Best demonstrated practices are those processes conducted either inside or outside of a firm that serve to generate the most value at the least cost. Worldwide, firms achieve best practices through process innovation or business process reengineering, setting the standard for specific processes from quality or cost perspectives.

A firm's long-term profitability depends upon not only understanding the importance of achieving best practices, but on indentifying them specifically within an industry or business model, and acting accordingly.

Bain takes a multi-phase approach toward developing a best practice analysis for our clients. We first identify and analyze the most important value-adding activities that the client conducts. If similar processes are conducted at multiple locations within the firm, we quantify the key drivers of variability across the firm.

We also look outside the firm, and often outside the immediate competitive circle, to identify best practices that may be applied to our client's processes. Often, we will construct a strategic mapping of the client's capabilities within these processes relative to competitors or a desired position.

To find out more about Bain's work in this capability area, please contact capabilities@bain.com.