Question $1$: Identify best practice guidelines that would define world$-$class behaviour

Read the following case study and then list how you would identify Best practice guidelines that would define world$-$class behaviour for your specific context $/$ organisation:

Are Your Best practices Really the Best?

When asked if they know what a "Best practice" is$,$ most executives would raise their hands in the affirmative. But would the Best practice lead to improved performance? Is it a "good idea" described in a case study, or is it proven, time and time again, to yield results? Most important, is the technique backed up by empirical data?

In most cases, it is not. Using Crest toothpaste because $"4$ out of $5$ dentists surveyed recommend it$"$ is not a Best practice. Without data, "Best practice" is a generic term that offers no proof of relevance or applicability to any situation or environment. The approach may be a good idea $...$ or a serious mistake.

For The Hackett Group, a Best practice is a proven technique that delivers measurable value; an approach whose adoption correlates with World$-$Class performance metrics.

A Best practice does not necessarily always save cost; it can enable alignment with business strategy, promote timely execution, reduce error rates, ensure acceptable levels of risk, etc.

The characteristic that differentiates a Hackett$-$Certified practice from a "Best practice" is the correlation of the technique used with World$-$Class performance metrics gained through ongoing empirical benchmark studies.

Hackett$$s continuously updated knowledge repository is derived from $3,500$ empirical studies of almost $2,100$ of the world$$s leading companies over $14$ years.

Hackett Best practices drive World$-$Class performance

Hackett defines "World$-$Class" as top$-$quartile performance across both efficiency and effectiveness measures. Once these leaders are identified, we look closer at the specific practices these companies utilise that enabled them to excel. Hackett analyses performance metrics using their proprietary Hackett Value Grid$.$ Overall, World$-$Class fundamentally outperform their peers across the board.

$$

More effective

World$-$Class companies are more effective than their peer groups. For example:

$$ They outperform the peer group and do so with almost $20$ percent lower operating profit volatility.

$$ They deliver a higher return on their planning investment $(4\mathrm{.}9$ percent vs$.1\mathrm{.}5$ percent$).$

$$ Reports and commentaries generated by World$-$Class organisations are $30$ percent more likely to be forward$-$looking.

More efficient

World$-$Class companies are also more efficient than their peers. For example:

$$ They spend $50$ percent less for planning and performance management processes.

$$ They generate $53$ percent fewer business performance reports than their peers.

$$ They have internal customers who are likely to describe the process to revise budget numbers as "convenient and easy" $10$ percent more often than their peers. At the most effective organisations, internal customer satisfaction is $47$ percent higher than the peer group.

$$ They devote more full$-$time resources to decision support.

Best practices must align with strategy

Not all companies value the efficiency and the effectiveness of every function equally. Depending on its business strategy, each company may have different goals in how they will drive to World$-$Class. World$-$Class companies as defined by The Hackett Group$$s empirically based methodology have attained their superior performance levels because they have made the appropriate tradeoffs and decisions regarding the practices they follow, and they have executed them extremely well.

For example: if the corporate strategy is to make products as inexpensively as possible, then the functional leader$$s goal $$ to be aligned with corporate strategy $$ should be to reach the top in efficiency. If the objective is to provide a total solution, i$.$e$.$ high$-$touch, high$-$value products, service, etc., then the goal should be to achieve top in effectiveness. The importance of establishing functional performance that is aligned with Corporate Strategy cannot be over$-$emphasised.

Reporting models must evolve

Reporting models used by most companies fail to support effective decision making and must evolve. The activities associated with business analysis and reporting represent some of the most visible performance gaps between World$-$Class and average organisations. According to Hackett benchmark studies, operations managers of World$-$Class Effectiveness organisations describe the budget process as "convenient and easy" $57$ percent more often than their peers.

World$-$Class companies support the planning process with fewer technology systems, reaping the benefits of reduced system complexity, while leveraging those systems to provide timely and relevant information access to decision makers.

Characteristics of World$-$Class performers

World$-$Class performers adopt specific Best practices to out$-$perfor