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Definition:  Best practices is a method or procedure assumed to be the most appropriate for developing a process in a particular industry. A best practice is set when there is extensive consensus that it represents the most convenient way to implement a particular course of action.

What Does Best Practices Mean?

The term has a broad application since it can be used in a wide range of activities, businesses and situations. From very simple to complex procedures, organizations can identify best practices for many of them. An authority can formally set best practices but this is not a requirement. A certain method or procedure is commonly recognized as a best practice when is proved to produce optimal results in terms of quality, cost or efficiency in comparison to other methods.

When a company identifies and implements best practices is able to reduce notably its learning curve. In this way, an organization can improve efficiency or effectiveness through a less costly route. Nevertheless, every organization has to evaluate if a best practice is suitable for its particular condition, resources or within its specific context.

Example

Pech & Lyint is a new firm founded by two young entrepreneurs. They want to compete in the business of video game software. Both are experts in the technology field but have no knowledge of organization and administration subjects.

For example, they do not know the most convenient way to organize people in order to guarantee efficient processes. A friend recommended them to research best practices regarding organizational structures in the software business. Most information is available for free on the Internet. This advice was really useful since the founders certainly evaluated best practices associated to different company sizes and finally adopted what seemed to be appropriate for their specific market and regulatory context.

They copied the structure of a successful firm operating in another country but realized that two additional administrative positions were required in their specific situation. Those extra jobs would guarantee to comply with particular government regulations imposed in the country where Pech & Lyint operated in and thus to avoid legal penalties.

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