Wikipedia defines a best practice as follows:  “Best practices are generally-accepted, informally-standardized techniques, methods or processes that have proven themselves over time to accomplish given tasks. Often based upon common sense, these practices are commonly used where no specific formal methodology is in place or the existing methodology does not sufficiently address the issue. The idea is that with proper processes, checks and testing, a desired outcome can be delivered more effectively with fewer problems and unforeseen complications. In addition, a “best” practice can evolve to become better as improvements are discovered.^[1] 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.”

In my opinion, a Best Practice business process is one that creates value for an organization.  Since any change within a company results in direct and indirect costs, the benefits of change must outway those costs.  If the benefits do not exceed the costs, there is no value for change and that newly designed process cannot be defined as a Best Practice. 

In some areas such as accounting, best practices for a publicly traded company follow GAAP or IFRS standards and meet regulatory requirements for controls, reporting, payments and disclosures.  Ultimately, each process results in standardized outcomes.  However, as we all know, the paths to achieving these outcomes have numerous potential variations and opportunities for improvement, and this is where Best Practices come into play.  A Best Practice business process not only results in the desired outcome, but also leverages an organization’s investment in software applications, IT infrastructure, people and culture to maximize the generation of useful information.   Therefore, if the Best Practice of one organization is going to be implemented within another organization, the planned value should be assessed within the context of the new company.  A Best Practice in Organization A, may not be a Best Practice in Organization B.