When it comes to process implementation, those who rely on best practices achieve optimal results. After all, they are just following the processes of the best in class. But is it really that simple? In this article we explain why this attitude can be dangerous and what a lack of process design competence might have to do with it.
When implementing new processes in IT or logistics projects, many companies rely on proven methods, techniques or strategies, so-called best practices. The main reason for this decision: There is a lot of pressure on people in charge to achieve fast results and complete projects by avoiding risks. SAP has even developed its own best practices for S/4 HANA, which contain ready-to-use and integrated processes. But how useful are they really?
Let’s take a look at the benefits first:
They can save you time and resources.
Why reinvent the wheel when you can benefit from the experience and methods of successful companies? While spending less time on planning and implementation, you have more free resources for other projects and are able to deal with “pain points” more quickly.
Best practices avoid well-known risks.
Until transformation strategies become best practices, they must undergo proof of concept in various contexts. Therefore, they include knowledge about previous mistakes that other companies have already made. This enables those in charge to rule out pitfalls right from the start – making project failure less likely.
Best practices meet compliance requirements.
When implementing large software solutions, such as SAP S/4 HANA or EWM, companies must adhere to numerous compliance requirements. This is where best practices serve as an orientation to avoid violations.
The “Unique & Differentiating Processes” determine whether the company will be successful in the future. If decision-makers uncritically rely on best practices, they can usually expect shorter project cycles and lower costs. However, their capability to innovate suffers in the long term.
Where is the catch then?
They offer little to no flexibility.
Every company has its own unique processes and structures. How successful can a “one-size-fits-all” approach be? If decision makers adhere strictly to best practices, they deprive the company of the opportunity to build on its own individual strengths. In addition, managers often adopt strategies without considering whether they make sense in their own business context.
They limit the company’s performance.
Best practices are strategies that have made the best in class successful. When other companies adhere to them, they can catch up with their industries’ standards. The downside: They will only ever be as good as the competition and that makes it impossible to outperform those best-in-class organizations.
They hold back innovation.
Best practices are based on past experience and established methods. However, in a market environment that changes almost every minute, they quickly become outdated. As a result, companies run the risk of overlooking new trends and developments or failing to adapt to new conditions.
They may promise a false sense of security.
Those who recklessly rely on tried-and-tested processes tend to underestimate risks to their own project progress or recognize them too late. This can lead to project managers not critically addressing potential threats and neglecting important security measures, such as thorough software testing or consistent risk management.
When should you stick to best practices?
Many project managers rely on best practices for two main reasons: cost and time pressure as well as an ever-decreasing process design competence within the companies. It’s simply not clear which processes add real value and how they need to be designed so that they contribute to the company’s main goals.
But precisely these “Unique & Differentiating Processes” determine whether the company will be successful in the future. If decision-makers uncritically rely on best practices, they can usually expect shorter project cycles and lower costs. However, their capability to innovate suffers in the long term.
Nevertheless, there are exceptions: Standard processes, such as finance and accounting processes, are in most cases not directly involved in the company’s market positioning. In these cases, sticking to best practices can save time and resources and lead to quick results.
In strategic, groundbreaking transformation projects that determine the companies’ future, the solution must adapt perfectly to the individual, value-creating processes. IN3’s consultants and project managers know the best approach for their customers’ individual needs. With the help of the Goldfield approach, they analyze the Unique & Differentiating Processes even before the start, find the perfect solution together with the customer, and plan the project accordingly. Contact us now!
