to organizations is the ability to balance the unique qualities of an organization with the practices that it has in common with others.

Good operating practice is a strategic management term. More specific uses of the term include good agricultural practices, good manufacturing practice, good laboratory practice, good clinical practice and good distribution practice.

Contents

Critique

There are some criticism with the use of "Best" practice. Eugene Bardach, a professor of Public Policy at the Goldman School of Public Policy claims the work necessary to deem and practice the best is rarely done, and most of the time, you will find "good" practices or "smart" practices that offer insight into solutions that may or may not work for your situation.[3]

Scott Ambler challenges the assumptions that there can be a recommended practice that is best in all cases. Instead, he offers an alternative view, "contextual practice," in which the notion of what is "best" will vary with the context.[4] Similarly, Cem Kaner and James Bach provide two scenarios to illustrate the contextual nature of "best practice" in their article [5]

The National Governors Association Center for Best Practices (NGA Center)

The National Governors Association Center for Best Practices (NGA Center) develops innovative solutions to today's most pressing public policy challenges and is the only research and development firm that directly serves United States governors.[6]

Redesigning State Government 2011

Since 2008, the NGA Center for Best Practices (NGA Center) has been reviewing state government redesign effort as states recover from the economic downturn. Some of these efforts have been described in other NGA publications, namely, The Big Reset: State Government After the Great Recession (February 2010) and again in State Government Redesign Efforts 2009 and 2010 (October 2010). Their publication released in early 2011 covers the areas of: Health, Corrections, K-12 Education,Higher Education,Transportation and Infrastructure,State Workforce,Pensions and Benefits, Downsizing and Streamlining,and Revenue Management and Collection[7]

Use of Best Practices in Health and Human Services

In recent years, public agencies and NGOs have been exploring and adopting best practices when delivering health and human services. In these settings, the use of the terms "promising practices", "best practices", and "evidence-based practices" is common and often confusing as there is not a general consensus on what constitutes promising practices or best practices. In this context, the use of the terms "best practices" and "evidence-based practices" are often used interchangeably. Evidence-based practices are methods or techniques that have documented outcomes and ability to replicate as key factors.

Despite these challenges, literature suggests that there is some common use of and criteria for identifying best practices. For example, a general working definition used by the U.S. Department of Health and Human Services (HHS) in referring to a promising practice is defined as one with at least preliminary evidence of effectiveness in small-scale interventions or for which there is potential for generating data that will be useful for making decisions about taking the intervention to scale and generalizing the results to diverse populations and settings. (Reference: U.S. Department of Health and Human Services, Administration for Children and Families Program Announcement, 2003).

Since evidence of effectiveness, potential for taking the intervention to scale and generalizing the results to other populations and settings are key factors for best practices, the manner in which a method or intervention becomes a best practice can take some time and effort. The table below demonstrates the process for a promising practice to achieve the status of research validated best practice. (Reference: U.S. Department of Health and Human Services, Administration for Children and Families Program Announcement. Federal Register, Vol. 68, No. 131, July 2003)

Research Validated Best Practice A program, activity or strategy that has the highest degree of proven effectiveness supported by objective and comprehensive research and evaluation.
Field Tested Best Practice A program, activity or strategy that has been shown to work effectively and produce successful outcomes and is supported to some degree by subjective and objective data sources.
Promising Practice A program, activity or strategy that has worked within one organization and shows promise during its early stages for becoming a best practice with long term sustainable impact. A promising practice must have some objective basis for claiming effectiveness and must have the potential for replication among other organizations.

The National Registry of Evidence-Based Programs and Practices (NREPP) (External Link: http://nrepp.samhsa.gov) is a searchable online registry of interventions supporting substance abuse prevention and mental health treatment that have been reviewed and rated by independent reviewers. NREPP accepts submissions for interventions that meet minimum requirements to be considered for review. Minimum requirements include (1) demonstration of one or more positive outcomes among individuals, communities, or populations; (2) evidence of these outcomes has been demonstrated in at least one study using an experimental or quasi-experimental design; (3) the results of these studies have been published in a peer-reviewed journal or other professional publication, or documented in a comprehensive evaluation report; and (4) implementation materials, training and support resources, and quality assurance procedures have been developed and are ready for use by the public. NREPP is not an exhaustive list of interventions and inclusion in the registry does not constitute an endorsement. (Reference: National Registry of Evidence-Based Programs and Practices. Federal Register/Vol. 76, No. 180/Friday, September 16, 2011/Notices)

