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Chapter 2
How to Use Best Practices

This chapter is about implementing best practices. It begins by describing the
various kinds of best practices and goes on to cover those situations where they
are most likely to be installed successfully. The key components of a successful
best practice installation are also noted. When planning to add a best practice, it
is also useful to know the ways in which the implementation can fail, so there is a
lengthy list of reasons for failure. Finally, there is a brief discussion of the impact
of change on employees and the organization. Only by carefully considering all
of these issues in advance can one hope to achieve a successful best practice
implementation that will result in increased levels of efficiency in the accounting
department.

TYPES OF BEST PRACTICES

This section describes the two main types of best practices, each one requiring
considerably different implementation approaches.
The first type of best practice is an incremental one. This usually involves
either a small modification to an existing procedure or a replacement of a proce-
dure that is so minor in effect that it has only a minimal impact on the organiza-
tion, or indeed on the person who performs the procedure. The increased level of
efficiency contributed by a single best practice of this type is moderate at best,
but this type is also the easiest to install, since there is little resistance from the
organization. An example of this type of best practice is using a signature stamp
to sign checks (see Chapter 3); it is simple, cuts a modest amount of time from
the check preparation process, and there will be no complaints about its use.
However, only when this type of best practice is used in large numbers is there a
significant increase in the level of efficiency of accounting operations.
The second type of best practice involves a considerable degree of reengi-
neering. This requires the complete reorganization or replacement of an existing
function. The level of change is massive, resulting in employees either being laid
off or receiving vastly different job descriptions. The level of efficiency improve-
ment can be several times greater than the old method it is replacing. However, the
level of risk matches the reward, for this type of best practice meets with enor-
mous resistance and consequently is at great risk of failure. An example of this
type of best practice is eliminating the accounts payable department in favor of

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