Licence to operate: Why use an ISO standard?

Believe it or not, I was once asked by a senior leader, “why do we need all these ISOs? I can save some money by getting rid of them.” And reader, that individual was absolutely correct, they could save money but at the cost of no longer having a business, no more tender/bid inquiries and being removed from approved supplier lists and then having no job.

In this blog post, we will explore the benefits of implementing an ISO standard and also how you can demonstrate the value to those non-enlightened senior leaders..

What is an ISO Management System?

ISO stands for International Organization for Standardization, based in Geneva they bring experts together from across the globe who then develop and publish international standards from quality management to artificial intelligence. The standards are essentially a framework for organisations to start building their own management systems and meeting the requirements of the standard.

The standards vary from actual standards that you can be certified to or those that are just purely there for guidance. The important thing to remember is that the standard is just minimum requirements, you can go over and above what the standard demands and that is where you can get true value from implementing ISO standards.

Benefits of Implementing ISO Management Systems

There are many benefits of implementing an ISO management system that get reeled out like efficiency, customer satisfaction, enhanced risk management and continuous improvement. But fundamentally the main reason why organisations implement them is that it gives them a competitive advantage and access to markets. Unless you have ISO9001 or one of the others you basically won’t be invited to participate in tenders and bids, so, it’s not a "nice to have" it is essential.

With so many organisations holding ISO9001 certification these days, the main competitive advantage has been diluted, but that doesn’t mean you can’t differentiate yourselves from your competitors through using an ISO. Remember, the standard itself is just a minimum requirement and if all you want is the badge on the wall then the minimum is all you will get, but by effectively implementing it you can drive continuous improvement and innovation, and that is where you will differentiate yourself.

If you’re good, you will see the direction that the market is taking and adopt an ISO before it becomes mandatory, that is where you will be seen as an innovator or early adopter and not a laggard.

Key ISO Standards to Consider

There are numerous ISO standards that organisations can implement, but those that are key for your organisation are dependent on your specific market and needs. Here are a few key standards to consider:

ISO 9001: Quality Management

The most widely recognised standard with its focus on quality management and meeting the needs of the customer.  

ISO 14001: Environmental Management

The main standard associated with environmental management, but with many other standards in this area now such as ISO 50001 Energy Management and PAS 2080 Carbon Management in Infrastructure it feels like this standard is just purely about compliance.

ISO 45001: Occupational Health and Safety Management

If you’re in a high-risk sector, ISO 45001 is a must to implement, it is likely to be a customer requirement that you simply must meet.

A couple of standards to watch and consider, again depending on your market and needs:

ISO 27001: Information Security Management

With very recent and high-profile cyber security incidents like Marks and Spencer and Jaguar Land Rover, ISO 27001 could start to gain traction in helping organisations manage their information security risks and protecting personal data. It’s not a standard for the faint hearted though; it takes a lot of work.

ISO 22301: Business Continuity Management

Like above, how business responds to cyber incidents or the impact of climate change such as flooding can determine whether a business survives or not. It’s been around for years but never gained traction.

ISO 45003: Psychological Health and Safety at Work

Whilst it is essentially guidelines, some certification bodies are now offering verification to this standard. Complementing ISO 45001, this standard focuses more on the growing psychological issues within the workplace. One to watch.

Steps to Implement and Challenges

First things first, understand what you drivers are for implementing an ISO. If it’s a client requirement then the likelihood is that your senior leaders will be aware of it and know they must do it. Senior leadership supporting for ISOs is often a problem, see my opening paragraph above, so if they know about it you’ve got half a chance.

There are several other steps which I’m not going to go into in this blog, but key for me and why I say keep it simple all the time, is that you are probably a successful organisation already, so it is likely that there are probably lots of things that you are already compliant with. So, don’t reinvent the wheel, understand what you do and build your system around your business, not force your business into the square peg of an ISO clause.

The Value Creation

Saying it gains us access to new markets etc is not enough for some leaders, see my opening paragraph, so, you have to try and reframe the benefits of ISO into other drivers of a business such as money, customer satisfaction or employee results. Here are some examples:

Reduced carbon – No! We’ve reduced cost or improve efficiency

Your CFO is unlikely to be dining with Greta Thunberg anytime soon, so rather than focus how many tonnes of carbon you’ve saved, talk about how much money you’ve saved. Often reducing carbon reduces costs. Or it might have improved the way you operate, making you more efficient and again time measures which can be costed are a good indicator for you.

Reduced Lost Time Injuries but also saved money

Reducing lost time injuries is definitely something worth achieving, but you can also place a monetary value on the costs related to those accidents. For example, the sickness costs of someone being off, the replacement costs of an agency person, the management time required to do accident investigations, insurance costs etc. There should be proxy values that you can use.

Improved process efficiency – No! We’ve saved the need to recruit

Whilst ISO 9001 is focused mainly on the customer, there is also an element related to processes within it, well in most of them to be honest, so the better you can make the processes, the better you can meet the needs of the customer. Take a look at our Business Excellence page to see a real-life example of how by improving process efficiency we eliminated the need to recruit and add to the headcount.

The Role of Cynnal Group in Keeping it Simple with ISOs

Look at our Management Systems page, Cynnal Group has vast experience in this area and specialises in helping organisations implement ISO management systems effectively. We don’t have an off the shelf system, we tailor solutions to meet the unique needs of each client.

Our approach includes:

• Consultation: Understanding your organisation's goals and challenges.

  
  

• Training: Providing comprehensive training to ensure your team is equipped to implement the system.

  
  

• Support: Offering ongoing support throughout the implementation process and beyond.

  
  

By partnering with Cynnal Group, organisations can streamline their operations and achieve ISO certification more efficiently.

The Future of ISO Management Systems

It’s unlikely that ISO standards are going to go away any time soon, standards for artificial intelligence are already published or in development. And as new technologies are developed to combat climate change, we’ll probably see more development in that space.

Those organisations that truly embrace ISO standards and make it part of how they operate day-to-day will be better positioned to adapt to the ever-evolving changing market conditions, drive continuous improvement and create that competitive advantage.

Implementing an ISO should be a strategic decision for an organisation, investing in the future of their organisation and becoming a sustainable organisation.

A team working together to implement an ISO management system.