There is existing controversy about the lack of culturally appropriate evidence-based best practices and the need to utilize a research-based approach to validate interventions. Some communities have deployed practices over a long period of time that has produced positive outcomes as well as a general community consensus to be successful. The California Reducing Disparities Project (CRDP) is working to identify such practices. (External Link: http://www.dmh.ca.gov/Multicultural_Services/CRDP.asp) CRDP intends to improve access, quality of care, and increase positive outcomes for racial, ethnic and cultural communities. These communities have been identified as (1) African American, (2) Asian/Pacific Islanders, (3) Latinos, (4) Lesbian, Gay, Bi-sexual, Transgender, Questioning, and (5) Native Americans. Strategic Planning Workgroups composed of mental health providers and community members as well as consumers and family members are given the task of identifying new approaches toward reducing disparities. The five Strategic Planning Workgroups work to identify new service delivery approaches defined by multicultural communities for multicultural communities using community-defined evidence to improve outcomes and reduce disparities. Community- defined evidence is defined as “a set of practices that communities have used and determined to yield positive results as determined by community consensus over time and which may or may not have been measured empirically but have reached a level of acceptance by the community.” (Reference: National Latina/o Psychological Association, Fall/Winter 2008, National Network to Eliminate Disparities in Behavioral Health, SAMHSA, and CMHS, Larke Nahme Huang, Ph.D)

Best Practice in Action

Clean Air Financing Programs

Financing Clean Air Programs, and example taken from NGA[8]

This is a quick guide put together by the NGA Center for Best Practices. It explores what clean air programs currently exist and how they are being financed. Rather than stating one best practice to tackling clean air, this reports creates a table of the different programs, how they are being financed, and in what state. Governors and their staffs can then look for characteristics and solutions that are most realistic and applicable to their situation. The key is to tailor current practices that are in the world to the specific situation you are looking to solve. Best practices are meant to give insight into existing strategies.

Environmental best management practice

The concept of best practice has been employed extensively in environmental management. For example, it has been employed in aquaculture such as recommending low-phosphorus feed ingredients,[9] in forestry to manage riparian buffer zones,[10] in livestock and pasture management to regulate stocking rates,[11] and in particular, best management practices have been important to improving water quality relating to nonpoint source pollution of fertilizers in agriculture[12] as well as the identification and adoption of best practice for controlling salinity.[13] However, in the context of complex environmental problems such as dryland salinity, there are significant challenges in defining what is best in any given context. Best management practice for complex problems is context specific and often contested against a background of imperfect knowledge. In these contexts, it is more useful to think of best management practice as an adaptive learning process rather than a fixed set of rules or guidelines. This approach to best practice focuses on fostering improvements in quality and promoting continuous learning.[14]

Higher Education

STEM Program explanation is taken from Angela Baber's report to the NGA

The NGA has identified science, technology, engineering, and mathematics (STEM) as important skills that need to be developed in community colleges in order to create a strong work force. Many states are creating or have created STEM Programs to address this issue. In order for these programs to work governors should: "

• Engage business to help ensure that community colleges meet regional STEM-skill needs

• Use community colleges to support new models of STEM education

• Reward community colleges and students for STEM course-completion

• Ensure that community colleges support more effective mathematics remediation

• Require that community college STEM credits and credentials are transferable".[15]

Health and Human Services

San Francisco Public Health Department (External Link: http://www.sfdph.org/dph/default.asp) conducted The Transgender Best Practices Guide project, a best practices document for cultural and service competency in working with transgender clients within HIV/AIDS service- provision settings. Following an intensive literature search and consumer focus group, a Working Group composed of noted community leaders; activists, professionals, and transgender consumers participated in the development of the Best Practices guide. Topics covered by the Best Practices guide include mental health issues; gender identity; hormone use and clinical care practices. The Best Practices guide is currently in production; it will be published and distributed to EMA providers, as well as to select organizations nation-wide. In addition, four large-scale EMA provider trainings will be provided to educate providers on the Best Practices recommendations and standard measures. (Need to verify if already implemented) This is the first national federally funded effort to develop a Best Practices guide for providers who serve the HIV positive transgender community. (Reference: San Francisco Department of Public Health, Annual Report 2005-2006)

