IBM's former CEO, Thomas J. Watson Jr., once said, "Good design is good business." This idea has come to embody the concept of Best Demonstrated Practices (BDPs)—a guiding principle for successful leaders and organizations worldwide. In a highly competitive business environment, it is crucial to leverage BDPs in areas like Strategic Planning, Digital Transformation, Risk Management, and more. PwC simplifies BDPs as the "systematic use of the collective knowledge and experience of an organization to create value." Let's explore how adopting BDPs across three pillars—Strategy Development, Culture, and Innovation—can significantly enhance an organization's performance.

Strategic Planning is vital to the life cycle of any competitive organization. A survey by McKinsey & Company revealed that 80% of executives consider their strategy development processes effective. However, a study by Harvard Business Review indicates that fewer than 30% of strategic decisions are typically made within its process. To bridge this gap, BDPs suggest implementing continuous and adaptive strategy development—keeping strategies dynamic, measurable, and actionable. This ensures that decision-making is firmly rooted in the strategic planning process, thereby increasing the effectiveness of strategy implementation.

The influence of Culture on business success is often underestimated. Deloitte emphasizes that a robust organizational culture can drive performance, engagement, and innovation. However, according to a survey by Bain & Company, only 28% of executives believe they understand their company culture. BDPs suggest prioritizing communication—promoting transparency, consistency, and trust to retain talent and increase engagement. Furthermore, enforcing accountability and fostering a learning environment can help to shape a stronger, more adaptable company culture.

Innovation is the cornerstone of maintaining a business's competitive edge, a fact backed by 63% of CEOs in a PwC study. Unfortunately, Gartner suggests that many businesses struggle with moving from ideation to execution. BDPs in Innovation recommend leveraging Design Thinking—a human-centered approach to innovation that integrates the needs of people, the possibilities of technology, and the requirements for business success. This approach encourages teams to iterate, experiment, and learn rapidly, helping businesses bridge the gap between initial concept and successful execution.

To effectively deploy BDPs, it's vital to establish an ongoing mechanism for identifying and capturing these practices. This can include internal audits or external benchmarking through reputable firms like Accenture or EY. One feasible approach is creating a centralized Knowledge Management system, which allows for the systematic gathering, organization, and dissemination of key best practices globally.

However, the adoption of these practices should not be seen as an end in itself. As management guru Peter Drucker pointed out, "Efficiency is doing things right; effectiveness is doing the right things." BDPs offer a set of tested solutions, but true leadership understands the importance of flexibility, adaptation, and context when applying best practices to their unique organizational environment.

The benefits of leveraging BDPs range from improved operational efficiency and increased market share to enhanced customer satisfaction and better risk management. A survey by BCG found that companies that systematically apply BDPs outperform their competitors by 45% in terms of sales growth, and 70% in terms of profit growth.

• Improved Operational Efficiency: Effective BDPs streamline operations, driving enhanced productivity and reducing costs.
• Increased Market Share: BDPs can help identify untapped opportunities, enabling expansion and securing a larger share of the market space.
• Enhanced customer satisfaction: Adopting customer-focused BDPs can significantly improve customer experience and satisfaction, ultimately leading to improved customer retention and loyalty.
• Better Risk Management: Effective risk management BDPs help organizations identify, assess, and prepare for any risks that may interfere with their objectives and operations.

Indeed, adopting the Best Demonstrated Practices across business functions is a strategic advantage that enables organizations to stay agile and resilient in an ever-changing business environment. It's a journey that transforms an organization from good to truly great.