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Business Transformation Consultants
Eliminating barriers to growth |
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Making Management Systems Pay
Many organisations have undertaken third party certification to recognised standards, such as ISO 9001 (quality management) and ISO 14001 (environmental management). However, it is not uncommon to hear that:
• The cost is obvious but the value isn’t - companies are struggling to make their commitment to third party certification work for them and add value
• Cost savings are not being realised following implementation and little return is seen on investment
• The complexity of current standards and their implementation is proving to be a barrier to adoption
• Complying with generic standards is not meeting priority business objectives
Compliance or Competitiveness?
There may be several reasons for these poor results, including:
• Implementing management systems standards is seen as a technical or operational task. If implementation is being driven by a technical or quality department, rather than senior management, alignment with business strategy is bound to be more difficult.
• Difficulty in obtaining an objective view of the business from within and being able to see the most effective path to success.
• The standard is used as a framework around which documentation is constructed and business activities are forced to take place. Although not as common nowadays, in their attempts to show compliance, some companies revised their processes and documentation to fit the clauses of the standard they are trying to meet. This, of course, is putting the cart before the horse.
Can hundred’s of thousands of companies be wrong?
Well actually, yes and no. From observation it is clear that some companies have gained certification ‘just for the badge’. Certification is seen a ‘grudge purchase’ and because the foundation of their systems is insecure, problems and rework occur, just to remain compliant let alone benefit. It is not uncommon for such systems to fall into disrepair and become obsolete.
The reasons for certification may not have been clear to senior management which, with many other pressures, may have delegated the task. Some have reluctantly agreed to third party certification on the say-so of others, without really establishing the business case or defining the tangible benefits and how they will be realised.
However, there are many companies that will attest to the substantive benefits of management system certification, so what are they? Those most commonly cited include:
• Compliance with regulation
• All aspects of the business regularly monitored
• Potential risks and problems identified
• Opportunity to reassess ways of working and introduce ‘best practices’
• Roles and responsibilities defined and clearly understood
• Provides assurance and instils confidence in your customers
But is this enough? Real benefits from a management system should include:
• A more effective business – where practice supports the brand
• A more efficient business – with reduced waste and lower costs
• A more compliant business – with standards being met that have been set by the business itself
• A more integrated business – providing improved process control and productivity
• A more agile business – which can cope with change and adapt to continuous innovations
Making the difference
A system (multiple simple routines interconnected) that works well never draws attention to itself. It may take time to set up but once established it will reduce risk and stress and ensure that work gets done properly and consistently.
Experience over some 20 years of implementing management systems and governance structures has show that mastery of five aspects is vital, what we have come to call The Five Keys to Business Success:
1. Clear direction – clear articulation of strategies and standards that are understood by customers and staff which focus the organisation
2. Everything as a system – the system, focussed on customer needs, connects the organisation to the customer
3. Unity in action – creating a supportive environment in which people become engaged
4. Measurement for management – paying close attention to how the business is doing in meeting customer needs, in financial and other terms
5. Embrace the future, now – ensuring that innovation is built into the system for continuous improvement and growth.
Implementation, not the standards themselves, is often the problem. A simple platform to underpin the complexity of operations is required, together with a clear roadmap for success and an understanding of the tools, techniques and best practices, which ensure that a properly managed transformation produces the desired results in a way that fits the business’s own culture and unique attributes.
If you are not getting the best from your management systems Contact businesskeys™ now on 07881848584.
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