Other best practices domains

Best practices are used in nearly every industry and professional discipline. Areas of note include information technology development, such as new software, but also in construction, transportation, business management, sustainable development and various aspects of project management. Best practices are also used in healthcare to deliver high-quality care that promotes best outcomes. Best practices are used within business areas including sales, manufacturing, teaching, programming software, road construction, health care, insurance and public policy.

See also

References

  1. ^ Bogan, C.E. and English, M.J., 1994: Benchmarking for best practices: winning through innovative adaptation. McGraw-Hill, New York
  2. ^ Nash, J. and Ehrenfeld, J., 1997: Codes of environmental management practice: assessing their potential as a tool for change. Annual Review of Energy and the Environment 22, 487-535
  3. ^ Bardach, Eugene. "Faculty page". http://gsppi.berkeley.edu/faculty/ebardach/. Retrieved 22 September 2011. 
  4. ^ Ambler, Scott. "Questioning "Best Practices" for Software Development". http://www.ambysoft.com/essays/bestPractices.html. Retrieved 17 November 2011. 
  5. ^ Kaner, Cem. "The Seven Basic Principles of the Context-Driven School". http://www.context-driven-testing.com/. Retrieved 17 November 2011. 
  6. ^ "About the NGA Center for Best Practices". The National Governors Association Center for Best Practices. http://www.nga.org/cms/render/live/center/publications. Retrieved 21 September 2011. 
  7. ^ "Redesigning State Government 2011". NGA Center for Best Practice. http://www.nga.org/cms/home/nga-center-for-best-practices/center-publications/page-other-publications/col2-content/main-content-list/redesigning-state-government-201.html;jsessionid=78A5115C6489E28F18F1FA6E5D061351. Retrieved 22 September 2011. 
  8. ^ "Clean Energy Financing". NGA Center for Best Practice. http://www.nga.org/cms/home/nga-center-for-best-practices/center-issues/page-eet-issues/col2-content/main-content-list/clean-energy-financing.html. Retrieved 22 September 2011. 
  9. ^ Macmillan, J.R., Huddleston, T., Woolley, M., and Fothergill, K., (2003) Best management practice development to minimize environmental impact from large flow-through trout farms. Aquaculture 226, 91-99
  10. ^ Broadmeadow, S. and Nisbet, T.R., (2004) The effects of riparian forest management on the freshwater environment: a literature review of best management practice. Hydrology and Earth System Sciences 8, 286-305
  11. ^ Brannan, K.M., Mostaghimi, S., McClellan, P.W. and Inamdar, S., 2000: Animal waste BMP impacts on sediment and nutrient losses in runoff from the Owl Run Watershed. Transactions of the ASAE 43, 1155-1166
  12. ^ Gitau, M.W., Gburek, W.J., and Jarrett, A.R., (2005) A tool for estimating best management practice effectiveness for phosphorus pollution control. Journal of Soil and Water Conservation 60, 1-10
  13. ^ Hooper, B.P., 1995: Adoption of best management practices for dryland salinity: the need for an integrated environmental management approach. Report prepared for the Murray-Darling Basin Commission. Centre for Water Policy Research University of New England, Armidale, N.S.W.
  14. ^ Measham, T.G., Kelly, G.J. and Smith F.P. (2007) Best Management Practice for complex problems: a case study of defining BMP for Dryland Salinity. Geographical Research 45 (3) pp. 262-272
  15. ^ Baber, Angela. "Using Community Colleges to Build a STEM-Skilled Workforce". NGA Center for Best Practices. http://www.nga.org/cms/home/nga-center-for-best-practices/center-publications/page-edu-publications/col2-content/main-content-list/using-community-colleges-to-buil.html;jsessionid=D6D0802411F8B4F9F3EADC75687B8AB1. Retrieved 22 September 2011. 

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