603: When ‘Best Practices’ Backfire

Freek Vermeulen, an associate professor of strategy and entrepreneurship at the London Business School, argues that too many companies are following so-called best practices that are actually holding them back. They do it because of deep-seated industry tradition—and because it’s hard to know how seemingly successful business models will hold up over the long term. That’s why, he says, organizations should avoid benchmarking and instead routinely test their business practices before there’s a problem. Vermeulen is the author of “Breaking Bad Habits: Defy Industry Norms and Reinvigorate Your Business.”