Why “best thinking” beats “best practices” every time.
Business authors often conjure up the most bizarre management theories and then “prove” them by pointing to current business media darlings like Google, Apple and _____ (who will it be today?).
Book after book and article after article points to what this or that company did to achieve their success – and advises that you and I do what they did to succeed.
The problem is that no one company can stay on top forever. So it’s very tempting for the average author to attempt his 15 minutes of fame by showing how the advice in last year’s bestselling book no longer applies. And unless you listen to HIS brilliant new ideas, your company is doomed as “likely to be a victim of the next market shift. At least you’ll be in good company in the history books.”
Such was the advice of consultant Adam Hartung in a recent Forbes.com article. Hartung advised that you “Stop focusing on your core business. It has become the fast track to oblivion.” He then proves it with stunningly shallow analysis during which he writes off both “Good to Great” by Jim Collins and “In Search of Excellence” by Tom Peters.
His article included gems such as “When markets can shift quickly, focus simply loses its value.” And “If you’re trying to improve your returns with execution, you’re likely to be a victim of the next market shift.”
What does Hartung advocate instead? I had to visit his website to find out. Turns out he advocates his “Phoenix Principle” and something called “Disruptions and White Space.” I’m not going to comment, because I haven’t spent enough time to know what he means.
But astute reader “dave” commented politely that
“…Won’t the time come, if it hasn’t already, that Disruptions and White Space will go the way of ‘the Kraft approach’ or RIM’s ‘app-oplexy’? I seem to recall that ‘In Search of Excellence’ was viewed as the great salvation for business at one time. I assume you don’t believe that there won’t be a successor to the Phoenix Principle?”
“dave’s” comment still awaits a response.
Here’s my thinking on all this:
It’s important to study “Best Practices” because it gives you tactical ideas. But far more important is to study and master “Best Thinking.”
Best practices were best for a company in a particular industry at a particular time. And they were probably the result of careful thought and analysis.
Then 98% of business people go out and thoughtlessly imitate what the model company “did,” forgetting that what they “did” was preceded by clear thinking.
At The Alchemist Entrepreneur™ we focus on clear thinking first, and then on wise practice. As you read through the articles here or go through any of our programs, you’ll start to notice that. My tagline has long been “Clear thinking is your most valuable work.”
Here is the comment I left at Forbes.com below Mr. Hartung’s article:
There are so many problems with this analysis. Where to begin?
1. It is a waste of time to study “best practices” if you haven’t first studied “best thinking.”
A “best practice” that made one company a star, was probably the result of some really good behind the scenes thinking. To imagine that you can imitate the practice without the thinking is not a very mature approach to business or life.
Yet this article, as well as the books it criticizes, focuses on what practices do and don’t “work.”
2. To say “When markets can shift quickly, focus simply loses its value” is plain silly.
“Focus” is not a specific enough concept. Even the author must agree that focus is not an on-or-off switch, but a continuum. At one end would be tunnel vision while on the other would be excessive diversification.
So how can you write an article saying that something as vague as “focus” is either good or bad?
3. This author, like so many others, uses the scare tactic that “Times have changed. What worked yesterday doesn’t work today! Listen to me or you’ll be doomed!”
This, too, is shallow.
Yes, some of the “best practices” that worked in 1975 may no longer work, but the Best Thinking is timeless. What worked for King Solomon works for us.
At The Alchemist Entrepreneur™ http://DovGordon.net we teach Best Thinking first, and best practices second because when you learn to quickly zero in on the key issues and decisions of your business, you have no need to mindlessly imitate today’s business darling.
Dov Gordon
PS – Isn’t it interesting that after a couple of minutes of clicking around on the Forbes billionaire list I came across James Leprino at # 374. How did he make his billions? Cheese. He’s the largest manufacturer of mozzarella cheese in the world. Would the author advise James to start selling sauce or pizzeria tables?
My point: You can always find a company to illustrate one practice or another. So be smart and train yourself in clear thinking. Clear thinking is your most valuable work.
Good one. I myself have taken a cheap shot at Apple in a recent blog claiming they will fail. Because all companies (pretty much) eventually fail. So, with poor thinking practices, you can pretty much find anything in their history to blame.
Also, people tend to think in metaphors and rotate their beliefs between “eggs in one basket” and “staying focussed” for instance depending on the situation.
Focus is a good thing. Always. It is just whether you are focusing on the right thing. Framing your business proposition is my current pet subject because I see so many people getting it wrong.
They are either “in the entertainment business” (isn’t everyone?) OR they own a Bowling Alley. Neither of which have any strategic or operational value.
But I ramble – let me go and check out the gentleman…
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Best thinking and best practices should surely go together, but I don’t think it is correct to say that best thinking is the more important of the two.
The best thinking in the world will get you nowhere without action. But imitating the best practices of successful people is quite likely to lead to improved success, even if one doesn’t understand the underlying principles.
Hi Dennis,
My guess is that when you speak about framing your business proposition you’re helping your clients think in terms of the results they’re working to create first and only afterwards about what they should be doing to get there.
That kind of thinking is simple in theory, but hard in practice. We all need some outside help.
All you need to do now is give it a fancy name, prescribe inviolable methodological steps, warn that anyone who practices any other methodology is doomed and forget what it was you set out to do in the first place.
Thanks for your comment,
Dov
Hi Shimshon,
You’re definitely right about imitating. Doing something is the only way to really learn and master it.
However, many people take the steps but don’t ever master the thinking. So their success will generally be short lived. And it’s the resulting disappointment that enables consultants to keep coming up with the flavor of the month and sucking people in.
I’m tired of consultants bashing other people’s ideas and claiming they don’t work anymore – only to come back and advocate the same thing under a new name and with an insignificant twist.
This only happens when people promote specific methodologies, rather than time tested ways of thinking.
I say: Let’s understand the thinking beneath whatever methodology we’re going to use, because if we do we can evolve ahead of the times.
Thank you for your comment,
Dov
Once again great discussion Dov.
Only best thinking can lead to best action and NOT vice versa.
I really like the concept of best thinking Dov.
The truth is that the methodologies underlying these great pronouncements on what works and what doesn’t (even Jim Collins’ much lauded Good to Great) simply aren’t strong enough to support their conclusions. (There’s a great book called the Halo Effect by the way which demolishes the weak thinking behind so much management theory).
This article is a classic case of post hoc rationalisation of his ideas and selective use (and interpretation) of case studies.
There just aren’t any simple rules for business strategy that work all the time (or even for every company at a specific time). You have to do what you say – put your best thinking to work and analyse the situations on their own merits using more general principles.
Ian
I just came across this article from the author of “Tribal Leadership”: “Three Reasons Why Business Books are Bad for You.”
Amen.
Dov