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Company Credentials in a tough economic market, you need an inspired solution!

Date: 08th September 2008

Robin Askey from Greenfutures Consulting contends that certification is a management tool which, used effectively, can help companies weather the recession.

An effective management system improves how a company performs and provides a platform to manage and enhance the business. And management systems are not the preserve of big businesses. Any company aiming at improved business performance needs to put in place a clear strategy to identify, measure, control and improve the core business processes. Improving how the business operates will ultimately lead to that desired improved performance.

There are other misconceptions about management systems. It is not the case, as is often misquoted, that an ISO 9001:2000 quality management system simply means ‘writing down what you say you do and making sure you do it’.

Part of the problem is that reference to ‘quality’. ‘Business management system’ perhaps better describes what ISO 9001 is all about. The latest 2000 version focuses on managing business performance. It’s certainly not about making ‘widgets’ as you might hear said in a dismissive tone. The quality in the end product is achieved because effective operational systems are put in place to rule out poor practice and to enable staff throughout the organisation to take responsibility for their role.

A key aspect of ISO 9001:2000 is that it provides framework to enable to business to grow. How much harder is it for a business to improve and grow if there is not a clear means of operating and the business aims have not been set?

Management systems are a business tool to help achieve those aims. There are other drivers, too, be it to create a platform to enable growth, to control how services are provided, to mitigate environmental or health & safety risk, to secure marketing advantages, or simply to provide assurances to clients that they are dealing with a ‘responsible’ supplier. Increasingly, companies cannot tender for projects without ISO 9001:2000 in place.

In the present economic environment, whether we are already in recession, or simply facing a downturn, depending on which headlines you read, companies have to strive for a competitive advantage. One prominent certification body,  BM TRADA Certification, report that since the credit crunch began in earnest in February of this year, they have seen an increase demand for their certification services.

Effective management systems are not therefore seen as just another overhead when times are hard. As the competition gets tough, the tough don’t need to get tougher, but they do need to market themselves more strategically. And regardless of the economic climate, the global environment is another area which companies have to address. Demand for ‘green credentials’ will continue to grow and it is no surprise that certification to the environmental management standard ISO 14001:2004 has become increasingly popular. Again, there is a strong element of ‘must have’ in this, as suppliers of products and services are increasingly asked for proof of their environmental practices.

This underpins a marked change in how businesses interact with their suppliers.  Before, products and services were procured in many instances on the basis of two main criteria: the ability to supply and the cost.  Often, this is no longer the case, certainly with local authorities and large organisations. Risk plays a greater role, the risk that the supplier’s services may bring the client into disrepute, be it from generally poor business practices, an environmental, health or safety issue, or as recent headlines proclaimed, an information security incident.  Clients nowadays want a thorough assessment of any potential supplier’s credentials and increasingly this is not limited to supplier questionnaires.  A questionnaire does not provide an accurate representation of the business, merely an indication that is subject to embellishment.  Second party audits - audits that are conducted by one business on another business or organisation - are a means to assess if the supplier presents a risk, in addition to ensuring they have the means to deliver the service expected. Management systems can provide a snapshot view of a business. Certified management systems help in the decision-making process, giving potential clients the reassurance that the supplier has sound quality, environmental or other business performance controls in place. Another distinct trend is the move towards Integrated Management Systems (IMS). This can significantly reduce the areas of potential duplication and cut the cost of implementation and maintenance, saving time and encouraging ‘good practice’ across the business. The most common integrated approach brings together ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:2007. For most businesses, the standards will dovetail neatly, enabling companies to streamline systems, reduce paperwork and manage their business in a more focused way. All management systems, if correctly developed and implemented, will contribute to financial success in other ways too.  One of the principles of quality management is ensuring customer focus. Businesses depend on their customers, and therefore need to identify and understand their present and future needs to be able to meet their expectations, or better still, exceed them.   Successful companies must continually monitor if they are providing the level of service a client expects to ensure they retain that business. They need to gather information about how to improve and to stay ahead of the competition, as part of a holistic business strategy. Business management systems create an environment of continuous improvement which prevents companies from becoming stale and taking their market and their market share for granted. And as competition increases further as the recession/downturn deepens, we will surely see greater transparency and accountability in the way companies operate. Many more businesses will target certification to help them weather the storm.  

For further information on certified management systems contact the BPCA whom can provide you with guidance