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Business Performance Assessment Program Best Practice 6 – Three Whys Deep
Executives, managers, and individual contributors familiar with the day-to-day workings of their organizations undoubtedly know or have contrived the reason for ‘why things are the way they are.’ Beyond this understanding, sometimes at an unconscious level, these individuals will perceive one or more drivers to these organization shaping whys. What remains unseen and unthought-of are the tertiary and lower level drivers to why the business performs as it does. It is here that truly useful insight can be gained; insight enabling the foundational changes needed to alter the organization’s direction and propel it to the next level.
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Several other StrategyDriven best practices work in concert with Three Whys Deep to ensure assessment teams reach insightful, value adding, and robustly supported conclusions including:
- Strategic Analysis Best Practice 3 – Identify the Hidden Drivers
- Strategic Analysis Best Practice 3 – Identify the Hidden Drivers (Continued)
- Strategic Analysis Best Practice 4 – Use of Independent Assessors
- Strategic Analysis Best Practice 6 – Multidiscipline Teams
- Decision-Making Best Practice 4 – Identify the Target
Properly performed self assessments provide business leaders with deep insights as to what is working well and opportunities for improvement within a business function, area, or process. These insights become even more beneficial when the practices and results of top performers are used as a reference or benchmark for the evaluation. Best practices, however, are not always relevant to every situation or circumstance. Therefore, it is important to consider local context when evaluating performance against accepted best practices.
It’s perfectly natural and expected that individuals want to do a good job and be recognized for it or at a minimum want to do a good enough job to avoid what are to them undesired consequences. Subsequently, people look to what their superiors communicate as required job performance to gag the level and timing of their efforts.
Evaluators performing business performance assessments often find themselves awash in data suggesting their company’s performance significant lags that of competitors and top industry performers. Evidence suggesting the need to improve may be so plentiful that the self assessors come to believe immediate reforms must be made if to only ensure the continued viability of their organization.
Often practiced, it can be highly misleading to base the organization’s performance standards relative only to internally identified best practice methods and characteristics. While at times the organization’s performance does represent the highest standard, it is more likely that individual activities are performed more effectively and efficiently by other organizations, particularly those seeking to improve performance in an effort to compete with perceived industry leaders. Top performers recognize this trap and augment their internal search for effective performance with an outward examination of other relevant businesses.
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