“Best practices are just past practices. You need next practices.” I once said to a client. The reason? Visit any traditionally managed business and you’ll see the same pattern: they operate like their competitors. They hire the same people and have the same business model, processes, and everything else in between.

In the business world, “best practices” are often glorified. The pursuit of adopting standard operating procedures and widely accepted methodologies promises efficiency, reduced risk, and consistency. However, there’s a hidden cost to this quest for standardization: the gradual erosion of true innovation.

Let’s dive into why following the paved path can sometimes make you miss out on groundbreaking ideas.

Best Practices: The Comfort Zone Killer

Best practices are sacred cows in most organizations. They could easily be called “safe practices”, but safe puts an organization in its comfort zone.

• Safety over surprises: Best practices create a well-defined zone where we know the rules and anticipate the outcomes. This inherent predictability, while comforting, suppresses the willingness to explore truly original, potentially disruptive ideas.
• Homogeneity of thought: When everyone replicates “the best way,” a stifling sameness sets in. Diverse perspectives, unconventional approaches, and the spirit of healthy debate—all key ingredients for innovation—get sidelined.
• The illusion of perfection: Declaring something a “best practice” creates an almost sacred aura around it. Questioning or challenging these standards becomes taboo, leaving little room for improvement or the discovery of better alternatives.

Beyond Best Practices: Embracing a Culture of Innovation

So, does this mean you should ditch best practices altogether? Not necessarily. But there’s a careful balance to strike:

• Challenging the norm: Regularly scrutinize best practices to avoid dogma. Are they still the most effective or are there emerging, better solutions? Encourage a team culture where challenging assumptions are expected.
• Calculated risk-taking: Cultivate an environment with tolerance for ‘smart’ failures. This doesn’t mean recklessness, but carving out spaces for safe experimentation and learning from missteps.
• Benchmarking as a launchpad: Use industry benchmarks as comparisons and learning points, but never as the limit for what’s possible. Seek opportunities to redefine those benchmarks, not just meet them.
• Rewarding outliers: Recognize and celebrate those who bring truly novel ideas, even if they don’t always yield perfectly polished results. This signals that innovation is valued over formulaic replication.

Here are some examples of businesses renowned for pushing boundaries and developing their own innovative practices:

Netflix:

• Abandoned “standard” HR practices: They eliminated rigid vacation policies and formal performance reviews, focusing on freedom with responsibility for their employees. This attracted top talent and emphasized results over strict processes.
• Pioneered the streaming revolution: Questioning the need for physical media rental, they became synonymous with streaming media consumption and original content production.

Tesla:

• Vertical integration: Instead of relying heavily on external suppliers like most automakers, Tesla controls significant portions of its supply chain. This increases control and allows for rapid adjustment.
• Direct sales model: Defying the conventional dealership structure, they created a direct-to-consumer sales model focused on brand consistency and customer experience.

Southwest Airlines:

• “Point-to-point” and rapid turnaround focus: While most airlines operated hub-and-spoke models, Southwest’s efficient regional focus and fast plane turnarounds created a price advantage and passenger-friendly operation.
• Culture of fun and autonomy: With a focus on employee empowerment and an approachable customer service ethos, they disrupted the often stuffy airline industry.

Amazon:

• Customer obsession: While many businesses talk about customer focus, Amazon built its dominance on it. This translated into frictionless checkout experiences, the rise of Prime, and relentless customer feedback integration.
• Data-driven innovation: Amazon pioneered the use of data science in retail and customer experience. This has enabled personalization, tailored recommendations, and incredible prediction and fulfillment efficiency.

SpaceX:

• Reusable rockets: In an industry previously fixated on disposable launch vehicles, SpaceX invested heavily in and successfully developed reusable rockets, driving down costs and revolutionizing space launches.
• Agile development principles: Embracing rapid iteration, testing, and learning, SpaceX moved nimbly in a notoriously slow and costly field.

It’s key to remember that these companies didn’t just question best practices arbitrarily. They identified pain points, recognized market shifts, or saw unfulfilled potential – then tailored new practices specific to driving solutions.

Bottom line: Best practices serve a valuable purpose, but they are maps, not unalterable mandates. True innovation lies in a willingness to explore the unmarked territory, question assumptions, iterate, and occasionally deviate from the well-trodden path. You’re already behind the game when every one of your competitors has the same practices. In an increasingly competitive world, it’s the organizations willing to embrace this mindset that will ultimately have the cutting edge.

I’d love to hear your thoughts! Do you agree that best practices can sometimes stifle innovation? Share your experiences or examples in the comments below. Let me know if you’d like to add more nuance or specific examples to make this post even more engaging!